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How To Have An Edge Over The Markets!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Today I want to share a basic trading plan that you can follow to quantify your trading edge. 📌Step 1: First, start from the higher timeframes like Daily/Weekly to identify the current long-term trend. is it bullish, bearish or stuck inside a range? If the price is sitting in the middle of nowhere, then it is a NO trade zone as price has 50% change to go either up or down. Thus no edge! 📚Wait for the price to approach the lower bound or upper bound. Then proceed to Step 2 📌Step 2: No matter how strong a horizontal / non-horizontal support or resistance is, it can still be broken. Thus don't buy/sell blindly as price approaches a support/resistance. Instead, zoom in to lower timeframes like H1 and M30 to look for setups. 🏹A basic approach would be to wait for a swing low to be broken downward around a resistance as a signal that the bears are taking over. In parallel, wait for a swing high to be broken upward around a support for the bulls to take over. This would be the confirmation to enter the trade. ⚙️Of course, your second edge would be through risk management by targeting at least double than your indented risk. But that's a topic for another post 😉 Always follow your trading plan regarding entry, risk management, and trade management. Hope you find the content of this post useful 🙏 All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
14
Master the Trading Mindset: Lessons from Trading in the ZoneTrading in the Zone by Mark Douglas is widely regarded as one of the most important books for traders seeking long-term success. The book emphasizes that consistent profitability in trading is not only about mastering strategies or market knowledge but, more importantly, about trading mindset, mastering your own mind. Many traders focus purely on technical or fundamental analysis, but Douglas insists that psychological discipline is what separates successful traders from the rest. By understanding the emotional and mental aspects of trading, you can turn potential obstacles into strengths. Why Most Traders Struggle: The Illusion of Market Control One of the core ideas in Trading in the Zone is that many traders enter the market under the false assumption that they can control outcomes if they make the right predictions. This mindset is deeply flawed. The financial markets are inherently unpredictable. Even with the best analysis, there are countless factors influencing price movements that are beyond any trader’s control. Key Lesson: Embrace Uncertainty Douglas emphasizes that successful traders must understand that the market is governed by probabilities, not certainties. You will never be able to predict the market with 100% accuracy, and that’s okay. The goal isn’t to be right every time, but to develop an approach that gives you a statistical edge—one that ensures you come out profitable over time, even when some trades fail. Think of the market as a casino: while the house doesn’t win every game, its edge ensures that over time, it’s consistently profitable. Similarly, traders need to focus on building a system that works across a large number of trades, rather than getting caught up in trying to control individual outcomes. Building a Winning Attitude: The Process vs. The Outcome A major theme in Trading in the Zone is the need to shift your mindset from being outcome-driven to being process-driven. Most traders make the mistake of evaluating their performance based on whether they won or lost an individual trade. This creates a dangerous emotional cycle, where wins create overconfidence and losses spark fear or frustration. Key Lesson: Detach from Individual Results Douglas teaches that trading is a marathon, not a sprint. Consistent success comes from focusing on the process, not individual trades. You must follow your plan and rules consistently, regardless of the outcome of a single trade. Winning trades don’t always mean you followed your plan, and losing trades don’t necessarily indicate failure. Instead, long-term success comes from disciplined execution of your edge. By focusing on process over profits, traders can eliminate the emotional highs and lows that lead to inconsistency. This mental shift helps you stay level-headed, even when things don’t go your way. The Role of Beliefs in Trading: How Your Mindset Shapes Your Actions Our beliefs influence how we behave in the market. If you have subconscious fears about losing money, or if you believe that being wrong is a sign of failure, these beliefs will manifest in your trading actions. You might hesitate to pull the trigger on a trade, cut winners too early, or hold onto losing positions because you’re afraid to admit defeat. Key Lesson: Reprogram Your Mindset In Trading in the Zone, Douglas explains that you must reprogram your mindset to align with the realities of trading. Accept that losses are part of the game. Successful traders understand that losses are inevitable, and they don’t let individual losses affect their confidence. Trading success comes from building a set of beliefs that supports objective decision-making. For example: Limiting belief: “I can’t afford to lose money.” Empowering belief: “Losses are a natural part of trading; my edge will prevail over time.” By changing these internal beliefs, traders can reduce emotional interference and make rational decisions in line with their strategy. Thinking in Probabilities: Shifting to a Casino Mindset Douglas spends considerable time explaining the concept of thinking in probabilities. He uses the metaphor of a casino to illustrate how successful traders operate. A casino doesn’t win every bet, but its edge ensures that over thousands of games, it consistently comes out ahead. Similarly, traders need to think of their trades in terms of probabilities. Key Lesson: Your Edge is Everything Your edge is your winning probability over a series of trades, not your ability to predict individual outcomes. Once you accept that losses are part of the game, the emotional attachment to individual trades fades. What matters is sticking to your system and letting the edge play out over time. In practical terms, this means: Don’t let a losing trade shake your confidence. Don’t get overly excited about a winning trade. Stay committed to your system, knowing that it will be profitable over time if you consistently apply it. Overcoming the Fear of Losing One of the biggest challenges traders face is the fear of losing. Fear of losing can cause you to avoid entering trades altogether or exit winning trades too soon. This fear stems from not fully accepting the risks of trading. Key Lesson: Accept the Risk Before Entering a Trade Before placing any trade, you must be at peace with the potential loss. Douglas emphasizes that you should only trade when you are completely comfortable with the risk. If you can’t emotionally handle the thought of losing a certain amount of money, you’re risking too much. By accepting the risk upfront, you free yourself from fear and allow yourself to trade objectively. Douglas advises using smaller position sizes or setting tighter stop-losses until you feel confident about the level of risk you’re taking. Once you accept the risk, you can approach the market with less emotional interference and more discipline. Consistency is Key: The Power of Discipline Many traders struggle with inconsistency. They might have periods of great success, followed by periods of undisciplined trading that wipe out their profits. Douglas explains that the secret to long-term success in the markets is consistency—not in your results, but in your actions. Key Lesson: Follow Your Rules The most important trait of successful traders is that they follow their trading rules every single time. When you deviate from your rules because of fear, greed, or frustration, you open yourself up to unnecessary risk and losses. On the other hand, by consistently following your edge and your system, you guarantee that you will capitalize on your strategy’s strengths over time. Consistency in following your plan leads to consistent results. Discipline becomes the foundation of a successful trading career. The Psychological Barriers in Trading: Recognizing and Managing Emotions Emotions such as fear, greed, impatience, and overconfidence are often the biggest roadblocks to successful trading. Douglas emphasizes that the key to overcoming these barriers is self-awareness. Traders must learn to recognize when their emotions are influencing their decisions and develop strategies for managing these emotions. Key Lesson: Mindfulness and Emotional Control By practicing mindfulness, traders can learn to separate their emotional responses from their actions. For example, when the market moves against you, instead of reacting impulsively, take a moment to assess the situation objectively. Is this a market move you’ve anticipated in your plan, or is it an emotional reaction to an unexpected event? Douglas encourages traders to develop emotional control strategies, such as: Journaling your trades to reflect on your emotional state during each trade. Setting clear, predefined exit strategies to avoid emotional decision-making. Practicing visualization and breathing techniques to stay calm during high-stress moments. Developing a Rules-Based Trading System Another crucial concept in Trading in the Zone is the importance of having a rules-based trading system. Many traders enter the market without a clear plan or rules, relying on gut feeling or market sentiment. This lack of structure leads to inconsistent results and poor decision-making. Key Lesson: Create and Follow a Solid Trading Plan To achieve success, Douglas emphasizes the need to create a trading plan that outlines: Your entry and exit criteria. How much you are willing to risk per trade. The market conditions under which you will or won’t trade. Having a plan allows you to remove emotion from your decision-making process. When you have clear rules in place, you don’t have to guess or second-guess your actions. Instead, you follow your plan with discipline and consistency, leading to more predictable results. Trusting Yourself and Your System One of the final messages in Trading in the Zone is the need to trust yourself and your system. Many traders fall into the trap of doubting their strategy after a few losses, even if the strategy has worked well over time. This lack of trust leads to system hopping, where traders jump from one strategy to the next, never giving any single approach enough time to prove its worth. Key Lesson: Confidence and Commitment Douglas emphasizes that once you’ve developed a solid trading system, you must commit to it fully. Trust that your system will work over a large number of trades, and resist the temptation to abandon it after a few losing trades. Confidence in yourself and your strategy is essential for long-term success. The Zone: Peak Performance in Trading Douglas describes the ultimate goal of every trader as achieving “the zone.” This is a mental state of peak performance, where you are fully in tune with the market, your emotions are under control, and you are executing your trades with clarity and confidence. Traders in the zone are not fixated on individual outcomes but are fully present and focused on following their process. Key Lesson: Reaching “The Zone” in Trading: Achieving Peak Performance In Trading in the Zone, Douglas introduces the idea of “the zone” — a state of peak performance where a trader is completely in sync with the market. In this mindset, emotional distractions are minimized, allowing you to make clear, confident, and unbiased decisions. When traders enter the zone, they’re fully focused on their process and not concerned with individual wins or losses. Key Lesson: How to Achieve the Zone Getting into the zone requires practice, emotional control, and mental discipline. By focusing on your trading process and minimizing emotional responses, you will begin to trade with precision and without hesitation. Some key steps include: Mastering Emotional Control: Remove attachment to individual outcomes. Focusing on the Process: Commit fully to your strategy and trading plan. Trusting Your System: Develop unwavering confidence in your edge over time. When you’ve trained your mind to operate in the zone, trading becomes a fluid experience, and you are better equipped to handle the challenges of the market. Final Thoughts: The Psychology Behind Trading Success Trading in the Zone offers profound insights into how the mind shapes success in the financial markets. The key takeaway from Douglas’ work is that mastering the mental game is essential for consistent, long-term profitability. Successful traders learn to think in probabilities, accept risk, and develop the discipline to follow their edge consistently. Key Takeaways: Embrace Uncertainty: Focus on probabilities rather than certainties. Reprogram Limiting Beliefs: Accept that losses are part of trading. Focus on Process Over Outcome: Build and trust your trading system, and don’t be swayed by short-term results. Master Emotional Discipline: Be aware of how emotions like fear and greed impact your trading decisions. Strive for Consistency: Following your rules consistently will lead to consistent profits over time. By focusing on mindset and emotional control, traders can overcome common pitfalls and achieve the level of discipline required to succeed in the highly competitive world of trading. Through Trading in the Zone, Mark Douglas offers a blueprint for developing the mental resilience needed to thrive in any market environment. If you’re looking to elevate your trading performance, internalize these lessons and put them into practice. The market may be unpredictable, but with the right mindset, you can navigate it with confidence and discipline.
