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Technical Analysis

Technical Analysis. HOW to identify trend,support and resistance📊Technical analysis Technical analysis is a way to predict the future price movement according to the price chart. The price takes everything into account - this is the main idea of technical analysis . This idea means that we only need to see the price chart to find out where it will go in the future. The main tools of technical analysis are trend lines , support and resistance lines. So how do you find them on the chart? 📈Downtrend and Uptrend📉 The price is always in motion and when the price shows each new high below the previous one and each new low below the previous one - we say that there is a downtrend now and to make it clearly visible, analysts connect the highs and lows with lines - this is how the downtrend lines are drawn. To identify an uptrend, the same idea is used, only in a different direction - every time the price forms new highs above the previous ones and new lows above the previous ones, we say that there is an uptrend now. ➖Support and resistance➖ Combining the highs and lows, technical analysts noticed that the price is facing resistance on the one hand and support on the other. These zones prevent the price from going higher or lower, depending on the trend. It is very important to see these zones, because, as a rule, trade is conducted from them. Also, there are frequent moments when support, after its penetration, becomes resistance. ❗️Remember❗️ It is important to remember that the trend, resistance and support lines are just zones and the price sometimes goes beyond the lines, but then comes back. The price will make false breakouts of resistance or support from time to time. This is normal and it should always be remembered. It is important that the price rebounds from these zones at least twice, so that there are reasons to draw lines and identify the trend. 🚀Profitable Result🚀 Thanks to these simple methods of technical analysis , a trader can easily determine the trend and avoid stupid money losses, the method will also help in the correct setting of stop orders, which will make your trading more accurate and more profitable. Trend is your friend, be able to find it.
TVC:DXYEducation
by tima_tip
Technical Analysis. HOW to identify trend,support and resistanceTechnical analysis Technical analysis is a way to predict the future price movement according to the price chart. The price takes everything into account - this is the main idea of technical analysis. This idea means that we only need to see the price chart to find out where it will go in the future. The main tools of technical analysis are trend lines, support and resistance lines. So how do you find them on the chart? Downtrend and Uptrend. The price is always in motion and when the price shows each new high below the previous one and each new low below the previous one - we say that there is a downtrend now and to make it clearly visible, analysts connect the highs and lows with lines - this is how the downtrend lines are drawn. To identify an uptrend, the same idea is used, only in a different direction - every time the price forms new highs above the previous ones and new lows above the previous ones, we say that there is an uptrend now. Support and resistance Combining the highs and lows, technical analysts noticed that the price is facing resistance on the one hand and support on the other. These zones prevent the price from going higher or lower, depending on the trend. It is very important to see these zones, because, as a rule, trade is conducted from them. Also, there are frequent moments when support, after its penetration, becomes resistance. Remember It is important to remember that the trend, resistance and support lines are just zones and the price sometimes goes beyond the lines, but then comes back. The price will make false breakouts of resistance or support from time to time. This is normal and it should always be remembered. It is important that the price rebounds from these zones at least twice, so that there are reasons to draw lines and identify the trend. Profitable Result Thanks to these simple methods of technical analysis, a trader can easily determine the trend and avoid stupid money losses, the method will also help in the correct setting of stop orders, which will make your trading more accurate and more profitable. Trend is your friend, be able to find it.
TVC:DXYEducation
by tima_tip
Finding That Perfect Strategy When it comes to choosing the best strategies, most traders are often hoaxed into believing that there's a perfect strategy that works irregardless. The stream of loosing trades that comes after they've purchased or spent alot in implementing the strategy contradicts this. Well that's true for the most part. Indicators on the other hand, considered to be lagging, depending on the way they're used can be of great help but also misleading to some point. I once read an article that said to learn, we must unlearn what we've learnt. The way we're used to using indicators may or may not be the correct way they're to be used. Now most people have indicators in their strategies for confluence. I can't for sure say that that's right or wrong because trading isn't about what you see, it's about how you see the markets, and how you interpret that info. It's also about how you handle yourself before and after trades. Your reactions to the outcome of any trade, be it a winner or a loser. So whatever the things that make up your stategy, its all up to you to decide. Because what works for you might not work for me for obvious reasons. Intensively testing a strategy to find out if it works or not before trading in the live markets is the best way to ensure that you understand what you're doing. Its also one way train yourself to take responsibility of whatever outcome the trade you've taken brings. So when you place a trade you always know why you're doing it. Let me know what you think in the comments section.
