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Bitcoin (Cryptocurrency)

Education - How does a bubble develop and what are the signs?Preface: This learning content or information is merely my experience, or are those techniques that I use or find useful. The beauty of technical analysis is that an analysis or forecast can be made using many different approaches. These differ in effort, approach, tools and technical approaches. However, I think one thing is important: Keep the chart as simple as possible, try to see what is obvious and work with as few tools as possible but as many as necessary. If you base your analysis on what seems obvious, it is likely that many other traders will also see it. This in turn would support a movement in the predicted direction. = Self-fulfilling prophecy -> Examples: Moving averages, Fibonacci retracements, Simple formations etc.... ________________________________________________________________________________ Remark: This is supposed to be a small help to identify signs of a bubble formation, I must absolutely note that a lot of experience and knowledge is necessary here, which I can not convey in a hurry, as this would definitely go beyond the scope. Just try to analyze the BTC rise of 2017 with the help of these signs, or even the current rise. What is a bubble ? A bubble is usually easy to recognize in retrospect, a lot of green long candles, few red candles, until usually a high point. Then lots of big and long red candles and few green :) But how do I recognize a bubble while it is forming? Important: Please read through the wave age tutorial I wrote beforehand, this understanding is needed to continue here. If a trend does not consolidate sufficiently, but on the contrary shows shorter and shorter consolidations, rises faster and faster and ideally is still fueled by media interest, then these are the first signs of a bubble. (See bar in the chart) Within a trend, the price must consolidate sufficiently after a rise (to go into this in more detail would go beyond the scope). If now the trend in the period under review over the zenith, so after eg 6 waves, a new high and then further waves, with steeper and steeper price increases, so a bubble is to be assumed. The price MUST consolidate sufficiently to be sustainable. In the weekly, we can see that the price is moving further and further away from the standard SMAs (20,50,200) until it reaches an unnatural distance, which also indicates that the market may be in a bubble. As soon as such signs appear, it is important to set very tight stops, as it can come to an abrupt end. Summary: -Ever steeper rises -Ever shorter consolidations -Distance to SMAs is becoming uncharacteristic of the market Bonus: Media coverage of the asset Annotation: Since the weekly chart is shown here, it is not possible to see how the price reversal occurred. A SKS formed in the H4 , this was the beginning of the end of the steep rise. Also today, we have the same signs as 2017, to note was the very strong and violent reaction , this does not mean that the course will now immediately sink it can go before still on 60.000 , 70.000 or even more high, from my point of view, the current consolidations were not sufficient, I have this in mind when placing a stop __________________________________________________________________________________________________________________________ If I like this kind of tutorial, so leave me a like there and follow me. If there is enough interest I will post more tutorials like this in the future Best regards and good luck DCT Trading
COINBASE:BTCUSDEducation
by SystemTrader-SNP
3
Education - What are divergences and how do I use them? What are divergences and how do I use them in trading? A divergence usually shows the trader that the price is moving in the opposite direction to the indicator (or vice versa). To find a possible divergence in the price you can use various indicators (MACD, Stochastic, Momentum, etc.) I will limit myself to the Momentum indicator, because I use it myself in my trading. What does a divergence say? As already mentioned, the indicator shows me a contrary movement to the price, related to the momentum indicator this means for example: The price rises and forms a new high, but the momentum indicator forms a lower high in the indicator itself compared to the previous PRICE HIGH How do I use a divergence? A divergence can be used in many ways if you know what to do with the information gained. In my opinion, this also depends on the chosen indicator, at least in terms of the information value I get from the divergence. If one is able to identify a divergence correctly, one receives a kind of "warning", in my opinion a divergence by itself does not represent an action signal, but it warns me that in the case of the momentum indicator it comes to a trend slowdown although the price continues to rise. What is to be paid attention to here? -> As mentioned, a divergence by itself is in my opinion NOT a TREND SIGNAL, but a warning or information around which I can now supplement or adjust my trading. -> Very important, there are two ways that one "bends" the divergence to right once the setting of the indicator is crucial, since each trader uses other settings, it is important not to change these in search of a divergence so that one is formed. ->Furthermore, it is important to consider the time unit under consideration, a divergence occurring in H1 is much less meaningful than one in D1. Summary: Divergences are a possibility to add important information to one's trading at an early stage in order to forecast possible price changes that have not yet occurred. They do not represent action signals on their own.
