Get started

1h

GBPUSD 1H MASS INDEX TRADING STRATEGYFind Mass Index Indicator in TradingView under Public Library - Mass Index/HPotter Add to chart Stochastic Indicator default settings Mass Index Trend Reversal Strategy Mass index trend reversal is a powerful strategy to detect trend changes. You can find money-making trading opportunities that evade most traders. We use two forex reversal indicators to develop this reversal trading strategy: The obvious mass index tool Stochastic indicator used to determine the directional signal. Both of these forex reversal indicators will protect you from false reversal signals. As we already mentioned we use the trend reversal trading strategy in combination with the price. The secret to trading trend reversal like a professional trader is to combine the price with other technical tools. That’s exactly what we try to accomplish here. As this will help you spot high probability bullish and bearish trend reversal signals. Now you’re wondering: “How do I combine all these pieces together to actually identify trend reversal trading setups that work?” Knowing what indicators to use and what is the Best Combination of Technical Indicators can dramatically improve your chart reading skills. If you use the wrong technical indicators, this can lead to inaccurate price interpretation and subsequently to bad trading decisions. The mass index trend reversal strategy can be broken down into a three-step process: Identify the reversal bulge on the mass index indicator. Identify the prevailing trend prior to the reversal bulge. Use the Stochastic indicator to generate a directional signal. Here is how to actually do it: Step #1 Identify the Prevailing Trend Always zoom out to have a clear picture of what is the prevailing trend. The previous GBP?USD chart zoomed out revealed that the prevailing trend is bearish. Naturally, we assume that a bullish reversal signal will follow. The trading bias is upwards once we correlated the mass index reading with the price action. Generally, we also want to confirm that the price is expanding and that we’re indeed in the last stage of a trend. This information is revealed in the price chart. We simply compare the most recent candlestick bars with the previous ones. Are the candlesticks expanding? If yes, that’s what we need to see. The bigger the candles are, the higher the change that a bigger trend reversal is going to develop. Step #2 Identify the reversal Bulge The mass index reversal bulge was already revealed at the beginning of this trend reversal guide. The mass index must first go above the 27 level and then it needs to be followed by a drop back below the 26.5 level. There is a high degree that the market will reverse from here. That’s pretty much it. There is nothing we can add here as everything else comes down to the relationship between the price and the mass index reading. So far, so good. Huston, we have a problem. The mass index indicator is prone to also produce large moves by the time the mass index line it takes to drop back below the 26.5 level. This can create the false illusion of a trend. But, in reality this can be a simple trend pullback. We’re going to teach you another great trick to use to capture trend retracements and pullbacks using the mass index. Let me explain… A picture is worth a thousand words. In this case, we’re effectively trend trading. See below the last step before pulling the trigger: Step #3 Use the Stochastic for Trigger We have established our trading bias and we have a mass index bullish reversal signal. Next, is to wait for the stochastic indicator to provide us with a bullish signal to trigger our long trade. The classical stochastic crossover is the most popular crossover trade signal. The stochastic bullish crossover occurs right after the mass index dropped below the 26.5 level. This is our signal that the momentum has shifted to the upside and the trend is ready to reverse. So, you can go ahead and deploy your soldiers aka the money to capture more soldiers. There are always going to be pros and cons between reversal trading vs. trend trading. But what type of trader should you become? Should you be a Reversal Trader or Trend Trader? Each trading style has its own merits and proper use. While trend trading gives you the advantage of trading in the direction of the prevailing momentum, reversal trading gives you the advantage to buy low, sell high. But, if you don’t know what is your trading style, the chance of succeeding as a reversal trader or as a trend trader is very slim. If you’re searching for a trend following strategy that will turn your trading around make sure you check the MACD Trend Following Strategy. You need to develop your strategy to accommodate reversal trading if you want to catch tops and bottoms. There is no right or wrong between trend trading vs. reversal trading. The short answer is that you should be trading in a way to fit your own personality. While the trend is your friend, not many have the discipline to stay in a trade riding a trend. The fact is reversal trading can be a quick way to make some profits. The advantage of reversal trading is that you can be in and out of the trade very fast. Learn more about how to identify a Forex trend: Identifying Trends through Synchronization. Final Words – Mass Index Chart The Mass index indicator allows traders to predict trend reversals that other technical indicators may fail to notice. Using the mass index reversal bulge you can catch market tops and bottoms with deadly accuracy. You don’t have to be scared to try catching a falling knife. Most prominent hedge fund managers engage in reversal trading because it provides trade setups with high risk to reward ratios. You can always keep a mass index chart on the sideline to check if your favorite market is about to end a big trend cycle. The secret to trading trend reversal like a pro is to simply stop being scared of engaging in this type of trade activity. Just make sure you use wise risk management strategies before you put at work your hard-earned money. PM me if you want the link to the actual complete mass index strategy
Long
by Tradingstrategyguides
XRPUSD 1H EMA CROSSOVER STRATEGYStep #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade above the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade above both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover, which will add weight to the bullish case. We refer to the EMA crossover for a buy trade when the 20-EMA crosses above the 50-EMA. By looking at the EMA crossover, we create an automatic buy and sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bullish sentiment is strong enough to push the price further after we buy to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. Step #3: Wait for the zone between 20 and 50 EMA to be tested at least twice, then look for buying opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for two successive and successful retests of the zone between the 20 and 50 EMA. The two successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend. Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to buy. This brings us to the next step of the strategy. Step #4: Buy at the market when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and buy at the market price. We now have enough evidence that the bullish momentum is strong to continue pushing this market higher. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Los 20 pips below the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is up. As long as we trade above both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips below the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. Step #6: You choose TP or Take Profit once we break and close below the 50-EMA In this particular case, we don't use the same exit technique as our entry technique, which was based on the EMA crossover. If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse. Note** The above was an example of a BUY trade. Use the same rules – but in reverse – for a SELL trade. However, because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. After the EMA crossover happened.
