HFTs gaps: Learn how to enter a stock before a huge gap up.High Frequency Trading companies are market makers/takers that provide liquidity for the public exchanges, and they now use AI. HFTs have a huge impact on your profitability. You can make higher profits from trading ahead of the HFT gaps and riding the momentum upward or downward.
In this short video, you'll learn some basics on how to identify the patterns that precede HFT gaps, which I call Pro Trader Nudges . Learn what to look for in Volume patterns and pre-gap price action.
Make sure you are not chasing HFTs but riding the wave of momentum they create, just like professional traders do.
X-indicator
Options: Why the Odds Are Stacked Against YouThe Hidden Challenges of Options Trading:
Options trading may seem like an exciting way to profit from market movements, but beneath the surface lies a trading environment that is heavily biased against individual traders. Many retail investors jump into options trading unaware of the many disadvantages they face, making it more of a gamble than a calculated investment. In this post, we’ll explore the major challenges that make options trading so difficult for individual traders and why you need more than luck to succeed.
1. The Odds Are Biased: Complex Algorithms Unlevel the Playing Field
The first thing to understand is that the playing field is not even. Professional traders and market makers use complex algorithms that evaluate a wide range of factors—volatility, market conditions, historical data, time decay, news and more—before they even think about entering a trade. These systems are designed to assess risks, manage exposure, and execute trades with a precision that most individual traders simply can’t match.
For an individual trader, manually analyzing these factors or using basic tools available online is nearly impossible. By the time you’ve analyzed one factor, the market may have already shifted. The reality is that unless you have access to these advanced algorithmic systems, you're trading with a massive handicap.
2. Market Makers Hold the Upper Hand: Your Trades Are Their Game
Market makers play a critical role in options trading by providing liquidity. However, they also hold an unbeatable advantage. They see both sides of the trade, control the bid-ask spreads, and use their position to ensure they’re on the winning side more often than not. For them, it’s not about making speculative bets; it’s about managing risk and profiting from the flow of orders they receive.
When you trade options, you're often trading against these market makers, and their strategies are designed to maximize their advantage while minimizing their risk. This means your trades are, in essence, a bad gamble from the start. The house always wins, and in this case, the house is the market maker.
3. They Will Fool You Every Time: Bid-Ask Spreads and the Math You Don’t See
One of the most overlooked challenges in options trading is understanding the bid-ask spread. This spread represents the difference between the price you can buy an option (ask) and the price you can sell it (bid). While this may seem straightforward, it’s an area where professionals easily outsmart retail traders.
Advanced traders and market makers use complex mathematical models to manage and manipulate these spreads to their advantage. If you don’t have the mathematical skills to properly evaluate whether the spread is fair or skewed, you’re setting yourself up to overpay for options, leading to unnecessary losses.
4. Information and Tools: A Professional-Only Advantage
Another critical challenge is the vast difference in information and tools available to retail traders versus professionals. Institutional traders have access to data streams, proprietary tools, and execution platforms that the average trader can only dream of. They can monitor market sentiment, analyze volatility in real-time, and execute trades at lightning speed, often milliseconds faster than any retail investor.
These tools give professionals an enormous edge in identifying trends, hedging positions, and managing risk. Without them, individual traders are flying blind, trying to compete in an arena where the best information is reserved for the pros.
5. Volatility and Time Decay: The Ultimate Account Killers
Two of the most critical factors in options trading are volatility and time decay (known as theta). These are the silent killers of options accounts, and pros use them to their advantage.
Volatility: When volatility increases, option prices go up, which might sound great. However, volatility is unpredictable, and when it swings in the wrong direction, it can destroy your position’s value almost overnight. Professionals have sophisticated strategies to manage and hedge against volatility; most individual traders don’t.
Time Decay: Time is constantly working against you in options trading. Every day that passes, the value of an option slowly erodes, and as expiration approaches, this decay accelerates. For most retail traders, this is a ticking time bomb. Pros, on the other hand, know how to structure trades to profit from time decay, leaving amateurs at a disadvantage.
Conclusion: Trading Options Is No Easy Game
The challenges of options trading are real and significant. Between the advanced algorithms, the market makers’ advantages, the mathematical complexities of bid-ask spreads, and the tools and information reserved for professionals, the odds are stacked against you. Add to that the constant threat of volatility and time decay, and it’s clear that options trading is a difficult and often losing game for individual traders.
If you’re thinking about jumping into options trading, it’s crucial to understand the risks involved and recognize that the deck is stacked. To succeed, you need more than just a basic understanding—you need tools, strategy, and a deep awareness of how the pros operate. Without that, you're gambling, not trading.
Trading with Moving Average CrossoversTrading with Moving Average Crossovers
Trading indicators and technical analysis are essential components of the financial markets, utilised by traders and investors to analyse price movements, identify trends, and make informed trading decisions. The moving average is an indicator that is used by many traders. This article will cover the best moving averages for day trading, swing trading, and scalping and discuss the crossover strategies.
Understanding Moving Averages
A moving average is a fundamental technical analysis tool used in financial markets to analyse price trends and identify potential trading opportunities. It provides a smoothed representation of price data over a specified period, enabling traders and investors to filter out short-term fluctuations and better understand the underlying trend. By plotting the average of past price points, the indicator creates a continuous line on a price chart, making it easier to spot trends and potential reversals.
There are several types of MAs used in technical analysis. The choice of MA depends on the trader's preferences, trading strategy, and the market conditions. Let's go through some of the most common types of MAs:
- Simple Moving Average (SMA): This is the most common or basic type of moving average. It calculates the average price over a specified number of periods and equally weights each data point. For example, a 10-day SMA calculates the average closing price of the last 10 days and updates it with each new day's data.
- Exponential Moving Average (EMA): It gives more weight to recent price data, thus, becoming more responsive to current market conditions. It is calculated using a formula that applies a weighting multiplier.
- Weighted Moving Average (WMA): The WMA assigns different weights to different data points, giving more importance to recent prices. The weighting scheme can vary, but commonly, the most recent data points have the highest weights.
- Smoothed Moving Average (SMMA): The Smoothed Moving Average is a variation of the EMA, but it considers an extended history of price data. It attempts to provide a smoother curve by applying an additional smoothing factor.
