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The Power of The Trend Line. In this piece I'm going to shed some light on the most basic, and yet, most overlooked TA tool to exist in chart analysis, the Trend Line. A trend line is a simple way to plot the price path of any asset. By connecting a set of lows or highs you can see the general direction the price of an asset is moving. Looking at the daily chart of Bitcoin we can see the bear market of 2018. By simply connecting the two first definable peaks (Beginning of March and May), we plot a line that dictates the price movement for the rest of the year. On multiple occasions, the trend line rejected the price and simply shorting off this trend line would have reaped huge profits. Most interestingly, however, is what happened at the beginning of April 2019. For the first time in over a year the price started trading above the trend line for a few days, what followed was an explosive rally of more than 25% in a single day. I remember clearly when this happened everyone was stabbing in the dark for reasons why Bitcoin was rallying. All kinds of Eliot wave theories and Fibonacci fans were being plotted and people were citing irrelevant news as the catalyst behind the rally. However, once again the teachings of Occam's razor had me looking at the simple violation of the downtrend line. Trend lines are not only a dominant force on long term charts. Let's look at the BTC 4 hour chart. If we plot a line with the two peaks from June 26 and July 10 respectively, we get a trend line. Then in early August as the price was moving up, where do you think we would run into resistance? Precisely on the predetermined trend line. Not a coincidence. Next, let's look at an even shorter time frame, the 1 hour BTC chart. From July 30 - August 9 the price rode a trend line that could be plotted within the first few days. Then on August 10th we started trading beneath the trend line, what followed was a swift 20% correction. Now let's look at the 5 min chart of the current price movement. The two lows on August 15th and 16th can be used to plot and uptrend line, and look what follows.... The longer you look, the more of these examples of this you can find, on almost any time frame with almost any asset. Markets are driven mostly by human psychology and that is why these trend lines are so dominant. They can help to identify the most optimal point to enter an up or down trend, predict tops and bottoms of short term rallies, and be an accurate gauge of market conditions.
KRAKEN:BTCUSDEducation
by HyptoCrypto234
#DeMARK #Sequential Tutorial 2 - Trend & Reversal (Bear -> Bull)Note: This tutorial is based on the comments made in Jason Perl's book DeMARK Indicators. I strongly recommend you to read this book if you want more in-depth knowledge. I publish this tutorial for educational purposes only TD Countdown - Bullish Case 1. Definition TD Countdown is the second component of TD Sequential and cannot come into play until a TD Setup formation is complete. Once the first condition is met, TD Countdown can begin, from the close of bar nine of TD Setup (inclusive), onward. TD Countdown works in either direction: For the bullish case, the increment occurs when the current close is lower than the low two bars earlier. This price relationship is an important distinction from TD Setup, because the market must be trending for TD Countdown to objectively identify the likely exhaustion point for a trend reversal In my TD Enhanced Sequential indicator , TD Countdown is represented by circled numbers from 1 to 13. Note these numbers from the countdown phase: 3/4/6/7/9/10 were replaced by a special character. 2. Requirement # Prerequisite: As soon as a TD Buy Setup is in place, we can start looking for the first bar of a TD Buy Countdown # To initiate a TD Buy Countdown With bar nine of the TD Buy Setup in place, there must be a close less than, or equal to, the low two bars earlier. Bar nine of a TD Buy Setup can also be bar one of a TD Buy Countdown if it satisfies the previous conditions. Unlike TD Buy Setup, TD Buy Countdown doesn’t have to be an uninterrupted sequence of qualifying price bars; the TD Buy Countdown process simply stops when markets are trading sideways, and resumes when prices start trending lower again. # Nested TD Buy Countdown On bar 9 Setups, an additional step exists to check if a Countdown is already in place. In case a previous Countdown (A) is detected, a new nested Countdown (B) initiate without ending the (A) Countdown. You will be able to detect the start of a nested Countdown with a clear graphical signal on 9 Setups: Start of Normal Countdown: 9 Start of Nested Countdown: Color Codes: Green/Red : Perfected BUY/SELL Setup Gray: Unperfected BUY/SELL Setup # To Complete a TD Buy Countdown The low of TD Buy Countdown bar thirteen must be less than, or equal to, the close of TD Buy Countdown bar eight, and The close of TD Buy Countdown bar thirteen must be less than, or equal to, the low two