Example of creating a trading strategy chart
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To interpret the chart from a trend perspective, you can use the MS-Signal indicator.
The MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator.
Therefore, you can analyze the chart by checking the arrangement of the M-Signal indicator and the movement around it.
The most important thing in chart analysis is support and resistance points.
Therefore, if you do not indicate support and resistance points, it can be said that the chart analysis cannot be used for trading.
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So, Fibonacci retracement and trend-based Fibonacci extension are widely used in chart analysis.
I used the Trend-Based Fib Extension tool.
I selected and displayed the low and high points pointed by the fingers.
The selection of the candles pointed by the fingers corresponds to the inflection points of the StochRSI indicator.
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If you connect these, you get a trend line.
The important thing when drawing a trend line is to connect the high points of the StochRSI indicator by connecting the opening prices of the falling candles.
When connecting the low points, you can connect the low points regardless of whether it is a falling candle or an rising candle.
This is because I think it best expresses the trend and volatility period based on my experience using it.
When drawing the Fibonacci ratio and when drawing the trend line, the selection points are different, so you should draw it with this in mind.
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If it is drawn as above, you can see that the chart is ready to be analyzed.
Since the channeling most commonly used in chart analysis has been formed, I think chart analysis will not be difficult.
However, the above method is a drawing for chart analysis, so it is not suitable for trading.
This is an important point.
If you are good at chart analysis, but wonder why you lose money when trading, you should change the drawing of support and resistance points.
Do not trade with Fibonacci ratios, but mark support and resistance points according to the candle arrangement on the 1M, 1W, and 1D charts and create a trading strategy according to their importance.
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The chart above shows the support and resistance points drawn on the 1M, 1W, and 1D charts.
To display this, we used the HA-High, HA-Low, OBV 0, OBV Up, OBV Down, BW (100), Mid (50), BW (0) indicators.
To display the exact volatility period, we also need to draw a trend line on the 1M, 1W chart.
The indicators that are important for support and resistance points are HA-Low, HA-High, BW (100), BW (0).
Therefore, the point where the trend line intersects this point is likely to correspond to the volatility period.
It is not accurate because it is displayed only with the trend line that was created right away, but I think it explains well how to display the volatility period.
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If you display the volatility period like this and hide all indicators, you will have a complete chart that can be used for trading.
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Have a good time.
Thank you.
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Supportandresistence
The Coin Market is Different from the Stock Market
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The coin market discloses a lot of information compared to the stock market.
Among them, it discloses the flow of funds.
Most of the funds in the coin market are flowing in through USDT, and it can be said that it currently manages the largest amount of funds.
Therefore, unlike the stock market, individual investors can also roughly know the flow of funds.
Therefore, you can see that it is more transparent than other investment markets.
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USDT continues to update its ATH.
You can see that funds are continuously flowing into the coin market through USDT.
USDC has been falling since July 22 and has not yet recovered.
The important support and resistance level of USDC is 26.525B.
Therefore, if it is maintained above 26.525B, I think there is a high possibility that funds will flow in.
If you look at the fund size of USDT and USDC, you can see that USDT is more than twice as high.
Therefore, it can be said that USDT is the fund that has a big influence on the coin market.
USDC is likely to be composed of US funds.
Therefore, if more funds flow in through USDC, I think the coin market is likely to develop into a clearer investment market.
But it is not all good.
This is because the more the coin market develops into a clearer investment market, the more likely it is to be affected by the existing investment market, that is, the watch market.
This is because large investment companies are working to link the coin market with the coin market in order to make the coin market an investment product that they can operate.
In order for the coin market to be swayed by the coin-related investment product launched in the stock market, more funds must flow into the coin market through USDC.
Otherwise, it is highly likely that it will eventually be swayed by the flow of USDT funds.
Therefore, USDC is likely to have a short-term influence on the coin market at present.
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As mentioned above, the most important thing in the investment market is the flow of funds.
The flow of funds in the coin market can be seen as maintaining an upward trend.
Therefore, there are more and more people who say that there are signs of a major bear market these days, but their position seems to be judging the situation from a global perspective and political perspective.
As mentioned above, the funds that still dominate the coin market are USDT funds, which are an unspecified number of funds.
