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Building Success In PineScript - The Ment Pressure SystemAfter more than two weeks of playing around with Pinescript, I've managed to put together some really cool tools for my followers/subscribers. The idea of price pressure intrigued me, so I decided to create something based on it. Ideally, I planned to build something that helped traders find and execute better trades. It is difficult to identify chop vs. trending in any market/interval. My goal was to create a small suite of tools to help traders identify better trade setups. I still believe I have more work to do with these pressure tools, but I'm very happy with how they work. I did learn some "tricks" with Pinescript related to how variables and processes work (of course, by trial and error). Watching the code run in real-time has been fun (watching a 2 min ES chart). I can't wait to see how my followers use these tools and develop new ways to deploy them efficiently. What are your thoughts? Anything I can do to improve? Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
CME_MINI:ES1!Education
by BradMatheny
Algorithmic TradingAutomated/Algorithmic Trading Automated trading, also known as algorithmic trading or algo trading, has transformed the financial markets over the past few decades. By leveraging computer programs to execute trades based on predefined rules and strategies, traders and investors can achieve greater efficiency, consistency, and profitability. As technology continues to evolve, the future of automated trading looks even more promising. Advances in artificial intelligence (AI) and machine learning (ML) are enabling the development of more sophisticated trading algorithms capable of learning and adapting to new market conditions. Benefits of Automated Trading Automated trading offers numerous advantages over traditional manual trading: Efficiency and Speed: Automated trading systems can execute orders at speeds far beyond human capability. Consistency and Discipline: Automated systems follow a set of predefined rules and strategies consistently. This eliminates human error and emotion from trading, ensuring that trades are executed as planned without deviation caused by fear, greed, or other psychological factors. Diversification: Automated trading systems can simultaneously manage multiple strategies across different markets and instruments. This diversification spreads risk and increases the chances of profit. Complex Quantitative Models: Automated trading systems can employ complex quantitative models that integrate vast amounts of data and sophisticated mathematical algorithms to predict market movements and make informed trading decisions. 24/7 Market Opportunities: Automated trading systems can operate around the clock, taking advantage of global market opportunities that arise outside regular trading hours. However, it's important to note that while automated trading offers many benefits, it also comes with risks. Algorithmic errors, technical failures, and market anomalies can lead to significant losses. Therefore, it is crucial for traders to continuously monitor their automated systems and have risk management measures in place. Getting Started with Automated Trading The cycle to ensure that automated trading systems remain effective and responsive to market dynamics: Algorithm Development: Creating a set of rules and strategies that define when to buy or sell an asset. Backtesting: Testing the algorithm on historical data to evaluate its performance and make necessary adjustments. Execution: Automatically placing buy or sell orders when the criteria defined in the algorithm are met. Monitoring and Adjustment: Continuously monitoring the algorithm's performance and making adjustments as needed based on changing market conditions. OKX Signal Bot and TradingView Integration With the integration of OKX and TradingView, TradingView users can now set up an OKX Signal Bot with their or their signal suppliers' TradingView signals (both indicators and strategy scripts) and automate their preferred trading signals and strategies. Here's how to do it: Step 1: Log in to your OKX account and add your Custom Signal -> Name your signal and insert an optional description of the signal -> Create Signal Step 2: Configure TradingView alerts and add the Webhook URL and AlertMsg Specification that is auto-generated by OKX in the first step -> Create Step 3: Set up your Signal on OKX and Create Bot -> Specify the trading pairs, determine the leverage ratio, and decide on the amount of funds you're willing to invest into the bot -> Confirm Congratulations! You've successfully created your Signal Bot. This powerful tool will now listen to signals from your selected signal source and execute your trades instantaneously in real time, taking your trading to the next level. Demo Trading allows OKX users to trade in a simulated environment that mimics real-world market conditions. This enables traders to try out their strategies, gain insights into the markets, and refine their decision-making abilities without any risk of incurring losses.
Education
by dgtrd
5
Exploring Trading Basics: Expert Tips for New TradersWelcome to the thrilling world of trading, future market experts! If you’re stepping into this arena for the first time, it’s natural to feel both excited and a little overwhelmed. No worries — we’ve set up this nice value-packed TradingView Idea to make you feel at home. Read on for practical tips that will help you kick off your trading journey to a strong start. Ready, set, go? Let’s roll! 1. Get Yourself Familiarized Action Step : Your first step as a fresh trader is to familiarize yourself with the market fundamentals. Start by getting a solid grasp of basic market concepts. Learn about different asset classes like stocks , forex , or crypto . Understand how they work and what news or events influence prices across the board (spoiler: if you’re looking at the bigger picture and keep it high level, there aren’t too many things to consider — check the Economic Calendar Related Idea below). Spend an hour or two each week reading about market fundamentals. Knowledge of these basics will make you more confident in your trading approach and also help you see where you feel most comfortable putting your money. And don't forget about the trading psychology part . 2. Set Clear, Achievable Goals Action Step : Write down your trading goals and stick them somewhere you can see them. Aim for specific, measurable targets like “Hit a 2% monthly return” or “Learn a new trading strategy weekly.” This keeps your efforts focused and on track. But don’t stop there. Keep revisiting, updating, and refining your trading goals. Think of them as your compass or map that you need to follow in order to get where you want. In contrast, not having a goal or goals might throw you out in the open where you wander without a clear path or direction. 3. Stick to Your Budget Action Step: Decide on your total trading capital and how much you’re willing to risk per trade. Use the 1-2% rule: never risk more than 1% or 2% of your total capital on a single trade. This will help you protect your account from total wipeout. It’s easy to get swayed by some massive move in the market (yes, we know about Bitcoin BTC/USD ), but catching these waves is rarely an easy game. The better you are at sticking to a healthy level of risk exposure, the better your chances to stay in the game for as long as possible. 4. Stay Updated with Market News Action Step : Dedicate 15 minutes each morning to checking financial news. Keeping tabs on major economic reports and events will give you an understanding of what investors regard as important so you can add it to your agenda too. We’ve set up a nice and easygoing Top stories news stream that serves you only top-tier market-moving scoops, published daily and updated in real time. Make sure to frequent them so you can raise your level of knowing what’s happening in the markets. 5. Keep a Trading Journal Action Step : For every trade, jot down the details in a journal. Include entry and exit points, your reasons for the trade, and the outcome. Review your journal weekly to identify patterns and areas for improvement. If you want to get an even more precise look at your trading performance, add more columns to it and include prospect trades, or a watchlist of positions you’re interested in. Mark your monthly performance, year-to-date returns, and even how much you paid in commissions. 