AMEX:SPYEducation
by exlux
RAILWAY TRACKS CHART PATTERN Railway Tracks Pattern is a secondary formation (unlike pinbars and inside bars) of Price Action, but no less frequent on the chart of price movement of a certain underlying asset. It occurs mainly during the correction of the main trend movement. That is, it is necessary to catch the pattern on a pullback from the main trend. ✴️ THERE ARE TWO TYPES OF PATTERN • Bullish pattern is formed in a downward movement and indicates a change from a bearish trend to a bullish trend; • Bearish pattern is formed in an upward movement and indicates a change from a bullish trend to a bearish trend. ✴️ THE SHAPE OF THE RAILWAY TRACKS PATTERN The pattern consists of only two candles (bars). The following conditions are necessary for the pattern formation. Each candlestick should be facing different directions. That is, there must be bearish and bullish candles. The bodies of the candles should be long and make up at least 70% of the entire length of the candle. By the way, if you switch to higher timeframe of the chart when the Railway Tracks Pattern is formed, you can find a pinbar, which is also a reversal pattern in the Price Action trading system. For example, on the 15-minute chart of the GOLD a bearish Railway Tracks Pattern was formed, which led to a trend reversal: And if you look at the 30-minute chart, you can see a pinbar: These are the nuances of the pattern that can play into the hands of a trader, especially beginners. ✴️ WHAT THE RAILWAY TRACKS PATTERN INDICATES If we look at the pattern itself, we can realize that the market has changed its mood sharply. At the same time, as a rule, this abrupt change of mood is short-term. The pattern indicates a reversal of the current trend, but that does not mean that it will be long-term. Most often, after the pattern in question, the price moves in the direction opposite to the previous trend, for a short distance, a relatively small range. After a sharp change of mood in the market, as a rule, a flat move follows. In the resulting sideways trend, you can usually recognize the next pattern of trend continuation or reversal. ✴️ HOW TO TRADE RAILWAY TRACKS PATTERN In order to apply Railway Tracks Pattern in trading, you need to consider only a high-quality pattern. In addition, the signal from the pattern should be confirmed by any of the following technical analysis tools: • support and resistance levels • Fibonacci levels • trend lines or trend channel • divergence In addition, the pattern is considered to be of higher quality the longer the bodies of its candlesticks are. It is most profitable to trade it at the end of the correction of the main trend. That is, trading will be conducted in the direction of the main trend. The formation of the pattern is a signal in itself. If there is a confirming factor, it is necessary to enter the trade. For the Forex market, the target price is the nearest potential support or resistance level. The order should be pending in the direction of the potential movement. Stop Loss should be at the level of the opposite extremum the highest point in a bearish setup and the lowest point in a bullish setup. ✴️ BOTTOM LINE The Railway Tracks Pattern is a reversal formation in indicator-free trading. It serves as a confirming factor about the trend reversal rather than a full-fledged trading signal. Therefore, the pattern must be confirmed by other tools of technical analysis of the chart.
Education
by DeGRAM
1
How to Trade Triangles.________________________________________________________________________________________________________________________________________ Hello, Traders Investors And Community, here I show the important triangle-formations and how to trade them properly. These formations come in every-shape from big to small in today's markets and are sometimes quite often spotted. There are however some important and significant differences in trading them which I explain further. ________________________________________________________________________________________________________________________________________ 1.) Bullish Ascending Triangle 2.) Bearish Ascending Triangle 3.) Bearish Symmetrical Triangle 4.) Bullish Symmetrical Triangle ________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________ 1.) Bullish Ascending Triangle This formation is a typical known textbook bullish uptrend-formation. Normally it develops within a bullish trend and is a continuation-formation. Suggesting that the bulls make a break before going higher upward. It is formed by the typical horizontal higher boundary with steady-highs and the rising lower boundary with higher-highs. It is a logical mechanism that this formation breaks to the upside because the bulls are clearly stronger. The price projection range is taken by the first touch with the higher boundary and the ground of the lower boundary to project the minimum target in the breakout-zone where the triangle broke out to the upside. The triangle can be traded with immediate entry and stop-loss below the last low or conservative with the breakout to the upside. 2.) Bearish Ascending Triangle This formation is the logical and coherent counterpart of the ascending broadening wedge, the main difference here is that it breaks to the upside and is normally seen as a continuation to the downside. Here we see steady lows with a horizontal lower boundary and lower highs with a declining upper boundary. The formation breaks to the downside because the bulls getting weaker every new lower high is formed. When projecting the price to the downside we can take the measure from the first touch with the lower boundary and the equivalent point with the higher boundary to project our minimum. target. The triangle can be traded aggressively with entry before the breakdown or with confirmation after the breakdown. 3.) Bearish Symmetrical Triangle Here we have an interesting formation that must conform to the downside to give us the proper signal that it is actually really a bearish symmetrical triangle. Here we get lower highs with a descending upper boundary and higher lows with an ascending upper boundary. This formation has also an end-date, it is the date in which the lower and upper boundary come together which means that the formation has definitely ended at this date. We can measure our target from the touch with the lower boundary and its equivalent point at the upper boundary. The wisest way tot trade the triangle is after the breakout and confirmation. 4.) Bullish Symmetrical Triangle This formation is the bullish counterpart to the bearish symmetrical triangle and the difference here is that we get the first price touch with the upper boundary indicating a bullish outcome. We see lower highs with a descending upper boundary and higher lows with an ascending lower boundary before breaking to the upside. The breakout can be heavy which depends on the time symmetrical triangle has confirmed, the longer we stay in the triangle the stronger the breakout will be. We will get a minimum target when projecting the first touch of the higher boundary and its equivalent point of the lower boundary to the point where the triangle broke to the upside. The best way to trade the triangle is after breakout and confirmation of the boundary. ________________________________________________________________________________________________________________________________________ If you like this tutorial feel free to support. I also made an tutorial about broadening wedges which you find when scrolling down on my account. Will be great to see you there. Have a good day and all the best. Thank you. ________________________________________________________________________________________________________________________________________ “An investment in knowledge pays the best dividend” ________________________________________________________________________________________________________________________________________
BITSTAMP:BTCUSDEducation
by VincePrince
6
How to Trade Broadening Formations. ________________________________________________________________________________________________________________________________________ Hello traders investors and community. Today I show some important trading formations which can help to identify a profitable trading entry in the markets. These types are when confirmed highly probable trading set-ups to open whether a LONG or SHORT position. In volatile markets, these formations can develop quite often. ________________________________________________________________________________________________________________________________________ 1.) Ascending Broadening Wedge 2.) Descending Broadening Wedge 3.) Broadening Wedge Bottoms 4.) Broadening Wedge Tops 5.) Ascending Right-Angled Broadening Formations 6.) Descending Right-Angled Broadening Formations ________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________ 1.) Ascending Broadening Wedge These wedges most often break-out in the direction where they came from. So it is a wise idea to trade the break-out in the direction, otherwise, swing-trades can be traded from trend-line to trend-line in the broadening wedge. The target is the full height of the pattern, from the lowest low to the highest high forming the trendlines. Identifying tradable ascending broadening wedges can provide good risk and reward trades with high profit. 2.) Descending Broadening Wedge This Wedge is similar to the Ascending Broadening Wedge. We are looking for two touches for each trendline before a reversal and breakout happen as shown in my chart. The Breakout can be traded with a minimum target of the percentage distance from the full height of the pattern, from the lowest low to the lowest high. 3.) Broadening Wedge Bottoms Broadening Wedge Bottoms are as you can see in the picture provided in my chart. Reversals marking a significant reversal after a downtrend. The bottom is formed with three touches of the lower trendline and three touches of the higher trendline. The target is the highest high in the pattern minus the lowest low in the pattern. 4.) Broadening Wedge Tops Broadeing Wedge Tops are similar to Bottoms. They develop in a rising trend forming higher highs and lower lows in a broadening scale-like seen in the picture. Three higher highs marking the upper boundary of the formation and two lower lows marking the lower boundary of the formation. The target projection is the same as with broadening bottoms. 5.) Ascending Right-Angled Broadening Formations They develop with a horizontal trendline and a sloping trendline. The price broadens over time in the formation forming three lows and two highs as you can see in the chart. The wedge breaks in the direction where it came from and can be traded either with swing trades in the wedge or with a breakout entry to trade the breakout. The target is the height of the complete wedge at the breakout point and is projected from the breakout in the breakout direction to determine the minimum target. 6.) Descending Right-Angled Broadening Formations These are the same as Ascending Right-Angled Broadening Formation just with a little different structure. Here we have a horizontal lower trendline and a sloping higher trendline which are forming the overall formation. We see two touches of the lower trendline and three touches of the higher trend-line just as with the Ascending Right-Angled Broadening Formation. The price projection is also the same and the formation can be wisely traded in the breakout direction. ________________________________________________________________________________________________________________________________________ If you like this tutorial feel free to support my work. Thank you. ________________________________________________________________________________________________________________________________________ “The eye sees only what the mind is prepared to comprehend.” ________________________________________________________________________________________________________________________________________