CAPITALCOM:BTCUSDEducation
by thedoggrucci
2
Narrowing Wedges - Advanced AnalysisIn the last post in this series on chart patterns, we described the characteristics, rules, and causes of broadening wedges patterns (if you haven't seen it, see the related ideas below). In this post, we shall perform an advanced analysis of a related pattern, narrowing wedges. We provide a description of each pattern and its implications. That's the way it ends. The thin edge of the wedge. - Bulkowski (1) 1. Narrowing Wedges Narrowing Wedge patterns are reversal patterns that are characterized by price variations laying within one support and resistance and both having the same direction and narrowing over time. In a narrowing wedge, the apex is located at the end of the formation. 1.1 Rising Wedge Rising wedges mostly occur during uptrends, with raising local maxima (higher highs) forming an upward sloping resistance and raising local minimas (higher lows) forming an upward slopping support. The slope of both the support and resistance should be significantly different from 0. Bulkowski suggests the price should test the support and resistance 5 times. Volume tends to decrease during the formation of such patterns. Ascending wedges are bearish-biased, with breakouts mostly occurring downward. Downward breakouts are often followed by a decrease in price. Example of rising wedge on Visa daily followed by a downward breakout. 1.2 Falling Wedges Falling wedges mostly occur during downtrends, with declining local maxima (lower highs) forming a downward sloping resistance and declining local minima (lower lows) forming a downward slopping support. The slope of both the support and resistance should be significantly different from 0. Like with rising wedges, Bulkowski suggests the price should test the support and resistance 5 times. Volume tends to decrease during the formation of such pattern. Descending wedges are bullish biased with breakouts mostly occurring upward. Upward breakouts are often followed by an increase in price. Example of falling wedge on Trivago daily. 2. Measure Rule The measure rule allows for the determination of where to set a take-profit/stop-loss after a breakout in a narrowing wedge formation. Rules differ from an upward to downward breakout of the formation. When price breaks the support of a rising wedge, the take-profit is determined from the lowest low inside the formation. When the price breaks the resistance, the take-profit is determined by adding the height of the formation to the breakout point. When price breaks the resistance of a falling wedge, the take-profit is determined from the highest high inside the formation. When the price breaks the support, the take-profit is determined by subtracting the height of the formation from the breakout point. 3. Some Observations Technical analysts believe that narrowing wedges indicate a sentiment switch. The impulses within the formation have a decreasing amplitude over time, indicating a potential change in trend. The amplitude of the impulses decrease linearly over time. The underlying trend in narrowing wedges formation is linear. Detrended prices within a narrowing wedge would highlight a damping effect. Rising Wedges have been studied with climate time-series data (2) References (1) Bulkowski, T. N. (2021). Encyclopedia of chart patterns. John Wiley & Sons. (2) Kaiser, J. (2017). Technical analysis of climate time series data.
INDEX:BTCUSDEducation
by LuxAlgo
42
What Does the Inverted Hammer Candlestick Pattern Mean? Hello Traders! Have you ever wondered when will a strong trend end? Do you struggle to spot candlestick patterns that potentially signal when the bulls or bears might take over? Take a look at this example of EUR/CAD and let's see how the trade plays out! :) About the Inverted Hammer Candlestick Pattern and Why It Forms: The Inverted Hammer is a bullish reversal candlestick pattern. It occurs when the price has been falling and suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers attempted to push the price back down. Since the sellers weren't able to close the price any lower, this is a good indication that everybody who wants to sell has already sold. And, if there are no more sellers, who are left? Buyers! And just an important observation, the Inverted Hammer has a small real body, and has a large upper shadow with a small or no lower shadow (also known as "wick"). Would you like to receive more "live charting" tutorials like this?? Comment below and let us know! :) Happy Trading!
Education
by BKTradingAcademy
2
Education: Three Day Trailing Stop Rule (3DTSR)ICEUS:KC1! I learned a handy tool used to manage risk under certain circumstances - the Three Day Trailing Stop Rule (3DTSR) In this example, I actually fade the 3DTSR, but being able to execute different styles of trading strategies reflects an understanding of them, while acknowledging that no system or strategy used in markets will be perfect. Three Day Trailing Stop Rule: There is one initial criteria for the 3DTSR to become active - Either Upon Pattern Breakout - to limit initial risk/add to position at lower relative risk OR Upon Reaching 70% of Target from Breakout as a Trailing Stop In an Uptrend, to exit a position using the 3DTSR Day 1 is the High Day, defined by a new price high - at this point, we are not aware of the setup Day 2 is the Setup Day, defined by a closing price (end of day) that is below the low of Day 1 - at this point, the trigger is active Day 3 is the Trigger Day, as the stop is placed below the low of Day 2 The 3DTSR can also be used as an entry strategy, as shown in the chart here. Day 1 = High Day Day 2 = Setup Day, where price closed below the low of Day 1 Instead of placing a stop below the low of day 2, here I fade the 3DTSR by ADDING to a long coffee position, and jamming the stop to below the low of Day 2 Day 3 = The low of Day 2, or the trigger, is never penetrated, and price opens a cent higher If using the Trigger as a stop, or below the low of Day 2, and using the Triangle shown to imply a measured target, this is a whopping 20 to 1 trade setup. Do you have any profitable trading systems or strategies?
