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Silver (XAGUSD) how to construct a trade:Medium bullish take: OANDA:XAGUSD is trading around the $30 price level for the first time in years. Is there a trade here? Could we see $40 by EOY? Let’s draw some charts: We're trading in a Bullflag at the $30 level Triple top, we're not quite ready to hold above the level Find nearby price targets Establish long term support lines Use momentum indicators and price action to draw a reasonable path which engages the price structures you've established. So according to our charts, we should expect a bounce above $27 Be mindful, there are exogenous events that push the price around. Shifts in the macro landscape will impact the path price takes. For details, I've included a fun GIF, animating the construction of this chart. Check out my twitter for more! NOTE: Original idea posted 7/23
TVC:SILVEREducation
by dawsonMoonshot
TrendsThe trend represents the directional movement of prices and plays an essential role in most technical trading systems. Technical analysis differentiates between trending and non-trending markets, also called flat trending markets. Trending markets can be either moving upwards or downwards. The upward-moving market is called the bull market, while the downward-moving market is called the bear market. Normally, a market is considered to be in an uptrend when the price reaches higher peaks and higher troughs. On the contrary, the market is regarded to be in a downtrend when the price reaches lower troughs and lower peaks. The non-trending market occurs when there is no significant uptrend or downtrend, and the price moves within a certain range. Thus, the flat trending market is notorious for its sideways-moving price action. Key takeaways: Trends can vary in length and are classified into four main categories: primary, secondary, minor, and intraday. The primary trend is the most significant trend, lasting for months or years. It's characterized by the overall direction of the market. The secondary trend opposes the primary trend and usually lasts for weeks or months. Identifying trends is crucial for technical traders. Methods range from simple tracking of recent lows and highs to more complex mathematical formulas. Trend classification Trends tend to be of different lengths. According to these lengths, trends fall into four main categories: primary trend, secondary trend, minor trend, and intraday trend. The primary trend is the only inviolable trend and lasts for a long period, usually months or years. The secondary trend runs counter to the primary trend and is often measured in weeks or months. Further, the minor trend is measured in days, and the intraday trend is represented merely by daily fluctuations in price. The primary trend The primary trend can be subdivided into three distinctive phases. The first phase of the primary uptrend begins with the revival of investors' confidence from the prior primary downtrend. That is followed by the second phase, in which asset prices increase in response to growing corporate earnings. In the third stage, speculation becomes the dominant force driving markets higher. This environment, when asset prices are rising on the hopes, dreams, and expectations of individual investors, tends to foreshadow the beginning of the primary downtrend. Its first phase commences with the abandonment of hopes and dreams upon which investments were made. That is followed by selling pressure due to falling corporate earnings in the second phase, which later escalates into panic selling in the third stage. Illustration 1.01   The illustration displays the weekly chart of Nasdaq continuous futures (NQ1!) for the period between late 2001 and 2008. The primary bull market began after the bottom of the “dotcom” bubble and lasted until the peak of the real estate and credit crisis in 2007. Illustration 1.02   The image above presents the daily chart of gold (XAUUSD) during the 2008 bear market when it dropped 34%. The secondary trend The secondary trend is the intermediate-term trend. Its direction is opposite to the primary trend, and it represents any significant price drop in the primary bull market or price rise in the primary bear market. The secondary trend usually lasts for weeks or months. Its measure in percentage terms tends to range between 33% and 66% of the range of the primary trend. This trend is considered to be prone to market manipulation as opposed to the primary trend. Illustration 1.03   The picture shows Bayerische Motoren Werke's (BMW) daily chart throughout 2020 and 2021. The white dashed-line box indicates the primary uptrend, and the grey dashed-line boxes indicate the secondary trends, counter to the primary one.  The minor and intraday trend The minor trend lasts for a few days or weeks, yet always less than the secondary trend. It is more difficult to identify than previous types of trends since its amplitude in percentage terms is significantly less when compared to the primary and secondary trends. The same applies to the intraday trend that lasts for a few seconds up to several hours; it represents daily changes in the price and is regarded to have little predictive value. Trend identification Identifying a trend is crucial for a trend-based technical trader, and there are plenty of methods how to identify it correctly. These methods can be simple or very complex. The simplest method of identifying trends can be done by tracking recent lows and recent highs in the price of an asset. Other simple methods involve using lines, trendlines, and curves; more complex methods usually involve the use of mathematical formulas in order to generate a set of valuable data. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This article is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
