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Exponentialmovingaverages

10 EMA strategy ^BEST TREND-FOLLOWING STRATEGY^Welcome! Today, I'm excited to share with you one of the most effective trend-following strategies that is adaptable to any timeframe and asset class ( OANDA:XAUUSD , NSE:NIFTY , FX:USDCHF ), boasting a remarkable risk/reward ratio of up to 1:10. Let's dive right in. As mentioned, this strategy revolves around the Exponential Moving Average (EMA), specifically the 10-period EMA. For those unfamiliar, the EMA places greater emphasis on recent price data compared to a Simple Moving Average (SMA), providing a dynamic view of market trends. When the price on your chart is above the 10 EMA, it signifies a bullish trend; conversely, when the 10 EMA is above the price, it indicates a bearish trend. Let's illustrate with an example: Imagine a bullish trend with four consecutive green candles followed by a red candle. Our entry point occurs when this red candle, the trigger candle, fails to touch the 10 EMA. Subsequently, when a green candle crosses above the high of the trigger candle, we enter the trade. Setting our stop loss (SL) just below the EMA line beneath the trigger candle, we establish our take profit (TP) based on a risk/reward ratio, starting at 1:2 and potentially reaching an impressive 1:10. Trailing the 10 EMA line allows us to stay in the trade longer, albeit experiencing initial stop-loss hits. However, perseverance reveals the strategy's efficacy over time. Now, for short positions, such as during a downtrend characterized by three red candles followed by a green candle, our entry occurs when the low of the green candle is breached by the subsequent red candle. Setting the SL just above the EMA line above the trigger candle and TP based on the risk/reward ratio, we execute the trade. For those interested in trailing stops, there are two options: firstly, trailing along the 10 EMA line; secondly, utilizing the Average True Range (ATR) for algorithmic trading enthusiasts. With this strategy's flexibility and potential for significant returns, it offers traders a robust approach to navigating diverse market conditions. ***Here are 2 examples of Long & Short: Long position in BINANCE:SOLUSDT www.tradingview.com Short in FOREXCOM:EURCAD It's crucial not only to grasp the concept of this strategy but also to put it into practice. 💼 Start by implementing it with small capital or utilize paper trading, which platforms like TradingView offer. 📝 Additionally, don't hesitate to experiment. For instance, try using an 11-period EMA and assess its effectiveness. You might find that it better suits your trading style and objectives. 🧪💡 Remember, trading is a journey of discovery! 🚀 Don't be afraid to explore new strategies and techniques along the way. 🌟 Like (boost), follow, comment, and share this strategy to spread the knowledge and empower fellow traders! 📈🚀👍 For the optimal TradingView experience, upgrade now to unlock the platform's full potential: www.tradingview.com
NASDAQ:TSLAEducation
by smarttrader012
RSI as a Trend ToolMost people use the RSI as a momentum indicator, trying to find Overbought/Oversold (OBOS) conditions, and/or divergences. However there is also a way to use it as a Trend Tool. There is a mathematical relationship that connects the RSI and EMA's. The formula is RSI(x) cross-over 50-line = Close cross-over EMA(2x) i.e. RSI(14) cross-over 50 line = Close cross-over EMA(28) This one of the properties of the RSI, which I discovered when taking a more indept look into momentum indicators, which ultimately led to the discovery of the MACD-v in 2014/2015 The MACD-v was then publicly disclosed in 2022, in the form of a a paper called "MACD-v: Volatility Normalised Momentum", which was awarded: It has won 2 International Awards: 1. The “Founders Award” (2022), for advances in Active Investment Management from the National Association of Active Investment Managars (NAAIM) 2. The “Charles H. Dow Award” (2022) for outstanding research in Technical Analysis, from the Chartered Market Technicians Association (CMTA)
CME_MINI:ES1!Education
by AlexSpiroglou
