Average True Range... and BollingersATR is a great indicator designed to show you the previous ranges of the previous candles depending on the value chosen, in this example I have done 6 periods, so you can see in this chart I have highlighted when we have peaks and troughs and one thing to do is compare the times of day this activity happens, you can see at certain times the atr climbs, it stalls at others or can fall, so ATR is showing us previous candles range, so if you are in a trade you want the range to be growing usually so that your trade can head to TP, but the important thing to takeaway is the fact that price is moving alot, this is because it is experiencing higher level of trading activity price is trending, where as a falling ATR reading means typically things are slowing down or accumulating, remember this doensnt give direction though as price can still move up or down despite a falling range per candle. However what it can do is tell you good times to look for trades, you can filter down by time the best time to take trades based on your strategy winning or losing in the peaks of troughs. ATR can also be used to determine stop losses of TP, by taking the the reading and using a 2xreading stop loss or TP, the more volatile the market the bigger your stop losses and tp will be, but more volatility generally correlates well with that idea, not only does it offer greater protection it also prevents missing out on good moves. So 2nd part is Bollinger bands we can see how it works, it basically again is telling you the range of things, so Id like you to compare the reading on ATR to the Bollingers, and you can see when ATR falls and the Bollingers are squeezing tight we have very little to trade, energy is low and range is small, In crypto I have heard this term called the crab which I have to say... I do find quite amusing. When ATR is rising the Bollingers expand creating a wide cloud, so on the last box, where price falls despite ATR falling... what is the difference this time? That is right, Bollingers are not squeezed together, which tells us the ATR reading is acting like it is small and stuck in a squeezing formation but in fact we are just in an expansion of the Bollinger moving slowly. What do I want you to take away from this? Just a deeper thought about which market conditions are best for your strategy and how to avoid times which will not really offer a good trade yet ect, and have a look for patterns in how you trade around these volatility indicators! Happy trading... More to come
Volatility
HOW-TO: Accumulation StrategyIn this idea I will make an in-depth tutorial on how to use the Accumulation Strategy and how to automate it.
█ PRESENTATION
The strategy is in the form of an invite-only script providing backtesting and alerts.
Here is a link to the script page:
Goals
• Steady profits. Smalls profits over time and no drawdown as long as you don't sell in loss.
• Peace of mind. It is meant to be a "set it up once and let it run for a while" automated strategy.
• No loss. Never sell in loss.
Drawbacks
• Small profits. No leverage, just spot trading.
• Lengthy trades. Trades can take up to several days or even weeks in worst case scenario. We will see how to avoid that.
Strategy
• Use volatility. Take advantage of small waves in the market.
• Buy the dips. Use a combination of technical indicators to buy bottoms or oversold prices.
• Accumulation. Buy small amounts several times as price moves to better position yourself.
• Take profit from total volume. Sell everything once price is in profit at the configured percentage value.
█ BACKTESTING
Backtesting is the process of creating a strategy.
Finding a good pair
• By Market Cap. Take a category you are comfortable with (DeFi, Metaverse, DAO, etc) then look at coins in the top 10 market cap.
• Volatility. The more volatile the coin is, the better.
• Ascending/Sideways trend. This is where the strategy will work the best. We will see just below how to filter off bear markets.
• Pick a timeframe. Usually from 5m to 30m, can be higher or lower. I look at the average bar, I like something around 0.5-1% bar height, the chart should not have too much noise, otherwise go higher timeframe. Though not too high, since we want to take advantage of the volatility.
Build your entries
You first have to create "entries" that will then end up being a buy signal, after passing through some optional filters.
• Entry settings
• Go Long/Go Short
The indicator allows to trade both sides of the market. In these examples, I will only go long-only for simplicity.
• Max active deals
This is the maximum consecutive buy signals allowed for the strategy. Example with 10: the strategy will buy up to 10 times until take profit is hit.
• Minimum bar delay between deals
Puts a minimum delay between each entry signal, in bars.
• Minimum price difference in % between deals
Sets a minimum price percentage between each entry signal. Leave at 0 to disable.