bars earlier. When the market fails to meet these conditions, TD Buy Countdown bar thirteen is deferred and a plus sign (+) appears where the number thirteen would otherwise have been. # TD Buy countdown cancellation Although a developing TD Buy Countdown doesn’t reset itself if there is an interruption in the sequence of closes each one of which is less than, or equal to, the low two bars earlier, there are a number of built-in conditions, or filters, to help the trader recognize when the dynamics of the market are changing. These filters erase the as-yet-incomplete TD Buy Countdown. If the price action rallies and generates a TD Sell Setup, or If the market trades higher and posts a true low above the true high of the prior TD Buy Setup—that is, TDST resistance. As we may have now, 2 countdowns in place at the same moment, it is useful to identify which countdown is being cancelled. The "X" character indicates a Countdown cancel. These colors clarify which countdown is impacted: Green/Red : Main countdown Gray: Nested Countdown This completes the second tutorial. More to come. Also check my profile to access more content. Take care MATHR3E
BITSTAMP:BTCUSDEducation
by MATHR3E
Tutorial on Advanced Swing Trading Entry & Exit PointsSteps to Swing Trading: 1. Find a trend: uptrend in bull price action chart, or downtrend in bear price action chart. 2. Analyze the trend to find the best entry points on that trend. That means finding the HL higher low points in and bull market, and LH lower high points in a bear market. Look for HLs in a bull market, and LHs for a bear market. 3. Confirm the best entry points in the trend with supporting candlestick patterns. Find a good bullish candlestick pattern on the HLs of a bullish market, and good bearish candlestick patterns for LHs of a bear market. These include pin bar patterns, engulfing candlestick patterns, inside bar candlestick patterns. They confirm a reversal As a general rule of thumb, entry points above 30 Day and 50 Day EMA lines provide more confirmation of the direction of the trend. To be most successful, remember to never go short in the bullish/uptrend market, and never go long in a bearish/downtrend market. This manages risk. Uptrends: Wait until an uptrend is confirmed before investing: uptrends are confirmed by two higher highs, with two higher lows on the chart. To elaborate, that means if we have two back-to-back HHs and HLs, that indicates the uptrend is confirmed and it's time to look for strong bullish candle or bullish reversal candlestick patterns at the third HL. Downtrends: To confirm downtrends, wait until two lower highs and two lower lows have formed in the price action chart. If you find two recurrenct LHs and LLs in a chart, then this price action setup marks that a new downtrend has been confirmed and the bear has begun. Start selling/short trading from LH 3 IF you find a strong bearish candle pattern or a strong bearish reversal candlestick pattern at the lower high level 3. Conclusion: This is the main process for swing trading strategy. Practice this process on historical charts to improve your understanding and mastery of the strategy, then manage your risk investing.
BITSTAMP:BTCUSDEducation
by Grandmaster76
XRPUSD Indicator Based AnalysisAs we know there is a lots of talk around the traders for XRP, few are bullish by calling the price as bottom while few are still bearish. Let's have a look at charts with some indicators. At first one must notice that the bigger time frame(1D chart) is showing that the XRP is in descending triangle pattern(shown in chart with blue lines) according to the triangle the bottom price is around $0.277. Now lets talk momentum: EMA cross EMA cross is showing us continuation of falling prices for medium term. Following this scenario price behavior should go to the down around $0.29 before a turn around. Here possibly we can see a low wick to the down in attempt to touch the bottom of the triangle, if the price needs to go higher in short term. Key Level Short term price may bounce back to $0.36 - $0.37, but momentum will be still bearish. If we break the resistance around $0.46(triangle breakout), we can expect a bull trend. I haven't gone with trend lines, this analysis is based on a few reliable indicators(EMA cross,MA, ichimoku cloud, support and resistance). REMEMBER : Use your analysis before pressing LONG/SHORT, you are the owner of your mind and it is your money. If your idea(s) matching with this analysis you're good to go. :) If you found it useful, do not forget to hit thumbs up button. :) Best Wishes
BITSTAMP:XRPUSDEducation
by itsmishrahere