6. Start Small and Scale Up Action Step : Begin with small trades to minimize risk while you’re learning. For example, if you have $1,000, start with trades of $50-$100 and keep your stop tight around the 2% mark. That way, you’ll gain experience and see how you feel when you have an open trade. Leave a trade overnight, watch it actively or let it run for a few days (provided you use a stop loss , more on it in the Stop Loss Related Idea below) — all these will help you ease into smoother trading and build better confidence. After that, you can gradually increase your trade size for bigger profits. And — most importantly — don’t rush it. The markets will be there tomorrow; but will you? 7. Use Stop-Loss Orders Action Step : Always set a stop-loss order when placing a trade. For instance, if you buy a stock at $100, set a stop-loss at $95. This means your position will be automatically sold if the price drops to $95, limiting your loss to $5 per share. The use of stop-loss orders, or simply stop losses, can’t be emphasized enough. No matter how confident you are on a trade, how much conviction you have to go big, always think of the downside, or how much you’re willing to lose. 8. Join a Trading Community Action Step : If you’re reading this, then you’ve already nailed this step. TradingView is the world’s largest finance, markets, and charting platform, boasting more than 60 million monthly visitors — one big, big community . This is the place where traders share tips and strategies, show off their charts, discoveries, patterns, price targets, and trading ideas. So, stick around, engage, ask questions, and learn from the experiences of others. 9. Diversify Your Portfolio Action Step : Spread your investments across different sectors and asset classes. Don’t just buy big tech stocks ; consider some auto companies as well or the volatile corner of cryptocurrencies. Diversifying your portfolio (learn about it in the Diversification Related Idea below) will help you balance your risk, ideally without reducing the potential for returns. You don’t have to go all-in on a trade and YOLO your entire life savings into a Solana meme coin. Think of the long term and tread carefully. Sometimes, you’re as good as your last trade. 10. Continuously Improve Your Skills Action Step : Dedicate time each week to learning something new about trading. Watch educational videos , read books, or dive into financial podcasts where big market events get broken down or where traders and investors share their experience and what made them successful. The markets renew each day, never resting, never ceasing to oscillate and presenting new trading opportunities. Always learn, never get complacent, and keep striving for more! Share Your Thoughts! So there you have it, folks! With these practical, actionable tips, you’re ready to jump into the trading game with some added confidence. Remember, every pro was once a newbie. Stay cool, stay informed, and most importantly, have fun with it (but also be smart). Happy trading! 🚀📈
SP:SPXEducation
by TradingView
4
What Are Bullish and Bearish Breakaway Candlestick Patterns?What Are Bullish and Bearish Breakaway Candlestick Patterns? Candlestick patterns are a vital tool for traders, offering insights into market sentiment and potential price movements. Among these formations, breakaway patterns are particularly notable for their ability to signal trend reversals. This article delves into the specifics of these formations, explaining how to identify, interpret, and apply them in trading strategies to potentially enhance trading outcomes. Understanding Bullish and Bearish Breakaway Candlestick Patterns Bullish and bearish breakaway candlestick patterns are essential indicators used by traders to identify potential trend reversals. These patterns consist of five specific candlesticks and offer insights into the market's shifting dynamics. Bullish Breakaway Pattern A bullish breakaway signals the potential end of a downtrend and the beginning of an uptrend. It comprises five candlesticks: - First: A large bearish candle, indicating strong selling pressure. - Second: A smaller bearish candle, showing a continuation of the downtrend but with reduced intensity. There is also a gap. - Third: Another bearish/bullish candlestick, typically smaller than the second, suggesting further weakening of the downtrend. - Fourth: A smaller bearish candle, hinting at a possible reversal. - Fifth: A large bullish candle that closes within the gap between the first and the second candles. The signal is stronger if the candle closes above the high of the first candle. Bearish Breakaway Pattern A bearish breakaway indicates the potential end of an uptrend and the beginning of a downtrend. It also consists of five candlesticks: - First: A large bullish candle, showing strong buying pressure. - Second: A smaller bullish candle with a gap up, indicating a continuation of the uptrend but with decreased momentum. - Third: Another bullish/bearish candle, typically smaller than the second, suggesting further weakening of the uptrend. - Fourth: A small compressed bullish candle, signalling a possible reversal. - Fifth: A large bearish candle that closes within the gap between the first and the second candles. The signal is stronger if it breaks below the low of the first candlestick. Criteria for Identifying Breakaway Patterns When identifying breakaway patterns, traders look for specific criteria: - Trend Context: Both formations occur after a defined trend—a bullish breakaway after a downtrend and a bearish breakaway after an uptrend. - Candle Sizes: The first candle is always the largest, showing strong market sentiment in the trend’s direction. The subsequent candles typically decrease in size, indicating a weakening trend. - Confirmation Candle: The fifth candle is crucial as it confirms the reversal. It must close within the gap between the first and the second candlesticks. These patterns are valuable for traders as they provide early signals of potential trend changes, allowing for more strategic planning and analysis. To get started spotting your own patterns, head over to FXOpen’s free TickTrader platform to explore real-time forex, stock, and cryptocurrency* charts. Caveats to the Pattern While these rules represent the ideal breakaway formation, there can be some flexibility. For instance: - Candle Sizes: The first candle should be the largest and the next three smaller. However, the middle three don’t necessarily need to be consecutively smaller, just smaller than the first. - Transition Candle: If the fourth candle shifts colour (bullish for bullish breakaway, bearish for bearish breakaway), this can add confirmation that a potential reversal is underway. - Closing Beyond the First Candle: While the fifth candle closing beyond the first is preferable, it’s also acceptable if the following (sixth) candlestick is the one that closes below the first. The idea is that the final movement of the formation engulfs the prior candlesticks, signalling a reversal. - Gaps: A gap between the first and second candle indicates momentum before the subsequent reversal, implying that the reversal may have more strength behind it as traders buying the top/selling the bottom exit their positions. Gaps may be visible on daily charts (especially in stocks) but not on intraday charts or in more liquid assets, meaning they are not essential. Interpreting the Breakaway Pattern Interpreting breakaway patterns provides traders with valuable insights into potential market reversals. These formations indicate a shift in market sentiment and offer signals for possible trend changes. Inferences from Breakaway Patterns - Shift in Momentum: A bullish breakaway candlestick pattern suggests that bearish momentum is weakening, and buyers are gaining control. Conversely, a bearish breakaway indicates that bullish momentum is fading and sellers are taking over. - Market Sentiment: The appearance of the final large candlestick signifies a strong sentiment shift. In bullish formations, it shows increasing buyer confidence, while in bearish formations, it highlights growing seller dominance. - Potential Entry and Exit Points: Traders often use these formations to identify potential areas for entries, aligning