• STOCH & RSI entries
Creates entries when the RSI or STOCH crosses below a configurable value. The length and resolution of the oscillators are configurable.
• Other entries
Signals using some of my other custom indicators are BUILT-IN:
• Top & Bottoms
• Higher lows, Lower lows
• RSI Divergences
Entries are combined using a OR logical gate. I usually go with RSI and STOCH entries on higher timeframe using the resolution input, then add Top & Bottoms or Higher lows if I feel like it needs more entries.
Once you have chosen a combination of entries, let's move on to the filters.
• Trend Filter
You can pick a trendline from a list, usually a simple EMA 200 will do the trick. Using slope change or price cross, it will filter off entries if the market wave is bearish, thus avoiding taking risky trades.
• MTF Trend Filter
The same thing, but higher timeframe. It is used to filter with the market wave, meaning the more global trend. It is a good habit to combine the 2 trend lines to drastically reduce the risk. The Adaptive Tilson T3 is one of my favorites, combined with the CROSSOVER condition.
• RSI filter
Useful with entries other than RSI to filter overbought entries. Use a higher timeframe to filter more aggressively.
I would advice to use all 3 filters if you can. It will prevent getting into lengthy trades as we will see below.
Adjusting
• Backtest parameters
First you should go to the backtest parameters tab. Here is what is used in this example:
• Initial capital: 1000 €
• Order size: 100 € (the max deals is 10 here, total deals should not exceed initial capital)
• Pyramiding: 10 (the number of max deals)
• Commission: 0.075 % (Binance spot trading)
• Take Profit
Configure the take profit, in price %. I usually go with something from 1 to 4 %. In some cases, activating the trailing TP can be interesting.
• Backtest results
In addition to the strategy tester, the indicator has a backtest panel containing useful information. Here are some of it:
• Net Profit (% and fixed)
Useful to see how volatile a pair is compared to others.
• Avg # Bars in a deal
Average number of bars a trade can take to be completed. < 100 - great, > 100 - can be improved, > 200 - bad
• Avg # Days in a deal
Same information but in days.
• Max # days in a deal
Maximum number of days a trade took to be completed. < 30 - great, > 30 - can be improved, > 60 - bad
Example of settings that can be improved:
The Avg # bars and Max # Days in a deal are flashing red and orange. It means it can be improved.
By adding the 3 filters, increasing the stoch entries timeframe and reducing the take profit to 3%, we are getting a much more secure strategy:
All the settings are in green, we know that over 421 days, the maximum days a trade took is 13.78, and a trade takes 1 day in average.
█ AUTOMATION
When you subscribe on my website, you unlock access to the indicators but also an automation system for Binance.
The system is using the indicator alerts to automatically place orders on Binance using their SPOT Trading API. You can find a tutorial here .
Create a bot
The first step is to create a bot for your strategy.
Make sure you have enough capital in your account for the strategy.
Set the order size/quantity with the same value as in the indicator backtest parameters.
Create the alert
I recommend to create one chart layout per strategy.
Once you are done setting up the indicator, set the alert messages. You will find the text fields at the bottom of the indicator input settings.
You will typically need to fill "Long Entry" with the buy message, and "Long Take Profit" with the sell message.
Once you have done that, save your chart.
Click add alert on the indicator.
Select the condition "Alert() function calls only".
Tick "Webhook URL" and set the URL. It can be the one from my bot system or if you use another bot system with webhooks it will work too.
Give your alert a name and click create.
Make sure the alert is created in the alert tab.
The alert will save the indicator, settings and timeframe at the moment you create it. If you decide to change an indicator setting, you must remake the alert.
Fees
If you trade on Binance, I recommend to enable BNB Spot trading fees, and always have a few BNB on your account to pay for the fees.
That way, you can use a sell 100% quantity order without needing to take fees into account, unless you are using the strategy to trade BNB. In this case, use something like sell 99% in your sell message.
Supervise
Once your strategy is running, you can supervise it in the strategy tester in real time, in the alert logs and in the bot logs.
═════════════════════════════════════════════════════════════════════════
█ SCRIPT ACCESS
Indicator and automation tools access can be purchased on my website. The link is in my signature below.