Types of Moving Averages Crossover
A crossover is one of the key signals traders use when utilising this indicator. A cross occurs when two moving averages with different periods intersect each other. Crosses can be found on any timeframe. Therefore, traders use moving averages even for day trading.
- Bullish MA Crossover: This occurs when a shorter-term moving average, such as a 50-hour EMA, crosses above a longer-term one, like a 200-hour EMA. This crossover is considered a bullish signal, indicating a potential upward trend and often signalling a buying opportunity. The TickTrader chart below highlights a bullish run when the 50-hour EMA crosses above the 200-hour EMA.
- Bearish MA Crossover: On the other hand, a bearish crossover happens when a shorter-term MA crosses below a longer-term one. For instance, if a 50-hour EMA moves below a 200-hour EMA, it suggests a potential downward trend and may signal a selling opportunity. FXOpen’s TickTrader chart highlights a bearish run as the 50-hour EMA crosses over the 200-hour EMA from above.
Confirming the Moving Averages Crossover
While MA crossovers can provide valuable insights into potential trends, it is essential to confirm these signals using additional tools:
- Volume Analysis: Analysing trading volume alongside moving average crossovers can enhance the reliability of the signals. A substantial increase in volume during a crossover can signify stronger market participation, supporting the validity of the trend reversal. The chart below shows a crossover coupled with rising volumes.
- Oscillators and Indicators: Utilising additional technical indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), can provide supplementary confirmation. Overbought/oversold conditions reflected by oscillators signal potential trend reversals and strengthen the crossover signal.
Look at the GBPUSD chart below. A move away by the RSI indicator from the overbought area, coupled with a MA crossover, provided additional confirmation of the trend reversal.
Advantages and Limitations of Moving Average Crossovers
Let's go through some advantages of MA crossovers:
- Simplicity: Moving average crossovers are straightforward to understand and implement. They involve plotting two MAs on a price chart and observing the interactions.
- Trend Identification: They help identify the prevailing trend in a market. A bullish crossover, where a shorter-term MA crosses above a longer-term one, signals a potential uptrend, while a bearish crossover, where the shorter-term moving average crosses below the longer-term one, indicates a potential downtrend.
- Signal Generation: Crossovers can generate trading signals, telling traders when to enter or exit positions. These signals are based on the assumption that crossovers represent significant shifts in market sentiment. Therefore, moving averages are used for swing trading.
- Smoothing Effect: They smooth out price fluctuations, making it easier to identify trend changes amid market noise.
- Versatility: Traders can customise the length of MAs to suit their trading strategies and timeframes, allowing them to adapt to various market conditions.
Here are the limitations of MA crossovers:
- Lagging Indicator: MAs are lagging indicators because they are based on past price data. As a result, crossovers may occur after the start of a new trend, leading to delayed entries and exits.
- Whipsawing: In choppy or sideways markets, the indicator may generate frequent crossovers. These false signals can result in losses and frustration for many market participants.
- Lack of Precision: Crosses may not be precise enough to capture short-term price movements. They may work better in trending markets but struggle in ranging or volatile conditions.
- Insensitivity to Market Conditions: As moving averages are lagging indicators, they may not fully adapt to changing market dynamics or sudden spikes in volatility.
- Needed to be adjusted: While moving averages are effective in all markets, they may provide inaccurate signals, particularly during periods of low liquidity or unusual price behaviour. Therefore, they need to be adjusted to fit particular market conditions.
Final Thoughts
Swing and day trading with moving averages is one of the more popular trading approaches due to its simplicity and effectiveness. However, traders should note that without astute risk management and a proper trading plan, it is difficult to succeed in the financial markets. After developing a strong hand in MAs, you may consider opening an FXOpen account and trading various financial instruments.
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.
Example of creating a trading strategy chart
Hello, traders.
If you "Follow", you can always get new information quickly.
Please click "Boost" as well.
Have a nice day today.
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To interpret the chart from a trend perspective, you can use the MS-Signal indicator.
The MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator.
Therefore, you can analyze the chart by checking the arrangement of the M-Signal indicator and the movement around it.
The most important thing in chart analysis is support and resistance points.
Therefore, if you do not indicate support and resistance points, it can be said that the chart analysis cannot be used for trading.
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So, Fibonacci retracement and trend-based Fibonacci extension are widely used in chart analysis.
I used the Trend-Based Fib Extension tool.
I selected and displayed the low and high points pointed by the fingers.
The selection of the candles pointed by the fingers corresponds to the inflection points of the StochRSI indicator.
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If you connect these, you get a trend line.
The important thing when drawing a trend line is to connect the high points of the StochRSI indicator by connecting the opening prices of the falling candles.
When connecting the low points, you can connect the low points regardless of whether it is a falling candle or an rising candle.
This is because I think it best expresses the trend and volatility period based on my experience using it.
When drawing the Fibonacci ratio and when drawing the trend line, the selection points are different, so you should draw it with this in mind.
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If it is drawn as above, you can see that the chart is ready to be analyzed.
Since the channeling most commonly used in chart analysis has been formed, I think chart analysis will not be difficult.
However, the above method is a drawing for chart analysis, so it is not suitable for trading.
This is an important point.
If you are good at chart analysis, but wonder why you lose money when trading, you should change the drawing of support and resistance points.
Do not trade with Fibonacci ratios, but mark support and resistance points according to the candle arrangement on the 1M, 1W, and 1D charts and create a trading strategy according to their importance.
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The chart above shows the support and resistance points drawn on the 1M, 1W, and 1D charts.
To display this, we used the HA-High, HA-Low, OBV 0, OBV Up, OBV Down, BW (100), Mid (50), BW (0) indicators.
To display the exact volatility period, we also need to draw a trend line on the 1M, 1W chart.
The indicators that are important for support and resistance points are HA-Low, HA-High, BW (100), BW (0).
Therefore, the point where the trend line intersects this point is likely to correspond to the volatility period.
It is not accurate because it is displayed only with the trend line that was created right away, but I think it explains well how to display the volatility period.
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If you display the volatility period like this and hide all indicators, you will have a complete chart that can be used for trading.
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Have a good time.
Thank you.