BITSTAMP:BTCUSDEducation
by VincePrince
14
How to succeed in trading ✅From the experience I have in trading I have identified 3 pillars on which my success is based. I can't say that one is less important than another, so I try to combine all of them: 1) Psychology - is one of the most difficult aspects to master, which requires a lot of theoretical and practical knowledge, so I recommend first of all to study yourself, after you have managed to identify what kind of person you are, you will gain knowledge from books, videos, trainings that will help you control your emotions when trading. At the same time, this aspect can help you in your daily life. 2) Risk management - due to proper risk management, I managed to become funded. I also understood that in trading it is more important to tend to have a small risk, than a high profit, because greed for money can bring you into a less pleasant situation. I managed to take the account with a risk of 1% per trade and with an RR of at least 1: 2, which therefore showed me that even if I take 6 sls for 10 trades, I still remain profitable. 3) Trading plan - this is the aspect that motivates me to progress, once I have made a trading plan with well-defined goals, I tend to fulfill them. In addition to the purposes, a trading plan should contain the strategy applied, as well as the rules for entering / managing / exiting the transaction.
OANDA:XAUUSDEducation
by Snick3rSD
CHOCH vs BOS ‼️WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
4
How To Use Total Market Cap ✨We can use Total Market Cap to analyse when it's best to go bullish or bearish on the crypto market. A growing market cap can indicate investors' interest and their positive evaluation of the current market state = bullish whereas a stagnant market cap would indicate that investors are taking their money away from the crypto market = bearish. By analyzing the Total Crypto Market Cap weekly chart, we can see 5 clear waves to the downside, which means we are either in motive wave 1 or in wave A of a zigzag pattern. For both cases, we are expecting an ABC correction opposite to the recent 5 waves. we have already completed subwave A and finishing now subwave B, expecting subwave C higher. In a zigzag pattern ( 5-3-5) we have: Wave A= 5 waves Wave B = 3 waves Wave C = 5 waves Therefore, our mission for the long term is to catch the impulsive waves of wave C after wave B. But for now will be focusing on catching subwave C of wave B. We will be using this chart as a guide for the other cryptocurrencies charts. Stay tuned for more Crypto analysis!
CRYPTOCAP:TOTALEducation
by WicktatorFX
3
Price-Action-Channel-Formation: Key Projection-Types!Hello Traders Investors And Community, Welcome to this tutorial about Price-Action-Channel-Formation. In markets, there are often price-actions forming that move into channel-formations which can shape into different forms. In this tutorial, I am looking at important channel structure types and how the projections can be assigned to properly object a taget-zone in the various types. As it is most often the case such formations can show up with a great potential signal to enter when they rightly complete and the final confirmation shows up, therefore it is important to keep patient on these confirmations and do not hesitate to enter into the market when no solid setup and opportunity is given. Range-Breakout-Projection: - Such ranges form quite often in the market and they can develop on smaller timeframes such as the 1-hour timeframe or higher timeframes such as the daily timeframe always with the proper time perspective given with the certain range. The pattern starts with a downtrend or in the reverse with an uptrend marking a new low or high which is the support/resistance in the range then the price bounces back to form the counterpart high or low which then creates the counterpart support/resistance in the structure. After a period of consolidation, the price finally breaks out of the range above the support/resistance level and closes there. When the final breakout emerges there are two possible target-projections, firstly the range height from the support to the resistance that is projected from the breakout point and secondly the width from the initial range entry to the breakout which is projected from the low to the upside, both projection can have different targets that can be assigned as target one and target two. Tripple-Channel-Target-Projection: - This is a very interesting channel-formation that is forming in the markets. Firstly the uptrend channel develops as seen in my chart(this can also happen in the bearish direction), within this channel a new high marks in the structure before the price-action actually reverses and breaks out below the lower boundary of this main ascending channel. The first breakout below the lower boundary of the channel activates a target with the projection to the downside and after that it is not seldom seen that the price-action moves back into the lower boundary and tests again as seen in my chart, in this case two further channels can be drawn, the second channel in the structure which is projected from the high to the structure lows and highs to the downside and the third channel projected from the new downtrend low to the new downtrend high, when the price-action now moves into the lower boundary of the main channel again this is a tripple-resistance-pullback as seen in my chart and the price-action moves on to the targets by the breakout and when the price-action then moves below the second channel the next target is activated. Classical-Descending-Channel-Projection: - This is the most classical channel in the market, it can form as a descending channel marking a potential bullish reversal as well as an ascending channel marking a potential bearish reversal. In both types, the channel is formed by the trend lows and highs which are ranging in the channel and as the downtrend (or in the reverse the uptrend) moves on the market gets oversold and the possibility for a reversal gets higher as the market has not the ability to continue this way for every. Such a formation also often inhabits a elliot ABCDE-wave-count which can offer additional confirmation for a breakout. This final breakout emerges when the asset gets that much oversold that demand enters and a breakout above the upper boundary settles as it is shown in my chart. When this breakout shows up the channel heights from the up to the downside is projected to the final breakout to the upside and the price-action is ready to appoint these zones. Range-Triangle-Channel-Projection: - This is a pattern that combines two formations, firstly an ascending channel and secondly an ascending triangle which is forming within the channel. Firstly the ascending-channel establishes with higher highs and higher lows and within this channel, the price-action makes something interesting as it does not move on further in the structure and stops making new highs it pulls back and forms a horizontal line of highs in the structure which then develops into this ascending-triangle seen in my chart in orange. Such an ascending triangle has the ability to form a dedicated breakout to the upside when the price-action moved on to range in the triangle and possibly also completes the wave-count within. When the price-action finally breaks out above the upper boundary of the triangle this will activate the further developments and targets at the upside especially amazing is the double projection here which projects the triangle height to the upside and is also at the same time the target at the upper boundary of the ascending-channel which can approve the target not only in price but also in time. Bull-Flag-Channel-Breakout-Projection: - This type of formation projection can show up with a very good solid signal however there are some very important determinations that need to confirm rightly before assessing the formation in the right manner. When the bull flag does not complete properly and the price-action increases bearishly or also bullishly when it is a bear-flag such a flag-formation can also invalidate with the breakout into the reverse direction which can often lead to heavy volatilities into the other direction as traders get trapped. Nevertheless when the formation completes rightly which will happen with the final breakout above the upper or lower boundary the target projection is made from the previous low in the wave to the upside to the high which is then projected from the lowest price-action point in the flag to the upside, always possible with the counterpart formation into the other direction. Double-Channel-Triangle-Breakout-Projection: - Now comes a very amazing formation as there are some interesting points given in this formation that can lead to a very strong breakout signal and the activation of the targets ahead. This formation basically consists of an initial channel to the downside in which the price-action ranges and after that can fall below the lower boundary and continue bearishly to reach the target, this initial price-action in the descending channel does not necessarily need to show up. After that when the price-action reached the targets the price backs up and continues to the upside to finally move into the previous descending-channel again in which it continues to consolidate and now also forms a bunch of lower lows that mark an ascending-trend-line in this channel, both the first descending-channel and now the second ascending-channel form a symmetrical triangle formation which is more likely to break out into the direction it came from which in this case is the bullish direction, this can also be measured into the reverse direction. The breakout then strongly activates an upside target which is the price-projection of the triangle to the upside and also the upper-boundary of the channel-formation that can also show the target in time. In this manner, thank you for watching my analysis about these important price-action-channel-formation types that can be spotted in today's market, will be great when you support it with a like and follow or comment, great contentment for everybody supporting, all the best! Information is only educational and should not be used to take action in the market.
