How to use Implied Volatility Index to analyze Bitcoin▮ Introduction
Bitcoin is known for its price volatility. Analyzing the price chart alone is often not enough to make buy and sell decisions.
Implied volatility indexes such as DERIBIT:DVOL and VOLMEX:BVIV can complement traditional technical analysis by providing insights into market sentiment and expectations.
▮ Understanding DVOL/BVIV
DVOL and BVIV measure the expected implied volatility of Bitcoin over the next 30 days, derived from real-time call and put options.
DVOL is calculated by Deribit, the world's largest Bitcoin and Ether options exchange.
BVIV is calculated by Volmex Finance; the data is extracted from exchanges (currently Deribit and OKX), and then combined into a single set.
* In addition to Bitcoin, it is possible to analyze Ethereum-specific instruments through the ticks DERIBIT:ETHDVOL and VOLMEX:EVIV, whose line of reasoning is the same.
▮ Interpreting the chart
🔶 High DVOL/BVIV values indicate that the market expects greater volatility in the next 30 days. This is usually associated with uncertainty, fear, or expected major events.
🔶 The index does not indicate the direction of the price, but rather whether volatility will increase or decrease.
🔶 Low values indicate an expectation of lower volatility and are usually associated with calmer and more optimistic markets.
🔶 To get an idea of the expected daily movement of Bitcoin, simply divide the DVOL value by 20. For example, a DVOL of 100 indicates an expected daily movement of 5%.
🔶 Divergences between the price of Bitcoin and DVOL/BVIV can signal inflection points.
🔶 Price rising with a drop in DVOL/BVIV may indicate exhaustion and a potential top.
🔶 Price falling with a drop in DVOL/BVIV may indicate exhaustion and a potential bottom.
▮ Example
The price of BTC here is at the top in white.
The DVOL and the RSI of DVOL are both in red.
The reason I put the RSI here is that it is easier to analyze DVOL, since the values are in a fixed range, therefore easier to interpret.
On March 25, 2022, the RSI shows a contracted value of 30, that is, low implied volatility. This foreshadows a period of calm that precedes a period of agitation.
In this case, the “agitation” soon materializes in a period of price decline.
When the RSI then reaches the upper limit range, at 83 (on May 12, 2022), a peak in volatility is characterized.
Then, after that, it begins to decrease. This decrease in volatility in DVOL corroborates the moment of Bitcoin’s lateralization within the orange box.
▮ Conclusion
Although DVOL and BVIV should not be used in isolation, they can be valuable tools for confirming price chart signals and anticipating major movements.
Incorporating implied volatility analysis into your strategy, can improve the timing of entries/exits and help manage risk.
⚠️ But remember:
Just because a strategy worked in the past does not mean it will work forever.
Past profitability is no guarantee of future profitability.
Do your own analysis and risk management.
Relative Strength Index (RSI)
How to Read the RSI Indicator: The Market's Lie DetectorAttention TradingViewers, market gurus, and Instagram influencers, this one indicator goes hard whenever it’s onto something. Let's talk about the RSI — the Relative Strength Index . This bad boy is like the lie detector test of the market, calling out overhyped moves and under-the-radar opportunities.
What’s RSI All About?
The RSI is a momentum-based oscillator that captures the speed and change of price movements. It operates on a scale of 0 to 100, and if you know how to read it, it’s like having X-ray vision into the market’s moods. The best part? It’s super easy to use — slap it on any chart, any time frame and let it do its thing.
The Numbers
Above 70 : Overbought alert! If the RSI shows a reading above 70, the trading instrument may have been partying a little too hard. Anywhere above 70 means that it’s flashing “overbought” – like a sugar rush that’s about to crash. Traders who follow the RSI usually interpret this as a signal to sell and move out of the asset before the line reverses course and dives back under the high-water mark. Sometimes, however, the price keeps climbing well above 70.
Below 30 : Now we’re in “oversold” territory – it’s like spotting a hidden gem in a bargain bin. When RSI drops below 30, the market’s saying, “This thing’s been beaten down, but maybe – just maybe – it’s time for a comeback.” Keep in mind that sometimes the dip may keep dipping.
How It’s Calculated
RSI is all about relative strength — it compares the magnitude of recent gains to recent losses. Picture a tug-of-war between bulls and bears. The RSI score tells you who’s winning the battle right now, but also hints at who might be running out of strength.
