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Critical CrossroadsWhat a rodeo it has been for BTC as we enter the new year. Complete opposite of 2019 start which had us at ~3700. Is this a repeat of 2015 & 2016? Time will tell as we progress in this new year. Over a week ago, we successfully broke through the mid-term downtrend to establish a quite a steep short-term uptrend . That uptrend is now broken and we are in an unconfirmed, steep downtrend which could try to push us further down. Both the shallower uptrends remain unbroken with the mid-term uptrend being unconfirmed. There is a good possibility of touching the previous broken downtrend to bounce off it as we approach the critical crossroads where the trend intersect with the LT (long-term) uptrend and the support line @ 7411. Indicators We are still in a valid uptrend as seen from the DI+ being above the DI- in the DMI indicator. RSI (not shown) remains rather bullish still despite the most recent push down. Likely to bounce soon in the ~8250 zone. Stoch RSI (again, not shown), looks to be leveling out and could turn in the next 2-3 days. This is not indication of an uptrend by itself but shows promise when looking at other indicators. ATR : Any extreme moves beyond the current average should be taken with great scrutiny. So far, we are within range but an extreme swing down could lead to some ranging as we try to return to mean. Prediction My forecast for the upcoming week is mostly bullish due to the fact that we are faced with a steep trend down which are never long lived. It could still trace downwards for a little while long but I can see a swing back up in the next few days based on the indicators currently. Any crossovers of the indicators to bearish should be taken as a warning foreshadowing that the bears are ready to make a move. Breaking the LT uptrend is also dire warning to the downtrend to come weeks after it crosses and maintains past it. If we continue up, a shallower uptrend will be beginning to form which could direct us further up. I just don't see a -51°trend as remaining for much longer. Good luck and happy trading. Remember, the trend is your friend and your enemy if you make it to be.
BITSTAMP:BTCUSD
by ItisCalvin
GBPUSD 1H BULLISH FLAG BREAKOUT LONG TRADEBullish Flags are a chart pattern under the Range Patterns. Bullish Flag Ranges are repeatable trading chart patterns. Bullish Flag Range chart patterns will have a long directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart ). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the volume settings on the chart – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit. This trade setup was found by Scott Barkley on TSG "Trade of the Week"
Long
by Tradingstrategyguides
ROKU 1D TRIANGLE BREAKOUT TRADESTriangles are repeatable trading chart patterns. Triangles are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:ROKU
by Tradingstrategyguides
NZDCAD 1D MA-X STRATEGY LONG TRADETim's MA-X Strategy. This is a Moing Average Cross or MA-X strategy setup. MA-X strategy consists of the 100 period simple moving average (SMA) in red, and the 20 period exponential moving average in blue. If the 20 ema is above the 100 sma then we only take buys or longs. If the 20 ema is below the 100 sma the we only take selss or shorts. *In this case price is above the 100 sma so we will only take buys or longs. *This Pair has been in a nice uptrend foe some time. *It's now pulled back below the 20 ema and consolidating below the 20. *We are going to look for a close above the 20 ema to go long. *This trade plan we buy a daily candle close above the 20 ema. On the breaking candle to enter a full-sized position we want to the volume bar reach up to the volume average. If it doesn't reach the average but does reach 75% of the average open a ½ size position to reduce risk. You can calculate the percentage by dividing the first volume average by the second volume average. You should at least get 75%, if you don't then stand aside on the trade. The stop loss will be 1.5 x ATR. The first target will be 1 x ATR. So the way that works is you get your candle close above the 20 ema that's your entry point. At that time you look at the ATR of that candle. You multiply that by 1.5 to get your SL. You measure that distance behind the entry and that will be your SL. Then you measure 1 ATR above the entry and that will be your first target. If after entering the trade the candle closes back below the 20 ema, tke the loss right then. Do not wait for price to hit the SL. Our intention is that a breakout above the 20 ema should be explosive and hit our target fairly quickly. If the momentum goes away we want to shut the trade down without taking a full stop if possible. When price hits our first target, close half the position for profit and set the SL to break even on the remainder. Follow stops as price moves in our direction until the market takes us out. These two rules are the very definition of cuttoing your losses and letting your winners run. Typically does this by using two positions. The first position has a stop loss and a take profit. That position will close automatically when the first target is hit. The second position will only have a stop loss and not take profit. This is the position that will be allowed to run. When the first target is hit we have to manually move our stop up to break even on the second position. Risk only two percent of your trading account of each trade. Each position will then only be 1%.