BEducation
by SystemTrader-SNP
Bitcoin Cash and Carry 2021For years I have been talking about using futures products to LOCK IN the fiat value of Bitcoin and give investors the added bonus of collecting a return based on the arbitrage. We are once again in a big bullish cycle which is driving up the futures premiums to all time highs creating OPPORTUNITY . In the FTX:BTC1231 for instance as of writing there is a 20% arbitrage. In this video I revisit this concept for 2021 and explain how it works. See my written idea posts below for this has played out in bull cycles past.
FTX:BTCUSDEducation
by norok
8
Simple Swing Trading Strategy - Easy Money!This strategy would have yielded over 2,322% since November 2015 with only 7 trades! This is a very simple swing trading strategy great for somebody who is just starting out in the market. It lets you get in and start trading without complicating things. Trading with the trend is where the easy money is. Get into a position and then sit and ride the wave. Rules: -Daily Chart -Use multiple EMAs - 20, 40, 55, 81, 200 -Go long when EMAs crossover and are in the order (from top down) 20, 40, 55, 81, 200 -Go short when EMAs crossover and are in the order (from top down) 200, 81, 55, 40, 20 That's it, couldn't be simpler. Feel free to play around with EMAs and timeframes but this strategy works as is! Happy trading.
BITSTAMP:BTCUSDEducation
by ForgeTrades
4
The (COT) - COMMITMENT OF TRADERS Mystery RevealedThis is NOT an in-depth explanation or a way to trade, this is just highlighting some basics from a question I get a lot, you might see some traders talking about COT data. You may even see it in some posts. There's no magic to it, all you need to know is what exactly it is. Of course, if you can use it within your edge to understand some bias by the bigger operators. What is COT Data? The Commodity Futures Trading Commission (Commission or CFTC) publishes the Commitments of Traders (COT) reports to help the public understand market dynamics. Specifically, the COT reports provide a breakdown of each Tuesday’s open interest for futures and options on futures markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. The COT reports are based on position data supplied by reporting firms (FCMs, clearing members, foreign brokers and exchanges). While the position data is supplied by reporting firms, the actual trader category or classification is based on the predominant business purpose self-reported by traders on the CFTC Form 401 and is subject to review by CFTC staff for reasonableness.2 CFTC staff does not know specific reasons for traders’ positions and hence this information does not factor in determining trader classifications. In practice, this means, for example, that the position data for a trader classified in the “producer/merchant/processor/user” category for a particular commodity will include all of its positions in that commodity, regardless of whether the position is for hedging or speculation. Note that traders are able to report business purpose by commodity and, therefore, can have different classifications in the COT reports for different commodities. For one of the reports, Traders in Financial Futures, traders are classified in the same category for all commodities. You can read more info and get the actual data from the CFTC site itself. www.cftc.gov Methodology The weekly report details trader positions in most of the futures contract markets in the United States. Data for the report is required by the CFTC from traders in markets that have 20 or more traders holding positions large enough to meet the reporting level established by the CFTC for each of those markets.1 These data are gathered from schedules electronically submitted each week to the CFTC by market participants listing their position in any market for which they meet the reporting criteria. The report provides a breakdown of aggregate positions held by three different types of traders: “commercial traders,” “non-commercial traders” and “nonreportable.” “Commercial traders” are sometimes called “hedgers”, “non-commercial traders” are sometimes known as “large speculators,” and the “nonreportable” group is sometimes called “small speculators.” As one would expect, the largest positions are held by commercial traders that actually provide a commodity or instrument to the market or have bought a contract to take delivery of it. Thus, as a general rule, more than half the open interest in most of these markets is held by commercial traders. There is also participation in these markets by speculators that are not able to deliver on the contract or that have no need for the underlying commodity or instrument. They are buying or selling only to speculate that they will exit their position at a profit, and plan to close their long or short position before the contract becomes due. In most of these markets the majority of the open interest in these "speculator" positions are held by traders whose positions are large enough to meet reporting requirements. *** Reference from Wikipedia*** When combining with other analysis - you can use it to obtain bias or simple confluence with your existing ideas. For example, here's the chart plotted on a weekly timeframe using Elliott wave theory - Plotted usign another piece of software called "Advanced Get" If you combine this with the data from the CFTC website - you will see that the professional operators have been reducing long positions and gaining albeit staggered short positions on the move down. This showing the overall trend move - If you drill down further and look at the difference in short positions between the 19th of Jan and the following week (26th) on a daily chart you will see a rally. (go check it for yourself) A useful tool As I said at the start of the post, it's not the master strategy. It's simply another tool - I just wanted to share some info with the community on what it is and how it can be used. If used correctly - it can prove useful. Have a great week, feel free to pop questions below. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Education
by Mayfair_Ventures
9
Important for any new futures traders!Going to keep this simple here. The price of bitcoin has sky rocketed these past few months. During the spring & summer time a few hundred dollar move in price would be crucial! Now the price of BTC is lingering around 50,000. Those small movements that where only a few hundred dollars are now thousands. 👉 My point here is that anyone using anything above 5x Leverage is critically risking there portfolio. 💀These shake outs & wicks are future traders death call. 📈 Lets took a look just recently when BTC had closed above its critical resistance level at around 49,400. Many individuals had purchased or over leveraged thinking price will move up after confirmation. (Bull trap) On average the price shifted down about 3%. Anyone more then 20x leverage would have for sure gotten a margin call or suffered liquidation. 👇👇👇 My point is price is too high for individuals to think that over leveraging will yield them higher returns. Trade futures with risk management and the correct way. The reasons exchanges offer up to 100x leverage is so they can make money.