Trading with RSI
Overbought? Maybe Sell (obligatory DYOR) . When RSI hits 70 and above, you might be looking at a market running out of fuel. You may start thinking about trimming your position, or at least keep an eye out for a reversal. After all, what goes up must come down (except maybe Bitcoin BTC/USD ?)
Oversold? Maybe Buy (obligatory DYOR) . If the RSI drops to 30 and below, it could be a signal to start looking for a buying opportunity. The market is going through a meltdown and sometimes that’s your cue to go bargain hunting and snap up some discounted assets. Just make sure that your stock or crypto of choice isn’t falling for a specific reason — no indicator can save you from an actual rug pull.
The Sweet Spot — Divergences: Ever notice when the RSI and price action don’t agree? That’s called a divergence, and it’s like catching the market in a lie. If the price is making new highs but the RSI isn’t, or vice versa, it’s a clue that something fishy’s going on and you may want to be on the lookout for a sur- price reversal.
Bonus Tip: RSI in Different Timeframes
Wanna get fancy and earn some bragging rights? Use RSI across different timeframes. A stock might be oversold on the daily but overbought on the weekly. By spotting the trend across different time frames, you can pick your desired time frame to trade in and follow closely. The higher the time frame, the longer the time horizon for the move to actually pan out.
So, there you have it – the RSI. It’s not a crystal ball, but it’s pretty close.
Use it wisely, and you might just outsmart the market — or at least stay ahead of the next big move. Keep those charts hot, continue learning about technical analysis and go smash those trading goals of yours. 🔥
Zero Spread Milestone: Strategic Trade in Micro Yield FuturesIntroduction
The current market scenario presents a unique potential opportunity in the yield spread between Micro 10-Year Yield Futures (10Y1!) and Micro 2-Year Yield Futures (2YY1!). This spread is reaching a critical price point of zero, likely acting as a strong resistance. Such a rare situation opens the door for a strategic trading opportunity where traders can consider shorting the Micro 10-Year Yield Futures and buying the Micro 2-Year Yield Futures.
In TradingView, this spread is visualized using the symbol 10Y1!-CBOT_MINI:2YY1!. The combination of technical indicators suggests a mean reversion trade setup, making this a compelling moment for traders to act on such a potential opportunity. The alignment of overbought signals from Bollinger Bands® and the RSI indicator further strengthens the case for a reversal, presenting an intriguing setup for informed traders.
All of this is following last Wednesday, July 31, 2024, when the FED reported their decision related to interest rates where they left them unchanged, adding further context to the current market dynamics.
Yield Futures Contract Specifications
Micro 10-Year Yield Futures (10Y1!):
Price Quotation: Quoted in yield with a minimum fluctuation of 0.001 Index points (1/10th basis point per annum).
Tick Value: Each tick is worth $1.
Margin Requirements: Approximately $320 per contract (subject to change based on market conditions).
Micro 2-Year Yield Futures (2YY1!):
Price Quotation: Quoted in yield with a minimum fluctuation of 0.001 Index points (1/10th basis point per annum).
Tick Value: Each tick is worth $1.
Margin Requirements: Approximately $330 per contract (subject to change based on market conditions).
Margin Requirements:
The margin requirements for these contracts are relatively low, making them accessible for retail traders. However, traders must ensure they maintain sufficient margin in their accounts to cover potential market movements and avoid margin calls.
Understanding Futures Spreads
What is a Futures Spread?
A futures spread is a trading strategy that involves simultaneously buying and selling two different futures contracts with the aim of profiting from the difference in their prices. This difference, known as the spread, can fluctuate based on various market factors, including interest rates, economic data, and investor sentiment. Futures spreads are often used to hedge risks, speculate on price movements, or take advantage of relative value differences between related instruments.
Advantages of Futures Spreads:
Reduced Risk: Spreads generally have lower risk compared to outright futures positions because the two legs of the spread can offset each other.
Lower Margin Requirements: Exchanges often set lower margin requirements for spread trades compared to single futures contracts because the risk is typically lower.
Leverage Relative Value: Traders can take advantage of price discrepancies between related contracts, potentially profiting from their convergence or divergence.