BYBIT:BTCUSD.PEducation
by VincePrince
14
MACD-Divergences: Assessing Present Varying Exemplifications!_____ Hello Traders Investors And Community, _____ Welcome to this tutorial in which I will analyze the MACD-Divergence and its various types that can come up in the market movements. The MACD is an indicator developed in 1986 and since then established as a primary indicator in the oscillator types besides the RSI or stochastic. The indicator mainly has the function of spotting reversals and potential entry points into the market to catch the appropriate values and upcoming reversal developments. Although the indicator can be used as a single signal for market action only it is best combined with other technical analysis aspects such as candlesticks or volume. The main timeframe to apply the indicator should be the daily timeframe, it can be also applied to higher timeframes such as the weekly to assess broader trends. The indicator can also be applied on lower timeframes such as the 4-hour or hourly however in this case the fake signals getting higher. The MACD consists of 3 main elements, the first is the MACD-Line marked in my chart in orange which is calculated by the 12-day EMA (Exponential-Moving-Average) minus the 26-day EMA. The second element is the signal-line which is a 9-day EMA. Further comes the histogram which measures the distance from the MACD-Line to the signal line and the histogram is positive when the MACD-Line is above the signal-line as well as negative when it is below. The main signal happens when the MACD-Line crosses the signal-line when it crosses from the downside to the upside this is typically seen before a bullish reversal takes place and the same in reverse with the MACD-Line crossing the signal-line down when a bearish reversal takes place, in both cases also the histogram changes from positive to negative or negative to positive. In any case, it is always necessary to combine the MACD with the current price-action happening as in this case comes the interesting part with the divergences happening that can lead to dedicated signals. These divergences happen when there is a discrepancy between MACD and the actual price-action happening indicating a potential change in direction of actual price-action as the MACD shows up with these signs. In any case, it is unavoidable to consider the price-action together with the MACD as otherwise, it can lead to catching a fake-out and getting stopped out of the position what should be avoided in trading. The MACD also does not typically spot overbought or oversold conditions as it is an indicator consisting of EMAs it represents the previously developed price-actions in relation to the ongoing and upcoming price-actions. _____ Regular MACD Divergences: __ Classical MACD Crossover - The Classical MACD Crossover comes up when the MACD-line crosses the signal-line either from the upside to the downside or from the downside to the upside. Both versions can indicate a reversal into the direction the MACD-line crossed the signal-line however the timeframe and structure is important here. When this crossover happens on the lower timeframes below 6-hours it can happen that there are many fake signals with several crossovers behind each other while the price-action is actually trending into one direction. The higher timeframes such as the daily are therefore the best to apply this regular classical MACD crossover. Classical MACD Histogram Divergence - This divergence occurs when the histogram has formed a new high together with the price-action, for example, the histogram forms the new high at 0.3 in the MACD-histogram then the price-action moves further and forms a higher high exceeding the previous one however the MACD-histogram does not do a higher high also while staying below the 0.3 level. This indicates that the market is likely to reverse into the other direction because the histogram does not correspond with the actual price-action and therefore forms a divergence. This can be applied in the reverse direction as well and a good combination would be to look also at the volume or overbought and oversold conditions. Histogram Divergence Fakeout - In this case, it is the crucial part of the histogram divergence. The price-action and MACD fulfilled the initial requirements for a classical MACD histogram divergence and the price-action should markdown after forming the final high and the divergence, however in this case it does not happen instead the price-action moves lower a little bit signaling the possible normal development after this signal and then moves up again exceeding the previous high and stopping out traders who may have entered the market because of the divergence, after that the price-action can markdown finally and move lower, therefore it is necessary to look at the price-action also and see if the market is really ready to markdown after the signal. __ Bearish Regular Divergence Ⅰ - The Bearish Regular Divergence Ⅰ is a divergence in the price-action that marks two important confirmations including this a technical confirmation in the MACD normally seen in price-action. In this divergence, the price-action marks consecutive higher highs while the MACD forms a double-top with the rejection at the upper baseline confirming the double-top. This divergence is likely to reverse the previously established bullish trend to the downside and continue with bearish determinations. It is important to watch out for fakeouts before potentially entering and when this possibility is low it can be a good entry. Bullish Regular Divergence Ⅰ - This is the counterpart to the Bearish Regular Divergence Ⅰ. In this case the price-action marks lower lows in the structure in the best case also with falling volume and momentum while the MACD makes a double-bottom which is a good sign when both form that the price will likely reverse into the bullish direction. A trendline breakout of the previous established lower highs in the downtrend can also add additional confirmation to the final bullish reversal. __ Bearish Regular Divergence Ⅱ - This is a very interesting divergence as it combines the classical price-action formation double-top with the lower highs forming in the MACD. A confirmed double top alone can also be a strong signal for a reversal nevertheless with the additional MACD making lower lows this can add to the main bearish reversal coming in and accelerating it. A valid confirmation will take place when the price-action regularly confirms the double-top with the neckline breakout to the downside. Bullish Regular Divergence Ⅱ - Here is another divergence in which the price-action forms a reliable reversal-formation, in this case, a double-bottom which also can alone be the decisive factor for the final reversal, together then with the higher lows forming in the MACD it is a strong signal to reversing the trend into the bullish direction and similarly to the Bearish Regular Divergence Ⅱ it finally confirms with the neckline breakout by the established double-bottom with proper volume to the upside. __ Bearish Regular Divergence Ⅲ - This divergence has a good and appropriate application in the market formations to form. In this divergence, the price-actions form higher highs while the MACD forms lower lows signaling a bearish reversal to take place. A good confirmation occurs when the price-action closes below the lastly established lows and after that continues also further to form further bearish continuations, it can be a good point to spot the final reversal when the MACD looks like it develops the next lower high. Bullish Regular Divergence Ⅲ - This is the exact counterpart of the Bearish Regular Divergence Ⅲ while the price-action forms lower lows in the structure the MACD develops higher highs showing this given divergence and likely to indicate the bullish reversal to take place sooner or later. Additionally, a falling volume and momentum in the actual price-action will lead to more increased validations followed by an upcoming rise in volatility above previously lower highs, these structures and developments are always also important. _____ Hidden MACD Divergences: __ Bearish Hidden Divergence Ⅰ - This divergence is actually the counterpart to the Bearish Regular Divergence Ⅰ and in this case, the MACD also forms a double top in the structure however unlikely as in the Bearish Regular Divergence Ⅰ in this case the price-action forms lower highs in the structure showing the exceptional weakness of the bulls as the price-action does not manages to maintain further higher highs, this is why the formation is finally likely to confirm bearishly to the downside and the reversal took place. Bearish Hidden Divergence Ⅰ - In this divergence the MACD forms a double-bottom with both lows forming a lower baseline in the MACD-histogram structure while the price-action forms higher lows which is very important here as such a constellation is normally defined as bullish with the possibility to reverse, the double-bottom in the MACD then confirms the further bullishness to establish and likely bullish volatility to show up in the structure, the requirement is that the established uptrend-line does not invalidate to the downside. __ Bearish Hidden Divergence Ⅱ - The next divergence is forming a classical reversal-development with the formation of a double-top in the price-action as the two highs form a horizontal baseline where the price-action rejects while the MACD is developing higher highs in the structure. In this case, the final confirmation sets place when the price-action breaks out below the neckline of the double-top in the structure which is the set-up for the further continuations bearishly to the downside, the best is to wait on the final confirmation before considering moving into. Bullish Hidden Divergence Ⅱ - This classical bullish reversal-formation marks out the potential stopping of the downtrend with two lows building the baseline of a potential double-bottom while the MACD is establishing this lower low structure it is the proper further confirmational part to develop a sufficient bullish reversal which will finally take place when the price-action breaks out above the upper neckline of the double-bottom to complete it and show up with further continuations to the upside. __ Bearish Hidden Divergence Ⅲ - When the price-action forms lower highs that do not maintain new higher highs in an uptrend it is always a sign that the uptrend is struggling and that it is likely to reverse together then with the higher highs divergence in the MACD to form the final bearish reversal has a high possibility to emerge which will validate when price-action moves below the previous lows in the uptrend and continues to the south. Bullish Hidden Divergence Ⅲ - With this form the uptrend and the higher highs structure that developed in the price-action have a tendency to reverse as the MACD forms the lower lows in the structure signaling that the MACD is already doing the markdown that follows also in the price-action. In this case the final confirmation will take place with a breakout below the established ascending trend-line after which a bearish continuation will likely follow up. _____ Therefore moving through all these important different forms the MACD can be a substantial indicator for spotting reversals in the structure when done right. It is always necessary to maintain the objection to the current situation and further technical factors to apply the MACD-divergences rightly. In this manner, thank you everybody for watching, support the idea with a like and follow or comment, have a good day as well as weekend, and all the best to you! Information provided is only educational and should not be used to take action in the markets. _____