COINBASE:XRPUSDLong
by Tradingstrategyguides
BTCUSD 4H 1H DESCENDING CHANNEL BEARISH BREAKOUTStep#1: Draw a Price Channel if you are able to see at least two Higher Highs and Higher Lows. The Price Channel pattern is drawn by connecting the highs and lows. During this stage, we’re looking for distinctive price action that can be contained within two parallel lines. These lines will ultimately form the Price Channel Pattern. If you’re able to spot two consecutive swing highs followed by two consecutive two higher lows you simply connect these points using the Price Channel tool. The majority of the trading platforms has incorporated into their default trading tools the Price Channel indicator. Step #2: Wait for a Swing High to fail to reach the top of the Price Channel pattern. In the case of an ascending or upward Price Channel pattern the first warning signal that the price will fail to trade within the boundaries set by the Price Channel Pattern presents itself when the last swing high point fails to reach the top of the channel. Only our Price Channel trading strategy makes use of this powerful price reading technique because our team at Trading Strategy Guide has developed the “early signs” of Price Channel breakout. The fail attempt to test again the top of the Price Channel is a sign of price weakness which is confirmed when the price also fails to bounce off the Price Channel bottom and breaks it instead. Note* - The more times a swing High fails to reach the top of the Price Channel pattern the better the trade setup Step #3: Wait for the Price Channel breakout and for breakout confirmation One of the worst mistakes traders does when trading Price Channel patterns is that they don’t wait for confirmation signal when the breakout happens. You should always wait for breakout confirmation! What do we mean by breakout confirmation? In simple terms, we want the breakout candle to post a close below the Price Channel bottom to confirm the breakout. We also have training on How to use Japanese Candlesticks. So we don’t just wait for the Price Channel breakout, but instead, we also want to see the breakout candle closing below the Price Channel pattern. This is a very simple way to avoid many of the false breakout signals. Note* - The breakout candle needs to be a big decisive looking candle, but it’s not mandatory Step #4: Sell right at the Breakout Candle Closing Price The Price Channel trading strategy uses a very simple trade entry technique. A sell order is triggered at the breakout candle closing price. The Price Channel breakout technique provides us with an entry signal that you can be confident in executing the trade. The next logical thing we need to establish for the Price Channel trading strategy is where to take profits. Step #5: Take Profit 1 at the 50% Fibonacci Retracement of the previous trend, Take Profit 2 at the starting point of the Price Channel The Price Channel trading strategy employs multiple entry techniques. Our first potential take profit zone is the 50% Fibonacci retracement of the previous trend. What do we mean by the previous trend? The trend that was contained within the Price Channel pattern. So plot the Fibonacci retracement indicator between the high and the low of the price channel. The second potential take profit zone is the Price channel starting point. Step #6: Place the protective stop loss above the swing high prior to the Price Channel breakout We’re adopting a very conservative approach when it comes to the stop loss technique. Simply hide the stop loss above the swing high prior to the Price Channel breakout. We also recommend you to trail your stop loss above the last swing high once you cash in on the first portion of the trade.
COINBASE:BTCUSDShort
by Tradingstrategyguides
USDCAD 1H WHAT DOES TRADEABLE OPEN SPACE MEANLook to the left at the past candles. Trade 1 had a long body bearish candle to the left so price is rising through that space now. Above trade 1 box you see several candles in a consolidation sideways move which creates a resistance zone. If price can break through that resistance zone then you see to the left several long body bearish candles. This will be the tradeable open space for trade 2 to pass through in a bullish trade.
Long
by Tradingstrategyguides
2