Education
by Tradersweekly
2
Constructin of chartsThe first documented use of charts goes back to ancient Babylonia, where their early forms were used primarily for record-keeping by astrologists and merchants. Then, sometime between the 5th and 6th century A.D., these graphical representations developed into a form reminiscent of today’s charts. Further refinement and development of charting techniques continued through the centuries, influenced by advancements in mathematics, commerce, and technology, which propelled charts from hand-drawn illustrations to sophisticated computerized displays in the 20th century. Nowadays, there is a myriad of visualization options, but line charts, bar charts, and candlestick charts are the most widely used for the purpose of technical analysis. Key points: A chart is a graphical display of data, usually price and volume. In the context of financial markets, charts serve as tools for analyzing trends, patterns, and relationships in data. There is a wide array of visualization options available today, with line charts, bar charts, candlestick charts, and equivolume charts being among the most commonly used. Different types of charts are suitable for analyzing different aspects of data, ranging from long-term trends to short-term price movements and volatility. Line chart A line chart is represented by a single line that provides information about the price on the vertical axis and time on the horizontal axis. It is typically constructed by connecting a closing price. This type of chart is suitable for analyzing long-term trends, but its main drawback is that it provides only one piece of information, unlike a bar graph or a candlestick graph. Illustration 1.01 The illustration above shows the daily line graph of Bitcoin (BTCUSD) between 2020 and late 2022. Bar chart A bar chart is constructed with bars, each representing one particular time interval. These bars provide information about opening price, closing price, high, and low. As such, volatility and various price patterns can be easily observed. This type of chart fits short-term, medium-term, and long-term trend studies. Illustration 1.02 The image portrays the daily bar chart of silver (XAGUSD) throughout 2022 and early 2023. Candlestick chart A candlestick chart is very similar to a bar chart and provides information about opening price, closing price, high, and low. It consists of the real body and shadow. The real body is a rectangular area between the opening and closing prices. Shadows are the price extremes that occur within a trading session and are represented by thin bars above and below the real body. The shadow above the real body is called the upper shadow, and the shadow below the real body is called the lower shadow. Candlestick charts are appropriate for analyzing short-term, medium-term, and long-term trends. Illustration 1.03 Above is the weekly candlestick chart of gold (XAUUSD) between late 2007 and early 2017. Equivolume chart In an equivolume chart, the width of each bar or candlestick is proportional to the volume traded during that period, while the height represents the price range (high to low) for the same period. This type of chart aims to visually depict the relationship between trading volume and price movement, allowing traders to identify patterns and trends more effectively. Equivolume charts are especially useful for analyzing the strength of price movements in relation to trading activity. Illustration 1.04 The equivolume chart of silver (XAGUSD) is depicted above. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
Education
by Tradersweekly
2
QUICK AND EASY WAY TO MAKE A CHART (GAPS) - PLTRIF your an advanced trader and good at charting, you likely won't find this information useful. In the future, I'll have more educational posts that go in depth, but this one is for the newbies. STEP 1 - Find your gaps (circled in blue) ONLY MARK GAPS THAT HAVE YET TO CLOSE STEP 2 - MARK your GAPS with a Horizontal Line (alt + h) STEP 3 - DUPLICATE your Horizontal lines (CTRL + CLICK each line while holding ctrl to multi select lines, CTRL + SHIFT + CLICK AND DRAG to duplicate) STEP 4 - These are now your long term trading zones (COLOR Lines accordingly, TIP - Try not to pick colors that blend together) red and green do not mean buy/sell, they mean top of the gap, and bottom of the gap, 4.22% or so... It doesn't need to be exact. STEP 5 - Line thickness (IF multiple lines stack up, you can create a thick line to simplify chart. KEEP IT SIMPLE, REMEMBER, this is not to be exact, this is to create zones to prepare you for future movements based on past gaps) Why is this useful? Well, if you know a price gap is statistically likely to close, then you can be pretty certain that at some point in the future, that gap will close, meaning price will return to @ or above the price gap. With this in mind, you can plan ahead and start to realize when your emotions are getting the best of you. This is also great because you can do this on any time frame with candles. Why ISNT this useful? Well, this gives you no indication of timing. Past results don't guarantee future results. AND this gives you no indication of current price action. In other words, a GAP could form and close 2 years later, and the entire time before it closes, price keeps going lower and lower. Good luck, and remember, this is just a quick and easy way for newer users to identify potential price targets, while limiting emotion in decision making.