BYBIT:BTCUSD.PEducation
by VincePrince
20
MS-Signal, HA-Low, HA-High, and trading strategyHello? Hello traders! If you "Follow" us, you can always get new information quickly. Please also click “Boost”. Have a good day. ------------------------------------- (XRPBTC chart) In order to trade, you must select support and resistance points and proceed with the appropriate trading method. To do this, we work hard to analyze charts and apply them to trading. However, because of a one-time transaction made out of greed, there are often cases where the more you proceed with the transaction, the more you end up trading in the wrong direction. The only way to correct these wrong transactions is to sell 100%. It doesn't matter what criteria you use to select support and resistance points. As long as you can select reliable support and resistance points, you will meet the essential requirements for trading through chart analysis. For the rest, you can trade according to your investment style and trading strategy. Even if everything goes perfectly as planned, it's not easy to survive market volatility. Accordingly, we have no choice but to proceed with split sales in order to respond appropriately to market volatility. In order to proceed with trading like this, you must have support and resistance points and know how to create a trading strategy appropriate for them. This is because trading in the form of buying at a point that someone told you and selling at a point that someone told you is ultimately very likely to result in a big loss because you do not have your own investment style or trading strategy. Any indicator that shows support and resistance is fine. However, you just need to check the indicator in real time at any time to ensure the reliability of the indicator. The most important indicator on my chart is the MS-Signal indicator. This is because the trend is determined by which side holds the price based on the MS-Signal indicator. However, it is not easy to select support and resistance points using the MS-Signal indicator. Because it is made up of curves. So, we added several indicators to select support and resistance points. As a result, it was possible to proceed with trading by checking whether support or resistance was received at support and resistance points with the MS-Signal indicator. However, the problem was that its importance in playing the role of support and resistance was not that great. Therefore, these support and resistance points are used as split selling points after purchasing. So, the HA-Low and HA-High indicators were created to find the starting and ending points of trading. So far, only the HA-Low and HA-High indicators have been explained. I have not provided any explanation on how to create a trading strategy using this. Today, I would like to explain how to use this to create a trading strategy. HA-Low and HA-High indicators are not intended for chart analysis. It is an indicator created purely for the purpose of trading. Therefore, when the price touches these two indicators, it means that you are ready to proceed with the transaction. Therefore, you can start or end a trade depending on whether you receive support or resistance from these two indicators. The HA-Low indicator marks a point. Therefore, if it falls below the HA-Low indicator, there is a high possibility that the previous low will be renewed. Therefore, buying at the HA-Low indicator means purchasing or selling farming, that is, making a mid- to long-term investment. You may think that mid- to long-term investing means buying at a very low price and selling when the price rises to its peak, but this is not the case. The core of mid- to long-term investment is an investment method that seeks to obtain large profits with a small investment amount by controlling the investment proportion. If you mistakenly thought that this was a transaction where you buy with all your investment money at a very low price and wait until the price rises, you must change your thinking. If you look at the chart above, you can see a section where the HA-Low indicator has been touched but continues to decline. If you observe this closely, you can see that when it falls below the MS-Signal indicator and the MS-Signal indicator shows a downward sign, or when it falls without support from the HA-High indicator and falls, it leads to a further decline. Let me tell you something else here. In other words, I would like to talk about “I don’t know whether I am supported or resisted.” Knowing whether you are receiving support or resistance is a know-how that can be acquired through day trading. Therefore, in order to know whether you are receiving support or resistance, you must acquire your own know-how through day trading. Unless I change my mindset that I don't do day trading because I'm not good at day trading, I will always be dissatisfied with the average purchase price and proceed with trading. There are separate times for day trading. That time is now. The period of day trading is included in the series of processes that occur in order for companies or people operating large funds to sell their coins (tokens) in the process of realizing profits. After this day trading period, the coin market will experience great volatility and a full-fledged upward trend will begin, so if you do not practice day trading during the current period, it will take a long time until this cycle returns. You have to wait a period of time. Therefore, during day trading, it is necessary to put aside your greed and make constant efforts to earn even a small profit with a small amount of money. Once you can tell to some extent whether you are receiving support or resistance at the support and resistance points, proceed with buying at the HA-Low and HA-High indicators. However, since buying at the HA-Low indicator is a farming transaction, that is, a purchase conducted for the purpose of mid- to long-term investment, the purchase must be made aggressively, that is, with a small proportion of the investment amount. Therefore, since the purchase was made with a small proportion of the investment, it is useful to use day trading or short-term trading to increase the number of coins corresponding to the profit by selling the amount purchased. If you continue to trade in this way, you will touch the HA-High indicator. The HA-High indicator is a surge indicator, that is, an indicator that signals a full-fledged upward trend. Therefore, being supported by the HA-High indicator means that there is a high possibility of a large increase, so you should proceed with the purchase by increasing the proportion of your investment. However, in order to surge, there is a possibility of up and down fluctuations, so efforts are needed to overcome this. If you made an aggressive purchase using the HA-Low indicator mentioned earlier and purchased for the purpose of mid- to long-term investment, you can achieve psychological stability because the average purchase price is likely to be located at a lower price than the current price even if you purchased under the HA-High indicator. There will be. In addition, you can stabilize your psychological state because you can make a profit by selling what you bought at the HA-Low indicator near the HA-High indicator. I talked about something else for a moment earlier, but I'm going to talk about something else here again. The other topic this time is “How can I make my psychological state stable?” I'd like to talk about this. You can find out to some extent whether your psychological state is unstable or stable by checking whether you are sticking to the trading strategy you had in mind when you first made the purchase, i.e., weight control, split selling method, target point, etc. There is essentially no psychological disturbance before starting to buy. Therefore, before purchasing, you can plan your trading strategy from a third party's perspective. However, psychological agitation begins as soon as you start buying, and the psychological agitation increases due to price volatility. Therefore, in order to prevent such psychological disturbance, selling in installments is absolutely necessary. The timing of split sales must be changed as the transaction progresses to suit price volatility. Therefore, what you need to think about before proceeding with the purchase is the proportion of investment, the section to proceed with the purchase, the first sale section, and the stop-loss section before starting trading. As you can infer from what I mentioned earlier, the section to purchase is around the HA-Low and HA-High indicators. If you purchase at the HA-Low indicator, the first selling section will be around the HA-High indicator. If you make a purchase at the HA-High indicator, if the HA-High indicator also rises as the price rises, the area around the HA-High indicator that you meet next will be the first selling section. It is recommended to set a stop loss point when you have recorded a loss that you can personally handle. You need to be careful because selling when you are losing too much can increase the psychological agitation mentioned above, which can have a negative impact on your next transaction. Considering this, let's take the stop loss points on the HA-Low and HA-High indicators as an example. There are virtually no support or resistance points below the HA-Low indicator. If you are using an indicator that shows other support and resistance points, you can set the stop loss zone by referring to the support and resistance points. However, it is not easy to set up if only the MS-Signal, HA-Low, and HA-High indicators are set. Therefore, when purchasing at the HA-Low indicator, controlling the proportion of investment is very important. This is because it is most effective to reduce the burden of stop loss by controlling the proportion of purchases. Usually, it is recommended to stop loss when the price falls below the opening price on the day you started buying. That way, you can buy at the HA-Low indicator, which would have risen above the HA-Low indicator again the next day. Otherwise, the timing of the purchase will keep changing, which can act as a factor in increasing the average purchase price. The HA-Low indicator is likely to be formed below the MS-Signal indicator. Therefore, rather than buying near the HA-Low indicator to reduce the burden of stop loss, it is also useful to buy when the MS-Signal indicator shows the price maintaining. In such cases, the HA-Low indicator becomes the stop loss point. To start an uptrend, the price must be above the MS-Signal indicator, and the MS-Signal indicator must be indicating an uptrend. Therefore, you can understand these characteristics well and proceed with purchasing near the MS-Signal indicator. I mentioned earlier that because the MS-Signal indicator is a curve, it is not easy to select support and resistance points. To compensate for this, we have made it possible to check the M-Signal indicators of the 1D, 1W, and 1M charts on low time frame charts. You can use this to check whether there is support or resistance on the low time frame chart and proceed with the purchase. Looking at the current BTCUSD 1D chart, the HA-Low indicator is rising and forming at the current price position. Therefore, we can see that we have entered a period in which we can proceed with transactions by creating transactions in line with what we have discussed so far. Whether you buy when there is support near the HA-Low indicator or when the MS-Signal indicator switches to a bullish sign depends on your own investment style and trading strategy. -------------------------------------------------- - The big picture The full-fledged upward trend is expected to begin when the price rises above 29K. This is the section expected to be touched in the next bull market, 81K-95K. -------------------------------------------------- ------------------------------------------- ** All explanations are for reference only and do not guarantee profit or loss in investment. ** Trading volume is displayed as a candle body based on 10EMA. How to display (in order from darkest to darkest) More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA ** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own. ** This chart was created using my know-how. ---------------------------------