Yield Spread Example:
In the context of Micro 10-Year Yield Futures and Micro 2-Year Yield Futures, a yield spread trade involves buying (or shorting) one contract (10Y1! Or 2YY1!) while shorting (or buying) the other. This trade is based on the expectation that the spread between these two yields will move in a specific direction, such as narrowing or widening. The current scenario (detailed below), where the spread is reaching zero, suggests a significant resistance level, providing a unique trading opportunity for mean reversion.
Analysis Method
Technical Indicators: Bollinger Bands® and RSI
1. Bollinger Bands®:
The spread between the Micro 10-Year Yield Futures (10Y1!) and Micro 2-Year Yield Futures (2YY1!) is currently above the upper Bollinger Band on both the daily and weekly timeframes. This indicates potential overbought conditions, suggesting that a price reversal might be imminent.
2. RSI (Relative Strength Index):
The RSI is clearly overbought on the daily timeframe, signaling a possible mean reversion trade. When the RSI reaches such elevated levels, it often indicates that the current trend may be losing momentum, opening the door for a reversal.
Chart Analysis
Daily Spread Chart of 10Y1! - 2YY1!
The main article daily chart above displays the spread between 10Y1! and 2YY1!, highlighting the current position above the upper Bollinger Band. The RSI indicator also shows overbought conditions, reinforcing the potential for a mean reversion.
Weekly Spread Chart of 10Y1! - 2YY1!
The above weekly chart further confirms the spread's position above the upper Bollinger Band. This longer-term view provides additional context and supports the likelihood of a reversal.
Conclusion: Combining the insights from both Bollinger Bands® and RSI provides a compelling rationale for the trading opportunity. The spread reaching the upper Bollinger Band on multiple timeframes, along with an overbought RSI, strongly suggests that the current overextended condition is potentially unsustainable. Additionally, all of this is occurring around the key price level of zero, which can act as a significant psychological and technical resistance. This convergence of technical indicators and the critical price level points to a high probability for a potential mean reversion, making it an opportune moment to analyze shorting the Micro 10-Year Yield Futures (10Y1!) and buying the Micro 2-Year Yield Futures (2YY1!) as the spread is expected to revert towards its mean.
Trade Setup
Entry:
The strategic trade involves shorting the Micro 10-Year Yield Futures (10Y1!) and buying the Micro 2-Year Yield Futures (2YY1!) around the price point of 0. This is based on the analysis that the spread reaching zero can act as a strong resistance level.
Target:
As we expect the 20 SMA to move with each daily update, instead of targeting -0.188, we aim for a mean reversion to approximately -0.15.
Stop Loss:
Place a stop loss slightly above the recent highs of the spread. The daily ATR (Average True Range) value is 0.046, so adding this to the entry price could be a way to implement a volatility stop. This accounts for potential volatility and limits the downside risk of the trade.
Reward-to-Risk Ratio: Calculate the reward-to-risk ratio based on the entry, target, and stop loss levels. For example, if the entry is at 0.04, the target is -0.15, and the stop loss is at 0.09, the reward-to-risk ratio can be calculated as follows:
Reward: 0.19 points = $190
Risk: 0.05 = $50
Reward-to-Risk Ratio: 0.19 / 0.05 = 3.8 : 1
Importance of Risk Management
Defining Risk Management:
Risk management is crucial to limit potential losses and ensure long-term trading success. It involves identifying, analyzing, and taking proactive steps to mitigate risks associated with trading.
Using Stop Loss Orders:
Always use stop loss orders to prevent significant losses and protect capital. A stop loss order automatically exits a trade when the price reaches a predetermined level, limiting the trader's loss.
Avoiding Undefined Risk Exposure:
Clearly define your risk exposure to avoid unexpected large losses. This involves defining the right position size based on the trader’s risk management rules by setting maximum loss limits per trade and overall portfolio.
Precise Entries and Exits:
Accurate entry and exit points are essential for successful trading. Well-timed entries and exits can maximize profits and minimize losses.
Other Important Considerations:
Diversify your trades to spread risk across different assets.
Regularly review and adjust your trading strategy based on market conditions.