NYSE:PLTREducation
by nicktussing77
1
The Power of Standard Deviation (STDEV)Hello everyone, This morning was a great chance to show the power of using Standard Deviation (STDEV) for targets. I usually put it on the London session. That's what I've done here. As you can see, the levels are almost identical to the ones marked using market structure. This is another useful advanced tool that can add to your arsenal to help bring your trading to the next level. This is very easy to use, and you can use the FIB tool with these levels to make your own STDEV tool. I hope you found this insightful and useful. Happy Holidays!
CME_MINI:NQ1!Education
by The_Lioness
📈 Charting Lesson: What do I even look for in a chart?!Full-time trader here. Sharing some knowledge for free . If this helps you, show some love: follow me for more and like this idea. 👍 Why do I need a chart anyway? First, we need to convince you of why you need a chart. No problem. Let's say you're a fundamental analysis investor. The stock has to make sense. The stock has to last forever. It needs to be a growth stock. Let's say... NASDAQ:AAPL NASDAQ:GOOG NASDAQ:NVDA NASDAQ:TSLA is a good example over the last few years. Now that you found a good candidate, when are you going to buy? At an all-time high? At an all-time low? One share a day? One share a week? No. Buying a stock without looking at the chart is like driving with a blindfold. Don't do it. Pull up a chart. Observe past price action. Try to find a trend. Plan your entry. Do this even if you're going to hold for 20 years. When I pull up a chart, what do I look for? I just see a bunch of lines. Let's first make sure you are looking at the correct view. On the top left corner of your screen, you'll see your user icon. Next to it is the ticker. Next to it is the interval. Next to THAT is the chart type. Make sure you select "CANDLES". Not "hollow candles". Here's how it should look: Mine may look a bit different because I changed my theme. But the candles is what we care about. Now the juicy part. Support and Resistance are Key Reversal Levels. When you open a chart, the first thing you want to do is look for areas where the price has reached in the past and reversed or got rejected or bounced. For example, every time SPY reached 443.37 in the chart above, it reversed. Let's call this a, "key level". If the price is ABOVE that key level, the line is called SUPPORT. If the price is BELOW that key level, the line is called RESISTANCE. Using the horizontal line tool, make sure you have these key support and resistance levels on your chart. Try to ONLY buy near support and sell near resistance. If the stock is choppy, do your best. If you can't, skip it and go to another stock. There's thousands! Stocks, Currencies, and Cryptos Move in Trends. Up or Down. Next, try to find a "trend". A trend is something where if you connect the dots, the price jumps right from that straight line. Pull out your trendline tool and try to connect some dots. Don't go through any candle bodies. Going through wicks is okay. It's actually recommended. Three touches are required to make a valid trendline. If you see only TWO touches? Is the price going TOWARDS the trendline if you were to extend it? There's a good chance it's going to head towards that TL and bounce! Good job. You found a good trade potential. Identify Reversal or Continuation Patterns. Look for known patterns. In the example above, there is a "head and shoulders" pattern. This is a bearish reversal pattern. Know that not all patterns will come true. It's good to know the overall signal the market is giving. If every trader sees it, it's likely not going to happen. In the above example, a looming H/S pattern is scary given already bad economic conditions and recession/ inflation worries. In this case, the market may be trying to tell you something. Understand that these patterns are not just nice-looking drawings on a chart. They work because they display some sort of buyer/ seller psychology. I will post more examples of known patterns on my TradingView profile soon. Be sure to follow if you want to learn more. If you benefitted from this, you are welcome to follow me, comment any questions, or share this with your friends. Good knowledge should be free. I'll post more insight soon. Thank you for reading and for your continued support. 👍
AMEX:SPYEducation
by kingdips
3
The Power of using NPOCS on your Charts BTC/USDA Naked Point of Control is an untested point of control which is either time based or volume based and exists in the current market structure. These NPOCS can serve as excellent targets for trades as well as potential areas of support and resistance dependent upon the NPOC's profile distribution. I have marked this Bitcoin Chart with Daily , Weekly and Monthly NPOCs and using the boxes I have demonstrated how powerful NPOCS can be when incorporated into a trading strategy for Scalps Daytrades and Swing setups. I use NPOCS with other confluences mainly Fib levels and order flow and the respect for these levels is well worth noting . I hope this information helps you define a strategy for your trading as utilizing these correctly will boost your ROI. Whatever the case thanks for viewing my work and be sure to like and follow .