with broader market analysis and risk management plans. Key Considerations - Context Matters: Breakaways are more reliable when they occur after a well-established trend. Identifying the prevailing trend's strength and duration may enhance their validity. - False Signals: Not all breakaway patterns result in significant reversals. Market conditions, news events, and broader economic factors can influence outcomes, so it's crucial to consider these elements. - Confirmation: Waiting for the fifth candle to complete is essential. Premature conclusions based on incomplete patterns can lead to inaccurate interpretations. Applying the Breakaway Pattern in Trading Strategies Incorporating the breakaway pattern into trading strategies involves looking for additional confluence, using momentum indicators, and employing sound risk management practices. Additional Confluence Traders look for other factors to confirm the validity of the pattern: - Shift in Fundamentals: A significant news event or change in economic conditions can support its signal. - Support and Resistance Levels: The pattern may be more reliable if it occurs near key support or resistance levels, indicating a stronger potential reversal. - Volume Analysis: Increased trading volume during the subsequent reversal adds credibility. Using Momentum Indicators Momentum indicators can provide further confirmation: - Average Directional Index (ADX): ADX is commonly used to identify the strength of the trend. Low numbers coinciding with the pattern strengthen the signal of a trend change. - Commodity Channel Index (CCI): As the breakaway formation often appears at the end of a trend, CCI might show that the price is overbought (bearish breakaway) or oversold (bullish breakaway), supporting the reversal. - Momentum: Divergences between price action and the indicator can be powerful confirmation tools, indicating a potential reversal. Entries and Risk Management Traders typically enter a trade once the price closes beyond the high (bullish) or low (bearish) of the first candle in the pattern. Some traders might wait for an additional candle to confirm the reversal. Stop Losses Placing stop losses just beyond the high (for bearish) or low (for bullish) of the formation helps potentially manage risk. Profit Targets Profit targets might be set using several methods: - Risk/Reward Ratio: At a favourable ratio, such as 2:1 or 3:1. - Support and Resistance Levels: Targeting the next significant support or resistance area where a reversal might occur. - Technical Indicators: Exiting based on signals from indicators, such as RSI crossing into the overbought territory after a bullish entry. The Bottom Line Understanding and applying breakaway patterns can potentially enhance trading strategies by providing early signals of trend reversals. For traders looking to implement these techniques, opening an FXOpen account offers a robust platform to explore this and other advanced trading strategies. FAQs What Is the Bullish and Bearish Breakaway Pattern? The bullish and bearish breakaway patterns are five-candle formations in technical analysis that signal potential trend reversals. A bullish breakaway occurs at the end of a downtrend and indicates a possible shift to an upward trend, characterised by a sequence of weakening bearish candles followed by strong bullish ones. Conversely, a bearish breakaway appears at the end of an uptrend, suggesting a shift to a downward trend, marked by diminishing bullish candles followed by decisive bearish ones. What Is the Bullish Reversal Candlestick Pattern? It is a formation in technical analysis that signals a potential shift from a downtrend to an uptrend. It typically occurs at the bottom of a downtrend and is characterised by single or multiple candlesticks indicating that buying pressure is increasing, suggesting that the asset's price may start to rise. Common examples include the hammer, bullish engulfing, and morning star patterns. What Is the Bearish to Bullish Reversal? The bearish to bullish reversal is a shift in market sentiment where the trend changes from downward to upward. This indicates that selling pressure is decreasing and buying pressure is increasing, suggesting a potential rise in the asset's price. This reversal can be identified through various technical analysis tools that signal the end of a downtrend and the beginning of an uptrend. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:TSLAEducation
by FXOpen
2
Charting the Future: An Elliott Wave ApproachTechnical Analysis of Rajesh Exports Using Elliott Wave Theory Monthly Time Frame Analysis Elliott Wave Count and Structure: - The monthly chart of Rajesh Exports shows a clear Elliott Wave pattern, suggesting the completion of a corrective wave (C) of a larger degree wave ((2)) in Black, implying that a new bullish impulse is likely to begin wave ((3)) in Black. - The recent price action indicates the end of Wave (C), part of a larger correction that followed a significant impulse wave (5) earlier of wave ((1)) in Black. - This suggests that the stock is about to start a new bullish cycle, labeled as Wave (1) in Blue of a new impulse higher Primary degree wave ((3)) in Black. Bullish Divergence: MACD: The price shows hidden bullish divergence with the MACD, as the MACD line forms higher lows while the price makes lower lows on Monthly time frame. RSI: Similar hidden bullish divergence is observed with the RSI too on monthly time frame, reinforcing the bullish outlook. Daily Time Frame Analysis Bullish Divergence: MACD: The price shows bullish divergence with the MACD, with the MACD line forming higher lows while the price forms lower lows. RSI: The RSI also shows bullish divergence, adding further weight to the bullish scenario. Trigger Point: Trendline Breakout: The daily chart indicates a trendline breakout accompanied by a significant increase in volume. This breakout suggests a strong bullish sentiment and confirms the start of a new upward trend. Invalidation Level: The invalidation level for this bullish scenario is set at 261. If the price falls below this level, the bullish wave count would be invalidated. Targets: According to Elliott Wave Theory, the third wave (3) is typically the most powerful. Using the Fibonacci extension, the 161.8% target of Wave (1) places the possible price target near or above 1800. Summary Elliott Wave Count: Indicates a potential start of a new bullish impulse wave. Bullish Divergence: Both MACD and RSI on the daily and monthly charts show bullish divergence. Trendline Breakout: Confirmed with high volume, suggesting strong upward momentum. Invalidation Level: 261 Target: 161.8% Fibonacci extension of Wave (1) projects a target near or above 1800. The overall analysis suggests that Rajesh Exports is poised for a significant upward movement, with strong bullish indications from both the Elliott Wave counts and technical indicators. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:RAJESHEXPOEducation
by RK_Chaarts
4
Best Parabolic SAR Indicator SettingsBest Parabolic SAR Indicator Settings Parabolic SAR is a key component of technical trading, or technical analysis, which involves assessing financial markets and guiding trading decisions through analysing historical price and volume data, along with utilising diverse technical indicators and chart patterns. This article aims to explore the significance of the Parabolic SAR indicator, finding out which settings make it an effective tool for market analysis. What Is the Parabolic SAR Indicator? The Parabolic SAR (Stop and Reverse), or simply PSAR, is a technical analysis indicator designed by J. Welles Wilder to assist traders in identifying potential trend reversals in financial markets. Calculated based on an acceleration factor and an initial SAR value, the indicator trails the price movement, moving towards the trend. When the Parabolic SAR crosses the price, it signifies a potential trend reversal, serving as a signal for traders to buy or sell depending on the crossover direction. Widely used to identify trend direction and adjust to market volatility, it is often employed in conjunction with other technical tools to make more informed trading decisions, although traders should be cautious and consider risk management strategies. Also, traders widely use the indicator as a trailing stop mechanism. The daily chart of EURUSD on the