ICEUS:KC1!Education
by jBTCkingaling
3
Education Excerpt: Simple Moving AverageSimple Moving Average The origin of inventing the Simple Moving Average (MA) is not clear. Although, some of the first documented cases of its use date as far back as the early 20th century. Implementation of moving averages in technical analysis is one of the most successful methods of identifying trends. Moving averages are simply constant period averages - usually of prices, that are calculated for each successive period interval. The result of calculation is then plotted on the chart as a smooth line that represents successive average prices. Thus, the calculation of the moving average dampens fluctuations of price of an asset, making it easier to spot an underlying trend. Though use of the moving average goes beyond identifying trends. Support, resistance and price extremes can be anticipated by correct interpretation of the moving average. Crossover Generally, when the moving average with a lower period interval crosses above the moving average with a higher period interval it is considered a bullish signal. On the other hand, when the moving average with a longer period interval crosses above the moving average with a lower period interval it is considered a bearish signal. These crossovers can serve as specific buy and sell signals in markets that are trending. However, moving average crossovers tend to produce many false signals in non-trending markets. Furthermore, these same crossovers can act as support or resistance levels. Illustration 1.01 Picture above depicts daily graph of PepsiCo (Ticker:PEP) with 20-day SMA (blue) and 35-day SMA (red). With implementation of these two moving averages it is easily observable that prevailing trend is bullish. Crossovers between these two simple moving averages reveal where trend began (10th February 2017) and where it ended (7th July 2017). In addition to that analyst can identify price extremes when price deviates too far from its 20-day SMA. Length of the period Different lengths of moving average directly translate to the amount of data used in the calculation. Including more data in the calculation of the moving average makes each data per time interval relatively less important. Therefore, a large change in one particular data would not have as large an impact on the overall result of the calculation in comparison to if the moving average with a shorter period was employed. Hence, the longer moving average produces less false signals at the cost of revealing underlying trend sooner rather than later. Usually, the use of two moving averages with different period intervals is encouraged as opposed to use of a single moving average. This comes from the premise that when two moving averages with different period intervals are plotted on a chart, they tend to show two separate lines converging and diverging. Illustration 1.02 Picture above depicts daily graph of XAUUSD with 3-day SMA (blue) and 6-day SMA (red). Viewer can see that 3-day SMA copies price move more agressively than 6-day SMA. Illustration 1.03 Picture above depicts exactly same graph as is showed in Illustration 1.02. However, length of SMAs differs. Blue line represents 10-day SMA while red line represents 20-day SMA. It is clear that when length of SMAs was extended then SMAs produced less mechanical signals (crossovers) as opposed to SMAs used in Illustration 1.02. Calculation The calculation of the moving average usually involves use of the close price. Normally, 10, 20, 50, 100 or 200 periods are used and the calculation is conducted by creating the arithmetic mean of a dataset. SMA = (A1 + A2 + An) : n A = average in period n n = number of time periods Illustration 1.04 Picture above shows daily graph of Coca Cola (Ticker:KO). In this particular example trend was neutral and it is visible that crossovers between two simple averages produced many false signals. Disclaimer: This content is just excerpt from full paper that will be published later. It serves educational purpose only.
OANDA:XAUUSDEducation
by Tradersweekly
60
Top Crypto Influencers To Follow In 2021(🔴PART 2)Hi guys As I promised in the previous post about influencers, I also posted the second part for you, there are 6 other people on my list, and if the number of likes reaches 270, I will post it for you as well. ✨1.Loomdart(@loomdart) Loomdart is a cryptocurrency analyst and veteran trader who has been actively dishing out well-researched, pertinent trading and investment tips and strategies on Twitter since mid-2014. ✨2.Starbust(@cryptostardust) Also known as Inversebrah in the crypto community, Starbust can only best perfectly described a crypto memes connoisseur. Much to the amusement of his thousands of followers, Starbust's online persona brings a satirical and comical twist to the often over-serious and overcomplicated debate on cryptocurrencies and his popularity is only rising, so you might want to follow him to a laugh or two ✨3.Lil Bubble(@TheCryptoBubble) Popularly known for producing parody versions of famous songs by the likes of Blink 182 and Avil Lavigne, Lil Bubble is undoubtedly the biggest satirist in the cryptocurrency space with hits like All Time Lows and Liquidated pushing him into an bigger online stardom. His productions can be found on Instagram and Twitter. ✨4.Altcoin Sara(www.youtube.com) Sara is a rare female face in the crypto space and one of the community’s biggest advocates through initiatives like the Altcoin Buzz Ladies YouTube channel, where she discusses cryptocurrency news, provides market analysis and offers a platform for alternative perspectives in the world of blockchain. ✨5.Credible Crypto Your main stop for understanding crypto trades, trends, and the marketplace at large is none other than Credible Crypto. Through his relentless quips on Twitter, Credible Crypto shares market analysis and investing advice with a healthy dose of humor thrown into the mix. He also does a superb job at breaking down key concepts and delivering a simple and approachable