BITSTAMP:BTCUSDEducation
by BigLava
8
Don’t waste time trading cryptos, Stock is the Hottest market!You may not believe it but I published several intermarket analysis that could be a learning opportunity for avid traders and investors. Most Bitcoin traders and investors think they have the best performance with 254% gain since November 2020. But they will become depressed if they check the Bitcoin miners stocks performance such as RIOT(+1400%),MARA (+1730%), or a biotechnology company BNGO(2640%) gain in the same time period..! Seems unbelievable, but I published my analysis on RIOT @3.87, MARA @2.37 and BNGO @0.52 ..! Please check the related topic and judge yourself! There lots of opportunities if you know how to pick the correct stocks.
BITSTAMP:BTCUSDEducation
by Moshkelgosha
12
Short-term trading kills your deposit (2 part)Let's explore the topic of our previous post a little more and see what other mistakes you could have avoided. As we identified in the last article, the first mistake was trading on the news. Second on the list, but not the second most important, is your trading style. Your profit depends on the trading style you follow, it's a fact. At Pennygene we are supporters of long-term trading and investments, but there is also short-term intraday trading. To understand why we are not in favor of the intraday style, let's find out what makes it so special. Almost all beginning traders come to the market with a small capital of up to $10.000. It seems to many people mistakenly, that they cannot make a large fortune without using the leverage and dozens of deals every day. Sometimes intraday traders use more volatile assets and this approach becomes very dangerous and unreliable when combined with big leverage and market bounces. So any minor correction of 5-7% can ruin your deposit, and for the cryptocurrency market, these kinds of dumps are commonplace. Newcomers to trading mistakenly think that a basic knowledge of patterns, price, and trading volumes is enough to succeed in intraday. But this is far from being true. I have repeatedly heard from traders with many years of experience that they think they have not enough knowledge for intraday. Even with a small capital, a long-term trading style can bring you stunning results. Our reports confirm this. May the big profit be with you!
Education
by pennygene
CRYPTO TRADING TIPSI made this post so that myself, along with other traders trying to step into the Crypto world can have a better idea and some insight to what lies ahead. If you can drop some your thoughts on tokens, the Alt coins and also a few sites like Defi, Coin Gecko and 1inch, it would be appreciated. Trading the lesser known coins obviously are obviously high risk, but they also present opportunity for high reward. More importantly, outside of the crazy news events that spike crypto sometimes, how does technical analysis stand over time vs fundamentals. Herd mentality, the big discords...I want to know it all.. I'm open to any other things worth knowing! Thank you!