Stay informed about macroeconomic events and news that could impact the markets.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
Elliott Wave DemonstrationDemonstration of Elliott Wave Principles using Bitcoin chart:
Rules:
Wave 2 never goes below end of Wave 1 => checked
Wave 3 is not the shortest of Wave 1, 3 and 5 => checked
Wave 4 never goes below end of Wave 1 => checked
Guidelines:
Guideline of Alternation: Wave 2 and 4 alternates in form (sharp vs sideways), retracement (shallow vs deep) and duration (long vs short) => checked
Guideline of Wave Equality: Two out of three waves (1,3 and 5) tend to be equal in length and duration, Wave 1 and 5 meeting this guideline => checked
Momentum is highest during end of wave 3, end of Wave 5 normally creates divergence with price => checked
Volume during Wave 3 is normally the highest amongst Wave 1,3 and 5
Relations with Fib ratios:
Wave 2 retraced Wave 1 by 78.6% (deep)
Wave 3 was equal to 261.8% of Wave 1 (longest)
Wave 4 retraced Wave 3 by 38.2% (shallow)
Wave 5 was equal to 100% of Wave 1 (Guideline of Wave equality)
Divergence: RSI vs. PriceHey everyone!
In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE!
Today, I took some time to put together an Educational Video on:
1) What a Divergence Is?
2) How to Spot them!
&
3) How to Trade them!
I hope you find this helpful!
**Tips
- Divergence is never good enough to trade alone, YOU NEED CONFIRMATION!
- The longer the Divergence takes, the more reliable it is
- Change in Momentum is KEY!
Trade the TREND with 4 Trend Indicators4 Trend Indicators you can use to identify the current MACRO Trend.
It's always important to know where your market is currently trading. Is it bullish, bearish, or range trading? If you have established the trend, you can trade with the trend instead of against it. Trading against the trend ( for example shorting during a bullish cycle ) adds unnecessary risk to an already risky trade (leverage).
1) Bollinger Bands
2) Logarithmic View
3) Super Trend
4) Moving Averages + RSI
Let me know how YOU determine the macro trend!
_________________________
BINANCE:DOGEUSDT MEXC:ETHUSDT KRAKEN:BTCUSD COINBASE:SOLUSD
RSI Indicator LIES! Untold Truth About RSI!
The Relative Strength Index (RSI) is a classic technical indicator that is applied to identify the overbought and oversold states of the market.
While the RSI looks simple to use, there is one important element in it that many traders forget about: it's a lagging indicator.
This means it reacts to past price movements rather than predicting future ones. This inherent lag can sometimes mislead traders, particularly when the markets are volatile or trade in a strong bullish/bearish trend.
In this article, we will discuss the situations when RSI indicator will lie to you. We will go through the instances when the indicator should not be relied and not used on, and I will explain to you the best strategy to apply RSI.
Relative Strength Index analyzes the price movements over a specific time period and displays a score between 0 and 100.
Generally, an RSI above 70 suggests an overbought condition, while an RSI below 30 suggests an oversold condition.
By itself, the overbought and overbought conditions give poor signals, simply because the market may remain in these conditions for a substantial period of time.
Take a look at a price action on GBPCHF. After the indicator showed the oversold condition, the pair dropped 150 pips lower before the reversal initiated.
So as an extra confirmation , traders prefer to look for RSI divergence - the situation when the price action and indicator move in the opposite direction.
Above is the example of RSI divergence: Crude Oil formed a sequence of higher highs, while the indicator formed a higher high with a consequent lower high. That confirmed the overbought state of the market, and a bearish reversal followed.
However, only few knows that even a divergence will provide accurate signals only in some particular instances.
When you identified RSI divergence, make sure that it happened after a test of an important key level.
Historical structures increase the probability that the RSI divergence will accurately indicate the reversal.
Above is the example how RSI divergence gave a false signal on USDCAD.
However, the divergence that followed after a test of a key level, gave a strong bearish signal.
There are much better situations when RSI can be applied, but we will discuss later on, for now, the main conclusion is that
RSI Divergence beyond key levels most of the time will provide low accuracy signals.
But there is one particular case, when RSI divergence will give the worst, the most terrible signal.
In very rare situations, the market may trade in a strong bullish trend, in the uncharted territory, where there are no historical price levels.
In such cases, RSI bullish divergence will constantly lie , making retail traders short constantly and lose their money.
Here is what happens with Gold on a daily.
The market is trading in the uncharted territory, updated the All-Time Highs daily.
Even though there is a clear overbought state and a divergence,
the market keeps growing.
Only few knows, however, that even though RSI is considered to be a reversal, counter trend indicator, it can be applied for trend following trading.