strategy to crypto investments and business ✨6.Changpeng Zhao(@cz_binance) More commonly known as "CZ", this business executive is none other than the founder and CEO of the world's largest cryptocurrency exchange - Binance. With an impressive track record in software development and trading for Bloomberg, CZ also found success while working at Blockchain.info before moving on to found his own startup. He frequently shares his wealth of knowledge on Twitter, earning him a solid spot on this list of crypto influencers. ✨7.Nicholas Merten(@Nicholas_Merten) Nicholas Merten is the founder of DataDash, the largest and arguably one of the most influential YouTube channels solely dedicated to covering crypto-related news. He's equally active on Twitter. ✨8.Roger Ver(@rogerkver) Another early investor, Ver has supported a number of cryptocurrency startups and projects over the years, cementing his status as 'Bitcoin Jesus' (as he likes to proclaim himself). He's also a leading digital philanthropist after major donations toward economic education. He currently serves as CEO of Bitcoin.com and you can find him Twitter. ✨9.Vitalik Buterin(@VitalikButerin) The co-founder of Ethereum (and the world’s youngest known crypto billionaire), boasts a massive online following, in large part due to his outspoken and opinionative views. The Canadian-Russian programmer isn’t exactly shy when it comes to stoking debate over some of the crypto industry’s most controversial aspects and has been praised for tackling sensitive issues head-on. He uses his platform to put pragmatism and principles before crypto politics. Buterin has also become a leading crypto philanthropist, making hefty donations to major causes. Follow him on Twitter, where he tends to drop some pretty big announcements. ✨10.Gavin Andresen(@gavinandresen) Primarily known for his crucial contribution toward developing Bitcoin during its initial phase, Gavin Andresen was considered Satoshi Nakamoto’s right-hand man, taking over from the Bitcoin founder after his abrupt departure from the project in 2010. Andersen then went on to become the face for Bitcoin as it exploded into mainstream consciousness. He’s since gone into semi-retirement but still plays a big and influential role as Chief Scientist at the Bitcoin Foundation. You can find him on Twitter.
BITSTAMP:BTCUSDEducation
by seyed_mehdi
💡🎓 Dow Theory & Bitcoin 🎓💡To share awareness for the beauty and history of our art of Technical Analysis of financial markets, in this educational post, I look at the six fundamental principles of Dow Theory, applied to Bitcoin and its current macro/local trends. Dow Theory Principles; 1. Markets Discount Everything 2. The Market has 3 Trends 3. Major Trends have 3 Phases 4. Markets must Confirm Each Other 5. Volume must confirm the Trend 6. A trend is assumed to be in effect until is shows clear signals it has reversed [Below is a summary of who Charles H. Dow was and his impact, by John J. Murphy; “ Charles Dow and his partner Edward Jones founded Dow Jones & Company in 1882. Most technicians and students of the markets concur that much of what we call technical analysis today has its origins in theories first proposed by Dow around the turn of the century. Dow published his ideas in a series of editorials he wrote for the Wall Street Journal. Most technicians today recognize and assimilate Dow's basic ideas, whether or not they recognize the source. Dow Theory still forms the cornerstone of the study of technical analysis, even in the face of today's sophisticated computer technology, and the proliferation of newer and supposedly better technical indicators. On July 3, 1884, Dow published the first stock market average composed of the closing prices of eleven stocks: nine railroad companies and two manufacturing firms. Dow felt that these eleven stocks provided a good indication of the economic health of the country. In 1897, Dow determined that two separate indices would better represent that health, and created a 12 stock industrial index and a 20 stock rail index. By 1928 the industrial index had grown to include 30 stocks, the number at which stands today. The editors of The Wall Street Journal have updated the list numerous times in the ensuing years, adding a utility index in 1929. In 1984, the year that marked the one hundredth anniversary of Dow's first publication, the Market Technicians Association presented a Gorham-silver bowl to Dow Jones & Co. According to the MTA, the award recognized "the lasting contrbution that Charles Dow made to the field of investment analysis. His index, the forerunner of what today is regarded as the leading barometer of stock market activity, remains a vital tool for market technicians 80 years after his death. Unfortunately for us, Dow never wrote a book on his theory. Instead, he set down his ideas of stock market behavior in a series of editorials that The Wall Street Journal published around the turn of the century. In 1903, the year after Dow's death, S.A Nelson compiled these essays into a book entitled The ABC of Stock Speculation. In that work, Nelson first coined the term "Dow's Theory." Richard Russell, who wrote the introduction to a 1978 reprint, compared Dow's contribution to stock market theory with Freud's contribution to psychiatry. In 1922, William Peter Hamilton (Dow's associate and successor at the Journal) categorized and published Dow's tenets in a book entitled The Stock Market Barometer. Robert Rhea developed the theory even furtherIn the Dow Theory (New York: Barron's), published in 1932. Dow applied his theoretical work to the stock market averages that he created; namely the Industrials and the Rails. However, most of his analytical ideas apply equally well to all market averages. “ John J. Murphy, Technical Analysis for the Financial Markets, 1999, Page 23-24 What are your thoughts? yemala
COINBASE:BTCUSDEducation
by Yemala
7