KRAKEN:ADAUSDEducation
by N0ST0PL0SS
6
Chart Patterns Cheat SheetHello, traders! Here is a cheat sheet which help you to identify the most frequent and reliable chart paterns. I should tell you that the patterns from the group "indefinite" are classified as bullish or bearish in classical literature, but in practice we should be careful using it in trading decisions. BULLISH PATTERNS Inverted Head & Shoulders , Double and Triple bottom are the most simple, frequent and reliable bullish pattern. Let's talk about bullish flag . It usually occur on the uptrend. The volume is high at the beginning of the flag and decrease to the end until the massive breakout to the upside with high volume. The cup & handle is rare pattern and usually play out at the bigger timeframes. INDEFINITE PATTERNS The different types of triangles and wedges are very popular patterns and can be seen at the different timeframes. In classical books about TA rising wedge and descending triangle are bearish patterns, falling wedge and ascending triangle are bullish. But in practice it is very important to observe the side of it's breakout, as a result they can be bullish or bearish like the symmetric triangle . We should wait for the proper breakout confirmation to make a correct trading decision. BEARISH PATTERNS This patterns are the opposite to the bullish pattern, but work at the same way. If you want to learn more about some pattern please give us to know it in comments. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
16
Ultimate Divergences Types Cheat SheetHello, traders! This is a cheat sheet for divergences defining between the price and oscillator. As the oscillator the RSI, Stochastic, MFI, CCI, MACD and other indicators can be used. Regular Bullish Divergence The price shows lower lows, oscillator - higher lows. This is the sign of downtrend weakness and potential reverse to the uptrend. Regular Bearish Divergence The price shows higher highs, oscillator - lower highs. This is the sign of the potential reverse from the uptrend to the downtrend. Hidden Bullish Divergence The price shows highers lows, oscillator - lower highs. This is the uptrend strength sign, it is going to continue. Hidden Bearish Divergence The price shows lower highs, oscillator higher highs. This is the downtrend strength sign, it is going to continue. Try this powerful tool in your analysis and share your results in comments! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
12
Market moves and it's PsychologyThere's a great image available if you just search in Google - look for "The Wall Street Cheat Sheet" - Markets move in cycles, which is built on human emotions. There's plenty of research available on this. If you look into anything like Elliott wave theory, Gann fans & boxes, Wyckoff or simply Fibonacci, you will find (in the end) it's all based on the psychology of human behaviour. Driven by greed, fear, stress and euphoria. Understanding this will help with the very fundamentals of trading. With proper risk management applied, traders can profit from the market with a shoddy Hit rate. Providing their edge is accompanied by good risk management. How often have you been in a losing trade & moved the stop loss? Added to the position? Or in a winning trade, bailed and seen the price move another 10, 20 or even 100 pips in your direction??? Below is a set of images breaking down the market moves in simple terms. For clarity ***This is NOT an in-depth breakdown of strategy, it's not the correct application of Elliott, nor Wyckoff. It's a simple post to get you, the trader thinking beyond just the trade ***. This image above shows the emotions as per the Wall Street cheat sheet. (Go google) Apply some logic to the chart - Look under the hood. Here you will see a basic Elliott wave structure playing itself out. This can then be broken into smaller pieces, like this below; It's almost like going from a Telescopic view down to a magnifying glass. You can see the price move up & consolidate, price move up and consolidate. This is all about timing. Trying to breathe with the market, or at least understand a little of it's cycle. Same applies on the way down. Again, there's a lot of information available on the Bear moves over the Bull moves and how they have different characteristics. But not for this post. Now let's look inside the top - the consolidation of the peak. Think of as simply as - some people have made enough profits from the move up & are selling their positions in vast quantities. There is some great content available on Wyckoff and the theory of composite man. But even at a simple level the basics can be explained as follows; 1) Buyers climax - Profit targets hit. 2) Automatic reaction (lots of selling at the same time) 3) A move to the upside to fool people into going long & collect liquidity at a better price for a move down. 4) Range bound moves - market manipulation (collecting positions ready for the short) 5) weakness - a first test to see the response of the market - also to push back long collecting stops of the eager beavers shorting. After this there are a couple of concepts - but you get the idea by now. You will see this type of structure if you zoom in a timeframe or two. Inside of the structure you will see the list above and how it relates on a chart. Like I said, this is not an in-depth strategy or breakdown of Elliott or Wyckoff. It's just putting the pieces together and to show how powerful tools can be to understand the market cycles. Obviously there's much, much more to understand before you jump into a trade using either Elliott or Wyckoff. But I hope this helps. Please feel free to send questions & like the post below. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
BITSTAMP:ETHUSDEducation
by Mayfair_Ventures
37
Bitcoin (Gann Fan) Tutorial BasicsGann fans are a form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of lines called Gann angles. These angles are superimposed over a price chart to show potential support and resistance levels. 🌀 The Gann Fan was developed by W.D. Gann. 🌀The Gann Fan is a series of angled lines. The user selects the starting point and the lines extend out into the future. 🌀Gann believed the 45-degree angle to be most important, but the Gann Fan also draws angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. 🌀The Fan is started at a low or high point. The resulting lines show areas of potential future support and resistance. The Difference Between a Gann Fan and Trendlines The Gann Fan is a series of lines drawn at specific angles. The 45-degree line should extend out 45-degrees from the starting point. A hand-drawn trendline connects a swing low to a swing low, or a swing high to swing high, and then extends out the right. The trendline is matched to recent price action and is not drawn at a specific angle. Step By Step - Application; Gann is a popular tool & has many resources available online - This breakdown was just a quick look into how to apply them. Please feel free to send questions below. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
149
Fibonacci Trading strategy revealed Hi Fellowers, In this chart i reveal on of my most basic but very powerfull trading strategy's It is one of the most simple methods I use within trend trading analysis. I use fibonacci extensions and fibonacci retracements, and elliot wave theory. Now, elliot wave theory is pretty complex to understand so I do not cover this in this subject. In this subject I just reveal how i trade my major trending pairs in crypto, with a high succes rate. We draw fibonacci retracements, in an explosive trend, we enter the trade on the 50% retracement, in a longer term medior trend, we try to enter on the 61.8% retracements. We use our 78.6% as stop los ( As 76.4 is an important fib ratio) we keep the price just below it ;) Then we do the reverse retracements and add our 127.2 and 161.8% levels in the extensions, those are our exit points. We trade level to level , which means that we draw each extensions on each wave. And we target each level after each trade has been placed. Happy trading folks.