TickTrader platform by FXOpen shows the parabolic SAR. Understanding Parabolic SAR Settings The PSAR has default settings that determine its initial behaviour: - Step: The default step value is 0.02. This parameter controls the acceleration factor of the indicator as it moves in the direction of the trend. - Maximum: The default maximum value is 0.2. This is the maximum acceleration factor that the indicator can reach, regardless of the strength of the trend. Parameters and Their Effects Adjusting the step and maximum parameters can significantly impact the Stop and Reverse’s sensitivity and signals: - Step: Increasing the step value accelerates the SAR, making it more sensitive to price changes. On the other hand, a smaller step value results in a slower acceleration, making the SAR less sensitive. - Maximum: A higher maximum value allows the SAR to accelerate more before reaching its maximum value. This can prevent the PSAR from flipping too quickly, meaning it follows the trend more smoothly. Conversely, a lower maximum value makes the SAR more responsive but increases the chances of premature reversals. Traders can customise the PSAR based on their trading style: - Aggressive Traders: A smaller step and lower maximum value can be used for quicker reversals, suitable for short-term and more aggressive trading. - Conservative Traders: A larger step and higher maximum value might be preferred for a smoother indicator that reacts less to short-term price fluctuations, which is suitable for long-term and conservative trading. Choosing the Right Settings To avoid false signals, traders need to choose the correct Parabolic SAR settings. Here are some points to consider: - Market Conditions: In trending markets, default settings or smaller step values may work well. In choppy or ranging markets, adjusting the parameters for sensitivity might be necessary. - Timeframes: Shorter timeframes may require more sensitive Parabolic SAR settings for scalping, while trading in longer timeframes might be more effective with less sensitive inputs to filter out noise. - Volatility: Significant market movements may need you to make a few adjustments to the indicator. Higher volatility may require adjustments to lower sensitivity to avoid false signals. Lower volatility might call for more sensitivity. - Risk Tolerance: Traders with higher risk tolerance might prefer lower settings for potentially earlier signals, while conservative traders may opt for less sensitive settings for confirmation. Examples of Setting Combinations Here are a few settings that market participants generally use while trading, including Parabolic SAR settings for intraday strategy: Trending Market: Step = 0.02, Maximum = 0.2 Choppy Market: Step = 0.01, Maximum = 0.1 Short-Term Trading: Step = 0.01, Maximum = 0.1 Long-Term Trading: Step = 0.02, Maximum = 0.2 The 2 parabolic SAR, or double parabolic SAR, strategy is an example that involves employing two distinct timeframes rather than tweaking indicator inputs. Initially, a lengthier timeframe is utilised to ascertain the trend direction by assessing the movement of the indicator. Subsequently, trades are executed on a shorter timeframe, focusing exclusively on the direction aligned with the longer-term trend. This approach aims to synchronise shorter-term trading activities with the broader trend determined by the extended timeframe, providing a comprehensive strategy that integrates short- and long-term market perspectives. Final Thoughts A thorough understanding of technical tools is indispensable for making informed decisions in forex and CFD trading. While indicators like the Parabolic SAR, with their ability to identify potential trend reversals, provide valuable insights into market dynamics, it is crucial to integrate them into a broader technical analysis toolkit for signal confirmation. Traders should remain vigilant about market shifts and consistently refine their skills to thrive in the dynamic trading landscape. Remember that there are no best parabolic SAR settings; the best parameters will depend on your trading approach. If you want to test various Parabolic SAR settings on over 600 markets, open an FXOpen account to trade with spreads from 0.0 pips and commissions from $1.50. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
3
Buy call option – at the money / in the money / out of the moneyDefinitions Buy call option – a stock option is the right to buy a stock (but not the obligation) at a certain price for a limited period of time. The price at which the stock may be bought is called the striking price. Three terms describe the relationship between the stock price and the options striking price: At the money / In the money / Out of the money For example; stock XYZ trade at $100 At the money – the strike price of the option is $100 In the money - the strike price of the option is $90 Out of the money – the strike price of the option is $110 The strike price is one of the 6 factors that determine the price of the option. Those factors are: 1. The price of the stock 2. The strike price of the option 3. The time until the option expires 4. The volatility of the stock also called “implied volatility” 5. The risk-free interest rate (usually the 90-day treasury bills) 6. The dividend rate of the stock. The last two have less influence on the option price. The option pricing has two elements, “time premium” and “intrinsic value”. In this post, I’m not going to elaborate on those two. (But they are important to understand). The Delta The delta of an option is the amount by which the call option will increase or decrease in price if the stock moves by 1 point. The values of the delta are between zero to one, if the call option is in the money the delta is closer to 1 if the call option is out of the money the delta is closer to 0. For example; if the stock option has a delta value of 0.8, this means that if the stock increases or decreases in price by $1 per share, the option price will rise or fall by $0.8. The option pricing is based on a partial differential equation because of that the behaver of the option pricing is not linear, as we can see from the charts. In the right chart, we see In the money option with a delta of 0.92, meaning the option price is behaving very similar to the stock price, we see that the lines are nearly flat. In the left chart, we see Out of the money option with a delta of 0.12, meaning the option price does not move like the stock price, for every $1 the stock will move the option price will move $0.12. Also, note the difference between the profit lines, to make 3 points with In the money option the stock needs to move to above $190, but the Out of the money option needs only to move above $145. This was the profit side, the losing side as you can see if the stock will remain at the same place the In the money options will break-even while the Out of the money options will expire worthless and will lose 1 point. The options that were used (input): Right chart: Option price -> $25.9, Stock price -> $115 , Strike price -> 90$ , Interest rate -> 0 , Days to expire -> 56 , Implied volatility -> 40.8% Left chart: Option price -> $1.17, Stock price -> $115 , Strike price -> $140 , Interest rate -> 0 , Days to expire -> 56 , Implied volatility -> 40.8% One option contract is the right to buy 100 shares so the cost for the options would be: $2590 and $117 respectively, not include commissions. For clarification: If you hold it to expiration and it is not worthless, that means you need to buy 100 shares at the strike price, $9000 in the right chart, $14,000 in the left chart. (not include what you already paid)
NASDAQ:AAPLEducation
by ZoharCho
17
How to read the VIX properly This video explains the VIX indicator, how I use it to guide my trading decisions, and my perspective on the market. You can download the TradingView indicator for free, as it is open-source. Additionally, I'll provide a link to my Thinkorswim version in the YouTube video description. The VIX is an excellent tool for market guidance, based on options trading activity 30 days out on the S&P 500. It indicates market fear when it rises due to increased options buying and selling. Thank you for watching! If you have any questions or comments, feel free to share them—I enjoy discussing these topics. No indicator is perfect, but I use this one daily to gauge the market.