INDEX:BTCUSDEducation
by readCrypto
1
Magic of Fibonacci Levels ✨In the realm of technical analysis, few tools capture the imagination of traders as effectively as Fibonacci retracements and extensions. Derived from the famous Fibonacci sequence, these levels offer insights into potential price reversals, extensions, and trend continuation points. In this article, we'll delve into the world of Fibonacci levels and explore how to use them to enhance your trading decisions. Understanding Fibonacci Retracements: Fibonacci retracement levels are like hidden treasures ✨ along a price trend. These levels, calculated from a swing high to a swing low, create horizontal lines that indicate potential support and resistance levels. The most common retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. How to Use Fibonacci Retracements: Identify a Trend: 📈📉 Begin by spotting a clear trend, either upward or downward. Select Swing Points: 🏞️ Locate the pivotal swing high and swing low within the trend. Plot Fibonacci Levels: 📏 Put those retracement levels on your chart, and watch as they highlight potential support or resistance areas. The Application: Support Levels: 💪🛡️ During an uptrend, traders often see retracement levels as potential buying zones. Resistance Levels: ☔ In a downtrend, these levels can be seen as possible areas to consider short trades. Understanding Fibonacci Extensions: Fibonacci extensions act like a crystal ball 🔮 projecting potential price targets or levels where the trend might extend. Extension levels include 161.8%, 261.8%, and 423.6%. How to Use Fibonacci Extensions: Identify a Trend: 📈📉 As with retracements, spot a well-defined trend. Select Swing Points: 🏞️ Determine the significant swing low and swing high within the trend. Plot Fibonacci Extension Levels: 📏 Add those extension levels to your chart, projecting potential price targets. Few examples : The Application: Projection of Trend Continuation: 🚀 Fibonacci extensions hint at where a trend might continue in its existing direction. Price Targets: 🎯 Traders often utilize extension levels to pinpoint potential price areas before a reversal might occur. Conclusion: Fibonacci retracements and extensions are like wizardry in the trader's toolkit. By grasping these levels and their applications, traders can create more informed strategies for entry, exit, and target levels. Remember, while Fibonacci levels are magical, they work best when combined with other technical indicators and chart patterns. As with any trading strategy, practice, experience, and risk management remain essential. With careful consideration and diligent analysis, Fibonacci levels can sprinkle a touch of enchantment to your trading endeavors. 📊✨
Education
by Yaroslav_Krasko
Using Heikin Ashi and MS-Signal Indicatorshello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (1h chart) The biggest disadvantage of trading using moving averages is that it is not easy to identify support and resistance points. To compensate for this to some extent, we looked at how to add and utilize Bollinger bands and StochRSI indicators. The 150 moving average is an important moving average in utilizing the moving average. This 150 Moving Average can be applied and utilized on any time frame chart. The next possible moving average combinations are 5 and 26, 26 and 50. Time frame charts suitable for utilizing the 26 and 50 moving averages can be utilized on charts under the 15m chart. The reason is that it is a time frame chart with too fast volatility. For other time frame charts, i.e. 15m charts and above, you can use a combination of 5 and 26 moving averages. I have written down the names of the indicators displayed on this chart. 5 The indicator corresponding to the moving average corresponds to the Heikin Ashi indicator. 26 The indicator corresponding to the moving average corresponds to the MS-Signal indicator. Therefore, when the 5 moving average crosses upward from the 26 moving average, that is, when a regular arrangement is made, it is time to buy. As such, when the Heikin Ashi indicator breaks above the MS-Signal indicator, it is time to buy. The good thing about using the MS-Signal indicator and the Heikin Ashi indicator is that you can see the breadth along the trend. The thicker the width, the stronger the role of support and resistance. Thus, it provides more confidence in direction than a single line, such as the 5EMA indicator on a 1D chart. And, you can also tell if a trend reversal is taking place or not. This change is indicated by the color change of the MS-Signal indicator and the width of the Heikin Ashi indicator. The transition of the MS-Signal indicator from downtrend to uptrend is indicated by the transition from red to blue. Conversely, a transition from an uptrend to a downtrend is indicated by the transition from blue to red. The Heikin Ashi indicator transitions from blue to orange for a downtrend to uptrend and orange to blue for an uptrend to bearish transition. This change in appearance can be useful when conducting transactions. The M-Signal indicator on the 1D, 1W, and 1M charts and the 5EMA indicator on the 1D chart are very useful when conducting day trading. Therefore, it is recommended to activate it and check the movement during day trading. The M-Signal indicator on the 1D chart works similarly to the 26 Moving Average. Therefore, the short-term trend of the 1D chart can be intuitively identified by the 5EMA indicator on the 1D chart and the M-Signal indicator on the 1D chart. Therefore, it can be very useful if you trade using tradingview brokers. (1D chart) Also, if you mark the M-Signal indicators of the 1W and 1M charts on the chart, you can intuitively know the mid- to long-term trend, so you can complete the chart analysis faster. -------------------------------------------------- -------- With this, we learned how to trade using moving averages and indicators that are more valuable than this. Chart analysis is only one part of the process to trade after all. No matter how good your chart analysis is, if you don't come up with a good trading strategy, you will end up with losses or small profits. --------------------------------------------------------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
Education
by readCrypto
2
Indicators that can identify trends: MS-Signal indicatorHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (LINKUSDT chart) The composition of the chart consists of price and volume. Therefore, chart analysis can be interpreted differently depending on how you interpret price and volume. First of all, if you look at the price part, you can see that the trend and various indicators were created based on price candles and moving averages. Therefore, it will be difficult to interpret the chart as the concept of the arrangement of the candles and the price moving average is not established. The array of price candles, that is, the high and low points formed by connecting the candles, draws each trend line to check which direction the current price movement is moving. However, it is necessary to be careful because it is difficult to find the highs and lows of a low time frame chart, so it is possible to draw an incorrect trend line. A false trend line means that you drew a trend line, but did nothing with it. The more false trend lines you have, the less information you can get from chart analysis, and the trading strategy created with such reduced information loses its usefulness, so you need a solid basis even when drawing a trend line. With a firm basis on how to draw a trend line, we will have time to explain in detail later on how to draw it. The MS-Signal indicator shown in this chart is an indicator that can confirm the trend by using the formula of the MACD indicator. Therefore, it is necessary to become familiar with the interpretation method using MS-Signal indicators before practicing drawing trend lines. The MS-Signal indicator utilizes the formula of the MACD indicator. If you look at the formula of the MACD indicator, you can see that it was created using a moving average. Therefore, if you understand the concept of moving averages, I think you will have no difficulty in using the MACD indicator. MS-Signal indicator consists of M-Signal indicator and S-Signal indicator. Therefore, an arrangement of M-Signal indicator > S-Signal indicator means that it is in an uptrend. During this uptrend, if the price candle holds the price above the MS-Signal indicator, it means that the uptrend is likely. We have also explained indicators that use volume to mark support and resistance points. That index is the OBV index included in the HA-MS index. The OBV indicator is an indicator that shows the change in trading volume due to price fluctuations, and the key point of the OBV indicator is 0. Interpretation of trading volume can be difficult to understand, so we will take time to explain in detail when the explanation of the price chart part is being finalized. In this chart, the 'Vol & Trend' sub-indicator includes indicators that utilize trading volume. What I want to explain this time is about the MS-Signal indicator explained above. Since the MS-Signal indicator is published in the trading view formula, you can look it up if you want to know the formula. (HA-MS indicator) MS-Signal indicators are composed of M-Signal indicators and S-Signal indicators. Among these two indicators, the key indicator is the M-Signal indicator. Therefore, it is designed to display M-Signal indicators of 1M, 1W, and 1D charts separately. Utilizing these indicators, it plays a role in showing the overall trend of the price chart immediately even if it is below the 1D chart. (4h chart) The 4h chart above is a chart set to display only the M-Signal indicators of the 1D, 1W, and 1M charts. If the M-Signal indicators form a regular arrangement (1D > 1W > 1M), you can see that there is an upward trend from a long-term perspective, just by looking at the 4h chart. These marks can reduce the time it takes to analyze a chart because it can shorten the viewing time when viewing multiple charts. It also reduces the chance of getting caught in a whipsaw by price fluctuations. Chart analysis is just analysis, you need a trading strategy to trade. Chart analysis should focus on finding support and resistance, as it is possible to find support and resistance points by analyzing the shape of the chart in order to create a trading strategy. As mentioned above, all you need for chart analysis is the shape of the candlestick and the concept of the moving average line. Therefore, if this concept is in place, all the indicators shown in this chart are unnecessary. However, chart analysis can take a long time, and it is recommended to use indicators that are basically reliable even in order to reduce psychological agitation caused by whipsaw-like volatility. Descriptions of the MS-Signal indicator have been published several times. Therefore, after candlesticks and moving averages, the indicator that must be familiar to the eye is the MS-Signal indicator. This is because I think there is no better indicator than the MS-Signal indicator to find out the trend of the chart. -------------------------------------------------- ------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