BYBIT:BTCUSD.PEducation
by SJTRADESFUTURES
15
Simple BUT Not EasyReading charts and understanding the "Language" of the market is very simple but at times due to high involvement of our emotions we make it very hard. Any market or chart that you see will be in a phase all you have to do is identify it on a higher time frame. Lower Lows & Lowers Highs is a definition of a down trend. Higher Highs & Higher Lows is a definition of a up trend. If you can see the above both happening then market is ranging. If you are having a short bias on a particular instrument always look for a shorting opportunities in a lower time frame after confirming the phase of the market in a higher time frame. Always wait for a confirmed trend don't try and jump in too early. Let market decide the direction, don't force your self. Risk Management is very important, Plan your trade with a proper risk that you can manage. Trading is a marathon, if you try to sprint you will fall down and injure yourself. Slow & steady wins the game :) Thanks
TADAWUL:TASIEducation
by stalkstock
Less Indicators Make Better TradesIf you have a professional looking chart with plenty of fancy indicators, and yet nothing is making sense, you reached Analysis Paralysis; the rabbit hole that sucks everyone in by the gravity that every Indicator is important. In essence, they all are. The remedy to the mental confusion is to find the few that give you the best visual quality to make trading simpler. Strip the Charts back to its basics using only a handful of indicators. The $ETH chart provided uses MACD, RSI, Volume, and Script. The combination provides clear visualization of momentum, support & resistance zones and liquidity; key factors Traders need to create a trading strategy. Majority of profitable Traders advocate the adage "Less is more!" I found this to be true in my experience.
COINBASE:ETHUSDEducation
by hixstr
3
Current chart setup that has taken a long time to perfect This charting setup works amazing on all timeframes. The goal was to pack as much USEFUL information into the chart as possible, without it being confusing, staying easy to use and read and being visually pleasing. Modified indicators are as follows - 1. Divergence for many v4 2. Suite and dashboard w/ inputs for S&R, Bollinger heatmap, fib retracements, 9,21,50 EMA's. Dashboard to right reads Volatility %, RSI level, VWAP and trend for all timeframes. (Can be buggy- check trends while on 15 min chart) 3. RSI bars with custom settings Lower half - 1. RSI Divergence (custom settings) 2. AK Trend ID (is just a custom macd really, but gives a good visual representation) 3. MFI with custom settings. I wont go over how to use everything in conjunction right now. (Saving that guide for a later date) Enjoy, DJ (CryptoSavvy)
Education
by clardonald20
3
The Art of Technical Analysis for Beginners part 1Hey Traders so today I wanted to make a brief tutorial on technical analysis for those who are new to trading. This will be a short series that gives you the tools to understand the charts without any indicators ever needed. This analysis can be applied to all markets Stocks, Forex, Commodities, Crypto etc... Be on the lookout for future videos in the series and I hope it helps those who are new to trading! Enjoy! Trade Well, Clifford
TVC:USOILEducation
by TradeTheIndex
10
To add & pin yours or other's published ideas to your chartHello traders. I had a hard time to figure out how to add and / or pin my ideas and other people that I follow to my chart. Here are the steps. 1- go to the "Ideas Stream" tab on the right side of your chart. 2- There is a "Light Bulb" icon all the way on the top and click on the drop-down menu next to it. 3- Select desired option. Few important points: A- It works for your private or public published ideas as well as other people that you follow. B- On the chart, the Published Idea (yours or others) will appear on which ever "Time Frame" t ( Daily, 4H, 1H ..) it was published. C- You can't publish on less than 15 Minutes Time Frame. D- The ideas will appear on the specific candle as a "Upside Down Triangle". If you hoover your mouse it will pop up. E- You can pin the idea to your chart to show all the time. Once you hoover over the triangle, it will pop up and you can see the "Pin" icon to pin the idea to your chart. You can unpin it the same way.