OANDA:SPX500USDEducation
by PappyTrading
Bitcoin Halving DatesThis indicator marks the dates of Bitcoin halving events on your chart, providing valuable context for long-term Bitcoin price analysis. What are Bitcoin Halvings? Bitcoin halvings are pre-programmed events in the Bitcoin protocol that occur approximately every four years (or every 210,000 blocks). During a halving, the reward for mining new blocks is cut in half, effectively reducing the rate at which new bitcoins are created. This mechanism is designed to control Bitcoin's supply and mimic the scarcity of precious metals. Why are Halvings Important? Halvings are significant because they: 1. Reduce the inflation rate of Bitcoin 2. Increase scarcity, which can impact supply and demand dynamics 3. Often coincide with increased public interest in Bitcoin 4. Have historically preceded periods of price appreciation Indicator Features: • Displays vertical lines at each Bitcoin halving date • Shows labels with key information for each halving event • Includes countdown to the next halving • Customizable colors and label positions Each label displays: 1. The ordinal number of the halving (1st, 2nd, 3rd, etc.) 2. The exact date of the halving 3. Bitcoin's price at the time of the halving 4. Days remaining until the next halving Usage: This indicator is particularly useful for: • Visualizing Bitcoin's price history in relation to halving events • Analyzing potential long-term price trends • Planning long-term investment strategies • Educational purposes to understand Bitcoin's emission schedule Customization: Users can adjust: • Line color and width • Label color and position Note: Future halving dates are estimates and may be subject to slight variations due to fluctuations in block times. Disclaimer: This indicator is for informational and educational purposes only, and it is not financial advice. Always conduct your own research before making investment decisions. I hope you find this indicator helpful in your Bitcoin analysis. Feedback and suggestions for improvement are welcome!
INDEX:BTCUSDEducation
by DeFi_initiate
SPY/QQQ Plan Your Trade 7-20 - PineScript Project FeedbackI've been playing with this little project for about 7 hours now (off and on). Pinescript is fun once you get the hang of the syntax and how it expects objects/booleans for most of the conditionals. Overall, I think this project is moving along nicely, but I wanted some feedback on the visuals. I'm trying to create something that will help daytraders see and understand broad trends arising from shorter-term price swings. I get a lot of questions related to how/when to identify key market price reversals - so I'm trying to develop a way to help traders understand and see where opportunities exist for better trades. Watch this video and let me know if you see anything I can do to improve the visuals or color controls. I want this to SHINE so people fall in love with it. Thank you. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
AMEX:SPYEducation
by BradMatheny
3
Charting the Markets: Top 10 Technical Analysis Terms to KnowWelcome, market watchers, traders, and influencers to yet another teaching session with your favorite finance and markets platform! Today, we learn how to marketspeak — are you ready to up your trading game and talk like a Wall Street pro? We’ve got you covered. This guide will take you through the top technical analysis terms every trader should know. So, kick back, grab a drink, and let’s roll into the world of candlesticks, moving averages, and all things chart-tastic! 1. Candlestick Patterns First up, we have candlesticks , the bread and butter of any chart enthusiast. These little bars show the opening, closing, high, and low prices of a stock over a set period. Here are some key patterns to recognize next time you pop open a chart: Doji : Signals market indecision; looks like a plus sign. Hammer : Indicates potential reversal; resembles, well, a hammer. Engulfing : A larger candle engulfs the previous one, suggesting a momentum shift. Want these automated? There's a TradingView indicator for that. 2. Moving Averages (MA) Next, we glide into moving averages . These are practically lines that smooth out price data to help identify trends over time. Here are the big players: Simple Moving Average (SMA) : A straightforward average of prices over a specific period of days. Exponential Moving Average (EMA) : An average of prices but with more weight to recent prices, making it more responsive to new information. 3. Relative Strength Index (RSI) The RSI is your go-to for spotting overbought and oversold conditions. Ranging from 0 to 100, a reading above 70 means a stock might be overbought (time to sell?), while below 30 suggests it could be oversold (time to buy?). Super common mainstay indicator among traders from all levels. 4. Bollinger Bands Bollinger Bands consist of a moving average with two standard deviation lines above and below it. When the bands squeeze, it signals low volatility, and when they expand, high volatility is in play. Think of Bollinger Bands as the mood rings of the trading world! 5. MACD (Moving Average Convergence Divergence) The MACD is all about momentum. It’s made up of two lines: the MACD line (difference between two EMAs) and the signal line (an EMA of the MACD line). When these lines cross, it can be a signal to buy or sell. Think of it as the heartbeat of the market. 6. Fibonacci Retracement Named after a 13th-century mathematician, Fibonacci retracement levels are used to predict potential support and resistance levels. Traders use these golden ratios (23.6%, 38.2%, 50%, 61.8%, and 100%) to find points where an asset like a stock or a currency might reverse its direction. 7. Support and Resistance Support and resistance are the battle lines drawn on your chart. Support is where the price tends to stop falling — finds enough buyers to support it — and resistance is where it tends to stop rising — finds enough sellers to resist it. Think of these two levels as the floor and ceiling of your trading room. 8. Volume Volume is the fuel in your trading engine. It shows how much of a stock is being traded and can confirm trends. High volume means high interest, while low volume suggests the market is taking a nap from its responsibilities. 9. Trend Lines Trend lines are your visual guide to understanding the market’s direction. Technical traders, generally, are big on trend lines. You can draw them by connecting at least a couple of lows in an uptrend or at least a couple of highs in a downtrend. They help you see where the market has been and where it might be headed. 10. Head and Shoulders No, it’s not shampoo. The head and shoulders pattern is a classic reversal pattern. It consists of three peaks: a higher middle peak (head) between two lower peaks (shoulders). When you see this take shape in your chart, it might be time to rethink your position. What’s Your Favorite? So there you have it, a whirlwind tour of the top technical analysis terms that’ll help your trading yield better results and, as a bonus, make you sound like a trading guru. What’s your favorite among these 10 technical analysis tools? Share your thoughts in the comments below!