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Mastering the "IF-THEN" Mindset: The Key to Stress-Free TradingIn this video, I’ll share how using IF-THEN statements helps me stay balanced in my trading. It’s simple: IF the price does this, THEN I’ll do that. Having a plan like this keeps me from getting caught up in emotions and helps me react to what’s actually happening in the market – not what I wish would happen.
This mindset keeps things smooth, makes trade management easier, and keeps me consistent. It’s all about staying ready for whatever the market throws your way.
If this vibe clicks with you, drop a comment, like, or follow – I’ve got plenty more insights to share!
Mindbloome Trading
Trade What You See
The Low Hanging Fruit Stacey Burke setup, with Silver R4,5 shortIn this video, I walk you through my entire thought process during today's trading session. You'll learn how I selected the pairs and executed three key trades:
Silver 3 Sessions of Rise Reversal short
DJ30 Low Hanging Fruit Continuation short
I'll also provide a detailed explanation of the Low Hanging Fruit setup, helping you understand how to apply this strategy in your own trading. Low Hanging Fruit is a key best trade setup of Stacey Burke. Don't miss out on these valuable insights and tips!
For details on the Stacey Burke style trading approach see his site and playbook: https://stacey-burke-trading.thinkifi...
How to Trade with the Ultimate OscillatorHow to Trade with the Ultimate Oscillator
While there are many indicators out there, few incorporate multiple timeframes. The Ultimate Oscillator, with its multi-timeframe approach, is an effective tool for spotting divergences. In this article, we will break down how this indicator works, what signals it produces, and how it compares to other well-known oscillators.
What Is the Ultimate Oscillator?
The Ultimate Oscillator is a technical indicator invented by Larry Williams in 1976. It's designed to incorporate price action over three different timeframes – short-term (7-period), intermediate-term (14-period), and long-term (28-period) – to avoid the common pitfalls of a single timeframe strategy.
Rather than following the more conventional method of focusing solely on closing prices or the period's high and low, it uniquely incorporates buying pressure into its calculation. Buying pressure is essentially the difference between the close and the low of the period or the difference between the close of the previous period and the close of the current period, whichever is lower.
Like other oscillators, the Ultimate Oscillator has overbought and oversold levels. However, the main strength of this tool lies in identifying divergences between price and oscillator, which might suggest a potential trend reversal. Traders often prefer the Ultimate Oscillator for cryptocurrency*, stock, and forex trading, given its effective insights.
Using the Ultimate Oscillator in Technical Analysis
Using the Ultimate Oscillator indicator involves understanding and interpreting the values it generates. The tool provides signals for potential price reversals based on divergence and the crossing of certain thresholds.
Overbought and Oversold Levels
The Ultimate Oscillator moves up and down between 0 and 100. When its value surpasses 70, it indicates overbought conditions, suggesting an impending price drop. Conversely, levels below 30 point to oversold conditions, hinting at an imminent price rise. However, in strongly trending markets, these levels may remain overbought or oversold for extended periods, so it's important not to rely solely on these thresholds for trading decisions.
Also, traders use the 50 point to open buy and sell trades. When the Oscillator breaks above 50, it’s considered an opportunity to go long. Conversely, a break below 50 is considered an opportunity to go short. However, it’s vital to combine this signal with other technical analysis tools.
Bullish and Bearish Divergences
The real strength of this tool lies in spotting divergences. Divergences occur when the price of an asset is moving in the opposite direction of the oscillator.
A bullish divergence occurs when the price makes new lows, but the indicator fails to reach new lows. The divergence might be an indication that the downward momentum is losing strength, and a bullish reversal may be near.
A bearish divergence, on the other hand, happens when the price makes new highs, but the indicator fails to reach new highs. This can signal that the upward momentum is waning, and a bearish reversal may be on the horizon.
In both cases, traders often wait for a confirmation of the divergence before acting. This could be a subsequent move of the oscillator in the direction of the divergence or a break of a trendline/moving average.
Comparing the Ultimate Oscillator and Other Indicators
Comparing the Ultimate Oscillator with other popular technical indicators reveals specific distinguishing characteristics.
Ultimate Oscillator vs Stochastic Oscillator
The Stochastic Oscillator focuses on the position of the closing price compared to the range of high-low prices over a specified period. While it relies only on this single measure, the Ultimate Oscillator broadens its perspective by incorporating buying pressure and taking into account three separate timeframes.
Ultimate Oscillator vs RSI
The Relative Strength Index (RSI) measures momentum by comparing the magnitude of recent gains to recent losses. Its calculations are based on a single timeframe, making it potentially more prone to false signals during volatile price movements. The Ultimate Oscillator's multiple timeframe structure helps to reduce the incidence of such false signals.
Awesome Oscillator vs Ultimate Oscillator
Developed by Bill Williams, the Awesome Oscillator determines market momentum by calculating the difference between simple moving averages with a period of 34 and 5. Its focus is mainly on confirming current trends or anticipating potential reversals. In contrast, the Ultimate Oscillator uses the concept of buying pressure and multiple timeframes to identify divergences and anticipate reversals.
The Bottom Line
The Ultimate Oscillator, with its distinctive three timeframe approach and incorporation of buying pressure, offers a unique perspective in technical analysis. While its complexity may be challenging for traders with little experience, its ability to identify potential divergences effectively makes it a powerful tool. Ready to put your Ultimate Oscillator knowledge into action? You can open an FXOpen account to start using it in over 600+ markets. Good luck!
*At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. 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.
BTC! To be or not to be ?In this chart if you look closely you will see just a pump with no fundamental rationale!
I have done my research and if my birdies are right Black Rock has gotten the SEC clearance for the BTC Fund but they have not started the drive.
Just a thinking point for you. Blackrock is the biggest asset manager out there in the known universe. So do you think Larry Fink will buy BTC at these prices?
He will drive it down and accumulate. You all have brains you do the maths and determine the median!! I have given you my viewpoint!
Open Interest ExplainedOpen interest (OI) is a critical concept in the world of trading, particularly in the futures and options markets. It represents the total number of outstanding contracts that have not been settled or closed. Understanding open interest can provide valuable insights into market sentiment, liquidity, and potential price movements. In this article, we will explore what open interest is, how it affects trading, and what traders should consider when analyzing it.
What is Open Interest?