On a daily time frame, after the price sets a new high, wait for a pullback to a key horizontal support.
Your bullish signal, will be a bearish divergence on an hourly time frame.
Here is how the price retested a support based on a previous ATH on Gold. After it approached a broken structure, we see a confirmed bearish divergence.
That gives a perfect trend-following signal to buy the market.
A strong bullish rally followed then.
RSI indicator is a very powerful tool, that many traders apply incorrectly.
When the market is trading in a strong trend, this indicator can be perfectly applied for following the trend, not going against that.
I hope that the cases that I described will help you not lose money, trading with Relative Strength Index.
❤️Please, support my work with like, thank you!❤️
The Mechanics Of Trading - Part XII - 6-4-24 FlagsPart XII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part XI - SPY Flagging ExamplePart XI
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part X - EOD 2 Min ES RecapPart X - End Of Day 2 Min ES Recap
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IX - ES Breakdown To SupportPart IX
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VIII - Learning PatiencePart VIII
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VII - 2 Min ES TrendingPart VII - Applying Success/Failure & Fibonacci Price Theory
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VI - 2 Min ES ChartPart VI
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part VPart V - Deploying Success/Failure Techniques
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IVPart IV - Decision Making (A vs B)
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IIIPart III
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IIPart I
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
The Mechanics Of Trading - Part IPart I
I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups.
Essentially, it comes down to three key components...
A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length).
B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low.
C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend.
Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated.
I go over multiple techniques in this video.
Fibonacci techniques and Fibonacci Price Theory
Anchor Bars (breakaway bars)
Using Fibonacci Retracements to identify key support/resistance levels for trending
Stochastics
RSI
Wave formations (ZigZag)
and Others
This video is designed as an instructional video to help you incorporate usable techniques into your own trading style.
Hope you enjoy.
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)
Trading Nasdaq Futures: Correlation Insights & Market StrategiesIntroduction
The realm of futures trading offers a spectrum of opportunities, and at the forefront of this dynamic market are the E-mini Nasdaq Futures. Designed to track the Nasdaq 100 index, these futures contracts have become a favorite among traders who focus on technology and growth-oriented companies. The Nasdaq 100, dominated by technology giants, serves as a barometer for the broader tech sector and offers insights into the health of the US economy.
Basic Product Specifications
Point Value: Each point of the E-mini Nasdaq Futures is worth $20.00, making them an accessible yet potent instrument for both individual and institutional traders.
Trading Hours: Reflecting the global nature of the financial markets, these futures trade nearly 24 hours a day, from Sunday evening to Friday afternoon (US times), ensuring that traders across time zones can participate in market movements.
Current Margin Requirements: As of the latest update, the initial margin requirement for one E-mini Nasdaq Futures contract is approximately $9,000, subject to change based on market volatility. The maintenance margin is slightly lower, ensuring traders have some leeway in managing their positions.
Micro E-mini contracts available: 10x smaller than the E-minis.
Market Context and Economic Events
In the ever-evolving landscape of global finance, several macroeconomic events cast a significant impact on the futures market. For traders of E-mini Nasdaq Futures, staying abreast of these events is crucial. Key among them is the Federal Open Market Committee (FOMC) meeting, a regular event that can sway market sentiments and cause significant price movements. The announcements regarding interest rates and economic outlook made during these meetings are pivotal in shaping market trends.
Similarly, the release of labor market reports, including unemployment rates and job creation numbers, provides critical insights into the economic health of the country. These reports can trigger volatility in the E-mini Nasdaq Futures, presenting both risks and opportunities for traders. Understanding and anticipating the potential market reactions to these events is an integral part of a successful trading strategy.
Correlation Analysis and Trading Opportunities
A cornerstone of strategic futures trading lies in understanding the relationships between different financial instruments. Our recent analysis highlights the intriguing correlation dynamics of E-mini Nasdaq Futures with other key markets. While E-mini Nasdaq Futures often move in tandem with major indices like the Mini Dow Jones and E-mini S&P 500, they occasionally exhibit negative correlations with markets such as Gold, Euro Futures, Bitcoin, and Light Crude Oil.
Insights from Correlation Analysis:
Gold: Traditionally viewed as a safe haven, Gold often moves inversely to risk assets like Nasdaq Futures. In periods of market uncertainty or economic downturns, investors might flock to Gold, driving its prices up, while tech-heavy indices like Nasdaq could see a decline.