Therefore, I think that the coin market should not be predicted based on global perspectives and political situations.
The start of the major bear market in the coin market is when USDT starts to show a gap downtrend.
Until then, I dare say that the coin market is likely to maintain its current uptrend.
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(BTCUSDT 1D chart)
The StochRSI indicator is approaching its highest point (100), and the uptrend is reaching its peak.
Accordingly, the pressure to decline will increase over time.
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(1W chart)
The StochRSI indicator is also in the overbought zone on the 1W chart.
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(1M chart)
On the 1M chart, the StochRSI indicator is showing signs of entering the overbought zone, but it is not expected to enter the oversold zone due to the current rise.
The movement of the 1M chart should be checked again when a new candle is created.
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You can see that the StochRSI indicator on the 1M chart is the most unusual among the three charts above.
In the finger area on the 1M chart, the StochRSI indicator was in the overbought zone, but it is currently showing signs of entering the oversold zone.
Therefore, you can see that the current movement is different from the past movement.
Therefore, I think it is not right to predict the current flow by substituting past dates.
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I wrote down my thoughts on the recent comments from famous people who say that the coin market will enter a major bear market along with the stock market.
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Have a good time. Thank you.
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- Big picture
It is expected that the real uptrend will start after rising above 29K.
The section expected to be touched in the next bull market is 81K-95K.
#BTCUSD 12M
1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (overshooting)
4th: 134018.28
151166.97-157451.83 (overshooting)
5th: 178910.15
These are points where resistance is likely to be encountered in the future. We need to see if we can break through these points.
We need to see the movement when we touch this section because I think we can create a new trend in the overshooting section.
#BTCUSD 1M
If the major uptrend continues until 2025, it is expected to start by creating a pull back pattern after rising to around 57014.33.
1st: 43833.05
2nd: 32992.55
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Chart with trend(MACD), momentum(DMI), and market strength(OBV)
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BW+ indicator is an indicator that comprehensively evaluates MACD, DMI, and OBV indicators.
Therefore, knowledge of MACD, DMI, and OBV indicators is required.
I added the existing HA-Low and HA-High indicators to express the section to start trading more clearly.
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The indicators have changed and been supplemented a lot over the past 6 years of using TradingView.
It was not easy to express my trading method as an indicator.
Because of this, I think there are people who unintentionally interpret my writing differently from what I think.
So, to narrow this gap, I am explaining the indicators used in my article.
Since these indicators are automatically generated by a formula, no one can change them.
Therefore, I think anyone can look at the chart and interpret it from the same perspective.
However, there may be differences in interpretation depending on one's investment style or average purchase price.
However, since everyone talks about the same point, there will be no confusion.
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When talking to each other in the community, if you talk with the chart tool you drew, you may talk differently and there may be room for misunderstanding.
So, I think the conversation often goes in a strange direction because the conversation ends up talking about whether it is LONG or SHORT right now.
I think that charts drawn with chart tools are not very meaningful because they only show a part of the person's thoughts through chart analysis.
This is because they do not tell you the selection point using the chart tool, so interpretation or understanding is lacking.
Therefore, you cannot apply such content to your own chart.
So, since it can't be used as a trading strategy, I can't help but just say, "Oh, that could be possible."
However, if there is a chart that everyone can see and no one can change, I think it would be easier to talk and reflect each other's thoughts on my trading strategy.
I think that because of that, I can find out what I lacked and supplement it.
Not everyone sees the same thing and thinks the same, but if the basic point of the thought is the same, I think it can help me make other people's thoughts my own.
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Anyway, I hope that this chart change will help you create a clearer analysis or trading strategy.
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The MACD indicator added to the chart is an indicator with a modified formula from the existing MACD indicator, but the interpretation method is the same.
That is,
- If MACD > Signal, it is interpreted as an upward trend,
- If MACD < Signal, it is interpreted as a downward trend.
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The DMI indicator added to the chart simplifies the interpretation of the existing D+, D- indicators by expressing them as lines on the ADX line.
That is,
- The section expressed in Aqua color means a downward section,
- The section expressed in Orange means an upward section.