5 Important Candle Patterns that You Need to Know 5 most important candlesticks to know! Simplicity is the key to a positive result, and many traders ignore the simplicity of using these 5 MAIN candle patterns and the importance of each of them, as well as what they are. Many traders complicate everything and make trading more complicated than necessary. Using only these 5 candle patterns together with other basics of technical analysis is all you need to successfully make money in the market! Learn to read the market like a book, read candles-it's like reading words on a page. Candlesticks are the language of the market, and to understand the market, we must be fluent in the language of the markets. Knowing exactly where to find and trade these 5 candle patterns can change your trading forever. Candlesticks combined with other methods of applying technical analysis can be incredibly powerful in understanding where financial markets can go. It is important to remember that candlestick patterns are a physical representation of human psychology and decisions made in the market. Think deeper. The candles that you see on your charts, actually give you clear signs of what the dominant side (buyers or sellers) wants to do next. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by SignalProvider
41
4 TIPS ON USING TECHNICAL INDICATORS 🤖🖥 Hey traders, Technical indicators are an essential part of technical analysis. With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that. Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them. #1️⃣ Do not overload your chart with indicators. There is a fallacy among so many traders: more indicators on the chart lead to an increase in trading performance. Following this statement, traders add dozens of technical indicators to their charts. The chart becomes not readable and messy. The trader gets lost and makes wrong trading decisions. Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators. #2️⃣ Learn what exactly the indicator shows The data derived from technical indicator must make sense to you. You must understand the logic behind its algorithm. You must know exactly what it shows to you. Confidence in your actions plays a key role in trading. During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence. You will be able to overcome negative trading periods only by being confident in your actions. Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times. #3️⃣ Use the indicators that compliment each other Many indicators are based on the same algorithms. Most of the time the only difference between them is a minor change in its input variables. For that reason, such indicators leave very similar clues. In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other, not show you the same thing. #4️⃣ Price action first! Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first. You must know the way to make predictions relying on a naked chart. The indicators must be applied as the confirmation signals only. They must support the trading strategy but not be its core. ❗️Remember that the indicators won't do all the work for you. Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools. Would you add some other tips in this list? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38
💡🎓 The Philosophy of Technical Analysis 🎓💡 To continue awareness our art of Technical Analysis, this idea is an educational post and summary of The Philosophy of Technical Analysis, from Technical Analysis of the Financial Markets, by John J. Murphy, 1999, Page 2-5 The Philosophy of Technical Analysis 1. Market Discounts Everything The cornerstone of TA is that anything that can possibly affect the price, is reflected in the price. - All that is required is a study of price action - Price action reflects shifts in supply and demand - If demand exceeds supply, prices rise - If supply exceeds demand, prices fall The underlying forces of supply and demand are the economic fundamentals of a market. This action is the basis of all economic and fundamental forecasting. It follows then that if everything that affects market price is ultimately reflected in market price, then the study of that market price is all that is necessary. Charts themselves do not cause markets to move, they simply reflect the bullish or bearish psychology. By studying price charts and a host of supporting technical indicators, the chartist in effect lets the market tell him or her which way it is most likely to go. The chartist does not necessarily try to outsmart or outguess the market. All of the technical tools discussed later on are simply techniques used to aid the chartist in the process of studying market action. The chartist knows there are reasons why markets go up or down. He or she just doesn't believe that knowing what those reasons are is necessary in the forecasting process. 2. Price Moves in Trends The concept of trend is absolutely essential to the technical approach. The whole purpose of charting the price action of a market is to identify trends in early stages of their development for the purpose of trading in the direction of those trends. In fact, most of the techniques used in this approach are trend-following in nature, meaning that their intent is to identify and follow existing trends. - Prices move in trends, a trend in motion is more likely to continue than to reverse. - A trend in motion will continue in the same direction until it reverses. - Issac Newton's first law of motion is empirical evidence of this. This is another one of those technical claims that seems almost circular. The entire trend-following approach is predicated on riding an existing trend until it shows signs of reversing. 3. History Repeats Much of the body of technical analysis and the study of market action has to do with the study of human psychology. Chart patterns, for example, which have been identified and categorised over the past one hundred years, reflect certain pictures that appear on price charts. These pictures reveal the bullish or bearish psychology of the market. Since these patterns have worked well in the past, it is assumed that they will continue to work well in the future. They are based on the study of human psychology, which tends not to change. Another way of saying this last premise is; History repeats itself The key to understanding the future lies in a study of the past What are your thoughts? yemala