█ SAMPLE USE CASES
I will update this HOW-TO idea whenever I backtest a new pair, sharing the configuration and a link to a shared chart that you can copy and edit yourself.
Example on MANA/USDT:
Link to the chart: www.tradingview.com
Thanks for reading. More to come below.
Best Session to Trade - At a glance!Market Sessions Introduction
Watching the market 24/7 is completely unnecessary, considering price only moves during certain periods of the day.
These periods are known as "Sessions" and relate to an exchange's location on the planet.
The two most popular sessions - London & New York - typically see the most volatility and gross number of trades placed.
However, there are strategies designed around specific sessions, such as the "Asian Breakout", which targets the first two hours of the Tokyo session.
The sessions occur every trading day (M - F) during the following UTC times:
London: 0800-1600
New York: 1300-2100
Tokyo: 0000-0800
Sydney: 2200-0600
The London and NY session overlap for 3 hours - this is known as the "Golden Window" in Forex trading...but why?
Advanced Forex Session Analysis
I created a tool to explore the concept of the "Golden Window" and answer a few burning questions:
did every asset have the same golden window?
if the golden window shifted, could you detect it?
does restricting trading times to the golden window improve win rate?
what does the golden window even look like?
This tool is available for free and open source - Advanced Forex Sessions
It scores each session by Volatility (ticks moved) and Volume (number of trades placed), then displays the windows on chart.
I've discovered answers to a few questions and can confidently say, NO, not every asset has the same golden window.
In fact, nearly all small-cap cryptocurrencies have a golden window during the Tokyo or Sydney sessions.
YES, we can detect the window shifting by scoring each session via a rolling average.
MAYBE, it's hard to say if restricting trading times will work for every strategy, but I have seen minor improvements for traditional strategies that buy/sell with fixed take profits and stop losses.
WHAT does the Golden Window look like?
Check out the Advanced Forex Sessions indicator and see for yourself...
How To Use Bitcoin Futures To Hedge Your CryptoYou are either a trader or a HODL'er. Since I am a trader I don't like to sit in massive swings in my spot Bitcoin positions, I like to use Micro Bitcoin Futures to hedge my spot position to minimize the risk and also maximize my long position in spot. In this video I explain how I am currently hedging my long Spot Bitcoin position using Micro Bitcoin Futures, Symbol MBT.
Past performance is no guarantee of future results. Derivatives trading is not suitable for all investors.
Using TDI To Set Up Trades (Part 3)AudJpy One Hour Sell Trade On Friday:
1) Wait for Green Line to Crossover Red Line downward
2) Enter At Start of Hourly Example Candlestick
3) Put Stop Loss above swing point on chart or 83.400 or 20 pips from entry sell price.
4) Sell Here level at 83.200 or noted beginning of 1:00 A.M. candlestick
5) Take profit at target zone of 82.200-82.400 or 80 pips.
6) Trade was a 1: 4 set up which is great or 20 pip stop loss vs 80 profit/target
Note: Always remember highest volume and liquidity is from Tokyo end to London end or 12 hour period. Remember Monday and Fridays are more choppy generally then Tuesday thru Thursdays price action. 4 things: pair, price, session and time< always!!! Fridays best setup was sell, but a quick one hour buy trade was noted on part two or end of London session too.
Reverse above for Buy trades and use risk management always when trading or 1% to 3% maximum for each trade setup.
How To Use TDI Indicator (Part 2)How To Use TDI indicator (Sell Trade and Buy Trade): One hour chart example ( one hour to four hour trades - be patient)
Sell Trade: #1 example on chart. 4 hour trade for 100 pips.
1) Wait for RSI indicator line (GREEN) line to get close to or go above upper volatility (BLUE) line . The green line is similar to the RSI indicator and represents the market sentiment. It shows you how the market is moving related to positive and negative expectation.
2) Wait for RSI indicator line (GREEN) line to get very close too or crossover the Signal Line (RED) line. The red line is simply a crossover of the green line and can be used for entry and exit in the market.
