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GBPAUD Potential Short As you can see, price has tested 1.84000 multiple times over the past couple of days. We are currently in a consolidation period, with Brexit news incoming the market seems to be preparing for the outcome of those results. If we can see a clear 4h rejection of 1.8400 we would be looking for some downside for this pair. 1.8400 is also lining up nicely with our 38% fibonacci level which gives me another confirmation for entry short. Not only that it looks to be respecting its 1H trendline. Target wise, I would be looking at the weekly support level at around 1.82500, which lines up nicely with my 27% fib target. A break above 1.8400 would invalidate this set up and I would be then looking at a daily close to see if price has rejected a day key level at 1.84300. If we see a break and close above this, upside would be my new bias.
Short
by lewisqfx
ORB NR4 CANDLESTICK PRICE ACTION STRATEGYORB - Opening Range Breakout This strategy works on all markets - time frame is Day & 1H Step #1: Wait until you can spot a bar that has its daily range smaller than the previous three days The first rule requires you to have the patience until the Nr4 pattern develops on the YOUR chart. When we have a daily trading range that is narrowed than the previous trading ranges it means that the price is contracting. Based on our backtesting results we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion. This is the reason why this short-term price pattern is so powerful. Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day. The short-term pattern Nr4 satisfies all the requirements for a valid setup, which mean that we can move forward and describe how to buy or sell. Step #3: How to buy or sell: Buy/sell only if the breakout of the Nr4 high/low happens during the first 5 trading hours. We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days. Here is another strategy called simple yet profitable strategy. Our trade may not have an inside day, but nevertheless we want to buy/sell only after we break above/below the Nr4 day high/low. Also, we want to make sure the breakout happens during the first five trading hours of the next day. Trades based on the ORB – Nr4 pattern will show you a profit instantly. Now, if the trade is not showing you a profit right away then your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market. Of course, you can only do that if your stop loss hasn’t been triggered in the meantime. Now, let’s outline where to place our protective stop loss. Step #4: Place your protective Stop Loss above/below the Nr4 day high/low You can hide your protective stop loss above/below the Nr4 day high/low. Alternatively, you can also place your stop loss below the current day high/low as this will give you a better risk to reward ratio. The ORB - Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined they tend to produce even more powerful trades. Step #5: Take profit at the close of the first 1-hour bearish candle Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel. Even though the ORB pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. So as soon as the first bullish/bearish candle shows up we close the trade and enjoy our daytrade profits. Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the market.
by Tradingstrategyguides
ETHUSD 1H RSI 80-20 TRADING STRATEGYStep One: Find the currency pair that is showing a high the last 50 candlesticks. (OR low depending on the trade) The 80-20 Trading strategy can be used for any period or any market. This is because there are reversals of trends in every period. This can be a swing trade, day trade, or a scalping trade. As long as it follows the rules, it is a valid trade. We also have training for building a foundation before a forex strategy matters. In this step, we only need to ensure it is the low or the high of the last 50 candles. Step Two Using the RSI Trading Indicator: RSI Settings - Period 8 - Levels 80/20 When we find 50 candle low, it needs to be coupled with RSI reading 20 or lower. (If it’s high it needs to be combined with the RSI reading 80 or higher.) Once we see that we had a low, the last 50 candles, and the RSI is BELOW 20, we can move to the next step. Remember that this strategy is a reversal strategy. It is going to break the current trend and move the other direction. Step Three: Wait for a second price (low candle) to close after the first one that we already identified. The second price low must be below the first low. Although the RSI Trading indicator must provide a higher signal than the first. Remember that divergence can be seen by comparing price action and the movement of an indicator. If the price is making higher highs, the oscillator should also be making higher highs. If the price is making lower lows, the oscillator should also be making lower lows. If they are not, that means price and the oscillator are diverging from each other. Which is why it’s called “divergence.” Just because you see a divergence, doesn’t mean you should automatically jump in with a position. We have rules in place that will capitalize on this divergence so that we can make a significant profit. Keep in mind, that this step may take time to develop. It is very important to wait for this second low because it gets you in a better trade making position. Price goes down/RSI goes up. That is the Divergence. Remember that our example is a current downtrend looking to break to the upside. If this was a 50 candle high, we would be looking at the exact opposite of this step. Step Four: How to Enter the Trade with the RSI Trading Strategy. The way you enter a trade is very simple. You wait for the price to head in the direction of the trade and wait for a candle to close above the first candle that you identified that was previously 50 candle low. Step five: Once you make your entry, place a stop loss. To place your stop, bump back 1 to 3 time periods and find a reasonable, logical level to put your stop. You are looking for prior resistance, support. Step 6: I recommend you follow at least a 1 to 3 profit vs. risk level. This will ensure that you are maximizing your potential to get the most out of the strategy. You can adjust as you wish. Keep in mind that most successful strategies that identify breaks of a trend use a 1 to 3 profit vs. risk level.