Education
by readCrypto
1
MASTER THE MARKET WITH CONFIDENCE & DISCIPLINEIf you asked me to distill trading down to its simplest form, I would say that it is a pattern recognition numbers game. We use market analysis to identify the patterns, define the risk, and determine when to take profits. The trade either works or it doesn't. In any case, we go on to die next trade. It's that simple, but it's certainly not easy. In fact, trading is probably the hardest thing you'll ever attempt to be successful at. That's not because it requires intellect; quite the contrary! But because the more you think you know, the less successful you'll be. Trading is hard because you have to operate in a state of not having to know, even though your analysis may turn out at times to be "perfectly" correct. To operate in a state of not having to know, you have to properly manage your expectations. To properly manage your expectations, you must realign your mental environment so that you believe without a shadow of a doubt in the five fundamental truths. Today, I am going to give you a trading exercise that will integrate these truths about the market at a functional level in your mental environment. In the process, I'll take you through the three stages of development of a trader. The first stage is the mechanical stage. In this stage, you: 1. Build the self-trust necessary to operate in an unlimited environment. 2. Learn to flawlessly execute a trading system. 3. Train your mind to think in probabilities (the five fundamental truths). 4. Create a strong, unshakeable belief in your consistency as a trader Once you have completed this first stage, you can then advance to the subjective stage of trading. In this stage, you use anything you have ever learned about the nature of market movement to do whatever it is you want to do. There's a lot of freedom in this stage, so you will have to learn how to monitor your susceptibility to make the kind of trading errors that are the result of any unresolved self-valuation issues I referred to in the last chapter. The third stage is the intuitive stage. Trading intuitively is the most advanced stage of development. It is the trading equivalent of earning a black belt in the martial arts. The difference is that you can't try to be intuitive, because intuition is spontaneous. It doesn't come from what we know at a rational level. The rational part of our mind seems to be inherently mistrustful of information received from a source that it doesn't understand. Sensing that something is about to happen is a form of knowing that is very different from anything we know rationally. I've worked with many traders who frequently had a very strong intuitive sense of what was going to happen next, only to be confronted with the rational part of themselves that consistently, argued for another course of action. Of course, if they had followed their intuition, they would have experienced a very satisfying outcome. Instead, what they ended up with was usually very unsatisfactory, especially when compared with what they otherwise perceived as possible. The only way I know of that you can try to be intuitive is to work at setting up a state of mind most conducive to receiving and acting on your intuitive impulses. The mechanical stage of trading is specifically designed to build the kind of trading skills (trust,confidence, and thinking in probabilities) that will virtually compel you to create consistent results. I define consistent results as a steadily rising equity curve with only minor draw downs that are the natural consequence of edges that didn't work. Other than finding a pattern that puts the odds of a winning trade in your favor, achieving a steadily rising equity curve is a function of systematically eliminating any susceptibility you may have to making the kind of fear, euphoric or self-valuation based trading errors I have described throughout this book. Eliminating the errors and expanding your sense of self-valuation will require the acquisition of skills that are all psychological in nature. The skills are psychological because each one, in its purest form, is simply a belief. Remember that the beliefs we operate out of will determine our state of mind and shape our experiences in ways that constantly reinforce what we already believe to be true. How truthful a belief is (relative to the environmental conditions) can be determined by how well it serves us; that is, the degree to which it helps us satisfy our objectives. If producing consistent results is your primary objective as a trader, then creating a belief (a conscious, energized concept that resists change and demands expression) that "I am a consistently successful trader" will act as a primaiy source of energy that will manage your perceptions, interpretations, expectations, and actions in ways that satisfy the belief and, consequently, the objective. Creating a dominant belief that "I am a consistently successful trader" requires adherence to several principles of consistent success. Some of these principles will undoubtedly be in direct conflict with some of the beliefs you've already acquired about trading. If this is the case, then what you have is a classic example of beliefs that are in direct conflict with desire. The energy dynamic here is no different from what it was for the boy who wanted to be like the other children who were not afraid to play with dogs. He desired to express himself in a way that he found, at least initially, virtually impossible. To satisfy his desire, he had to step into an active process of transformation. His technique was simple: He tried as hard as he could to stay focused on what he was trying to accomplish and, little by little, he de-activated the conflicting belief and strengthened the belief that was consistent with his desire. At some point, if that is your desire, then you will have to step into the process of transforming yourself into a consistent winner. When it comes to personal transformation, the most important ingredients are your willingness to change, the clarity of your intent, and the strength of your desire. Ultimately, for this process to work, you must choose consistency over eveiy other reason or justification you have for trading. If all of these ingredients are sufficiently present, then regardless of the internal obstacles you find yourself up against, what you desire will eventually prevail. The first step in the process of creating consistency is to start noticing what you're thinking, saying, and doing. Why? Because everything we think, say, or do as a trader contributes to and, therefore, reinforces some belief in our mental system. Because the process of becoming consistent is psychological in nature, it shouldn't come as a surprise that you'll have to start paying attention to your various psychological processes. The idea is eventually to learn to become an objective observer of your own thoughts, words, and deeds. Your first line of defense against committing a trading error is to catch yourself thinking about it. Of course, the last line of defense is to catch yourself in the act. If you don't commit yourself to becoming an observer to these processes, your realizations will always come after the experience, usually when you are in a state of deep regret and frustration.Observing yourself objectively implies doing it without judging about yourself. This might not be so easy for some of you to do considering the harsh, judgmental treatment you may have received from other people throughout your life. As a result, one quickly learns to associate any mistake with emotional pain. No one likes to be in a state of emotional pain, so we typically avoid acknowledging what we have learned to define as a mistake for as long as possible. Not confronting mistakes in our everyday lives usually doesn't have the same disastrous consequences it can have if we avoid confronting our mistakes as traders. For example, when I am working with floor traders, the analogy I use to illustrate how precarious a situation they are in is to ask them to imagine themselves walking across a bridge over the Grand Canyon. The width of the bridge is directly related to the number of contracts they trade. So, for example, for a one-contract trader the bridge is very wide, say 20 feet. A bridge 20 feet wide allows you a great deal of tolerance for error, so you don't have to be inordinately careful or focused on each step you take. Still, if you do happen to stumble and trip over the edge, the drop to the canyon floor is one mile. I don't know how many people would walk across a narrow bridge with no guardrails, where the ground is a mile down, but my guess is relatively few. Similarly, few people will take the kinds of risks associated with trading on the floor of the futures exchanges. Certainly a one-contract floor trader can do a great deal of damage to himself, not unlike falling off a mile-high bridge. But a one-contract trader also can give himself a wide tolerance for errors, miscalculations, or unusually violent market moves where he could find himself on the wrong side. 1. all our beliefs are in absolute harmony with our desires, and 2. all our beliefs are structured in such a way that they are completely consistent with what works from the environment's perspective. Obviously, if our beliefs are not consistent with what works from the environments perspective, the potential for making a mistake is high, if not inevitable. We won't be able to perceive the appropriate set of steps to our objective. Worse, we won't be able to perceive that what we want may not be available, or available in the quantity we desire or at the time when we want it. On the other hand, mistakes that are the result of beliefs that are in conflict with our objectives aren't always apparent or obvious. We know they will act as opposing forces, expressing their versions of the truth on our consciousness, and they can do that in many ways. The most difficult to detect is a distracting thought that causes a momentary lapse in focus or concentration. On the surface this may not sound significant. But, as in the analogy of the bridge over the canyon, when there's a lot at stake, even a slightly diminished capacity to stay focused can result in an error of disastrous proportions. This principle applies whether it's trading, sporting events, or computer programming. When our intent is clear and undiminished by any opposing energy, then our capacity to stay focused is greater, and the more likely it is that we will accomplish our objective. You have to be able to monitor yourself to some degree, and that will be difficult to do if you have the potential to experience emotional pain if and when you find yourself in the process of making an error. If this potential exists, you have two choices: 1. You can work on acquiring a new set of positively charged beliefs about what it means to make a mistake, along with de-activating any negatively charged beliefs that would argue otherwise or cause you to think less of yourself for making a mistake. 2. If you find this first choice undesirable, you can compensate for the potential to make errors by the way you set up your trading regime.