Education
by TradingView
18
Exploring Bearish Plays w/ Futures, Micros & Options on FutureIntroduction The WTI Crude Oil futures market provides various avenues for traders to profit from bullish and bearish market conditions. This article delves into several bearish strategies using standard WTI Crude Oil futures, Micro WTI Crude Oil futures contracts, and options on these futures. Whether you are looking to trade outright futures contracts, construct complex spreads, or utilize options strategies, this publication aims to assist you in formulating effective bearish plays while managing risk efficiently. Choosing the Right Contract Size When considering a bearish play on WTI Crude Oil futures, the first decision involves selecting the appropriate contract size. The standard WTI Crude Oil futures and Micro WTI Crude Oil futures contracts offer different levels of exposure and risk. WTI Crude Oil Futures: Standardized contracts linked to WTI Crude Oil with a point value = $1,000 per point. Suitable for traders seeking significant exposure to market movements. Greater potential for profits but also higher risk due to larger contract size. TradingView ticker symbol is CL1! Margin Requirements: As of the current date, the margin requirement for WTI Crude Oil futures is approximately $6,000 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Micro WTI Crude Oil Futures: Contracts representing one-tenth the value of the standard WTI Crude Oil futures. Each point move in the Micro WTI Crude Oil futures equals $100. Ideal for traders who prefer lower exposure and risk. Allows for more precise risk management and position sizing. TradingView ticker symbol is MCL1! Margin Requirements: As of the current date, the margin requirement for Micro WTI Crude Oil futures is approximately $600 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Choosing between standard WTI Crude Oil and Micro WTI Crude Oil futures depends on your risk tolerance, account size, and trading strategy. Smaller contracts like the Micro WTI Crude Oil futures offer flexibility, particularly for newer traders or those with smaller accounts. Bearish Futures Strategies Outright Futures Contracts: Selling WTI Crude Oil futures outright is a straightforward way to express a bearish view on the market. This strategy involves selling a futures contract in anticipation of a decline in oil prices. Benefits: Direct exposure to market movements. Simple execution and understanding. Ability to leverage positions due to margin requirements. Risks: Potential for significant losses if the market moves against your position. Mark-to-market losses can trigger margin calls. Example Trade: Sell one WTI Crude Oil futures contract at 81.00. Target price: 76.00. Stop-loss price: 82.50. This trade aims to profit from a 5.00-point decline in oil prices, with a risk of a 1.50-point rise. Futures Spreads: 1. Calendar Spreads: A calendar spread, also known as a time spread, involves selling (or buying) a longer-term futures contract and buying (or selling) a shorter-term futures contract with the same underlying asset. This strategy profits from the difference in price movements between the two contracts. Benefits: Reduced risk compared to outright futures positions. Potential to profit from changes in the futures curve. Risks: Limited profit potential compared to outright positions. Changes in contango or backwardation could hurt the position. Example Trade: Sell an October WTI Crude Oil futures contract. Buy a September WTI Crude Oil futures contract. Target spread: Decrease in the difference between the two contract prices. In this example, the trader expects the October contract to lose more value relative to the September contract over time. The profit is made if the spread between the December and September contracts widens. 2. Butterfly Spreads: A butterfly spread involves a combination of long and short futures positions at different expiration dates. This strategy profits from minimal price movement around a central expiration date. It is constructed by selling (or buying) a futures contract, buying (or selling) two futures contracts at a nearer expiration date, and selling (or buying) another futures contract at an even nearer expiration date. Benefits: Reduced risk compared to outright futures positions. Profits from stable prices around the middle expiration date. Risks: Limited profit potential compared to other spread strategies or outright positions. Changes in contango or backwardation could hurt the position. Example Trade: Sell one November WTI Crude Oil futures contract. Buy two October WTI Crude Oil futures contracts. Sell one September WTI Crude Oil futures contract. In this example, the trader expects WTI Crude Oil prices to remain relatively stable. Bearish Options Strategies 1. Long Puts: Buying put options on WTI Crude Oil futures is a classic bearish strategy. It allows traders to benefit from downward price movements while limiting potential losses to the premium paid for the options. Benefits: Limited risk to the premium paid. Potential for significant profit if the underlying futures contract price falls. Leverage, allowing control of a large position with a relatively small investment. Risks: Potential loss of the entire premium if the market does not move as expected. Time decay, where the value of the option decreases as the expiration date approaches. Example Trade: Buy one put option on WTI Crude Oil futures with a strike price of 81.00, expiring in 30 days. Target price: 76.00. Stop-loss: Premium paid (e.g., 2.75 points x $1,000 per contract). If the WTI Crude Oil futures price drops below 81.00, the put option gains value, and the trader can sell it for a profit. If the price stays above 78.25, the trader loses only the premium paid. 2. Synthetic Short: Creating a synthetic short involves buying a put option and selling a call option at the same strike price and expiration. This strategy mimics holding a short position in the underlying futures contract. Benefits: Similar profit potential to shorting the futures contract. Flexibility in managing risk and adjusting positions. Risks: Potential for unlimited losses if the market moves significantly against the position. Requires margin to sell the call option. Example Trade: Buy one put option on WTI Crude Oil futures at 81.00, expiring in 30 days. Sell one call option on WTI Crude Oil futures at 81.00, expiring in 30 days. Target price: 76.00. The profit and loss (PnL) profile of the synthetic short position would be the same as holding a short position in the underlying futures contract. If the price falls, the position gains value dollar-for-dollar with the underlying futures contract. If the price rises, the position loses value in the same manner. 3. Bearish Options Spreads: Options offer versatility and adaptability, allowing traders to design various bearish spread strategies. These strategies can be customized to specific market conditions, risk tolerances, and trading goals. Popular bearish options spreads include: Vertical Put Spreads Bear Put Spreads Put Debit Spreads Ratio Put Spreads Diagonal Put Spreads Calendar Put Spreads Bearish Butterfly Spreads Bearish Condor Spreads Etc. Example Trade: Bear Put Spread: Buying the 81.00 put and selling the 75.00 put with 30 days to expiration. Risk Profile Graph: This example shows a bear put spread aiming to profit from a decline in WTI Crude Oil prices while limiting potential losses. For detailed explanations and examples of these and other bearish options spread strategies, please refer to our published ideas under the "Options Blueprint Series." These resources provide in-depth analysis and step-by-step guidance. Trading Plan A well-defined trading plan is crucial for successfully executing any strategy. Here’s a step-by-step guide to formulating your plan: 1. Select the Strategy: Choose between outright futures contracts, calendar or butterfly spreads, or options strategies based on your market outlook and risk tolerance. 