Open interest is defined as the total number of outstanding derivative contracts—such as futures and options—that have not yet been settled. Each time a new contract is created (when a buyer and seller enter into a new agreement), the open interest increases. Conversely, when a contract is settled or closed, the open interest decreases.
For example, if a trader buys a futures contract, open interest increases by one. If another trader sells the same contract to close their position, open interest decreases by one.
Why is Open Interest Important?
Open interest provides insights into market activity and can indicate the strength of a price trend. Here are some key reasons why open interest is important for traders:
Market Sentiment:
Open interest can help traders gauge market sentiment. Rising open interest, especially alongside rising prices, suggests that new money is entering the market and that the bullish trend may continue. Conversely, increasing open interest with falling prices may indicate that bearish sentiment is growing.
Liquidity Indicator:
Higher open interest generally indicates greater market liquidity. This means that traders can enter and exit positions more easily, which is especially important for large institutional traders who need to manage large orders without significantly impacting the market price.
Potential Price Movements:
Analyzing open interest trends can help traders predict potential price movements. For instance:
- Increasing Open Interest + Rising Prices: This combination suggests that new bullish positions are being established, indicating a potential continuation of the uptrend.
-Increasing Open Interest + Falling Prices: This scenario may indicate that new bearish positions are being taken, suggesting a potential continuation of the downtrend.
-Decreasing Open Interest: A decline in open interest, particularly in conjunction with rising prices, may suggest that traders are closing their positions, which can signal a weakening trend.
How to Analyze Open Interest
When analyzing open interest, traders should consider several factors:
[ b]Contextual Analysis: Always consider open interest in conjunction with price movements. Relying solely on OI without considering price action can lead to misleading interpretations.
Volume Comparison: Compare open interest with trading volume. High volume alongside increasing open interest is generally a positive sign for a trend, while high volume with decreasing open interest may signal trend exhaustion.
Market Events: Be aware of upcoming economic reports, earnings announcements, or other events that may impact market sentiment and influence open interest.
Different Markets: Open interest can behave differently across various asset classes. For example, in commodity markets, high open interest might reflect hedging activity, while in equity options, it could indicate speculative interest.
Open interest is a valuable tool for traders to assess market sentiment, liquidity, and potential price movements. By analyzing it alongside price action and volume, traders can gain deeper insights into market trends and make more informed trading decisions. However, like any trading indicator, it works best when combined with other forms of analysis for a well-rounded strategy.
Timeframe Trap: How to Trade Stress-Free and Avoid OvertradingChoosing the Right Timeframe for Trading: A Beginner's Guide to Reducing Stress and Avoiding Overtrading
Choosing the right timeframe for trading is one of the most crucial decisions any trader can make. Yet, for beginners, it can be confusing and overwhelming. From day trading to swing trading to long-term investing, each approach comes with its own set of challenges and opportunities. The wrong choice can lead to unnecessary stress, overtrading, and ultimately, financial losses. This guide will help you navigate through different trading timeframes and styles, so you can reduce stress, avoid overtrading, and find the strategy that best fits your lifestyle and goals.
Understanding Timeframes: A Foundation for Your Strategy
Timeframes in trading refer to the amount of time that each candlestick or bar on a chart represents. Whether you're looking at 1-minute, 5-minute, or daily charts, your timeframe choice will significantly affect how you approach the market. Timeframes can generally be categorized as:
Short-Term: Timeframes from 1 minute to 1 hour, typically used by day traders.
Medium-Term: Timeframes from 4 hours to daily, ideal for swing traders.
Long-Term: Weekly or monthly charts used by position traders or long-term investors.
Your trading style will determine which timeframe you should focus on. For instance, day traders require constant attention to short-term charts, while long-term investors can take a more hands-off approach by analyzing weekly or monthly trends.
Trading Styles and Timeframes: Which One Is Right for You?
1. Day Trading: High-Speed and High-Stress
Day trading involves buying and selling securities within a single trading day, meaning no positions are held overnight. Day traders often use extremely short timeframes, such as 1-minute or 5-minute charts. The goal is to capitalize on small price movements, and the strategy requires constant attention, quick decision-making, and deep market knowledge.
From my personal experience, I found day trading to be the most stressful style of trading. The need to stay glued to the screen all day can be exhausting, both mentally and physically. It also led me to overtrade frequently, jumping in and out of positions without fully thinking them through. For beginners, this can quickly lead to burnout and financial losses.
Pros : Potential for quick profits; no overnight risk.
Cons : Extremely stressful; requires constant monitoring; high potential for overtrading.
2. Swing Trading: Capturing Medium-Term Price Swings
Swing trading involves holding positions for several days to a few weeks, aiming to profit from market "swings." Swing traders typically use 4-hour, daily, or weekly timeframes. This style allows for more flexibility than day trading since you don’t need to constantly monitor the market. It’s a good balance between active trading and giving yourself some breathing room.
When I transitioned to swing trading, I immediately noticed a reduction in stress. I was able to plan trades in advance and hold positions longer, which also helped me avoid the common trap of overtrading. By focusing on larger trends, I wasn’t tempted to react to every small price movement.
Pros : Less time-consuming than day trading; potential for larger profits per trade.
Cons : Overnight and weekend risks; still requires active market analysis.
3. Position Trading: Playing the Long Game
Position trading is more akin to long-term investing. It involves holding positions for months or even years, based on long-term trends rather than short-term price movements. Position traders often use weekly or monthly timeframes and rely heavily on fundamental analysis, such as company earnings reports or macroeconomic trends.
For those who don’t have the time or desire to monitor the markets daily, position trading can be an excellent choice. It allows you to participate in the market without the constant pressure of short-term fluctuations. In my case, using a longer timeframe for certain investments helped me maintain a broader perspective, which reduced the emotional rollercoaster that comes with shorter timeframes.
Pros : Minimal time commitment; less emotional stress; long-term profit potential.
Cons : Requires patience and discipline; slower gains; exposure to long-term market volatility.
4. Long-Term Investing: Set It and Forget It
Long-term investing isn't technically "trading" in the traditional sense. Instead of actively buying and selling, long-term investors focus on building wealth over time by holding assets for years or even decades. Investors typically use monthly charts and focus less on short-term price movements.