Unlocking the Power of Volume: Combining Volume with TAIn our previous blog posts, we explored the importance of volume analysis in understanding indicators that can be used for volume analysis. Today, we'll delve deeper into how combining volume analysis with technical analysis can provide valuable insights for traders and investors alike. We will do so by laying out a strategy that anyone can use that will utilize volume. The Significance of Volume in Technical Analysis We have previously discussed how volume plays a crucial role in technical analysis. It is essential to examine volume patterns alongside price action, as it helps traders determine liquidity and identify potential trading opportunities. When combined with technical indicators, volume offers a more comprehensive view of market activity and can enhance decision-making in trading. Indicators to Combine with Volume Analysis Here are some popular technical indicators that traders can use in conjunction with volume analysis: 1. Moving Averages Moving averages (MAs) are one of the most widely used technical indicators, as they help traders identify trends and potential support and resistance levels. The two most commonly used moving averages are simple moving averages (SMA) and exponential moving averages (EMA). We'll use a short-term EMA (e.g., 9-day EMA) and a long-term EMA (e.g., 21-day EMA) for a strategy later in this post. 2. Relative Strength Index (RSI) The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with readings below 30 indicating oversold conditions and readings above 70 indicating overbought conditions. The RSI can help traders identify potential trend reversals and entry/exit points. The Strategy That Incorporates Volume 1. Identify Trend Direction First, apply the 9-day EMA(shown in white) and the 21-day EMA(shown in purple) to your price chart. The trend direction is determined by the relationship between the two moving averages: Uptrend: The 9-day EMA is above the 21-day EMA Downtrend: The 9-day EMA is below the 21-day EMA Sideways: The moving averages are intertwined, with no clear direction 2. Confirm Trend Strength with RSI Apply the RSI to your chart, and use the 30 and 70 levels as reference points: For uptrends, look for the RSI to stay above 30 and preferably above 50. For downtrends, look for the RSI to stay below 70 and preferably below 50. 3. Analyze Trading Volume Compare the volume levels during the trend to the average volume over a specific period of your choosing using your desired volume indicator (see previous post on volume indicators). If the volume is above average during the trend or is rising, it confirms its strength. Conversely, a decreasing volume may signal a weakening trend or a potential reversal. 4. Entry and Exit Points Long Entry: In an uptrend, look for the RSI to pull back below 50, and then cross back above it. Confirm the entry with increasing trading volume. This indicates a potential buying opportunity. Short Entry: In a downtrend, look for the RSI to pull back above 50 and then cross back below it. Confirm the entry with increasing trading volume. This indicates a potential selling opportunity. Exit Points: Use the moving averages as trailing stop-loss levels. For long positions, exit when the 9-day EMA crosses below the 21-day EMA. For short positions, exit when the 9-day EMA crosses above the 21-day EMA. Practical Tips for Combining Volume with Technical Analysis Here are some practical tips for effectively integrating volume analysis with technical indicators: 1. Use Multiple Timeframes Analyze volume patterns and technical indicators across different timeframes to identify potential trends and reversals more accurately. We always recommend a top-down time frame approach, starting at higher time frames and working down to your desired time frame for entries. 2. Look for Volume Confirmation When a technical indicator signals a potential trading opportunity, confirm it with volume analysis to ensure the move is supported by strong market activity. 3. Monitor Divergences Divergences between volume and price action can signal potential trend reversals or continuations. Keep an eye on these discrepancies to make informed trading decisions. Conclusion: Combining volume analysis with technical indicators can help traders and investors make more informed decisions about market trends and potential trading opportunities. By understanding the relationship between volume and price action and incorporating this knowledge with technical analysis, traders can unlock powerful insights and enhance their overall trading strategy.