BINANCE:ADAUSD.PEducation
by AppY-Crypto
How to Become Trading Hamster!Let's consider the typical hamster's behaviour with the example on a chart. Usually hamsters want to obtain a big profit quickly. They heard about huge opportunities which crypto markets can give and looking for the big pumps. (1) When the price starts to grow rapidly hamsters usually wait for the confirmation that the pump is real. On this phase hamsters are not believe that the price growth will continue. (2) The price pump continue and the hamsters execute long position because they afraid to miss the opportunity. (3) When the price start to go down hamsters panic and exit their long positions. This is the first point when their lose money. (4) If the price growth continue hamsters think that they made a mistake of early exit and re-enter long position. (5) But the next candle shows the price drop again, hamsters are nervous but decided to wait the growth. (6) After the dump the price moves up again and hamsters are happy that they did not close the position. (7)The price drop again more dramatically. Hamsters close position because of the fear to lose more money. To sum up, hamsters are driven by emotions, greed and fear. I have already told that to follow the trading strategy is the main way to suppress negative emotions. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
4
Bitcoin Psycology Cheat Sheet "Popped The Bubble"Traders should print this cheat sheet out and keep it by their desks! You can save this cheat sheet using Like and Bookmark features! Reason why I wrote this post, is tremendous amounts of Bullish signals in @TradingView community, just take a look at front page and first pages of Ideas tab. IMHO this is signal of "Back to Normal" phase and we are appoaching big crash event during 2021/22. Stay safe and be humble! Best regards Artem Shevelev
Education
by ArtemFuturesTrading
75
Meet Our New Bitcoin TimelineIf you’ve not seen our Timelines feature yet , here’s a quick recap: a lot of the time, when you look at a symbol’s history, you have no idea why the price moves in the way it does or the stories behind it. With our Timelines you get all the contextual information you need on the key market-moving moments, mapped directly onto the symbol’s chart. From early stunts of trading Bitcoin for pizza, to highs of $40,000 a coin (so far), the cryptocurrency’s journey at times plays out like a Hollywood movie. So we’ve taken its story, and uploaded the movie in 8k resolution for repeat viewing on our Bitcoin ticker page. We're release new Timelines by the month and have plans to enable the community to support them as well. For now, please send us a private message to get involved. You can also create your own Timeline by using the Signpost and Text tools to write key events on your chart (like we did above) and then then publish it to your personal profile. If it's good, we'll share it with our team! It may possibly make it to Editors' Picks on the front page. 😍 Here are some other Timelines: Tesla Shopify Beyond Meat Zoom Lyft And stay tuned, much more will be coming soon. Have we missed something important on these Timelines? We build them for you, so all feedback is super helpful. Happy history surfing, Team TradingView
BITSTAMP:BTCUSDEducation
by TradingView
43
RSI Trendline StrategyHello, traders! Last time we considered the topic about the technical indicator's types combinations to increase your profit. I promised you to show in details some strategy which applies combination of the indicators. Let's consider the TREND + OSCILLATOR strategy which uses the EMA and RSI indicators. First of all we should define the direction of a market trend. The price is above 200 EMA means that the market is in global uptrend. So, we are going to search bullish signs for RSI indicator. Today we are going to use RSI in a non-standard way. We will search the RSI downtrend lines breakouts. You can see such line on the chart. When the RSI breaks through this line during the price is in the uptrend it is a buy signal. It is great to have another one confirmation. Here we can see that the price bounced off the 200 EMA and exactly after that there was a massive growth. Why does it work? During the uptrend we often have the consolidation or correction phases. If the RSI is in the downtrend it means that the asset's oversold zone is upcoming, but the market is in the uptrend and bulls dominate. Thus, the money reaccumulates here and when the bear's activity become weak the bulls push the price above rapidly. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
4