TVC:SPXEducation
by Yemala
40
Inside a Japanese candle 🕯 Japanese candlesticks are the most popular way to read the price movement on charts. They are visual, easy to learn and the main thing is that they work. You can see what the Japanese candle is built from on the chart, On the left side is a one-hour bullish Japanese candle The right side shows what happened during the hour with the price from the moment of opening to the moment of closing the candle. The Japanese candle shows the price movement for a certain period. As you know, the time frames of candles vary from minute to month. For trading on the financial markets, it is important to see certain formations of these candlesticks. You need to know not only the patterns that are written about in books, such as pin-bar and bullish absorption but also to know why and how they are built. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
5
What is a moving average? How to use it? The Moving Average (MA) is a simple technical analysis tool that smooths price data, creating a constantly updated average price. The average value is taken for a certain period, for example, 10 days, 20 minutes, 30 weeks, or any time chosen by the trader. There are advantages to using a moving average in your trading, as well as options for which type of moving average to use. Moving average strategies are also popular and can be adapted to any time interval, which is suitable for both long-term investors and short-term traders. The Moving Average (MA) is a widely used technical indicator that smooths out price movements by filtering out "noise" from random short-term price fluctuations. Moving averages can be constructed in several ways and use a different number of days for the averaging interval. The most common applications of moving averages are determining the trend direction and determining support and resistance levels. When asset prices cross their moving averages, this can generate a trading signal for technical traders. Although moving averages are quite useful on their own, they also form the basis for other technical indicators, such as the moving average convergence divergence ( MACD ). Why use a moving average The moving average helps to reduce the amount of "noise" on the price chart. Look at the direction of the moving average to get a general idea of which way the price is moving. If it is tilted up, the price as a whole is moving up (or has been recent); tilted down, and the price as a whole is moving down; moves sideways, and the price is most likely in a range. The moving average can also act as support or resistance . In an uptrend, a 50-day, 100-day, or 200-day moving average can act as a support level , as shown in the figure. This is because the average acts as a support, so the price bounces off it. In a downtrend, the moving average can act as resistance; like a ceiling, the price reaches a level and then begins to fall again. ✅ Let me know how do YOU use the MA, and what is your favorite indicator?✅
BITSTAMP:BTCUSDEducation
by ProSignalsFx
11
Types of Trading IndicatorsTraders use different types of indicators to gauge the market conditions. Let's take a look at what are those types of indicators Trend Indicators measures the direction and strength of a trend. When price moves above the average it can be thought of as a bullish trend. When price moves below the average, it's a bearish trend. Momentum Indicators are helpful as they are used to identify price movements by comparing prices over time. Can also be used to analyze volume by comparing current closing prices with previous closing prices. Volatility Indicators are used to analyze the periods of high and low volatility. The big swings created by the volatility can provide good trading opportunities. Volume Indicators plays an important role in technical analysis in confirming trends and patterns which makes volume indicators popular amongst traders. There are hundreds of indicators that can be categorized within these four categories. Also, a volume indicator can be used as a trend indicator or a volatility gauging indicator. The same goes for momentum or trend indicators. Some traders use one indicator to gauge volume while another trader can use the same indicator for another purpose. What kind of Indicators do you use in trading the most and why? It all depends upon the type of trading we are doing off course. Would love to know your opinions in the comment box below. Follow us for more educational analysis, technical ideas, and script updates. Happy Trading!
Education
by Tuned_Official
36
Open Tutorial ⚪ How To Never Lose Money? "Losing is the part of the game." - said the loser and kept losing. Are you a loser? Or do you open your mind? Losers lose because they BELIEVE in their loss. They refuse to comprehend reality. In reality, you can't learn from failures. A loss is a loss. Nothing more. In truth, you can learn only from successes. But what if you only lost so far? Good news: It doesn't have to be your success. You can learn from the success of others. Let's specify an ideal strategy. The ideal strategy is never wrong. You don't have to know this strategy. It suffices if it exists. Somewhere. To someone. We experimented with pattern matching + AI a lot. Our theory: Wedges can approximate any strategy. You can draw wedges. You don't have to know an ideal strategy. Yet you can approximate it with wedges. Is it possible to learn this power? Not from a Jedi. What we know: It works on all major cryptocurrencies with USDT. +100% profit on BTC/USDT: It works on altcoins. +200% profit on XEM/USDT (x10): It works on cryptocurrency-cryptocurrency pairs. +300% profit on TVKBTC (x10): Thus, +100% success rate. More than +700% profit. All within a week. "One stoke, two halves." - said the winner and kept winning.