3) Use either sell limit order or market order to get in at beginning of hourly noted candle. Yes, you can use TDI on all types of trading including scalping, day trading, swing or position trading.
4) Exit or take profit at a major resistance or support area, psychological price level or utilize a trailing stop or predetermined target.
Buy Trade: #2 example on chart. 1 hour trade for 35 pips.
1) Wait for RSI indicator line (GREEN) line to get close to or go below lower volatility (BLUE) line.
2) Wait for RSI indicator line (GREEN) line to get very close too or crossover the Signal Line (RED) line.
3) Use either buy limit order or market order to get in at beginning of hourly noted candle. Yes, you can use TDI on all types of trading including scalping, day trading, swing or position trading.
4) Exit or take profit at a major resistance or support area, psychological price level or utilize a trailing stop or predetermined target.
NOTE: Remember these four things when trading: 1) Pair You Are Trading 2) Price Level On Chart 3) Session(s) Open At This Time 4) Time It Is During The Session or Session(s) Open. Higher volume and liquidity during the times of Tokyo end to London end (12 hours)- best times to trade Forex.
Parts Of The Traders Dynamic Index (Part #1)Traders Dynamic Index
A hybrid indicator developed to indicate market conditions related to trend direction , momentum , and market volatility. An “all-in-one” indicator!
Parts Of The TDI indicator are:
1) Volatility Bands (Blue)-Last but not least, we have two blue lines, one above and one below. Those blue lines represent the volatility in the market, similar to the Bollinger Bands. They are increasing and decreasing volatility. (Have setting on chart of 32 for low and 68 for high of this band, not default)
2) 50% Line (White)- Halfway point of TDI indicator- below is bearish or sell and above is bullish or buy sediment.
3) Market Base Line (Yellow)-The yellow line is what we refer to as the overall market sentiment. It shows the overall direction of the market. The overall market has a tendency to do two things. It can turn slowly, or it can continue to go in the initial direction. This is because it’s too big and it can’t turn too quickly. It’s got to come to a gradual end.
4) RSI Price Line (Green)- The green line is similar to the RSI indicator and represents the market sentiment. It shows you how the market is moving related to positive and negative expectation.
5) Trade Signal Line (Red)-The red line is simply a crossover of the green line and can be used for entry and exit in the market.
You need to focus on market sentiment. When price and market sentiment move together, you have a higher probability for a successful trade.
Regressive VWAP Breakout StrategyStrategy type: Breakout
Ingredients: Price, Volume, Regression
Prerequisite add-ons (free): Regressive VWAP and Strategy Visualizer
Target market: CME:BTC1! or BITSTAMP:BTCUSD
- Long Entry on Close crossing over Regressive VWAP
- Short Entry on Close crossing under Regressive VWAP
- Optional: exit when price retraces to upper band (LX) or lower band (SX)
The key to this breakout strategy is the Regressive VWAP, which weighs Price and Volume with Regression Analysis, making the slope and its bands more responsive, with a degree of mean reversion.
Below is another example, this time CME_MINI:ES1! .
Regressive VWAP Band Buffer Strategy on GC 10RRequired add-on (free): NEXT Regressive VWAP
Target market: COMEX:GC1! 10R chart
Strategy Overview:
- Long when price crosses upper band (green)
- Short when price crosses lower band (red)
- Do not initiate trades in the buffer zone (between the bands) - that is our filter
Setting Alerts:
Here is how to set price (close) crossing band alerts: open a chart, attach NEXT Regressive VWAP, and right-click on chart -> Add Alert. Condition: Symbol, e.g. ES (representing the close) >> Crossing >> Regressive VWAP >> Upper ( or Lower) Band >> Once Per Bar Close.
VIX always best predictorIt is necessary and mandatory to configure alarms in VIX in order to identify best trading opportunities. Analyzing the VIX we realize that we are in a very overweighted buying zone.
- Red lines: time to sell.
- Green lines: time to buy.
For example today is time for selling most items of our portafolio or at least to configure trailing stop at 1%, then we wil have to wait patiently until next buying opportunity.
Remember what Warren Buffett said... "The stock market is a device for transferring money from the impatient to the patient."