Education
by Ha-Lion
1
A Quick Guide to Multi-Timeframe ScalingQuick Intro =========== Regardless of what type of trader we are, most of us will look at the same chart in different timeframes to help make the "case for a trade". The risk of doing so is that we need to understand the fundamental concept of Multi-Timeframe Scaling (let's call it MTF scaling) as we inspect the various timeframe charts of the same underlying, otherwise, we risk receiving confusing signals - that rather than helping a trade decision, will possibly hinders the decision, if not even triggering the wrong decision. This concept has possibly been published about here before - i though it won't harm to put together a quick primer / reminder if it helps some of our new fellow traders on TradingView - if this sounds interesting, please read on. What do I mean by Multi-Timeframe Scaling? ------------------------------------------------------- in my trading, and as i check if there's a good trade to make on, say TSLA- i would first look at the daily chart -- cause i'm a position trader. is there a trend forming? has there been a recent consolidation? is there a possible breakout soon ? ..etc i then "zoom-out" to a larger timeframe -- say the weekly chart. i need to see the prevailing sentiment and the "context" - this is important because even if it looks like a bottom is forming on the daily, if TSLA on the weekly shows a diminishing momentum, i would avoid making a long trade assume the larger (weekly) timeframe is favorable -- so i will then "zoom-in" to find an ideal entry - using a smaller timeframe chart - the 1hr or 15mins so what did we do here: ===================== Larger timeframe = Context and prevailing sentiment Medium timeframe = Trade Decision Shorter Timeframe = Trade Execution i will do the same for exits as well - i assume most traders have a similar "protocol" before they hit the trigger - but may use different "preferred set of timeframes" based on the type of trading -- day traders may use 15min for trading, with 1min for execution and 1 or 2Hrs for context -- swing traders may use 1hr for trading, with 10 mins for execution and 1 day for context and so on .... the problem for many traders, as they switch between the charts of various timeframes is, they will see conflicting signals .. the indicators/charts many of us use are usually not "sync'ed" - to demonstrate how this looks like, look at the chart on top - to demonstrate what happens when there's lack of indicator scaling across the timeframes, i used a 3-SMA basic system -- but the same concept applies for any indicators you use (RSI, MACD, ADX/DMI, Stochastic)....etc -- the list goes on :) -- so what's wrong here and how can it be fixed? ---------------------------------------------------------- There's nothing "really" wrong, it's just there's an element at play that we may not be aware of here - We need to get very familiar with that concept of "MTF scaling" when we switch between different TF charts - the concept is really simple, and the key is the "scale factor" the 1 day chart has 7 x 1hr bars (for stocks) -- so, for example, if i look at an SMA or EMA of length 9 on the daily chart, i need to look at the
Editors' picks
NASDAQ:TSLAEducation
by RedKTrader
67
How to Color Grade your Charts & IndicatorsHello everyone, in this video we are going to talk about the possibilities to personalize your charts and therefore improve your own strategy (emotionally) and the attractiveness for other traders. Feel free to check out the previous two videos where were talking about trends, candlestick- and chart-patterns. Cheers, Ares Basic understanding of Candlestick- and Chart-Patterns How to scale your charts & use the right timeframe
Editors' picks
OANDA:XAUUSDEducation
by Anton_XBT
39
Charting Basics – Bars vs. CandlesticksCharting Basics – Bars vs. Candlesticks Charting Basics – Bars vs. Candlesticks Services Online What are bars and candlesticks? A chart is a graphical representation of historical prices. The most common chart types are bar charts and candlestick charts. Although these two chart types look quite different, they are very similar in the information they provide. Bar and candlestick charts are separated into different timeframes. Each bar or candlesticks represent the high, low open and close price for a specific period of time Charting Basics – Bars vs. Candlesticks candlestick trading Understanding Forex Charts When looking at a daily chart , each bar/candle represents one day of trading activity Charting Basics – Bars vs. Candlesticks gold trading basics When looking at a 15min chart, each bar/candle represents a 15 min period, or session, of trading activity. Why are bars and candlesticks important? Technical Analysis includes the study and mapping of trends and price patterns through various technical indicators, or studies. This relationship between price and time can help traders not only see and interpret more data, but can also help pinpoint areas of indecision or reversal of sentiment Charting Basics Bars vs Candlesticks Pound Set to Snap Losing Streak Vs US Dollar