Education
by LeafAlgo
📊 The 3 EMA Crossover StrategyThe 3 EMA (Exponential Moving Average) strategy is a popular trading strategy that uses three exponential moving averages of different time periods to identify potential buying and selling opportunities in the market. The three EMAs used in this strategy are the 10 EMA, 25 EMA, and 50 EMA. 🔹What is an EMA Crossover? An EMA crossover occurs when two different EMA lines cross one another. The crossover doesn't predict future trends, but rather shows the ongoing direction of a trend. That being said, the crossover might actually give a signal that a trend could be ending and will soon be replaced by a new trend. 🔹Why Use 3 EMAs Together? The three EMAs can give stronger confirmation than just two EMAs crossover. It can also give a better context to the price action in relation to the three EMA lines displayed on the chart. Three EMAs crossing above the price at the same time is a strong bullish signal, while three EMA crossing below the price at the same time is a strong bearish signal. The crossover of the 10 EMA above the 25 EMA and the 25 EMA above the 50 EMA is used to identify a long position opportunity. This is known as a bullish crossover, indicating that the trend is shifting from bearish to bullish. When the 10 EMA crosses above the 25 EMA, it suggests that the short-term trend is beginning to turn bullish, and when the 25 EMA crosses above the 50 EMA, it suggests that the long-term trend is also becoming bullish. This combination of short-term and long-term trends shifting in a bullish direction can be a powerful signal for traders to enter a long position. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
📊Moving Average(MA): Use Cases📍 What Is a Moving Average (MA)? A Moving Average (MA) is a popular technical analysis tool used in finance to indicate the stock's average price over a certain time frame. Its purpose is to reduce price volatility by creating a continually updated average price based on the stock's historical data. The computation of a moving average helps to minimize the influence of unpredictable and short-term price fluctuations on a stock over a designated period. Two types of moving averages are commonly used: simple moving averages (SMAs) that employ a straightforward arithmetic mean of prices over a particular timeframe, and exponential moving averages (EMAs) that prioritize recent prices over older ones by assigning them greater weight. 📍 Simple Moving Average(SMA) A simple moving average (SMA) is a technical indicator that calculates the average of a range of prices over a specific number of time periods. It can help determine if an asset price will continue or reverse a bull or bear trend. It is an arithmetic moving average, calculated by adding recent prices and dividing by the number of time periods in the calculation. SMAs can be short-term or long-term, with short-term averages responding quickly to price changes and long-term averages being slower. Other types of moving averages include exponential moving averages (EMAs) and weighted moving averages (WMAs). 📍 What Is an Exponential Moving Average (EMA)? The exponential moving average (EMA) is a moving average (MA) technique that assigns more weight to the most recent data points. It is also known as the exponentially weighted moving average. Compared to a simple moving average (SMA) that gives equal weight to all data points in the period, an EMA reacts more strongly to recent price changes. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
RSI Formula Explained (updated) and a LIVE FAILED tradeThis is just an update to the RSI Formula since some of you are still having trouble with it. Its not as hard as it seems. Now with the oscillator scale reading ZERO at the mid line, there is no math to do. RSI Values as follows 0-9 = 1 to 2 rr 10-19 = 1 to 3 rr 21-29 = 1 to 4 rr 30-39 = 1 to 6 rr Dont worry too much about the last two. you want to be safer at trading with the first two. The last two are really designed for "Trailing your take Profit" If you have negative values on your RSI, thats fine. just do the trade in a SHORT and follow the same formula. Watch the video for the full breakdown
Education
by CoffeeshopCrypto
26
How To Trade The Symmetrical Triangle (Higher Lows, Lower Highs)Lower Highs are represented by the diagonal trend line. These lower highs are the resistance line. Higher Lows are represented by the diagonal trend line. These higher lows are the support line. Breakout Candlestick Retest Candlestick How To Trade The Triangle Chart Pattern First, Look For An Up Trend Second, Draw Diagonal Support Line and then draw Diagonal Resistance Line. These lines are your levels. Third, Wait For The Breakout Candle. Enter after the candle closes. Fourth, Wait For A Candlestick To Retest Diagonal Trend Line. Enter after the retest candlestick closes. Fifth, Set Target Using Height of Pattern