Why Implied Volatility Is A Critical Tool For All TradersTraders and investors use different sets of tools when approaching markets. Some are fundamentalists, pouring through balance sheets, supply and demand data, and other macro and microeconomic information to predict the future prices of assets. Others have a strictly technical approach to markets, following trends and the path of least resistance of prices. Still, others combine the two to look for opportunities where fundamental and technical analysis merge to improve the chances of success.
The past is history; the present is all that matters for traders and investors
Historical volatility is a map of the past price variance for asset prices
Implied volatility is a real-time sentiment indicator
The primary variable determining put and call option prices
The three critical factors implied volatility reveals
Yogi Berra, the hall of fame catcher and armchair philosopher, once said, “The future ain’t what it used to be.” All market participants have the same goal, to increase their nest eggs. Projecting the future is the route to achieve their goal.
Implied volatility is a tool that all market participants need to embrace as it is a real-time indicator of market sentiment.
The past is history; the present is all that matters for traders and investors
History depends on interpretation. When it comes to markets, Napoleon Bonaparte may have said it best, “history is a set of lies agreed upon.” An asset’s price moved higher or lower in the past because of a collection of variables viewed through a prism that leads to a collective conclusion that has broad acceptance but may not be accurate. Taking a risk-based position on an inaccurate conclusion could lead to mistakes and losses.
When we consider buying or selling any asset, all that matters is the present. The current price of any asset is always the correct price because it is the level a seller is willing to accept and a buyer is willing to pay in a transparent environment, the market.
Historical volatility is a map of the past price variance for asset prices
Historical volatility is an objective statistical tool that defines the price variance of the past. Any disclosure document tells us that past performance is no guaranty of future performance. We must view historical volatility precisely the same way, with more than a grain of salt.
Historical volatility is a guide, but remember what Yogi said, “the future ain’t what it used to be!”
We calculate historical volatility by determining the average deviation from the average price over a given period. When it comes to math, the formulas are:
A simple explanation of the complicated formula comes in seven easy steps:
1. Collect the historical prices for the asset
2. Compute the expected price (mean) of the historical prices.
3. Work out the difference between the average price and each price in the series.
4. Square the differences from the previous step.
5. Determine the sum of the squared differences.
6. Divide the differences by the total number of prices (find variance).
7. Compute the square root of the variance computed in the previous step.
Implied volatility is a real-time sentiment indicator
While we can calculate historical volatility from historical data, implied volatility is a different story. Implied volatility is the expected or projected volatility or price variance of an asset over time.
We back into calculating implied volatility using an options pricing model. We can establish an implied volatility reading by entering the option value into the Black-Scholes options pricing formula or other formulas that determine options prices. If we have a put or call options price, we can solve for the implied volatility level. The Black-Scholes formula in mathematical notation is:
The primary variable determining put and call option prices
There are no option prices without implied volatility as it is the critical variable that determines put and call option values. Yogi also said, “You can observe a lot by watching.” The current implied volatility level is the market’s consensus perception of what volatility or price variance will be during the life of the put or call option.
Observing and watching reveals the constant changes in implied volatility levels, which can be highly volatile over time. Option traders call an option’s sensitivity to changes in implied volatility Vega, which measures the change in an option price for a one-point change in implied volatility.
Implied volatility is constantly changing. Yogi had another great saying, “If the world were perfect, it wouldn’t be,” which rings true for implied volatility which can change in the blink of an eye. Option traders pay lots of attention to their Vega risk as the volatility of implied volatility can be…highly volatile! How’s that for a tongue twister?
The three critical factors implied volatility reveals
Implied volatility is a valuable tool for all traders and investors for three significant reasons:
It is a real-time indicator of the market’s perception of the future price range of an asset.
It can change suddenly, and changes often occur before the price of an asset reacts, making implied volatility a leading indicator.
Implied volatility reflects the wisdom of the crowd, and crowds tend to make better decisions than individuals. Moreover, it is reading that reflects the present, not the past, and is a constantly changing measure of consensus forecasts for the future.