- When ADX is above 25, it means that the strength of the upward or downward movement is strong,
- When it is below 25, it means that there is a high possibility of forming a box section or sideways section.
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The OBV indicator added to the chart means an upward trend when each line is broken upward, and a downward trend when it is broken downward.
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The indicator that expresses the contents explained above is the BW v1.0 indicator.
In order to see this more intuitively, the BW (100), BW (0), and Mid (50) indicators were added so that they can be expressed in the price candle section.
In addition, there are also High (80 Down), Low (20 Up) indicators.
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It is never easy to interpret each indicator and evaluate it comprehensively.
It is especially difficult when trading in real time.
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When interpreting the BW v1.0 indicator, it is basically divided into rising and falling based on the 50 point.
Therefore, passing the 50 point increases the possibility of a significant change in the trend.
Therefore, it seems that trading can be done based on whether there is support near the Mid (50) line generated when the BW indicator passes the 50 point, but this is not the case.
The reason is that volatility is likely to occur when a change in trend occurs.
When volatility occurs, your trading point will go up and down, so psychological pressure will increase and you may proceed with an inappropriate trade.
Therefore, a good point to start trading is the BW (0), BW (100) or HA-Low, HA-High point.
Since these indicators are generated at the boundary of the low or high point range, if you start trading based on whether there is support, you are more likely to get good results.
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In any case, you should think in line with your average purchase price.
Otherwise, if you trade incorrectly due to psychological pressure when you get close to the average purchase price, you may end up with little profit or even a loss.
This means that when you start a new trade, it is better to start near the BW (0), BW (100), HA-Low, and HA-High indicators as mentioned above.
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Have a good time.
Thank you.
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New chart tool released: Parallel Channel
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You can check the detailed explanation of the newly added chart tool by clicking the link address below.
www.tradingview.com
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The most important thing when drawing a trend line is where you designate the selection point.
Therefore, it is recommended to draw the trend line before starting a trade.
If you draw a trend line while a trade is in progress, you should be careful because your psychological state may be reflected when designating the selection point.
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You need to select 3 points to draw a parallel channel.
The first and second are the points corresponding to the trend line, and the third selection point is the point where the channel will be drawn.
Accordingly, I recommend drawing on the largest time frame chart possible.
I think that is the most objective way to draw parallel channels.
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The chart above is the 12M chart, which is the largest time frame chart.
If the 12M chart does not have the current candle arrangement, you should use the 1M chart.
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As in the example chart above, create a trend line by specifying the low point of the rising candle after the falling candle. (Specify 1st and 2nd points)
Then, complete the channel by specifying the high point of the candlestick to the left of the previous downtrend candlestick of the 2nd point. (Specify 3rd point)
If you draw it like above and look at it on a 1D chart, it will feel like it is drawn well.
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If you want to draw a 1D chart on a lower time frame chart, the 3rd point is the hardest to choose.
However, since you can designate it in the same way as you drew it on the largest time frame chart, you have to find out which point corresponds to the 3rd point.
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If you look at the current trend, you can see that it is forming a downtrend channel.
Therefore, you have to choose a point to create a downtrend channel.
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You can select and designate as shown in the chart above.
When drawing on the 12M chart above (when in an uptrend)
1st point designation: Select the low point of the rising candle after the falling candle
2nd point designation: Select the point of the rising candle after the falling candle after the 1st point designation
3rd point designation: Select the high point of the candle on the left of the falling candle to the left of the 2nd point designation
(When in a downtrend)
1st point designation: Select the opening price of the falling candle (wave) after the rising candle (wave)
2nd point designation: Select the opening price of the falling candle (wave) after the rising candle (wave) after the 1st point designation
3rd point designation: Select the low point of the rising candle (wave) to the left of the 2nd point designation
If you select in the above way, you can get a feeling that something is well drawn.
If you have your own drawing style, you can draw it that way.
I am just giving you an example of how to draw, so you don't have to follow it.
However, the important point is that you have to draw it according to the method of designating the selection point and creating a pattern.
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If you look at the 1D chart above, you can see that there is a vertical line drawn.
This vertical line indicates the high point of the StochRSI indicator.
Since the current trend is a downtrend, the high point of the StochRSI indicator is indicated, but when it is an uptrend, the low point of the StochRSI indicator is indicated.