Indicators Vs Price action - or both?Many new traders face a magnitude of problems early in their trading journey. One of the biggest dilemmas is caused by the vast amount of indicators available. There are the free basic indicators like RSI, MACD, Bolli Bands and the list goes on. Then you have custom indicators - Paid for, free trails - each offering their own edge. The issue is not what they can or can't do - it's more bout how they are used, even why they are used. I put together the tutorial mostly to show what each of the basic & some custom indicators show on the same chart - at the same time. The idea was to highlight what they can spot and compare it side by side with price action. Also using still simple methods but not automatically drawn indicators such as Elliott and Wyckoff Schematics. Over the last 20 years, I have collected around 14Gb's worth of PDF's, MT4 indicators, expert advisors, BOTS n all sorts. I play with them and revert back to the old faithful. PRICE Take a look at this first chart. A simple RSI indicator that can help identify a shift in the trend. This is not a strategy - it's a simple "spot the move" This type of basic understanding of what a lagging indicator is telling you can actually be beneficial. But not necessary. The next chart shows a simple MACD & this time it can help identify the major (3) move of an Elliott wave move. From here - take a look at simple Bollinger Bands. What you will notice above, is that the Mean of the bands matches the Wyckoff Average price. Obviously oscillating a little as the settings are off the shelf. But you get the point. If we shift to a Parabolic SAR - you can see within the Wyckoff Range of Distribution, the SAR is narrowing almost making a type of sideways Christmas tree. Below we have a basic Stochastic - this where I have the yellow line shows newfound weakness in the trend. Elliott Theory Move away from indicators and you can see an Elliott wave which is actually a 5 wave move within the 2-3 wave move on a bigger timeframe. This move can be measured and sometimes forecasted by using simple Fibonacci tools - you will see from this chart below, the move was straight to the 50-618 range; sometimes referred to as the "Golden Zone" . **Measure taken from the swing X to 1 of the impulsive move.** What goes up, must come down. This move was then followed by a simple A,B,C formation in accordance with the Elliott Theory. Jump forward a little and using Fibonacci again. What you can see here, is that the Fibs from X - 5 (Major move) is now heading down to the 61.8% level. Other Tools Heiken Ashi - is another popular tool. Although it's replacing regular candles, bars or lines it basically takes an average and cuts out the noise. (this is not to educate as to how each indicator works) more highlighting how they can be used in simple terms. What you will notice in the chart above - Is again, the level of respect the Average Price receives within the range. Without the noise. Custom Indicators As I mentioned above, there are thousands of indicators that come in all shapes, sizes and colors. As well as price ranges from free to thousands of dollars a month. Here's an example of how a custom indicator can be built to help traders identify key levels or potential shifts in the market. This indicator looks for the Mean Reversion as well as highlights a curved regression. As price is always trying to move towards its average you can calculate levels of potential reversals based on a load of tools including zones, pivots, or moving avergae touches for example. Again too many to list. This next indicator shows two key areas of interest. Imbalance candles and Order Block levels. There are methods to paint supply and demand zones. These types of levels can be spotted (with experience) on naked price charts. Another tool could be used to measure the strength of a currency or stock. For this, we have a simple Strength index calculation. Showing the shift of power from AUD to USD during the range phase. Conclusion Regardless of the tools and indicators, bots n algo's - Price is still king of the market and all else is designed to measure it. As I said, this post is not to teach anyone how to select or use an indicator - but to highlight how some of these things fit into painting or at least helping to paint a path that price will travel. I hope this helps - please feel free to comment and question below. Safe Trading! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Education
by Mayfair_Ventures
10
Similarities between Cup and Handle and A BullflagThis Bullish log chart for BTC shows a clear cup and handle Yet these could be acting as a quasi-bullflag, flagpole at the same time. Both experience an upward move initially (cup, flag-pole) and further consolidation period (handle, bullflag) Both are bullish but experience a similar development as bullish tools. That will always continue to form over time. The handle if viewed in a 3D state can be seen as 'protruding' much like a flag on a flagpole. Creating this distinction.
BITSTAMP:BTCUSDEducation
by Bixley