BITFINEX:ETHUSDLong
by Tradingstrategyguides
8
ORB Nr4 CANDLESTICK PRICE ACTION STRATEGYORB - Opening Range Breakout This strategy works on all markets - time frame is Day & 1H Step #1: Wait until you can spot a bar that has its daily range smaller than the previous three days The first rule requires you to have the patience until the Nr4 pattern develops on the YOUR chart. When we have a daily trading range that is narrowed than the previous trading ranges it means that the price is contracting. Based on our backtesting results we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion. This is the reason why this short-term price pattern is so powerful. Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day. The short-term pattern Nr4 satisfies all the requirements for a valid setup, which mean that we can move forward and describe how to buy or sell. Step #3: How to buy or sell: Buy/sell only if the breakout of the Nr4 high/low happens during the first 5 trading hours. We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days. Here is another strategy called simple yet profitable strategy. Our trade may not have an inside day, but nevertheless we want to buy/sell only after we break above/below the Nr4 day high/low. Also, we want to make sure the breakout happens during the first five trading hours of the next day. Trades based on the ORB – Nr4 pattern will show you a profit instantly. Now, if the trade is not showing you a profit right away then your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market. Of course, you can only do that if your stop loss hasn’t been triggered in the meantime. Now, let’s outline where to place our protective stop loss. Step #4: Place your protective Stop Loss above/below the Nr4 day high/low You can hide your protective stop loss above/below the Nr4 day high/low. Alternatively, you can also place your stop loss below the current day high/low as this will give you a better risk to reward ratio. The ORB - Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined they tend to produce even more powerful trades. Step #5: Take profit at the close of the first 1-hour bearish candle Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel. Even though the ORB pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. So as soon as the first bullish/bearish candle shows up we close the trade and enjoy our daytrade profits. Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the market.
by Tradingstrategyguides
GBPAUD 1H SHOOTING STAR CANDLE STRATEGYStep #1: Attach the Chaikin Money Flow Indicator on your Preferred Time Frame Start first by preparing your charts ready for the battle. Simply attach the Chaikin Money Flow indicator on your favorite time frame. This is the only additional technical tool we’re going to use to confirm the validity of the bearish shooting star pattern. Using the CMF indicator we accomplish one major thing. The validity of the bearish shooting star will be confirmed or invalidate instantly as soon as the bearish inverted hammer develops on our Bitcoin candlestick chart. This means that the price won’t move any further from the ideal entry price. Step #2: The Shooting Star Candle should come after a strong bearish trend The location or in other words, where the shooting star candlestick develops matters a lot. This whole ingredient is what makes the bullish shooting star candle performs with such a high degree of accuracy. We need a strong downtrend that has two important features: The first part of the trend is a slow and steady move to the downside The last part of the uptrend, prior to the shooting star candle, needs to be more volatile. Basically, we’re looking for a full-blown market bottom where the bears are exhausted and reach a climax point. Step #3: The CMF indicator must be above the 0 line once the bullish shooting star candle develops The Chaikin Money Flow is a great tool to read and measure institutional accumulation-distribution activity in any market. Basically, a CMF reading above the zero line shows that the buyers have the upper hand and they took control of the market. Notice that the bullish shooting star spotted satisfies all the requirements of a bullish inverted hammer. The shadows are at least two times longer than the body; small body; and very little upper shadow. This candle would have been more powerful if the closing price is above the opening price. But it’s still a good pattern to trade due to all the other features. Now, it’s time to highlight how to find the right entry point for bullish shooting star candlestick. Step #4: Buy once we break the high of the Shooting Star Candle Simply, place a buy stop order above the high of the shooting star. Nothing complicated about our entry strategy. It’s in line with the textbook rule. Step #5: Hide SL below the low of the Shooting Star Candle. Simply hide your protective SL below the low of the shooting star pattern. You can add a buffer of a few pips if you wish to protect against possible false breakouts. Step 6: TP when we get inside the slow part of the prevailing trend or you choose your TP strategy. The full-blown bottom creates the necessary space where the bulls would find no level of support to stop the drop. The last stage of a trend has been always more volatile. And, when combined with the reversal shooting star pattern, it makes for a killer trading strategy. Reverse strategy for a Bearish Shooting Star Strategy.
Long
by Tradingstrategyguides
4