Euro and Bitcoin Futures: The relationship between Euro/Bitcoin Futures and Nasdaq Futures is nuanced, often influenced by broader economic policies and shifts in global trade dynamics and or monetary policy affecting the US Dollar.
Light Crude Oil: Fluctuations in oil prices can have a multifaceted impact on stock markets, including the Nasdaq. Rising oil prices, signaling higher energy costs, can negatively affect the performance of tech companies, leading to an inverse relationship.
Strategic Trading Approaches : Identifying bearish setups in Gold, Euro Futures, Bitcoin, and Light Crude Oil can be a precursor to bullish opportunities in E-mini Nasdaq Futures. For instance, a downturn in Gold amid rising economic optimism can signal an opportune moment to go long on Nasdaq Futures. Similarly, bearish trends in Euro/Bitcoin Futures and Light Crude Oil, perhaps due to geopolitical tensions or shifts in global demand, can also point towards potential gains in the Nasdaq market.
The below chart, where various correlations have been computed by aggregating daily data since 2018, shows a negative correlation between Euro Futures and Nasdaq Futures. Such inverse correlation will be used in the following section as a key element to plan on a long Nasdaq Futures trade.
Technical Analysis: Decoding Market Trends
Technical analysis forms the backbone of trading strategy formulation, especially in the volatile world of futures trading. For E-mini Nasdaq Futures, two key technical indicators – the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) – provide valuable insights into market momentum and potential trend reversals.
Moving Average Convergence Divergence (MACD):
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. It consists of the MACD line (the difference between the 12-day and 26-day exponential moving averages), the signal line (a 9-day EMA of the MACD line), and the histogram (which illustrates the distance between the MACD line and the signal line).
Having both MACD lines above the zero line can be seen as bullish as it could be interpreted as an up-trending market and could indicate a potential upward price momentum, signaling traders to consider a long position. Conversely, having both MACD lines below the zero line might suggest a selling or shorting opportunity.
Relative Strength Index (RSI):
RSI is a momentum oscillator that measures the speed and change of price movements, oscillating between zero and 100. Typically, an RSI above 70 indicates a security is overbought, while an RSI below 30 suggests it is oversold.
For traders of E-mini Nasdaq Futures, an RSI reading near 70 could warn of a potential market pullback, suggesting a cautious approach or a potential short position. An RSI near 30, however, might indicate an upcoming price rise, presenting a buying opportunity.
Practical Application : Incorporating these indicators into the analysis of E-mini Nasdaq Futures allows traders to make more informed decisions. By monitoring the MACD lines and RSI levels, traders can gauge the market's pulse, identifying key entry and exit points that align with their risk-reward parameters.
Trade Rationale :
The Nasdaq Futures daily timeframe presents us with an up-trend (based on MACD), but caution may be advisable for long traders since RSI values are near 70. Given the fact that UFOs (UnFilled Orders) are available below price, patient traders may be interested in waiting for a retracement into such lower prices before planning on a buy opportunity.
Such trade may receive “extra” help from the negatively correlated Euro Futures contract which recently switched from an up-trend to a down-trending environment as seen above.
Trade Plan: Strategic Execution
Developing a well-thought-out trade plan is essential for capitalizing on the opportunities presented by E-mini Nasdaq Futures. Given the insights from our correlation and technical analysis, here’s a strategic approach for trading:
1. Identifying Entry Points:
Utilizing bearish setups in negatively correlated markets (Euro Futures) as indicators for potential bullish momentum in E-mini Nasdaq Futures.
While both MACD lines remain above the zero line and RSI readings remain below 70, look for potential bullish price reactions between 17076.50 and 16316.00, which is where our technical analysis suggests Buy UnFilled Orders (UFOs) may be available.
2. Setting Target Prices:
Determining realistic target prices based on historical price movements and resistance levels observed in the Nasdaq Futures market.
Since the Nasdaq Futures is in a position to potentially start making new all-times high prices, a target could be set using a Fibonacci projection pointing at 18527.00.
3. Establishing Stop-Loss Levels:
Placing stop-loss orders to minimize potential losses. These should be set at levels where the initial trade hypothesis is invalidated, such as below 16316.00, which is where UnFilled Orders would be proven to not to be available.