This approach is ideal for those who want to minimize trading-related stress entirely. By investing in fundamentally strong assets and holding them for the long haul, you can build wealth gradually without being swayed by daily market noise. This strategy also helped me maintain a more balanced work-life relationship, as I didn’t have to spend every day analyzing charts.
Pros : Low-maintenance; less stress; ideal for long-term wealth building.
Cons : Slow returns; requires significant capital and patience; exposed to long-term risks like market downturns.
How to Choose the Right Timeframe for You
Now that we’ve discussed the different trading styles and timeframes, how do you decide which one is right for you? Here are some critical factors to consider:
1. Your Schedule
How much time can you realistically dedicate to trading? If you have a full-time job or other commitments, day trading may not be the best choice, as it requires constant attention. Swing trading or long-term investing can provide more flexibility, allowing you to check the market once or twice a day instead of every minute.
In my experience, moving to a swing trading strategy helped me find a better balance between trading and my personal life. I didn’t have to stress about missing out on trades while at work, and I still had the opportunity to make profitable moves.
2. Your Personality
Are you someone who thrives on fast-paced action, or do you prefer to take your time analyzing and making decisions? Day trading can be exhilarating but also incredibly stressful, especially if you're prone to making impulsive decisions. On the other hand, swing trading or long-term investing allows for more thoughtful analysis and less emotional turmoil.
Personally, I found that my personality was better suited to swing trading. I could still make timely decisions but without the emotional exhaustion that comes with day trading. For beginners, it’s crucial to choose a style that fits your temperament to avoid unnecessary stress.
3. Avoiding Overtrading
Overtrading is one of the most common pitfalls for beginners, and I’ve fallen into this trap myself. Constantly jumping in and out of positions can lead to financial losses and emotional burnout. By choosing a longer timeframe, like swing or position trading, you can become more selective with your trades, reducing the temptation to overtrade.
One strategy I used to combat overtrading was setting specific entry and exit points based on my analysis and sticking to them. This discipline helped me avoid the emotional ups and downs of the market.
Managing Stress Through Proper Timeframe Selection
Stress is a major issue for traders, and it can often be tied to your choice of timeframe. Day traders experience constant pressure to make quick decisions, while long-term investors have the luxury of time. By choosing a timeframe that aligns with your lifestyle, you can greatly reduce the stress involved in trading.
For me, finding the right timeframe made trading more enjoyable. Instead of feeling rushed or pressured to act, I could analyze the market at my own pace, which ultimately led to better decision-making and improved results.
Tools to Help You Choose the Right Timeframe
Once you’ve identified your preferred trading style, it’s essential to use the right tools to maximize your strategy. Here are a few key indicators and methods that can help:
Moving Averages : Use these to identify trends across different timeframes. Moving averages are particularly useful for swing and position traders.
Support and Resistance Levels : Crucial for identifying potential entry and exit points, no matter the timeframe.
Economic Calendars : For position traders and long-term investors, keeping track of major economic events is essential.
Technical Indicators (e.g., RSI, MACD) : These can help you identify overbought or oversold conditions, which are useful for both day and swing trading.
Conclusion: Trade Smarter, Not Harder
Choosing the right timeframe for your trading style is essential for success, reducing stress, and avoiding overtrading. Whether you’re drawn to the fast-paced world of day trading or the slower rhythm of long-term investing, there’s a timeframe that will suit your needs.
Take the time to assess your personality, lifestyle, and goals before committing to a particular approach. And remember—trading smarter, not harder, is the key to long-term success in the markets. By selecting the right timeframe, you’ll not only improve your trading performance but also enjoy a more balanced, stress-free experience.
Getting Started with Forex Prop Trading: Intro Guide🔸Forex prop trading (short for foreign exchange proprietary trading) refers to a trading model where traders use capital provided by a proprietary trading firm to trade in the Forex (foreign exchange) market. Unlike traditional retail trading, where traders use their own funds, prop traders operate with the firm's capital, typically after passing a series of evaluations to prove their trading skills and risk management abilities. In return, the firm takes a percentage of the profits generated by the trader.
🆕 Here’s a more detailed look at how forex prop trading works and why it's appealing:
🔸 Access to Capital
Prop firms offer substantial capital to skilled traders, allowing them to trade with much larger account sizes than they might be able to on their own. For example, a trader might be funded with anywhere from $10,000 to $1,000,000 or more, depending on their experience and the firm's offerings.
🔸 Evaluation Process
Most prop firms require traders to pass an evaluation or assessment phase before providing access to live capital. This involves trading on a demo account and meeting specific performance metrics like profit targets, drawdown limits, and risk management rules. If the trader successfully passes this phase, they are then given access to a live account with the firm's capital.
🔸 Profit Sharing
Once a trader is funded, they enter into a profit-sharing agreement with the firm. Typically, the trader receives a percentage of the profits, often around 70-90%, while the firm keeps the rest as compensation for providing the capital and infrastructure. For example, if a trader makes $10,000 in profits and their profit split is 80/20, they would keep $8,000 while the firm takes $2,000.
🔸 Risk Management
Prop firms are very strict about risk management because they are providing their own capital. They impose limits on the maximum drawdown (the amount a trader can lose), daily loss limits, and leverage. If these rules are violated, traders risk losing their funded status.
🔸 Advantages for Traders
Low Financial Risk: Traders do not need to risk their own capital, reducing personal financial exposure.
No Pressure to Invest Large Sums: With access to firm capital, traders don’t need to save up large amounts to trade at higher levels.
Support and Resources: Many prop firms provide educational resources, trading platforms, and tools to help their traders succeed.
🔸Types of Prop Firms
Prop firms can generally be categorized into two types:
🔸Traditional Prop Firms: These firms often require traders to work in-office and provide access to a wide range of markets beyond Forex, including stocks, commodities, and derivatives. Online Prop Firms: The more popular model today, these firms operate remotely, allowing traders from around the world to participate.
🔸 Fees
Most prop firms charge traders an initial fee to cover the evaluation process. This fee can range from a few hundred to a couple of thousand dollars, depending on the account size. In many cases, this fee is refundable if the trader successfully completes the evaluation.
🔸 Challenges
Strict Rules: If traders fail to adhere to the firm's rules (such as daily loss limits or maximum drawdown), they can lose their funded account.