Education
by moonypto
FTX Discloses Significant Asset Shortfall in Company's PresentatAfter extensive efforts, the leader of FTX and FTX US has reported the discovery of billions of dollars in debt on both exchanges. FTX US, a leading digital asset platform, has announced a total of $374 million in assets, with the majority of the sum held in associated accounts. This marks a significant increase in the platform's financial stability since its establishment. Additionally, FTX has reported positive results for its less liquid "Category B Assets", including its own FTX Token (FTT). However, FTX wallets have a net borrowing of $9.3 billion from its sister trading firm, Alameda Research, with FTX US owing Alameda $107 million. This suggests an increasing financial connection between the two firms and may have important implications for the cryptocurrency industry. Meanwhile, FTX Japan users have welcomed the news of the platform's ability to withdraw funds as an "escape" from the platform. In terms of corporate leadership, John J. Ray III, the chief restructuring officer and CEO of FTX, has emphasized the company's commitment to transparency and public disclosure. It has taken a huge effort to get this far. The exchanges' assets were highly commingled, and their books and records are incomplete and , in many Cases, totally absent. In contrast, Nishad Singh, a former engineering director at FTX, has pleaded guilty to multiple counts of fraud in a US district court and now faces potential prison time and fines. Finally, the US Justice Department is facing increased pressure as billionaire trader Sam Singh has filed a plea to halt the investigation into the cryptocurrency industry led by rival billionaire Mike Bankman-Fried, following news of several close associates agreeing to cooperate with prosecutors. Note: This article was written by an independent author and does not represent the publisher's views. If you find my content useful, please consider liking and sharing it. Additionally, I encourage you to follow me for future real-time updates on the cryptocurrency market. Thank you for your support.
Education
by CryptoPatel
HOW TO BUY THE DIP- What is considered the bottom for a coin? - How to identify the bottom? - What technical analysis tools to use? - What are the fundamental prerequisites for the bottom? What is the bottom for a crypto asset? The bottom is the lowest price level of a crypto asset, after which the price of this asset is expected to rise. The bottom is not always an absolute measure for the entire history of the existence of an asset, but can be calculated for a certain period: a year, a quarter or a month. How to identify the bottom Each trader has his own set of tools to determine when to buy an asset. Here are some of the most clearest signs to each of us: There is a protracted flat with the upper border breakdowns The movement occurs in a strong support zone and is accompanied by high volumes The order book contains big bid checks Good news on the market or the project The price is lower than the sale price (ICO, IEO, IDO etc.) The bottom we search for is not a new all-time bottom Protracted flat with the upper border breakout If you observe that for a long time: 2 weeks, 1 month, - the price is at the same level, while occasionally trying to “break out” up, that is, the resistance line is broken, then this is in 90% of cases - the impulse to the rapid growth of prices. However, if the breakout is more often than just the support level, then get ready to test a new bottom. Strong support zone and high side volumes Determine that there is a strong support zone at this level, that is, it met more than 3 times on the chart for the period under study and is supported by good horizontal volumes (Volume indicator). Display the VPVR (Volume Profile Visible Range) indicator on the same period on the screen and evaluate whether the maximum vertical volumes for the selected period are at this level. Big average checks If you observe volumes above average with a “small” candle body, then there are purchases at the same price for a large amount. This may indicate "big checks" or high market density. To confirm the existence of “big checks”, you can refer to the order book and make sure that there are real bid orders for large amounts. Fundamental prerequisites As an extra springboard from the bottom, news resources can: Issue positive analytics from experts on this asset Record the activity of major players - funds Report new technologies that have been released or are about to be released by the project Share the conditions for large investments in the project by large funds, etc. Price analysis for IDO, ICO and Private Sale If the project token or coin appeared on the market following one of the popular types of crowdfunding: ICO, IEO or IDO, the most popular one, then you need to compare the Public Sale price with the current price. If the current price is below the Public Sale price of the IDO, then you can put this in another checkbox on your checklist as a sign of a potential bottom. If the IDO price was lower, then this is not a bottom, there are still a large number of investors on the market who bought the coin at a lower price, which means they can sell it cheaper. Our bottom is not a new all-time bottom As we noted earlier, a support line is formed at the level of the potential bottom. If the price has never dropped so low in the history of the asset, then we cannot build a support zone, which means that the price can go even lower and find many new bottoms.
Education
by Crypto_robotics
How to auto-execute TradingView alerts on exchangeIf you have your own strategy in TradingView, you can set up opening trades on the exchange in a couple of clicks. Next, you’ll see an example of how we set up alerts in 5 minutes, and how orders were opened and closed on the exchange. To do this, we will create alerts and a bot for alerts on our platform. Step 1. Set the alert parameters. Go to our terminal, select the Algotrading section → Trading Robots → Add strategy button. You will see an interface for creating and customizing your bot, where you need to perform the Basic settings and proceed to setting the parameters for sending signals to the system. To do this, go to the Sending signals block. The TradingView signal source is already selected. Copy the Request URL. On the right side of the window, we see the code with the request parameters. You can add other parameters with checkboxes, we have added Stop Loss and Take Profit. Copy and save the code. Step 2. Launch the bot. Next, find the created bot in the All robots section and launch it in Work trading mode according to the manuals in the terminal. Step 3. Set up an alert in TradingView. Go to TradingView, open the Alerts section and set up an alert, for example, for opening an order (Buy) based on a simple indicator - in our case, Crossing. Paste the code that we got in Step 1 in the Message field. Paste the request URL we got in Step 1 in the Webhook URL field and Save. The alert has been successfully created and is active on TradingView in the Alerts section. Step 4. Monitor the orders. The alert triggers and ... Go to the Alerts log, where we see a notification about executed alerts from TradingView. We can check in the bot on our platform, open the Trades tab - we see open orders. And we see that alert orders are open on the exchange. Since we set Stop Loss and Take Profit, the orders were not only opened, but also closed. In the platform we can find deals, on the exchange we can find orders with the Sell parameter. We hope that now trading with TradingView will become even easier. We will release new and more detailed articles for you on using webhooks so that the strategy created here works 24/7 without your participation.
Education
by Crypto_robotics
12
Average True Rangehe Average True Range is a volatility indicator measuring how much the price of an asset has moved over a certain number of periods, in other words how volatile the asset is. It was created by J. Welles Wilder and was featured in his book “New Concepts in Technical Trading System”. It was originally designed as a volatility indicator able to capture gaps in commodities, since a volatility formula based solely on the high-low range would miss that movement. However, the ATR can be used for stocks, indexes and currencies as well. What traders use the ATR for is to determine their profit target and the optimal price level for placing protective stops by predicting how far the asset may move in the future. The Average True Range is most commonly calculated on a 14-period basis, but as with most other indicators, it can be fine-tuned according to each traders unique trading system. The ATR is a directionless indicator, basically a type of moving average of the assets price movement over a certain period of time, which does not indicate the direction of the trend. You can see how the ATR is visualized on a chart on the screenshot below. As you can see, We have plotted in every opened trade the value of the ATR at that moment. We've used the default 14-period basis, which means that the average price movement over the last 14 periods ( candles ) is 151 pips for the first trade, 137,8 for the second, and 196,2 for the last one. A trader can therefore expect the price to move within the range of 151 / 137 and 196 pips during these trades, thus giving a hint of where his/her profit target and protective stops should be. As you can see. We have used 2 methods for using the ATR on these trades. On the first trade, we have opened a position on the pullback of the previous Resistance, the SL and the TP have been calculated using the ATR multiply one time. 151 pips for the SL and 151 for the TP. The second trade is based on a continuation trend strategy and also on this occasion the TP and SL have used the multiply ATR 1 time. Last trade, Again Pullback on previous support with ATR multiply 2 times. How is the ATR calculated? The Average True Range is calculated by estimating the True Range for each of the included periods and then finding their average using a formula, which is shown below. The True Range is defined as the greatest of the following: – The difference between the current high and the current low – The difference between the current high and the previous close in an absolute value – The difference between the current low and the previous close in an absolute value The first scenario is used when the current high is above the previous period's high and the recent low is below the preceding period's low (the previous candle is engulfed by the current one). The second and third scenarios are used when a gap has occurred or the current period is engulfed by the previous period. Since Wilder was interested in measuring the distance between two points, and not in the direction of movement, here we use absolute values. After we've calculated the True Range for each period we have decided to track back, we must now calculate the Average True Range by adding these values and calculating their average (as we've already said, the ATR is a moving average of the TR values). As mentioned before, the most commonly used and set as default in most trading platforms' period settings is 14 periods. After we estimated the ATR for the initial 14 periods, we must then use the following algorithm to estimate future values: Current ATR = / 14 How to trade the ATR You've already learned that the Average True Range acts as a tool to measure the degree of interest or disinterest in a price movement. This means that inspiring moves are often accompanied by large TRs, especially at the beginning of a move, while weak moves are followed by narrow ranges. This allows us to use this indicator to gauge the enthusiasm behind every move, including breakouts. For example, a price reversal, accompanied by an increase in the ATR value would suggest strong sentiment toward that move and reinforce the reversal, while a weak ATR would suggest proceeding with caution. This is also true when the price breaks through support or resistance. If the breakout is supported by a rise in the ATR, it will be most likely a real move, but waning support from the indicator would suggest that the breakout might be false.
Education
by FOREXN1
7