And, based on that point, you can select the point according to the format of designating the selection point mentioned above.
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The trend line is a tool for chart analysis.
Therefore, in order to trade, the support and resistance points drawn on the 1M, 1W, and 1D charts must be indicated.
So, if you have confirmed the trend using the parallel channel released this time, you must draw the support and resistance points to create a basis for trading.
The reason is that since the trend line is diagonal, it is difficult to determine the timing to start trading.
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The method I am talking about is a method that anyone can understand.
The trend line you draw should be a point that everyone who sees various support and resistance points can understand.
Then there is no need to explain why you chose that point, and I think everyone can easily understand it.
If you have a good method that you are using, please publish it as an idea and make it public.
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Have a good time.
Thank you.
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Mastering Support & Resistance This video dives into the fundamentals of support and resistance, the cornerstones of technical analysis.
We'll cover:
** Identifying trends:** Learn how to spot bullish and bearish trends using higher highs/higher lows (HH/HL) and lower highs/lower lows (LH/LL).
️** Support & Resistance Levels: Discover how to pinpoint key price levels where the market may bounce or reverse, creating potential trading opportunities.
** Fibonacci: Unlock the power of the Fibonacci retracement to identify high-probability trade entry points at the 61.8% level.
SUPPORT & RESISTANCE Hey Everyone,
Support and resistance is one the most talked about price action component when it comes to technical chart analysis.
What is support and resistance?
Support and resistance are areas where price fails to continue to rise or drop. Historical areas of rejections create levels of support and resistance. These levels are expected to stop price from a continuation. - SEE EXAMPLE BELOW
How can we use support and resistance?
Support and resistance levels can be used to take trades from and to close trades on. We will cover the basics of drawing the levels and also identifying rejections and breakouts using support and resistance levels.
First and foremost traders draw support and resistance in many different ways. We will cover one of the methods we use to support our signals and trades, which is called "CANDLE BODY CLOSE"
See examples below on how to draw the levels, identify rejections and also the breakout strategy.
CANDLE BODY CLOSE SUPPORT AND RESISTANCE
Failure to close above a level with the candle body forms level of resistance and failure to close below a level with the candle body forms support. Also areas of rejections.
CANDLE BODY CLOSE BREAKOUT
A candle that is able to close above a resistance or below a support level with the body and not just the wick confirms a breakout of the level for a continuation.
This is a fantastic simple way to chart support and resistance levels, that can also be used to support entries and exits by identifying the wick rejections and the candle body breakouts.
As always, we will continue to share our chart ideas and useful educational tips for traders. Please don't forget to like, comment and follow to support us, we really appreciate it!
GoldViewFX
XAUUSD TOP AUTHOR
GoldViewFX - How to draw support and resistance levelsHey Everyone,
This is a repost for our newbies.
As promised alongside our analysis and reports we will also be posting basic educational posts to help newbies. Today we show you how to draw support and resistance levels the GoldViewFX way.
There are so many ways to draw and establish support and resistance levels. Typically this is an area where price stabilizes and fails to break providing support or resistance to price. Visually this can be represented by drawing a line to identify those areas. This can be drawn and identified in different ways. The 3 ways we draw support and resistance levels are as follows;
Firstly we identify where price is stabilized, this is likely to show a collection of candles side by side or by a candle or wick touch to a price and then a big retracement.
1 - We draw a line on the top or bottom of the candle body close of an area that price fails to break. Typically the highest or lowest wick from the collection of candles.
2 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest candle from the collection of candles.
3 - We identify the turning point of our moving average line (EMA5 IN OUR CASE). We then draw a line on the top or bottom of this turn (This is unique to us, so don't forget if you see it anywhere else).
Please don't forget to like, comment and follow to support us, we really appreciate it!
GoldViewFX
XAUUSD TOP AUTHOR
DAY TRADING STRATEGY USING TOP DOWN ANALYSISIn this video i walk you through my day trading strategy from higher time frame to lower time frame.
In the video, you will discover;
How to day trade
How to analyze the market from a higher time frame to a lower time frame
How to pick the best trades that win.
How to mark your support and resistance.
How to follow the trend and many more.