ZEducation
by TradeLive-
GANN THEORY Strategize UPDATEWanted to post a couple of pictures about editing and cleaning up the strategy and make it more SIMPLE to understand the thought process of behind it. I had to Remove a couple of indicators names CM_SLINGSHOT and DREADBLITZ DRSI from the indicator am replacing these indicators w/ a 100 (p) exponential moving average to filter weather we should go long or short. Adding the Bull vs Bear Power by DGT. setting i have on this indicator is 13 check SUM, histogram, 1 smoothing, 0 recall, drop-down box to LEAST. 'This indicator and the CM_ULTIMATE_RSI MULTI TIME FRAME by Chris Moody works very harmoniously together. The following pictures will explain why. Also the alert can be set on the 70 30 lines of the RSI. this picture shows the BULL vs BEAR POWER telling us the trend so we know what direction we should DIRECT it outwards to 'Project.' based on the Direction of the trend on the Daily we alerts on the 70 30 lines of the RSI. and the 2 GANN-Fib lines ' usually its the .618 and .75 lines. (yes i rename my ALERTS as 70 30 and GANN FIB ALERT) easy tooltip to reference you already know what your looking at when you set something to crossing. i want to be sure to look at the Right thing when i get to the chart. '' focus '' type strategy. example of one of my favorite trades to take with GANN---- its a RISK off (means if it goes the other way you only loosing a small fraction of profit.) But if it goes well like the example it can give 28 risk reward ratio. The second trade that is using the MTF_RSI, support resistance MTF, and BULL vs Bear power in all in sync. this is on a 5min chart sorry for the resolution... but explaining the harmonious sympathy that these indicators make. this is y i rather use the 5min chart with the 15min chart___ look at the that Blue line on the BULL VS BEAR POWER on the 5 min. perfect exit for full profit. If you use the EXIT 'last chance' you would of only had a small gain. To sum this up, I take 2 different types of trades RISK OFF trades with GANN FIBS ___ you will see the S/R lvl to support the move. Then trades off the MTF_RSI after a pullback with conjunction of the BULL VS BEAR. My requirements are longs over 100 ema and shorts under 100 ema and the bull vs bear power has to say STRONG TREND __ADX RISING___ if it says ADX_FALLING then be warned. Thanks for taking the time to read this i really appreciate any feedback.
NASDAQ:CGCEducation
by Mnbrass549
70 EmaHi traders Ever woundered - "can i beat the market ?" or "what is my Edge ?" try the 70 Ema !! i will use daily chart and look for clear trend direction apply indicator called Moving Avarage Exponential and set it to 70 -- UPTREND -- on an uptrend look if the line support the price. you will want to go long when price reach the blue line. on the other hand, price tends to "come back" to the Ema, so you can try short if price is to far up (see microsoft chart) combined with RSI indicator, you can get better feeling if the price is overboght (and go short) or oversold (and go long) -- DOWNTREND -- On downtrend the 70 Ema will act as RESISTANCE - see $baba chart same here - price tends to "come back" to the Ema ... Good Luck
NASDAQ:MSFTEducation
by DaxiDriver
How to use MTF T-Line (8 EMA)T-Line stands for Trigger Line and is 8 EMA, concept invented and taught by American trader Steven Bigalow. He uses daily 8 EMA and stays in trades as long as price is above or below 8 daily ema. If price closes below or above 8 daily ema in the opposite direction he exits. I went further with this concept, implementing Multitimeframe 8 ema trading system which is very effective. For that one needs indicator able to plot higher resolution EMAS on lower resolution charts (Moving Average Collection by Wataru Inoue can do that - www.mql5.com - better than TradingvIew MTF ma function). But you need a powerful PC (8 GB RAM at least) as many PC freeze when applying MTF indicators especially on many charts. For exits, reversal or entries you may add Pivots (Camarilla, Fibonacci Pivots seem to be most effective resistance support levels, especially longterm ones yearly, monthly, weekly). But you are free tp use Ichimoku, daily, monthly, weekly highs, lows or whatever level tools convinient. At least this system will help you to stay on the right side of the market. This sytem works well with gold, oil, sp500, eurusd, btcusd and many other pairs. Good luck my friends!