As traders and investors, we exist in the present. We attempt to increase our wealth with long and short risk positions that either add or subtract from our nest egg in the future. Implied volatility is a critical measure we should understand, utilize, and always keep in our toolbox. Any project requires the right tools. Implied volatility’s value is that it reflects a snapshot of the current market’s consensus.
Historical volatility depends on “Deja vu” happening “all over again.” Implied volatility is a measure that understands that the “future ain’t what it used to be.”
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Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
Forex (When To Trade Is High Liquidity & Volume Time)The highest liquidity and volume in Forex daily is from end of Tokyo session to end of London session.
This is best 12 hour time frame time to trade Forex is in between those times, if you are scalper or day trader.
Noted on 1 hour chart of AUDUSD is noted times from 10 p.m. to 10 a.m. (PST/CA/USA times)= you need to change to where you live.
What happened in-between those times on Friday with AUDUSD- a great trade with a Harami two candlestick setup right at Tokyo/London overlapping session, at demand zone area, during the high liquidity and volume period of day in Forex. RR set up of 1:2.5 risk/reward or 20 stop vs 50 target.
Yes, this is how you keep Forex trading simple, just trade during this 12 hour period - and look for:
1) Engulfing two candle hourly setup
2) Harami two candle hourly setup
3) Pin-bar three candle hourly setup
4) Trend, Key Price levels, Momentum
5) Trade right pair, at right price, during right session and at right time of day.
Make Forex Trading Great Again by winning and taking what a pair gives you in a trade on a chart. Trade what you see not what you feel. Only you control when you enter and exit an individual trade- so put the most probabilities on your side to win more and make more.
4 TIPS ON USING TECHNICAL INDICATORS 🤖🖥
Hey traders,
Technical indicators are an essential part of technical analysis.
With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that.
Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them.
#1️⃣ Do not overload your chart with indicators.
There is a fallacy among so many traders:
more indicators on the chart lead to an increase in trading performance.
Following this statement, traders add dozens of technical indicators to their charts.
The chart becomes not readable and messy.
The trader gets lost and makes wrong trading decisions.
Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators.
#2️⃣ Learn what exactly the indicator shows
The data derived from technical indicator must make sense to you.
You must understand the logic behind its algorithm.
You must know exactly what it shows to you.
Confidence in your actions plays a key role in trading.
During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence.
You will be able to overcome negative trading periods only by being confident in your actions.
Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times.
#3️⃣ Use the indicators that compliment each other
Many indicators are based on the same algorithms.
Most of the time the only difference between them is a minor change in its input variables.
For that reason, such indicators leave very similar clues.
In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other,
not show you the same thing.
#4️⃣ Price action first!
Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first.
You must know the way to make predictions relying on a naked chart.
The indicators must be applied as the confirmation signals only.
They must support the trading strategy but not be its core.
❗️Remember that the indicators won't do all the work for you.
Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools.
Would you add some other tips in this list?
❤️Please, support this idea with like and comment!❤️
AUTOMATED TRADING BOTS: How to profit with Tezos.Tezos is one of the best token for our robot.
Our robot mainly uses the DCA (dollar cost averaging) trading method.
If the price drops, instead of the Stop loss order, we have a Buy limit order.
This will also cause the Take profit value to drop and approach the current price.
If the price falls and falls, the robot buys and buys. This keeps the Take Profit lower and lower.
After that, the price of the token rises and our trade ends with Take profit, which is not far from us thanks to constant and precisely predefined purchases.
The XTZ / USDT currency pair is suitable for our demonstration. You see very high volatility.
It is through volatility that our robot can be profitable. If the price still went in one direction without frequent fluctuations and without "waves", the robot would earn very little.
We need great volatility for big profits.
Volatility in the TradingView platform will be helped by the Historical Volatility indicator.
This indicator often (on this time frame) intersects the value of 50.00, which is rarely affected for low-volatile currency pairs. For example, you would look for Bitcoin very bad around 50.00 on this time frame.
The key to our profitable trading bot is volatility! At a time of market colapse, when almost everyone is going through and positions in the Futures markets are being liquidated on a large scale, we are EXTREMLY profitable thanks to our robots.