2. Determine Entry and Exit Points: Entry price: Define the price level at which you will enter the trade (e.g., breakout, UFO resistance, indicators convergence/divergence, etc.). Target price: Set a realistic target based on technical analysis or market projections. Stop-loss price: Establish a stop-loss level to manage risk and limit potential losses. 3. Position Sizing: Calculate the appropriate position size based on your account size and risk tolerance. Ensure that the position aligns with your overall portfolio strategy. 4. Risk Management: Implement risk management techniques such as using stop-loss orders, hedging, and diversifying positions to protect your capital. Risk management is vital in trading to protect your capital and ensure long-term success. Conclusion In this article, we've explored various bearish strategies using WTI Crude Oil futures, Micro WTI Crude Oil futures, and options on futures. From outright futures contracts to sophisticated spreads and options strategies, traders have multiple tools to capitalize on bearish market conditions while managing their risk effectively. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
NYMEX:CL1!Education
by traddictiv
High-Impact News Trading StrategiesHigh-Impact News Trading Strategies Trading in the dynamic world of foreign exchange demands a constant adaptation to the ever-evolving factors influencing currency markets. Among these factors, high-impact forex news stands out as a catalyst capable of reshaping market action. In this article, we explore some of the nuances of high-impact news trading, aiming to offer insights that may help manage high volatility and harness its power. Trading High-Impact News Understanding which news releases wield significant influence over the forex market and what market reaction can be expected is paramount for any trader. Forex News with High Impact High-impact news includes events like interest rate decisions, inflation rates, retail sales, consumer spending, labour market data, and nonfarm payroll reports. The impact of these events can be profound, affecting market sentiment and, thus, currency values. Traders keen on mastering this domain must comprehend the dynamics that drive market reactions to such news and position themselves accordingly. It's important to note that these news events can cause extreme volatility in either direction, creating both challenges and opportunities. Forex News Impact Analysis Traders analyse the potential impact of events on currency pairs, employing a combination of technical and fundamental analysis. Fundamental Impact of Economic Data Fundamental analysis involves evaluating the economic factors that underpin a currency's value based on the country's economic health. Traders delve into the consensus forecast, scrutinise historical data, and gauge the prevailing economic climate to gain insights into how these fundamental elements might shape market reactions. Technical Analysis Simultaneously, technical analysis plays a vital role in deciphering the market sentiment and potential price movements. Utilising technical analysis tools such as indicators, support and resistance levels, and trendlines, traders can identify key entry and exit points. By integrating technical analysis, traders gain a more comprehensive view of the market, potentially enhancing their ability to make informed decisions. Forex News Trading Strategies Considering the expected impact of economic data and utilising advanced technical analysis tools based on past forex rates performance, traders can design viable trading strategies at times of major news releases. Retracement Trading: Unveiling Potential Reversals Retracement trading is a strategic approach that capitalises on market pullbacks following significant movements triggered by high-impact news. Look at the example of trading on the US CPI announcement in November 2023: - Fibonacci Retracement: Helps identify key support and resistance areas where price corrections may occur. - Moving Averages: The 9- and 20-period MAs can be applied as a trend confirmation. Entry Traders identify significant Fibonacci retracement levels, typically 38.2%, 50%, 61.8%, or 78.6%, and look for alignment with a bullish/bearish MA crossover to confirm entry points for a long/short position. Stop Loss Stop loss may be placed just below (for long positions) or above (for short positions) the identified Fibonacci retracement level to safeguard against unexpected market reversals. Take Profit A potential signal for a take-profit point could be an MA crossover in the opposite direction of a trade following a failed attempt of the price to break a resistance/support level that coincides with a Fibonacci extension level. Do you already have a strategy for the upcoming high-impact forex news today? Visit FXOpen and trade on the free TickTrader forex trading platform. Trend-Change Trading Strategy Trading during major news releases demands a nimble and precise approach to capitalise on medium-term price fluctuations. This strategy incorporates three technical indicators simultaneously to evaluate the strength of the price movement and determine potential entry and exit points. In this approach, we utilise: - Relative Strength Index (RSI): Identifying overbought or oversold conditions. - Stochastic Oscillator: Gauging the strength of a price trend. - Average True Range (ATR): Measuring market volatility, helping to settle appropriate stop-loss levels. Entry Following a major price move on the news event, traders could identify weakness in an uptrend/downtrend by observing the divergence of both RSI and Stochastic indicators with the price movement. A potential entry for a long/short position involves aligning bullish/bearish signals from RSI and Stochastic, such as crossing above/below oversold/overbought areas. Stop Loss Stop loss could be placed just below recent lows or above recent highs for long and short trades, respectively, factoring in the ATR to account for potential market volatility. Take Profit Traders may determine possible take-profit points by considering bearish/bullish signals from RSI and Stochastics. Exploiting Increased Volatility Trading during high-impact news events requires a specialised strategy that accounts for increased market volatility. A sound volatility-based approach implements specific indicators so traders may be able to capitalise on rapid forex rate deviations. The chart shows trading on Japan’s industrial production data release at the end of October 2023, and we use: - Bollinger Bands: These help identify potential surges in volatility through band expansion. - ATR (Average True Range): This can be used for trailing stop-loss levels - MACD (Moving Average Convergence Divergence): A surge in buying or selling pressure can be reflected in MACD crossovers. Entry Traders would monitor Bollinger Bands for an expansion preceding news events. Price cross above/below the middle Bollinger Band after the release may signal an entry point for long/short positions. This should align with a bullish/bearish MACD crossover. Stop Loss Traders may place stop-loss orders just beyond recent price extremes to account for potential market reversals and limit possible losses and use the ATR indicator to calculate trailing stop-loss levels. Take Profit A possible take-profit level for long/short trades can be derived from a bearish/bullish reversal of the MACD indicator, or it can be set based on the expected price range derived from the ATR. Concluding Thoughts Trading high-impact forex news requires a mix of market analysis, risk management, and strategic execution. By understanding the dynamics of high-impact events and implementing robust trading strategies, traders may navigate the volatility inherent in these situations. Ready to trade on major economic news? You can open an FXOpen account and try out your strategies. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