Education
by ICFX
How To Trade EMA here i have set very good example on how you can trade EMA it's common for every asset that it follow the price of EMA ( the moving average ) let's take example i set 7 ema on weekly chart so it's total 49 days moving average so if price make bounce above this ema on weekly something has been cooking in the asset . it's 49 days downtrend same breakdown of EMA ( exponential moving average ) also shows upcoming correction in price on higher timeframe so don't ignore moving average use this EMA with the triangle and other pattern and make your trading better any asset always respect it moving average price if fall below major ema than it will take resistance if goes up than it will bounce when it touch EMA
Education
by TheLightCrypto
Relative Strength Index Masterclass Part 2Relative Strenght Index Part 2 In the previous masterclass, we saw the two different ways of using the Relative Strength Index as an indicator. In Part 2, we'll look out for two other ways to use RSI along with other indicators. The two previous ways were: 1. Oversold-Overbought Region 2. 50-Level RSI Midline Moving forward the two more ways are: 3. 2-Period RSI + Simple Moving Average (SMA) 2-Period RSI: 2-period RSI is the shortest and most volatile RSI signal which can be used A 1-period RSI cannot be used as it will merely give just two values, either 0 or 100 as a 1-period RSI will consider values from just the last 1 candlestick 2-period RSI will generate trade signals at the local highs and lows of the predominant trend and will lead to a reversal in the market price Therefore, 2-period RSI Strategy is also known as Mean-Reversion Trading Strategy The 2-Period RSI will generate a signal using a Threshold of 95-5, with price above 95 in the overbought region while below 5 in the oversold region 200-Simple Moving Average: 200-SMA is a Simple Moving Average of the past 200-candlestick When price moves above the 200-SMA, the market is moving above average and indicate a bullish trend When price moves below the 200-SMA, the market is moving below average and indicate a bearish trend Thereby, 200-SMA giving the predominant trend and 2-Period RSI generating trade signals. Thus Buy when the price is above 200-SMA and RSI<5 while, sell when the price is below 200-SMA and RSI>95. 4. RSI + MACD RSI: The RSI will generate a signal once a predominant trend is generated using MACD The threshold for RSI will be 70-30, with price above 70 in the overbought region while below in the oversold region The lookback period for RSI is taken as default (14) MACD: MACD is a trend-following momentum indicator MACD is calculated by subtracting 26-period EMA from 12-period EMA, resulting in MACD line A nine-day EMA of MACD results in Signal line When the signal line is above the MACD line indicates a bullish signal as small period EMA is greater than the long period When the signal line is below the MACD line indicates a bearish signal as small period EMA is lesser than the long period Thereby, MACD giving the predominant trend and RSI generating trade signals. Thus Buy when the Signal line is above MACD and RSI<30 while, sell when the signal line is below MACD and RSI>70. A lot more interesting things can be done using RSI, but we'll move to the next indicator in our next Masterclass. STAY TUNED ---------------------------------------------------------------------------------------- Your questions and comments are most welcome. If you find the post useful, please like, share, and follow to make sure that you get more information once I publish it. - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
5
My favorite indicators update [part 2]An update on my use of indicators. Going to throw my thoughts out my thought process if you're interested. In my last "My favorite indicators" idea I placed the moving averages in the ones I do not use, they were top of the list thought the first ones that come to mind and make most sense. They are no substitute for a complete analysis but you need a starting point and when you are scanning 40 different charts you want to make it simple. I've been turning the trend indicators on and off (and probably will continue doing that). Right now using EMAS again. Not too many I don't want the chart to get all nasty, no full GMMA that hide the price. Just 2 fast moving EMAS. Fast moving but not dumb either. What I get out of those is I see the daily trend because they are daily ones, I don't need to have D1 & H4 side by side. "My eyes are trained to see the trend" BS I keep doing random stupid things buying too early... I've not really been trend following for long, I used to with crypto during the bubble because it was too easy but otherwise I had an edge doing something else, I must be 1 in a million doing this xd Most retail fight the trend and lose, professionals follow it I fight vertical moves and idk worked out so far. Helps filter baddies, helps spot what is going on faster (I have a