Pressure to Perform: Trading with someone else’s capital can create pressure, which can affect trading decisions and lead to mistakes if not handled well.
🔸Bot Algo Trading in Forex
Algorithmic trading (algo trading) involves using pre-programmed instructions (algorithms) that can automatically execute trades in the Forex market based on specific conditions. These conditions can be price, volume, time, or other market indicators. Algo trading has become increasingly popular in the Forex market due to its ability to:
▪️Execute trades at high speed without the need for human intervention.
▪️Remove emotional biases, which can often lead to poor decision-making in trading.
▪️Test and optimize strategies through backtesting on historical data to ensure effectiveness.
▪️Implement complex strategies that would be difficult for a human to execute manually.
🔸what is a Bot Algo Expert?
A bot algo expert is typically a professional who specializes in developing and optimizing trading algorithms (bots) for Forex markets. They possess skills in coding, often using languages like Python, MQL4/5 (MetaQuotes Language), and other programming languages tailored to financial markets.
🔸The expert focuses on building bots that can:
▪️Identify trading signals based on technical indicators (like moving averages, RSI, Bollinger Bands).
▪️Automatically execute trades when certain criteria are met (such as entering or exiting positions).
▪️Manage risk by setting stop-loss and take-profit orders to minimize potential losses.
▪️Optimize performance by regularly updating the algorithm based on market conditions.
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Let's get back to the basics! ..4In this chart I have made it simple.
I accept that price can appreciate further but I will be looking for sell opportunities at levels posted earlier.
My main concern is how to handle this gigonormic rise with the expected fall to come. It will come and if you are following I assure you it will come by early December.
Logic:
Election results
FED rate Cut decision
Gradual decrease in Iran / Israel tension
US Government debt alleviation plan
Indian not buying gold even if it is the peak season
China's artificial stimulus
Please do not trade in isolation. Those out there who are showing massive profits are fudging you. God has given you a brain please use it !!
Replace a 100 000 USD salary with income from trading🔸 Develop a Strong Foundation in Forex Trading
Before considering Forex as a full-time source of income, it’s essential to build a solid foundation in trading.
▪️Learn the Basics: Understand Forex fundamentals such as how currency pairs work, how to read charts, how the market operates, and how global economic events affect price movements.
▪️Master Technical and Fundamental Analysis: Study technical analysis (price action, indicators, chart patterns) and fundamental analysis (macroeconomic data, interest rates, geopolitical events). This allows you to make informed trading decisions.
▪️Study Risk Management: Managing risk is crucial to avoid catastrophic losses. Learn how to calculate position sizes, set stop-losses, and limit leverage. Most professional traders risk no more than 1-2% of their capital per trade.
▪️Backtest and Paper Trade: Test your trading strategies on historical data and in demo accounts to ensure they are profitable over time. This will help you refine your approach without risking real money.
🔸 Create and Test a Trading Strategy
A successful trading career requires a well-defined trading strategy. This is critical for consistency and profitability.
▪️Define Your Trading Style: Determine whether you are a day trader, swing trader, or position trader, based on your risk tolerance, time availability, and financial goals.
▪️Build a Strategy Based on Time Frames and Setups: Whether you focus on scalping, trend trading, or breakout strategies, you need a strategy that works for your trading style. Be sure to incorporate indicators (moving averages, Fibonacci retracement, RSI) and a risk-reward ratio.
▪️Test the Strategy: Test your strategy on demo accounts or paper trade until you have confidence in its profitability over the long run. A good strategy should consistently deliver positive results over several months and market conditions.
🔸 Accumulate Enough Capital
Forex trading requires sufficient capital to replace a salary and generate consistent income.
▪️Set Realistic Capital Requirements: The amount of capital you need will depend on how much monthly income you need and how much risk you are willing to take. Generally, to replace a full-time salary with Forex income, you will need significant capital (likely in the range of $50,000–$100,000 or more). This amount allows you to generate enough returns without taking excessive risks.
▪️Calculate Your Required Return on Investment (ROI): Let’s say you need $3,000 per month to replace your salary. If you have a $100,000 account, you would need a 3% return per month. If your account is smaller (e.g., $10,000), you would need a much higher (and riskier) 30% return, which is unrealistic in the long run.
▪️Use Leverage Cautiously: Leverage can magnify both profits and losses. While Forex brokers often offer high leverage (e.g., 50:1, 100:1), it’s essential to use leverage cautiously, as it can lead to significant losses if a trade goes against you.
Let's get back to the basics! ..3October 21 - 25 Roadmap
Fib extension levels indicated are sell levels
Green boxes or demand are buy levels (accumulate) with proper risk management
Pink box is your ideal retracement target
Sell Stop (NOT Stop loss) blow 2627)
This is my trading plan and not a recommendation. I am sharing and caring that is all. What you do is your own decision!
Let's get back to the basics! ..2The point of this chart is to demonstrate that prices dont just go zoom boom or crash bang! there is a semblance. Always remember the market is an efficient self correcting mechanism and that is why fair value gaps or imbalances are filled more often than not.
If the price elevates way above the 20 period moving average it means there is a distort in the market, and the market fixes the distorty. This is old school I agree, but it is tried and tested and it works. Your turn to agree!
Can you Identify these two Tradingview Indicators?I bumped-into two very unique tradingview indicators a while back, and I have been trying to identify them ever since. I have looked at hundreds, maybe thousands, of Indicators, and cannot find these two or who makes them. The Second one looks like the Ichimoku Oscillator but is not.
Now, i am on a Quest to find them. I have asked Tradingview help, and couple of the moderators, and they didn't know what they were. Can you help me identify them?
Let's get back to the basics!In this chart I have kept it simple. Old school style because I am old school. If you have the time please ponder on these fundamental and technical points.
1. Gold is overbought on higher time frames
2. Why is it overbought ? Clue (Sharks)
3. DT is edging ahead in the races and that is bad for gold and sharks know it
4. Middle eastern crisis is no bad or no worse than last week
5. DXY and US10Y is rising and XAU is rising in tandem? why ?
6. There are two plays here manipulation and FOMO
7. Manipulation drives FOMO. Sharks want to exit their longs and clear out the stops of the retail crowd and then crash boom bang. The sharks enter at lower prices
8. All the hype that you see on the media about US Debt and other countries cutting interest rates? What BS? do you buy it ?