COVID-19 (This will be discussed in more detail within the Understanding Candlesticks section of the course) As a result, technical analysis is used to help determine the probabilities entries and exits in order to develop a strategy, or methodology forex trading signals Candlesticks Trading Bearish candles are typically red. It means the opening price was higher than the closing price for the specified time interval. Bullish candles are typically green. It means the opening price was lower than the closing price for the specified time interval Charting Basics Bars vs Candlesticks Technical Forex Strategies Charting Basics Bars vs Candlesticks Social trading Live Forex Signals Social trading involves the free sharing and using of information amongst a group of traders. The information provides access to new trading ideas, risk management and client sentiment. Social trading integrates the exchange of information into an online discussion. It creates a community feeling as traders can work together to plan specific trading ideas. In addition to sharing research, traders can also pool funds to generate greater gains. Social trading is a broad category of trading and can include elements of copy trading and mirror trading. Traders can share information about individual trades that can be copied by other traders, or specific trading strategies that can be mirrored by other investors. Social trading can span the foreign exchange markets, as well as stock and commodity markets. Is social trading profitable? There are several benefits associated with social trading. Even if one is not open to online social interactions with other traders, there are specific aspects of social trading that can be beneficial. Social trading chatrooms with a moderator allow traders to follow trades and ask questions. This can be a good way for novice traders to learn more about trading and how to make profitable trades. How does social trading work? Social trading is generally performed on social trading platforms. Investors can trade within a community and replicate the style of expert traders. Moderators, who are usually experts, drive these discussions. Social trading can also involve aspects of copy trading and mirror trading. An offshoot of social networking, social trading has created a different way to test financial information. In the past, investors would focus either on fundamental analysis or technical analysis . With forex trading, however, traders can share information about the current market environment and offer insight into future market movements, thus driving trading decisions. For some traders, it has changed the rules of analysis. Most social trading takes place online. It provides traders with psychological support and can offer different points of view. By emulating some of the techniques learnt in a social trading environment, traders can often improve their trading strategies, risk management techniques and trading psychology . Forex trading focuses on short-term trading. This can in turn provide additional liquidity to the markets. Using social trading, one can also access the historical performance of members and can see the returns produced by specific strategies. Social trading forum Social FX platforms often provide a chart forum and social newsfeed. Members are constantly providing information about a specific subject. Traders can post their trading ideas as well as information to back up their thesis. Below is an example of a social trading interaction inside our online Next Generation trading platform, on the trading forum. Traders can engage with other traders and our market analysts to discuss the price evolution of the financial instruments that they are currently watching. Create a live account to access this exclusive feature of our platform. It can be used as a forex trading forum, stock trading forum, or for any other financial market that you are interested in trading. Social trading vs copy trading With FX trading, one can garner ideas from many social trading networks. Copy trading, on the other hand, involves solely copying the trades of another investor. The goal of copy trading is for the trader to have the same positions as the investor they are copying. When copying another trader, one doesn’t receive the layout of the trader’s strategy and follows their trades blindly. Traders can also invest their capital in a thematic investment. These are funds that turn capital over to specific traders who then act as portfolio managers. In essence, one is participating in copying funds. This is a bit like a funds investment, but instead of investing in hedge funds, one is investing a pool of capital into a fund that copies multiple traders. This provides diversity in copy trading and allows returns to be uncorrelated. Traders can perform this on their own, but it’s imperative for traders to ensure that they are not putting all their eggs in the same strategy basket. What are the risks of social trading? Like any trading activity, there are risks involved in social trading a market. Whether when copying another