4. Calculating Reward-to-Risk Ratio:
Ensuring that the potential reward justifies the risk taken. A healthy reward-to-risk ratio, such as 2:1 or higher, is typically desirable.
5. Point Values and Contract Specifications:
For E-mini Nasdaq Futures, understanding that each point movement represents a $20 change per contract. This knowledge is crucial in calculating potential profits and losses.
Considering Micro contract options for traders with smaller account sizes or those seeking to manage risk more conservatively. The point value would be $2 in such case.
Practical Considerations : In implementing this trade plan, continuous market monitoring and readiness to adjust strategies in response to changing market conditions are paramount. The plan aims to maximize profits while strictly managing risks, aligning with individual trading styles and risk tolerances.
Risk Management: Safeguarding Investments
Effective risk management is the cornerstone of successful trading, particularly in the dynamic environment of E-mini Nasdaq Futures. Implementing robust risk management strategies not only protects investments but also enhances trading performance.
1. Utilizing Stop-Loss Orders:
Stop-loss orders are essential in limiting potential losses. They should be set at levels where the initial trade hypothesis is invalidated.
These orders help in managing trades without emotional biases, ensuring decisions are based on pre-set risk parameters.
2. Hedging Techniques:
Hedging strategies, such as using options or diversifying with inversely correlated assets, can provide a safety net against adverse market movements.
For instance, while correlations are not a guarantee, holding positions in Gold or WTI Crude Oil Futures could serve as a hedge against a downturn in the E-mini Nasdaq Futures.
3. Avoiding Undefined Risk Exposure:
It is crucial to avoid situations where the potential loss is unknown or unlimited. This can be achieved by using defined-risk strategies and avoiding high-leverage positions that can amplify losses.
Traders should be aware of the leverage inherent in futures contracts and adjust their position sizes accordingly.
4. Adapting to Market Conditions:
A flexible approach to risk management is key. This involves regularly reviewing and adjusting stop-loss levels and hedging positions in response to changing market dynamics.
Staying informed about economic events and market trends is vital in making timely adjustments to risk management strategies, including a potential for a trade to be invalidated and cancelled altogether.
Conclusion
In the intricate tapestry of financial markets, trading E-mini Nasdaq Futures presents both challenges and opportunities. This article has navigated through the complex correlations between Nasdaq Futures and other key financial instruments, uncovering strategies to capitalize on these relationships. The integration of technical analysis, focusing on MACD and RSI indicators, further enriches the trader's arsenal, providing a deeper understanding of market trends and potential entry and exit points.
As we've explored, the negative correlations with markets such as Gold Futures, Euro Futures, or WTI Crude Oil, can signal opportune moments to go long on Nasdaq Futures. Conversely, these markets can offer hedging opportunities against potential downturns in Nasdaq. The strategic execution of trades, underpinned by solid risk management practices, forms the bedrock of successful trading in this dynamic environment.
In conclusion, trading E-mini Nasdaq Futures demands a multifaceted approach, blending correlation insights, technical analysis, and stringent risk management. By staying informed, adaptable, and disciplined, traders can navigate the ebb and flow of the Nasdaq Futures market with increased confidence and potential for success.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
MA my understanding
I know that the topic of moving averages has been fairly explained in crypto and other trading markets, and every trader has a good knowledge, and usage cases for them, but here I will share my own view of the moving averages, and how I use them for trading without relying on technical or educational sources by any means.
Starting with a recap on the main idea of moving averages, the moving part of the name indicates a change in the final results based on time period specified by the trader such as 5,10,15,21,31,50,100,150, 200, you name it, for the last x candles to consider while calculating the average of their cumulative x price divided by their number.
things you need to consider when using the moving average include:
1. Its an old and well known method to analyze price action
2. Many traders use it as a part of their trading strategy
3. It removes the noise from the price, and helps to identify trends sometimes
4. Traders rely on predefined moving averages lengths such as 21,30,50,100,150, and 200 so using these fixed values for your moving averages gives you better analysis of the market
now for the usage cases that work for me with MA:
1. Showing support and resistance
for new coins, I rely on the moving average to predict support and resistance
since new coins form new supports and new resistances alone the way, indicators cannot work, and identifying levels is almost impossible, thus many traders will rely on the sole usage of MA for their support and resistance.