Of course, it is very important that you know how big the position is and how often, or at what intervals it is necessary for the robot to buy more. In no case is every setting of the robot profitable, on the contrary, setting up a profitable robot is not easy.
You will learn how to set up a robot to be constantly profitable in our Academy.
PS: One of the best things about trading with robots is that you remove all emotions and decisions.
We wish you a nice day. UCT team.
High Impact News (How To Trade It)High Impact News Trading (Forex Factory): Example is EurAud bullish trade, but all can be done on a bearish trade too.
RULES:
1) Use 15 minutes charts or Time frames
2) Do not start a new trade 30 minutes prior to and/or 30 minutes after high impact news.
3) Is price action over or under Bollinger Bands indicator 20 SMA? Chart example is over- so trade long.
4) Is price action trending or in momentum now? Chart example is yes- going up or bullish.
5) Stop Loss should be lower then before news. Chart example is: 1.60875
6) Enter should be at start of the 3rd /15 minute candlestick after news or after 30 minutes after news. Enter at 1.61084.
7) Target should be at least 1:1 risk reward of stop loss to enter vs- enter to target. Per chart 21 stop loss vs 29 target.
Target may last one to couple hrs. Per chart target is: 1.61375.
F.Y.I.- All Forex trading involves risks, do not trade with money you can not afford to lose. Trading news can make quick profits or losses.
U.S. Dollar Index (Need 2 Know)The U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,often referred to as a basket of U.S. trade partners' currencies. DXY can be used for defining current tendency in the US Dollar and finding trading signals on Forex. The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies and visa versa.
It is a weighted geometric mean of the dollar's value relative to following select currencies:
Euro (EUR), 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc (CHF) 3.6% weight
FYI: USDX started in March 1973, soon after the dismantling of the Bretton Woods system. At its start, the value of the U.S. Dollar Index was 100.000. It has since traded as high as 164.7200 in February 1985, and as low as 70.698 on March 16, 2008.
How To Use US Dollar Index In Forex?
1) The US Dollar trend indicator
2) Trading correlated currency pairs
3) Trading currency pairs with an inverse correlation
Breaking Down Charts (Will Set You Free)Breaking Down Charts (Will Set You Free)
Need you to understand what candlesticks are telling you, what big banks are telling you (they leave their footprints): The follow seven numbers on chart, I see quickly to understand the mood of the pair and direction:
1) Down trend happened end of Tokyo and beginning of London Session (more liquidity and volume)
2) Demand zone set on Thursday for rest of week
3) Bullish Piercing Line Two candlestick pattern
4) Sideways or Ranging price action (after London close to Aud news)
5A) Psychological numbers- ALWAYS find them and know where they are on pairs you are trading. (1.60000 and 1.65000)
6) Bullish Engulfing two candlestick pattern
7) Supply zone set on Thursday for rest of week
8) Big institutional candlestick (Any others?) find them
9) Where is YELLOW 200 ema line (major support or resistance)- if above, then trade bearish and if below, then trade bullish. Nothing is absolute.
10) Where is Bollinger Bands 20 period (orange line)- this acts just like a RUBBER BAND- if price action is stretched out, it will come back to medium.
*Note: You should be able to break the attached chart down further with your own strategy and edge. Trading Forex is a business not a hobby, if you treat it correctly Forex will reward you for your hard work and efforts. More you understand and learn each day, more Forex trading will becomes easier to do.
High or Low Liquidity & Volume (When Is It?)Liquidity and Volume (When Is high and low periods of both?)
Generally per day in Forex trading 24/5 market their is 12 hours of low liquidity and low volume, which is after London ends to Tokyo ends.
Then, the other 12 hrs of high liquidity and high volume, which is easier to scalp or day trade which is at end of Tokyo to end of London.
You would need to know when Tokyo ends to London ends in your time zone (yes that overlaps New York 1st 4 hours too). Best hours to trade.
For your health: keep Forex trading within a certain times of days, so you can live life and maintain balance and enjoy fresh air......
Bollinger Bands Explained, All you need to know Hello everyone, as we all know the market action discounts everything :)
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In today’s video we are going to be talking about the Bollinger bands , How are they constricted and how to use to try to identify trades in different financial markets.