#DeMARK #Sequential Tutorial 1Note: This tutorial is based on the comments made in Jason Perl's book DeMARK Indicators. I strongly recommend you to read this book if you want more in-depth knowledge. I publish this tutorial for educational purposes only TD Setup TD Setup is the first component of TD Sequential. It determines whether a market is likely to be confined to a trading range or starting a directional trend. TD Setup works in either direction: It consists of a nine consecutive closes; each one than the corresponding close four bars earlier. In the TD+ Enhanced Sequential indicator, TD Setup is represented by numbers from 1 to 9. 1. Bullish case (TD Buy Setup) # Definition: Step1: Bearish TD Price Flip. The prerequisite for a TD Buy Setup is a Bearish TD Price Flip, which indicates a switch from positive to negative momentum. TD Price Flip is bar 1 (Red) out of 9. Step2: TD Buy Setup After a bearish TD Price Flip, there must be nine consecutive closes; each one less than the corresponding close four bars earlier. # TD Buy Setup “Perfection”: The low of bars eight or nine of the TD Buy Setup or a subsequent low must be less than, or equal to, the lows of bars six and seven of the TD Buy Setup How to differentiate perfected and unperfected Buy Setup within TD+ Enhanced Sequential Indicator: Perfected Buy Setup is a RED character '9' Unperfected Buy Setup is a GRAY character '9' # Interruption of a TD Buy Setup: If, at any point, the sequence is interrupted, the developing TD Buy Setup will be canceled and must begin anew. 2. Bearish case (TD Sell Setup) # Definition: Step1: Bullish TD Price Flip The prerequisite for a TD Sell Setup is a Bullish TD Price Flip, which indicates a switch from negative to positive momentum. TD Price Flip is bar 1 (Green) out of 9 Step2: TD Sell Setup After a Bullish TD Price Flip, there must be nine consecutive closes; each one greater than the corresponding close four bars earlier. # TD Sell Setup “Perfection” The high of TD Sell Setup bars eight or nine or a subsequent high must be greater than, or equal to, the highs of TD Sell Setup bars six and seven How to differentiate perfected and unperfected Buy Setup within TD+ Enhanced Sequential Indicator: Perfected Sell Setup is a GREEN character '9' Unperfected Sell Setup is a GRAY character '9' # Interruption of a TD Sell Setup If at any point, the sequence is interrupted, The developing TD Sell Setup will be canceled and must begin anew. This completes the first tutorial. More to come. Also check my profile to access more content. Take care MATHR3E
BITSTAMP:BTCUSDEducation
by MATHR3E
1
Trend figure Flag, pennant and triangle These figures tell us the trend continues. Flag has even structure, doesn’t contract or widen. It’s just a flat with slight slope against the major trend. The indispensable condition is the availability of a flagpole – a swift and strong movement toward trend and the following stop. At this moment, the market take a short rest and gains new volumes for another dash. You can work either from the bottom level of the flag itself, or when the top one is broken. Pennant is the same thing as flag, but it contracts with time. Flagpole is also required. For details, see here >>> pamm-trade.org
FEducation
by IgorPorokh
Btc -Gap Trading StrategyGap Trading Strategy Rules-How To Trade Gaps 1. You need to choose a currency pair with a high level of volatility. btcusd is a good example but any currency pair that forms a weekend gap should also be good. 2. When the trading day starts on Monday, look to see if there is a gab. Make sure that the gap is at least 5 times the average spread for the pair. For example, if the spread is 3 pips, make sure that the gap is  15 pips or above. Anything less would be considered irreverent 3. If you see that Monday’s candlestick open is below the Friday’s close then the  forex gap is negative and you should open a Long position at market price. 4. If you see Monday’s open is above the Friday’s close the forex gap is positive and you should open a Short position at market price. 5. You can apply two stop loss options: (a) apply no stop loss at all INITIALLY but as price moves in favor by say 50 pips, place stop loss above high or low of the Monday Candlestick when it closes (b) Place stop loss above/below nearest swing high/swing low the you can find in 1hr timeframe or 4 hour timeframe. 6. Just 5 minutes before the market closes on Saturday, (e.g., 5 minutes before the end) you need to close your trade.
CME:BTC1!Education
by IgorPorokh
1
Bitcoin: Levels of Price Action One of the first most important and fundamental thing for any trader to do, is to properly define price levels on chart. Dealing with Bitcoin price in 2019 you can witness it's peak near 20 000 price range and as price went down by now to 3750 area, this means most traders will set their levels at closest round numbers like of course at the middle 10 000 and lower 5000 level. Second important levels are intermediate primary like 2500 and 7500 which are calculated by dividing main levels in two, and finally you get secondary intermediate levels 8850, 6250, 3750 also calculated by division in half. As you can see on BTC chart these levels work out perfectly well. Setting levels is a very simple part of TA, but it gives a lot more comfort and vision, when making trading decisions. Good Luck
BITFINEX:BTCUSDEducation
by leonidtoburokov