5
A cyclical historyWe have all heard that the economy works in cycles, and so does the market. But what does this truly mean? Has anyone actually been able to show you where you can see these cycles occur? Well, here is a great graph that will show you how. By looking at the 6-month time frame, the percentages of stocks above the 20 daily MA, you are achieving 2 things. Seeing price action at the timeframe used to declare technical recessions Seeing the percentage of stocks in a short term uptrend or downtrend as the complement is also true Here it's quite easy to see how an important world event unfolded with a clear, repeatable pattern. When the percentage oscillates heavily, it allows for many technical resets, causing a healthy uptrend when the percentage returns to above 50% by the end of the semester. Another patter is that after a period of over-performance, a period of under-performance is followed and vice versa. When looking at world events, just remember at the end of the day we are all a number in a larger scheme. And the laws of statistics will end up controlling our outcomes, as there must be balance in all binomial systems. Even when biases can be present in distributions, the more we generalize and zoom out, the more we can see the statistical convergences in human behavior. At the end of the day, our lives are influenced by fractals, some of which we are not even aware exist.
INDEX:MMTWEducation
by DarkMessiah777
Trump / Rates / Dollars / Coins, OH MY!Interest Rates and the Dollar Interest rates, set by central banks, are a critical component of monetary policy. The Federal Reserve (Fed) in the United States uses interest rates to control inflation and stabilize the economy. When the Fed raises interest rates, it becomes more expensive to borrow money, which tends to slow down economic activity and reduce inflation. Conversely, lowering interest rates makes borrowing cheaper, encouraging spending and investment, which can stimulate economic growth. Impact on the Dollar: Higher Interest Rates : When interest rates rise, the yield on U.S. government bonds and other fixed-income securities increases, attracting foreign investment. This inflow of capital strengthens the U.S. dollar as investors buy dollars to purchase these higher-yielding assets. Lower Interest Rates: Conversely, when interest rates are lowered, the yield on these investments drops, making them less attractive. This can lead to capital outflows and a weaker dollar as investors seek better returns elsewhere. Interest Rates and Cryptocurrency Impact on Cryptocurrencies Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are often seen as alternative assets. Their relationship with interest rates can be complex: Rising Interest Rates: Higher interest rates can negatively impact cryptocurrencies. As safer, yield-bearing investments become more attractive, investors might shift their funds from speculative assets like cryptocurrencies to bonds and savings accounts. Falling Interest Rates: Lower interest rates can make traditional investments less attractive, potentially driving more investment into riskier assets like cryptocurrencies in search of higher returns. The Importance of Policy Decisions Independent of Political Agendas Central Bank Independence: The independence of central banks from political influence is crucial for maintaining economic stability. When monetary policy decisions are driven by economic data rather than political agendas, it helps ensure that actions taken by central banks are aimed at achieving long-term economic goals such as controlling inflation and maintaining employment levels. Transparency and Credibility: Independent central banks are more likely to make transparent and credible policy decisions, which can build market confidence. Economic Stability: Policymaking that is insulated from short-term political pressures helps avoid economic instability that might arise from politically motivated decisions. Recent News: Assassination Attempt on Donald Trump and Its Impact on BTC Markets Recent News: There was an assassination attempt on former President Donald Trump, which has created significant political and market turbulence. Impact on BTC Markets: Market Reaction: Such high-profile political events can lead to increased uncertainty and volatility in financial markets. Bitcoin, often seen as a hedge against political and economic instability, may experience increased buying interest as investors seek to protect their wealth. Price Movements: Following the news of the assassination attempt, Bitcoin's price saw notable fluctuations as traders reacted to the heightened political risk. Conclusion Interest rates play a pivotal role in influencing the value of the U.S. dollar and cryptocurrencies. Central bank decisions on interest rates, when made independently of political agendas, contribute to economic stability and investor confidence. Recent political events, such as the assassination attempt on Donald Trump, highlight the sensitivity of markets, including cryptocurrencies, to geopolitical developments. Understanding these dynamics is essential for investors navigating the complex financial landscape.
ECONOMICS:USINTREducation
by moneymagnateash
2
How to use Moving Averages like a proIn this video I describe how I use Moving Averages to trade and to stay in sync with the market. Popular Moving averages include the 9, 21, 50, or 200. Feel free to use Simple Moving averages or Exponential moving averages, both works fine, and I like to use the EMAs because they are a little quicker to respond to price movement. I also go over a trading strategy for going long or short in the market once the 50 EMA starts to change directions, I will take a position in that direction. So, if the 50 EMA goes down for a long time, I will take a long once it starts to point up. Thank you for watching!
NASDAQ:QQQEducation
by PappyTrading
Video Recap On This "3 Step System"The rocket booster strategy is a very powerful trading system and i want to share it with you so that you can have a stepping stone into your trading Journey, because even a small step ahead is better than no step at all. Trading is a very hard skill to understand, and so i want you to take your time to learn it, eventually if you stay committed you should learn more about it. In this video, i share with you the Rocket Booster 3-Step System Watch it now to understand more about this powerful system Disclaimer: Trading is risky you will lose money wether you like it or not, please learn risk management , and profit taking strategies.
NYSE:TELEducation
by lubosi