9. Understand this simple fact. Gold costs you swap/interest or whatever you want to call it. Do you think the sharks don't understand this fact ( I am sure retail traders dont pay attention to such minor details)
10. Who makes the sharks richer?
I do not have a crystal ball but I can assure you that even if Fib levels or the MA levels dont work common sense will work.
I am selling and I am not asking you to sell. I will buy at 2580 and then layer it to 2530 in the coming week. Sorry I am more of a buffet guy.
Like or dislike is not my problem. This post is mostly for retail traders who have been taught BS by professional thieves!!
if you use technical analysis you owe a lot to these individualsTHE HISTORY AND ORIGIN OF TECHNICAL ANALYSIS
I am a firm believer that as investors/traders we need to know the historic and major events that have occurred in this magnificent field of ours that have shaped how it is today.
Today i want to shed light of knowledge on the history/origin of technical analysis as this is a widely used concept that is used by majority of traders/investors to analyse/predict future market moves through the evaluation of historic market data especially price, volume and implied volatility and many have made a living and good returns on the financial markets using the various technical analysis tools and concepts but not knowing where it all started.
many do believe that technical analysis was initiated by Charles Dow in the 1800s but this is not true as evidence of Technical Analysis dates far back as to the 17th century from basic and underdeveloped methods as compared to the more evolved ones used in Morden-day times.
Let's get straight into it:
17th CENTURY
-- 1. the Dutch east India Company traders
The Dutch East India Company which was formed in the Dutch Republic, Amsterdam in 1602 which is known to be the first publicly traded company, trading mainly in spices, Indigo and cotton, which gave way to the first financial market the Amsterdam Stock Exchange. Here is when the earliest forms of technical analysis came to show when the Dutch traders would graph record/keep track of the various price fluctuations of their stock but in a basic form.
2. José or Joseph Penso de la Vega
still in the 17th century a Spanish diamond merchant, philosopher and poet best known also as Joseph de la Vega, born 1650 in Spain also considered one of the earliest financial market expert published a marvellous financial read called "Confusion De Confusiones" which provided detailed awareness of how the Dutch financial market participants operated focusing on their illogical behaviour and price patterns they used further more hinting on technical analysis with his descriptions of technical analysis concepts such as puts, calls and pools which are still relevant in Morden-day technical analysis and how he used these in the Amsterdam Stock Exchange.
18th CENTURY
Homma Munehisa
Homma Munehisa, born 1724 in Sakata, Japan a Japanese rice merchant trading in Dōjima Rice Exchange developed what i consider the most popular form of technical analysis which proved high standards of acceptance as traders/investors world-wide still use it in modern-day times, he initiated the Japanese Candlestick/ K-Line (primarily known as Sakata Charts), which is a price chart that's represents the open, close, high and low prices of a security for a specific time period which was introduced in his book "THE FOUNTAIN OF GOLD- THE THREE MONKEY RECORD OF MONEY" which also shared insights about chart patterns, markets trends and traders human emotions.
LATE 19TH AND EARLY 20TH CENTURY
Charles Henry Dow
considered father of technical analysis born 1851 Charles Dow is the one that first to induct modern-day technical analysis in the United States Of America, he was an American journalist who co-founded Dow Jones and Company which is a publishing firm along ide Edward Davis Jones and Charles Bergstresser. He also co-founded The Wall Street Journal which its first publication was on July 8, 1889 which became the the most reputed financial publication and first of it's kind which was a series of texts that discussed his observations of the U.S stock market especially the industrial and transportation stocks listed in the U.S stock market this gave way to the Dow Jones Industrial Average and Dow Jones Transportation Average, he also held a strong believe that "the stock market as a whole was a reliable measure of overall business conditions within the economy"
he also developed the Dow Jones Theory which states that the market has 3 trend phases which was a significant breakthrough in technical analysis as this theory aids traders/investors in identifying the major, intermediate and minor trends in the market.
after his passing many other technical analysis developers came from studying his work/publications which include the likes of William Hamilton who later become the editor of the wall street journal, others notable followers of his work include Robert Rhea, George Shaefer and Richard Russel.
another prominent figure in the development of modern-day technical analysis is
Ralph Nelson Elliot
born 1871 whose financial career started as an accountant, Mr. Elliot was famously known for studying 75 years of historical stock market data and recording his research and findings manually as computerized systems where limited which i believe is very outstanding.
his work is based on a theory that market movements are not random and that the markets moves in specific trends and patterns (waves) which are influenced by traders/investors psychology.
his wave theory gained traction in March 13, 1935 when he stated that the the market will make a bottom and indeed the following trading day the Dow Jones Industrial Average made it's lowest closing price, which proved his Elliot Wave Theory to be a significant technical anaysis concept.
20th CENTURY
Technical Indicators
with the aid of computerized systems technical analysis evolved into technical indicators which are computer systems backed by mathematical calculations of price data which apply these calculations to analyse large volumes of market data incorporated by algorithms which overlap on charts to forecast future price movements.
hope you have a fun read and learned something new.
“In learning you will teach, and in teaching you will learn.”
Phil Collins
put together by Pako Phutietsile as @currencynerd
The parameters for the Ichimoku Trinh Phat indicator for BTCUSDTThis adjustment of some paremeters will suitable for BTCUSDT and the price will react much better with Dagger 65 (a strong support and resistance)
Tenkan: 13
Kijun: 25
Dagger 65: 80
Other parameters are unchanged.
You should find suitable paremeters for each markets to fully utilize this indicator.
Best to combine this indicator with RSI Cylic smoothed V2 to find turning point.
The Coin Market is Different from the Stock Market
Hello, traders.
If you "Follow", you can always get new information quickly.
Please also click "Boost".
Have a nice day today.
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The coin market discloses a lot of information compared to the stock market.
Among them, it discloses the flow of funds.
Most of the funds in the coin market are flowing in through USDT, and it can be said that it currently manages the largest amount of funds.
Therefore, unlike the stock market, individual investors can also roughly know the flow of funds.
Therefore, you can see that it is more transparent than other investment markets.