watchlist of 40 charts I can't every day full analyse them all I need to filter first), they look great I love the blue and red. Goes faster to have the daily trend on the 4 hour chart, don't have to look at 2 charts side by side and zoom in and out and always have to reajust the screen etc. But honestly the main point is probably I like how they look. The red & blue. Makes a good looking chart I think. Makes it look all technical and professional and I just love the colors. Isn't that the most important part? Having fun and wanting to look at the charts. I kept losing this month. A good 17 losses in a row even with 1 potential winner I missed out on.... All those losses really ate up my other strategies profit. Pissed. Had +5 and +7 on a strat /3 and +5 -17 on my trend following strat for a grand total of 0, and then a few breakeven and +1 -1 zzzz Tried to make it with EURUSD had a wide trailing stop but it really bounced and all I got was 1R... Of course. And I have 4 positions now of course it's all slow 2/4 are more long term and this usually doesn't even move far from the entry where I can count it as a winner for a good month. And the other 2... We will see. Not counting the positions > 3 month horizon. I doubt 90% would survive these situations, well I did have winners that absorbed my losses so it's not that bad actually. And I choose to machine gun every setup with my new strategy (started as revenge trading at the start of the year and since I kept winning I looked into in again took a few good setups in the summer while backtesting and working on the strategy and then september I apply my rules and go for it for real and keep losing 🙃) Normally I take, with the other 2 strategies, like 18 setups a year each. So 3/month total. And with this trend following I should probably take another 3/month not over 20... Constant re-evaluation etc. So... I spent all of July to September backtesting improving and thinking this simple pullback trend following strategy. I starting using it in the first 3 months of 2020, and had alot of knowledge from the start I did not start from zero. I did not spend my whole days on it I looked at plenty of other things. I would vaguely estimate I spent 8 hours a day on it for 3 months that's a total of 720 hours. And it's a rather simple strategy. Just trying to get a decent strategy with a few setups here and there, that works for me. Meanwhile complete noobs that aren't especially smart expect getting consistently profitable in 3 months with 1 hour a day on the side. I tried looking at the oscillators again, see if they filter things I do not want. This joke: Versus: On top of this, using arbitrary numbers, in a month there is 30*16 = 480 hours, and 16 hours a day, say on the average day I: - Spend 4 hours going out to not go crazy (wups failed my objective here) as well as eating and sometimes playing - Spend 4 hours reading articles watching videos that I count as grinding my skillz & knowledge and posting on tradingview - Spend 4 hours backtesting improving estimating probas and doing boring things like taxes - Spend 4 hours doing research on potential setups AND managing trades (2 hours for the 30/month + 2 hours for the 3-4 I actually end up taking) That's it. There are no more hours on the day as you see. They get eaten up fast. If I get overwhelmed with these trash RSI signals... how many hours will that take? Should I spend less time doing my DD on other setups and miss out the good ones or take bad ones? Should I eat up hours in the backtesting (even if I'm happy with my strategies I want to adapt to changing conditions). Then I can spend less time doing loose research (articles & videos) or the "leisure" and burn out and also potentially miss some important info, some piece of news... Not going to post the whole RSI analysis (I can't even if I wanted it's all over the place I have stats & screenshots spread everywhere it's really disgusting). But I am 100% on this. It is not for me. Or anyone else. Sucks beyond belief. I don't know maybe there is a microscopic edge in using it oh cool. How well will that hold up after 20 loss in a row? Continue using it? Consider it doesn't work anymore? Flip it? So that was an equity curve of some "many setups" strategy, maybe something with the RSI or macd lines firing mediocre signals over and over. They really look like this. Well they would if anyone sticked to it. Now an equity curve with less setups but being more picky with alot of research time spent on studying the currencies or other instrument (enough to avoid really bad setups and to be more precise and to manage it better at least). And then of course when you reach the scholarly peak and go for diversified strategies (it isn't possible in my experience to have that much diversification but a little is possible. Basically if you tried diversifying too much you'd end up repeating the same strategies but with different conditions or taking positions too large by