Some people think about the Bollinger bonds as a complicated indicator but after you watch this video you will see how easy it is to use.
Lets start with the theory before we see a real life example :
The Bollinger bands were developed by a man called John Bollinger, so no surprised where the name came from.
So the Bollinger breaks down to a Moving average and some volatility bands around that, What we have first is a moving average and on the top and bottom of that moving average we have our bands and they usually are located 2 standard deviations away from the Moving Average.
The idea here is to describe how prices are dispersed around an average value, so basically, these bands are here to show where the price is going and how it's moving for about 95% of the time.
So how do we use this indicator :
1) The first way people use this indicator is when the market price reaches the edges of the Bands, The upper end for example shows that it's possible that the market is overextended and a drop in price will happen, if the price reached the lower end then the market will be oversold and a bounce in price is due.
2) The second way to use this indicator is called Targets, It simply allows us to set up targets for the trade, if we buy near the lower Band then we could set a target above the Moving average or near the higher Band.
Because these bands are based on price volatility they won't stay at the same place from the MA, That means if the volatility drops then the bands will get tighter (Squeeze) , and if the volatility goes up then the bands will go further away from each other (Width).
People use this method to try to understand what's going on with the current trend, so basically if the bands are really far away then it’s a sign that the trend is currently ending, and if they are really close then we could be seeing an explosive move in the trend
IMPORTANT
I always say that you always need to use different indicators when you analyze any chart, this way you will minimize your risk and have a better understanding on how the market is currently doing.
I hope I’ve made the Bollinger Bands easy for you to understand and please ask if you have any questions .
Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI and The MACD, links will be bellow
High Impact Or Medium News? Use Patience I have seen high impact news strategies from 1 minute to 1 hour online, if you are interested in this kind of trading please investigate further.
Always use great risk management and stop losses on every trades- when high impact news hits, that currencies BASE pair will determine what direction its goes, negative down and positive up.
If I trade high impact news, wait for at least 5 minutes or maybe to end of that 1 hour or 4 hour candle that news is coming out on too trade.
Like example of USDCAD on Friday high impact news was positive for the USD (base currency) NFE, Unemployment Rate while while CAD impact news was negative Employment Change and Ivey PMI.
Per chart, for next 3 to 4 hrs price action was one sided with bulls controlling pair- it there a way for you to have gotten a piece of this?
Per chart example:
13 pip stop loss
60+ pip target/profit
with right risk management would have worked great. Please look on forexfactory.com for other high impact news events then look at Trading views charts and mark them up on how you could have made a news related trade and profited. Best way to trade medium or high impact news is wait at-least 5 minutes or until end of that hour or 4 hour candle is done, too set up a possible trade. When your set up is with right pair, price, session & time- trade it.
REASONS not to trade 1st hour of sessionIf you are either a scalper trader and/or a day trading, the 1st hour of new session is never a place to trade: Here are some reasons:
1) Low Liquidity
2) Low Volume
3) Very High spread widening ( can be 15 to 20 pips) from broker
4) Very Large hourly candlesticks (example: 88 pip large clearing doji candlestick) happens for broker to take both buyer and seller positions out.
Note: 1st hour of session is during Sydney session, then afterwards Tokyo session starts. Increasing liquidity and volume starts end of Tokyo.
Part of your plan should be:
Pairs to trade
When to trade
What setups to trade
Trading edge & Strategy
Do not be greedy especially during the financial craziness going on in most countries around the world, just get a piece of PIP PIE in a trade if you are either a scalper or day trading. Use risk management and commonsense- this is no place to gamble with your money- use probabilities of success of setups.
LEARNING How to Identify Price Action with Basic Count X + Y = 0this learning with BTCUSD htf 1D
so, basically, this is the action of buyers and sellers
Formula : X + Y = 0 with HLC (high low close)
1D : close candle
X : (-) minus
Y : (+) plus
Body : candle mother
Wick : line high or low
Next support BTCUSD on 30500 if crash we see 29k 28k stop on 26700.