CRYPTOCAP:USDT.DEducation
by Elysian_Mind
3
Your Strength Meter For Candlestick | Best Momentum Indicator 🕯 Hey traders, There are multiple different ways to measure the strength of the market reversal from a key level: ✔️some traders apply volumes and look for its sudden spike as a confirmation, ✔️some traders rely on some indicators and look for a particular trigger there as the signal, ✔️some traders, like me, follow the candlesticks and make their judgments based on the candle's strength. In this article, I prepared for you a candlestick strength meter that will help you to accurately spot the reversal clues. ❗️Remember about the important precondition: that candlestick meter is reliable being applied ONLY on key levels. Trading that outside key levels is not recommendable. 📈The initial touch of a key level is very telling: after a sharp bullish/bearish rally to key resistance/support the reaction of the price on that can indicate you the strength of the identified level. There are three main classifications of the reversal candle momentum: *by reversal candle we mean the first bullish candle on key support or the first bearish candle on key resistance. 1️⃣The momentum will be considered to be low in case if the reversal candle will close within the range of the previous candle. It indicates the weakness of bulls buying from support / bears selling from resistance. You should patiently WAIT for some other signal before you open the trade. 2️⃣The momentum will be considered to be medium in case if the reversal candle will engulf the range of the previous candle. It shows quite a strong initial reaction being sufficient to open the trade ONLY in a strict combination with some other signal. 3️⃣The momentum will be considered to be high in case if the reversal candle engulfs the range of the last two candles (two bearish or two bullish). By itself, it is considered to be a strong reversal signal. The trading position can be opened just based on such a candle. Among the dozens of different candlestick pattern formations, I believe that momentum candles are one of the most reliable in spotting the market reversal. Learn to spot these candles and you will be surprised how accurate they are. What candlestick pattern formations do you want to learn in the next post?🤓 ❤️Please, support my work with like and comment!❤️
Education
by VasilyTrader
117
Education excerpt: Relative Strength IndexGeneral information The Relative Strength Index (RSI) is a momentum oscillator that was introduced by J. Welles Wilder in an article published in Commodities magazine in June 1978. The Relative Strength Index measures the velocity of directional price movement and is commonly used in conjunction with a daily bar chart. However, it can be utilized on a bar chart with any particular time frame. The concept of this oscillator is based upon an idea of an asset being oversold or overbought. Generally, tops and bottoms are indicated when the RSI goes above 70 or drops below 30. Although, failure swings above 70 or below 30 can imply possible market reversal. Similarly, divergence between the RSI and price action on the chart can signal a market turning point. Chart formations and support and resistance often show up graphically on the RSI despite the fact that they may not be apparent on the bar chart. The slope of the momentum oscillator is directly proportional to the velocity of the move. Thus, the distance traveled up or down by the RSI is proportional to the magnitude of the move. The horizontal axis represents time and the vertical axis represents distance traveled by the indicator. The RSI moves slowly when the market continues its directional movement. However, once price is at the market turning point, RSI tends to move faster. Here is depiction of the weekly chart of USOIL: It is clearly observable that peak in RSI often coincides with peak in the price. Similarly, trough in RSI is often accompanied by trough in the price. Calculation The Relative Strength Index is commonly calculated using the close price of a 14 day period. The equation for its calculation involves several components. These are: • Average up closes • Average down closes • Relative strength Relative Strength (RS) = (average of 14 day's closes up/average of 14 day's closes down) Relative Strength Index (RSI) = 100 – Calculation begins with obtaining the sum of the up closes for the previous 14 days. This sum is then divided by the number of days used in calculating the generating figure for average up closes. Similarly, the sum of the down closes for the previous 14 days is divided by the number of days used in calculating the generating figure for average down closes. After these two operations are conducted, the average up days are divided by the average down days resulting in the value of the Relative Strength (RS). The number 1 is then added to the value of RS. Next, 100 is divided by the new amount of RS. The resulting figure is subsequently subtracted by 100 generating the value of the Relative Strength Index (RSI). From this step on, the previous value of average up closes and average down closes can be used to generate the next value of the RSI. In order to calculate the next average up close, the previous value of average up closes is multiplied by 13 and the present day average up close is added to this figure. This value is then divided by 14 generating the value for the new average up closes. In similar fashion, the new average down close is calculated by multiplying the previous average down closes by 13. Today's down close is then added to the figure. The resulting figure is again divided by 14 to generate the new average down close. After that, the same steps indicated to calculate the initial RSI need to be followed. Here is depiction of the monthly chart of copper futures market: Similarly like in the previous example positive correlation between peaks and troughs in RSI and price is observable. Divergence When trend is prevalent and two indexes (or index and price) are going simultaneously either up or down they exhibit positive correlation. However, when this correlation breaks and one index (or price) keeps going up while another index reverses down divergence is said to occur. Technical analyst should pay attention to this instance as it sometimes has abillity to foreshadow upcoming reversal in trend. Though, there are many instances when divergence occurs and reversal in price trend fails to materialize. For this reason some analysts like to implement concept of double divergence. Here is example of the divergence that we mentioned in our idea on 30th June 2021: Double divergence There are many instances when price continues its rise and analyst can observe oscillator or idex to fall only to see it later climb back up in tandem with price. (same applies to the opposite situation when price falls and index or oscillator starts to rise) The divergence occured but price trend remained intact. Because the divergence can be misleading, some analysts preffer to wait for the second divergence before placing their entries or exits. Disclaimer: This content serves only educational purpose.
OANDA:XAUUSDEducation
by Tradersweekly
43
Supply and Demand Zones - An Approach to Identifying Key LevelsIn this video I will break down my process in identifying supply and demand zones through technical analysis. Being able to identify these key areas allows for the trader to recognize potential levels of resistance and/or support. I also go over a few other technical analysis approaches I use when looking to identify similar key levels on a chart. From my experience, it works best for me to stick with the first technical approach that I am able to identify when looking at a particular symbol's chart. The more you look at a chart the more you will find an opportunity to squeeze in another form of technical analysis, often leading to clutter and uncertainty.