2. Identifying trend change
some trends can be clearly seen or predicted by using MA crosses, such as the famous golden cross of the 50 and 200 MA, and smaller crosses including 21 crossing 50 to identify an uptrend, or vice versa.
3. Eliminating FOMO
if the price suddenly fluctuates up, and the moving average is still moving smoothly on the same level, jumping in the market will be considered pure FOMO. The moving average can support sudden jumping in prices by showing an increase overtime, while sudden jump in the price with a moving average moving horizontally indicates that price could fall fast since no preparation of the market is found.
Indicators are really helpful when relying on MA in TA, so here I will share indicators I use when considering MAs:
1. Cryptonite's EMA Field
I really on this indicator a lot since it provides the ability to use 9 different EMAs, customize their colors, see their crossing on chart, and receive alerts of crossing.
2. RSI oscillator by TradingView
RSI is surely a different topic, but using RSI with MA of the RSI to show bullish and bearish movements is extremely helpful when trading.
3. Volume oscillator by TradingView
this indicator shows the volume of the coin, which is also not our topic, but using the volume with its MA helps finding resistance points in the chart, and predicting where the price could possibly reach before starting a reversal.
Hope you all benefit from the explanation I provided, and always remember, never quite trading even if you are left with only $1, as there is always a brighter future in the market.
How RSI Alerts Can Supercharge Your Long-Term Crypto PortfolioBuilding a long-term portfolio demands a strategic approach that goes beyond random buys and impulsive decisions.
Instead, savvy investors employ tools like the Relative Strength Index (RSI) to identify advantageous entry points and navigate the market cycles effectively.
💜 If you appreciate our guides, support us with boost button 💜
Here’s a step-by-step guide on how to harness RSI alerts to fortify your long-term crypto holdings.
Step 1: Spotting Entry Opportunities with RSI < 35
When aiming for long-term crypto accumulation, the goal is to buy assets at opportune prices. Setting up your charts with the RSI indicator and adjusting the lower band to 35 enables you to pinpoint instances where cryptocurrencies in your portfolio might have experienced an unwarranted dip. This can be a golden opportunity to acquire assets for the long run, aligning with the principle of buying low.
Step 2: Steering Clear of Overbought Zones with RSI > 70
Conversely, an RSI reading surpassing 70 signals potential overbought conditions. In such instances, it's prudent to exercise caution. Holding off on new purchases during these periods or even considering exiting certain positions that have seen significant price surges allows you to safeguard your returns. Converting gains into stablecoins during overbought phases enhances liquidity, positioning you strategically for future opportunities.
Step 3: Confirm with Other Indicators & DYOR
RSI functions most effectively when complemented by other indicators. Incorporating tools like Moving Averages, Bollinger Bands, and MACD provides a more comprehensive view of market conditions. Remember, thorough research is crucial. Rely on multiple indicators to reinforce your decision-making process and mitigate risks associated with single-point analyses.
Step 4: Get Timely RSI Alerts On Your Email & TradingView App
Time is of the essence in the volatile crypto market. Instead of constantly monitoring prices across various platforms, set up RSI alerts on TradingView to receive timely notifications. This ensures you don’t miss critical market movements and can respond promptly to favorable conditions or potential risks.
How to Create RSI Alerts on TradingView
Open TradingView: Log in to your TradingView account.
Select the Chart: Open the chart of the cryptocurrency you're monitoring.
Add RSI Indicator: Click on "Indicators" at the top, search for RSI "Relative Strength Index", and add it to your chart.
Set RSI Levels: Adjust RSI levels by clicking on the RSI label on the chart, then edit the Upper and Lower Band levels to your preferred values (e.g., 35 for Lower Band, 70 for Upper Band).
Create Alert: Click on the alarm bell icon at the top of the chart, then select "Add Alert." Choose the condition (crossing above/below RSI level), set the desired RSI level, and customize the notification settings.
Save Alert: Confirm and save your alert. You’ll now receive notifications via email or within the TradingView platform when the specified RSI conditions are met.
Effectively utilizing RSI alerts is a game-changer for long-term crypto investors. By intelligently identifying entry points, avoiding overbought conditions, confirming signals with other indicators, and staying informed with timely alerts, you position yourself for success in the dynamic world of cryptocurrencies. Enhance your portfolio strategy with RSI – a tool that brings precision and efficiency to your crypto investment journey.