-
USDT continues to update its ATH.
You can see that funds are continuously flowing into the coin market through USDT.
USDC has been falling since July 22 and has not yet recovered.
The important support and resistance level of USDC is 26.525B.
Therefore, if it is maintained above 26.525B, I think there is a high possibility that funds will flow in.
If you look at the fund size of USDT and USDC, you can see that USDT is more than twice as high.
Therefore, it can be said that USDT is the fund that has a big influence on the coin market.
USDC is likely to be composed of US funds.
Therefore, if more funds flow in through USDC, I think the coin market is likely to develop into a clearer investment market.
But it is not all good.
This is because the more the coin market develops into a clearer investment market, the more likely it is to be affected by the existing investment market, that is, the watch market.
This is because large investment companies are working to link the coin market with the coin market in order to make the coin market an investment product that they can operate.
In order for the coin market to be swayed by the coin-related investment product launched in the stock market, more funds must flow into the coin market through USDC.
Otherwise, it is highly likely that it will eventually be swayed by the flow of USDT funds.
Therefore, USDC is likely to have a short-term influence on the coin market at present.
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As mentioned above, the most important thing in the investment market is the flow of funds.
The flow of funds in the coin market can be seen as maintaining an upward trend.
Therefore, there are more and more people who say that there are signs of a major bear market these days, but their position seems to be judging the situation from a global perspective and political perspective.
As mentioned above, the funds that still dominate the coin market are USDT funds, which are an unspecified number of funds.
Therefore, I think that the coin market should not be predicted based on global perspectives and political situations.
The start of the major bear market in the coin market is when USDT starts to show a gap downtrend.
Until then, I dare say that the coin market is likely to maintain its current uptrend.
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(BTCUSDT 1D chart)
The StochRSI indicator is approaching its highest point (100), and the uptrend is reaching its peak.
Accordingly, the pressure to decline will increase over time.
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(1W chart)
The StochRSI indicator is also in the overbought zone on the 1W chart.
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(1M chart)
On the 1M chart, the StochRSI indicator is showing signs of entering the overbought zone, but it is not expected to enter the oversold zone due to the current rise.
The movement of the 1M chart should be checked again when a new candle is created.
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You can see that the StochRSI indicator on the 1M chart is the most unusual among the three charts above.
In the finger area on the 1M chart, the StochRSI indicator was in the overbought zone, but it is currently showing signs of entering the oversold zone.
Therefore, you can see that the current movement is different from the past movement.
Therefore, I think it is not right to predict the current flow by substituting past dates.
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I wrote down my thoughts on the recent comments from famous people who say that the coin market will enter a major bear market along with the stock market.
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Have a good time. Thank you.
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- Big picture
It is expected that the real uptrend will start after rising above 29K.
The section expected to be touched in the next bull market is 81K-95K.
#BTCUSD 12M
1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (overshooting)
4th: 134018.28
151166.97-157451.83 (overshooting)
5th: 178910.15
These are points where resistance is likely to be encountered in the future. We need to see if we can break through these points.
We need to see the movement when we touch this section because I think we can create a new trend in the overshooting section.
#BTCUSD 1M
If the major uptrend continues until 2025, it is expected to start by creating a pull back pattern after rising to around 57014.33.
1st: 43833.05
2nd: 32992.55
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Dark Pool Buy Zones Explained with Pro Trader Nudge SignalsThis lesson is about how to identify when a hidden quiet accumulation of a stock is underway and how to prepare for the momentum runs that follow. NYSE:DIS is our example for today.
Dark Pool activity is explained in detail. Alternative Transaction System (ATS) Venues are called Dark Pools of Liquidity.
A Buy Zone is an extended period of hidden accumulation of often millions of shares of stock over several weeks to months.
Professional traders use these buy zones to enter on the penny spread and instigate a trigger of HFT gaps to the advantage of the pro trader. Learn how you can profit from this activity for swing trading or position trading.
How to convert TradingView Alerts to trades on exchange accountsCreating automated trading solutions can often feel like a daunting task. Traders must not only craft complex algorithms but also ensure smooth execution across various exchanges. The process involves handling trade execution, order management, and performance analysis—each exchange presenting its own integration challenges. What may start as a simple strategy can quickly evolve into a time-consuming, resource-heavy project.
But what if you could automate your trades directly from your TradingView alerts with just a few clicks?
By leveraging alert-based automation, you can easily transform your TradingView alerts into real trades on your preferred exchange.
In this article, we’ll walk through how to set up automated trades based on TradingView alerts. We’ll show you how, in just 5 minutes, you can create alerts, link them to an alert bot, and watch as your orders are seamlessly opened and closed on an exchange.
Let’s get started with a step-by-step guide for TradingView indicators!
Step 1. Click Alert Messages in your create Skyrexio Alert bot, copy webhook URL, messages to open and close trade
Step 2. Go to TradingView charts, select trading pair, choose indicator and apply it to the chart
Step 3. Set the chart timeframe and indicator configuration to meet your expectations
Step 4. Click Alert, select the indicator as the condition, paste the bot message and webhook URL, click Create
Note: if you chose Alert close orders when configuring the bot, set another alert with close message to exit trades
With just a few simple steps, you can now turn your TradingView indicators into fully automated trades on popular exchanges like Binance, Bybit, OKX, Crypto.com, Gate.io, and KuCoin. This powerful integration streamlines your trading process, enabling you to act on signals without constant monitoring or manual execution. The ability to seamlessly execute trades ensures that you never miss a profitable opportunity, regardless of market conditions.
But that’s just the beginning!
In the next section, we’ll show you how to convert TradingView strategies into automated trades using alerts. With strategies, you can further refine your approach and unlock even more potential for automation. If you're interested in learning how to take your automation to the next level, stay tuned!
Ready to dive deeper into strategy automation? Let us know in the comments if you want to see more on this topic!
The 3 Session of Rise Reversal Setup, with todays Silver R4 Going through my thinking process of the whole session, pair selection and the 3 trades i took. Gold breakout continuation long, NAS FOH Continuation short (stopped out) and then an end Session 3 sessions of rise reversal short with Silver. Additionally i am explaining the 3 sessions of rise setup in detail






