trying to diversify via assets because assets are correlated you can't have 10 different strategies but you can have a couple by having different timeframes different markets and some reversal if that's possible careful most fail and some trend following if quant then also arbitrage and so on holding fixed income too can be added but not only the markets aren't offering infinite uncorrelated possibilities but also each strat that you add is hundreds or thousands of hours to design and then alot of time and attention to manage and execute) But with 2-3 strat that equity curve would look something like this... Can strategies be completely uncorrelated thought? They're likely to all use some support and resistance analysis. It's sort of the same for forex stocks etc. Liquidity area. There aren't 30 ways to do this. What if S&R changes, what if they don't matter for whatever reason? Then it all falls down. Just trying to use a simple example to show it can't all be uncorrelated. Even if you held bonds as an additional profit stream, their yield will change and it will impact the trends etc... Oh and let's be real, the market does not provide an endless number of setups. I never heard of anyone that made money in choppy markets (if they do they are on a higher TF where it is not choppy). Even my reversal strategy is for trending markets. Some people say they trade inside ranges well even if they do and aren't just lucky lying or delusional there are very few clean ranges so here. I do not remember ever hearing Goldman Sachs or Bank Of America or JP Morgan Chase going "ok we think the kiwie is going to stay in a range so we will buy it at the lows because it is oversold". It's either "Based on the research presented, the trend, the fundamentals, the market conditions/past data, here are our 3/6/12 months targets" or "we think the euro will continue going lower" or "we think the usd rally is not over so we are still long" or "we see a ranging market we have no position". You really got to bring the retail swing traders to come up with this kind of stupid crap 😂 Here is a quote from an investment banker active on social networks: "Its 80% fundamental, 20% Technical. Professional Traders don't day trade often so day trading is a small part of a much larger overall approach. There's no such thing as swing trading in professional trading circles. That was something made up by brokers for the retail market. To be honest I had never heard of it until I started teaching retail traders and someone told me what it was. I laughed out loud when they told me! No Joke." I don't know all the kinds of weird messed up strategies the various funds have but as far as I know bankers look for momentum. How many opportunities there are day trading if there are some is irrelevant just look at the daily chart and how many are there matter for this thought process, because if day trading did better than real trading I think we'd f**ing know by now and every hedge & mutual fund would be looking for day traders. So ye, not that many opportunities realistically per strategy (day trading can be an additional strategy but there are only 16 hours in a day at some point I really don't think more than a couple is possible and 2-3 max probably with day trading), even over a good dozen instruments (like a dozen fx pairs). Even Jérôme Kerviel that lost 5 billion looks for big movers, big volatility :D Last thought: Howie Hubler made a successful short bet against the trend (or bubble rather) in subprime mortgages in the U.S (the big short) except he got the money from selling insurance on AAA morgages (the rating companies are basiclaly trolls) and he lost 9 billion 1 shot aaaaand it's gone. Rekt. I've heard of plenty of trend followers (systematic or discretionary) Bitcoin bagholders from 2012 George Soros on the yen/Nikkei early buy/sell Warren Buffett..., I've heard of plenty of countertrend success (Enron shorts, 2007 CDS, Soros against the pound and SEA countries and so on), never heard of the "great flat market range trader". Well with the exception of the great signal providers and educators of course. Even Livermore didn't make money in ranging market but Livermore has alot to learn from 20 years old Ricky & Forex Lambo lifestyle & some random dudes in comments with 6 month old accounts and that have been offline for 2 years since then and whoever promotes this.
Editors' picks
Education
by MrRenev
16
Moving AveragesThe best (most interactive) MA/EMA's can be great confluence factors for picking high R areas of interest for taking or exiting positions. When more than one MA occupies a specific price point/zone (particularly higher MA's), there is a lot more liquidity due to the congruence of different strategy traders and bots taking positions around both (or more) of the MA's. If you can read em, you can trade em. *Also wtf is with this shitty triangle haha thing is taking so fucken long to resolve
BITSTAMP:BTCUSDEducation
by Pillarstric
1