investor’s strategy or using the information to create their own trading decisions, traders should understand that there are risks involved and subsequently create their own risk management strategy. All trading leaders will, at some point, lose money. Individuals should feel comfortable that the risks are in line with their individual tolerance levels. The more capital risked, the greater the reward. They should also be aware that some social trading platforms charge a fee. When allocating capital to forex trading, traders should start with determining the amount of capital they are willing to lose to generate the gains they are looking to achieve. They must also be realistic. For instance, a trader cannot expect to risk $50 to make $5,000. Traders should carefully look through the risk profiles associated with different social trading leaders and see if they are in line with expectations. While one can set up an algorithmic trading mechanism, it is considered unwise to leave money unattended. As a very minimum, it is recommended that traders check their trades at least once every day. The best due diligence is to understand the logic behind the trading decisions made by a leader, and to be interactive in asking questions about the strategy one is using. Summary Social involves the sharing and using of information amongst a group of traders. There are several types of social trading, including strategy mirroring and copy trading. The information provided in social trading allows access to new ideas, risk management, and sentiment. Social trading can drive a community feeling as investors work together to formulate specific trading ideas. News feeds in social trading platforms offer access to real-time ideas that describe a strategy in detail. In addition to sharing research, social trading can also involve pooling funds to generate greater gains. Social trading community Some platforms provide a search criteria so traders can customize their social trading experience. Traders should test drive their trading for a while first before they start copying other investors. Traders should also ensure that the risk score is in line with their expectations and the maximum drawdown is not outside their tolerance level. This can mean that they have an average return of 20% annualized but will regularly make and lose more than 50% on their trades. If the average return is 20% and the standard deviation of the returns is 50%, the Sharpe ratio is 0.4. Why trade CFDs on currency pairs? If, on the other hand, the average return is 20% and the standard deviation of the returns is 10%, then one will have a Sharpe ratio of 2. This is very good. The maximum drawdown offers information about the peak-to-trough drop. One should understand that if a leader has a maximum drawdown of 30%, a trader copying this person’s trades could lose 30% from peak-to-trough. MT4 Copy Trading In our interactive trading platform, our forex trading community and stock trading community are particularly popular in comparison with other assets. You can access forex commentaries and stock market chatrooms to keep up to date with the latest news and analysis of the financial markets. using forex signals
BITFINEX:XRPUSDEducation
by fxpremiere
Technical Analysis 101: Support and Resistance In this video I cover the basics of the support and resistance levels and how to chart it out, If you enjoyed this video please like it and share it with your friends. Also please drop a comment, feedback, suggestion for me to cover or just to work on, and that would be much appreciated. Next video I'll cover the Fibonacci retracement and extension to plot targets. So we covered the trend lines and support and resistance levels, so please practice with those and send me charts if you need someone to look over it! As the main goal is for all of us to learn from each other and become better chartist and traders!
NYSE:WMTEducation
by jUiCE_Trades
5
Configuring Your Chart: HLC barsContrary to popular belief, the superior way to view price is not through candlesticks or OHLC bars. Its HLC bars. HLC bars are the superior choice. Why? Good question... The reason HLC bars are better is because I found out that the open price is completely redundant when analyzing the charts. Also the majority of indicators out there don't use the open price. The open price is useless because it doesn't tell you what happened during the bar's life, only how it started, whereas the high, low, and close tell you how price moved during the hlc bar's life. The high, low, and closing prices of a bar are all you will ever need, and they tell you what the sentiment of the bar was. The equation for sentiment: Sentiment = 100 * (Close - Low) / (High - Low) What does this suggest? It suggests that candlestick patterns aren't real! I used to believe in candlestick patterns. They were actually the first thing introduced to me when I started to learn about trading. But now we all know the truth. This is very good news because it simplifies the charts! So next time you look at the charts, view them in HLC bars ;)
Education
by racer8
6