NYSE:NIOEducation
by rickhubbard10
Poor Reversals GuidePoor Reversals Indicator This indicator finds Poor Reversals. Poor reversals are reversals in price with consecutive highs or lows that are close together. Look for the different types of highs and lows. Some say candle patterns don't matter, but they forget it's the orderflow that makes the pattern. Find poor, tweezer , and 1 tic rejections and study what happens next. We don't need to read the depth of market to see what the orderflow is saying. They are called poor because the auction didn't run its course. It didn't continue the direction until all activity in that direction was exhausted. Proper reversals create excess. Excess is a long tail/wick. A proper reversal leaves a long tailed excess unfilled. The different highs and lows give clues to what kind of orderflow happened there. The difference between them is which high or low happened first. Price does often come back to these areas and clears them up with a proper reversal. We can see them on all timeframes. Knowing what they mean in the orderflow helps with reading charts. The Poor Reversals are: Poor 1 Tick Rejection Tweezer When looking at 2 bars that have very close high or lows, there are a few different types. They are each poor and can be further defined as each are price action clues. If next low is higher, it's a poor low If next low is lower, it's 1 tic rejection If next low is equal, it's tweezer bottom If next high is lower, it's a poor low If next high is higher it's 1 tic rejection If next high is equal it's tweezer top Poor Highs and Lows: The high or low comes first. The next bar does not go past it. Poor highs and lows are often created from price exhaustions. This means at poor highs buyers are trapped. At poor lows sellers are trapped. Price ran out of steam to continue in that direction. There wasn't enough activity/participation to continue the auction in that direction. Poor lows are defined when 2 lows are very close, and the 1st bar is lower. The 2nd comes very close to a new low. It happens most when shorts, at the moment, "run out of steam". They were "too aggressive" and got themselves "short in the hole". When a poor low is made, price will bounce because shorts are buying to protect profits. Poor highs are defined when 2 highs are very close. The 1st bar is higher. The 2nd comes very close to a new high. It happens most when longs, at the moment, "run out of steam". They were "too aggressive" and got themselves "long in the tooth". When a poor high is made, price will pullback because longs are selling to protect profits. 1 Tick Rejections: The high or low comes last. The last bar goes just a little bit beyond the first bar. A "1 tic rejection" happens when a new low is made and quickly rejects. The name is misleading. It doesn't have to be "1 tic". Different markets have different measurements. For ES, it's less than 8 tics. For NQ, it's about 5-20 points. It varies depending on relative market volatility . 1 Tick highs are defined when 2 highs are very close, and the 1st high is lower. The second high is a small peek above. This happens when longs are aggressive and drive price up. Price makes a newer high and longs rapidly start taking profits. Their selling activity drives price lower. In the orderflow, longs likely closed at the same time new shorts sell. This competition to sell drives price lower. At the high, it says longs saw it wouldn't go higher and they took rapid exit. 1 Tick lows are defined when 2 lows are very close, and the 1st low is higher. The second low is a small peek below. This happens when shorts are aggressive and drive price down. Price makes a newer low and shorts rapidly start taking profits. Their buying activity drives price higher. In the orderflow, shorts likely closed at the same time new longs buy. This competition to buy drives price higher. At the low, it says shorts saw it wouldn't go lower and they took rapid exit. Tweezer Tops and Bottoms The highs or lows of the bars are equal. Tweezers most often mean that an aggressive trader is influencing price. They drove price in one direction and then quickly reversed sentiment. Tweezers most often happen in stop hunts. An aggressive trader found where the stops were located and then entered an aggressive order to turn the market. Tweezer Tops are defined when 2 highs are equal. The first bar sets the high. The second bar matches the high. This happens when there is an active seller entering. It could be simple profit taking from longs or new aggressive shorts. In price action, price will move up to find short stops. When the stops are found, the market reverses sharply lower. Tweezer Bottoms are defined when 2 lows are equal. The first bar sets the low. The second bar matches the low. This happens when there is an active buyer entering. It could be simple profit taking from shorts or new aggressive longs. In price action, price will move down to find long stops. When the stops are found, the market reverses sharply higher. Poor Reversals can be Poor, 1 Tick Rejections, or Tweezers. They are all considered poor and upon further investigation we can see they are created from different conditions in the orderflow. They are not called Poor Reversals because they are weak. They are called poor because of the action that happened there. One side got caught in a bad position. Other sharks in the market smelled blood and ripped them apart. This indicator is a work in process. While the concepts are great for real time trading, this indicator is not designed to be used in real time trading. It will repaint based on the bar close. The purpose of this indicator is to train our brains to see these nuances on candle charts. Some say candle patterns don't matter, but they forget it's the orderflow that makes the pattern. We must make split second decisions and knowing the context behind the orderflow reduces response time. These poor reversals don't have to retest, and the best ones won't come back. I use these concepts to find exits, where my trades might be wrong, confirmation I'm on the right side. It's amazing how these simple nuances can turn the markets. But sure enough, they do. Check them out in all time frames. It's a fun indicator to play with. Some markets do require tweaks to the “Ticks” setting. Too big and charts will be noisy. Too low and not much will show up. A general rule of thumb is more volatile markets need higher tick values while less volatile need lower Tick values. Higher timeframes are also more reliable than lower time frames. I've included some customizable settings and I plan on adding more in the future. Enjoy!
CME_MINI:ES1!Education
by CoreySurles
1