Long
by Tradingstrategyguides
EURCAD 4H SHORT TRADETSG MONEY MANAGEMENT RULES. 1 - Enter 2 trades @ Sell Limit @ 1.4554 - 1% Trade Balance each. 2 - 4H ATR = 25. 3 - SL = 1.5 x ATR (1.5 x 25 = 37.5 = 1.45915) SL for both trades. 4 - TP = 1 x ATR ( 1 x 25 = TP = 1.4529) TP is for 1st order only, 2nd order no TP let profit run. 5 - When 1st TP hit move 2nd order SL to breakeven. 6 - Trail 2nd SL behind previous fractal highs. Price moved up to retest a previous Sup/Res level. Sell Limit made @ 1.4554 for 2 trades. 1st TP hit @ 1.4529, move 2nd trade SL to breakeven @ 1.4554. Price had a bullish pullback and hit 2nd trade SL Price stayed below the previous Sell Limit level of 1.4554. Price re-setup short trade and re-entered another Sell Limit order @ 1.4554. 1st TP hit @ 1.4529, 2nd SL moved to breakeven. Price created a new current fractal low support of 1.4513. Moved Trail SL to current fractal high @ 1.4537. Price created a 2nd current fractal low support at 1.4483. If Price breaks that level then Trail SL to 1.4505 current fractal high. Continue to trail SL if Price continues its bearish move. This current EURCAD 4H Short trade was found by DACapitalTrading Jan 13th. We added to this short trade our TSG money management trade plan.
Education
by Tradingstrategyguides
PLANET FITNESS 1D RANGE TRADESRanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:PLNT
by Tradingstrategyguides
USDMXN - HOW TO TRADE WEEKLY SIGNALS WITHOUT BREAKING THE BANKThe weekly trade signals are very powerful to trade but the weekly stop losses are so large it makes you trade very small size positions. It takes a long time for a weekly entry to hit it's first target. This technique takes that built up explosive energy in a huge weekly pattern. But to trade a size that will make it worth while and to get in and out of the trade more quickly. The weekly chart shows the week of Dec. 9th is the candle that triggered the trade. It closed on Dec 13th at an ATR of .3457. This pair moves a hugh amount of pips every day. Weekly ATR = .3457 Weekly candle close entry @ 19.00 Weekly SL is 1.5 x ATR (.3457) = .5186 pip SL or SL @ 19.5156 Weekly 1st TP is 1 x ATR = .3457 pip TP or TP @ 18.65 Use the free trade size calculator at our TSG website under free tools. Demo Acct Size $10,000 Risk Percentage 1% (open two positions of 1% each) & SL of 5186 pips = You can trade 3.62 Micro Lots or 3 micro lot trade size. You still watch weekly chart for breakout setup but use 1st Daily chart for SL & TP. Your alternative option is to use the Daily SL & TP for the daily breakout candle close. Dec. 9th Daily Close breakout candle. Daily ATR = .1361. Daily candle close entry @ 19.24. Daily SL is 1.5 x ATR (.1361) = .2041 pip SL or SL @ 19.44. Daily 1st TP is 1 x ATR = .1361 pip TP or TP @ 19.1039. Free Trade Size Calculator - Demo Acct Size $10,000 Risk 1% with SL of .2041 You can trade 9.59 Micro Lots or 9 Micro lots. Your Daily 1st TP is closer now also at 19.1039 which your are trading with 9 miro lots. 1st TP was hit on 4th day. USDMXN 1W trade was tied up for 5 weeks with 6 micro lots without hitting 1st TP. Use Weekly Chart Pattern Trade set. But use 1st Day Candle Breakout Close for Trade Management data. No reason to use full week numbers on a weekly trade signal. This applies to all markets that you trade. We often see big patterns on indexes and metals where you can use this technique to shorten your trades. This also allows you to use a bigger size. Much better to see your TP hit in a day or two.
Education
by Tradingstrategyguides
STNE 1D ASCENDING TRIANGLE LONG BREAKOUT TRADEAscending Triangles are repeatable trading chart patterns. T Ascending patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:STNELong
by Tradingstrategyguides
Cup and Handle with ZFGN, SFUN and CHAP. I'm also a penny fan!ZFGN has been showing the cup and handle pattern on its daily chart. With the shape of a flat "U" and a slight down drifted-handle on the right, ZFGN is considered a sign of bullish continuation. The length of its "U" period indicates the bottom has been consolidated and the risk has been shaken out. Volume remained lower than average in the base of the bowl, selling side liquidity sufficiently dried up. And on the right side of the bowl, we could see a bull volume expanded once again as the interests strengthened which is also an additional confirmation of a bullish sign. As the handle been forming on the right side, a selling pressure against its prior high is taking place, but the good side is, it still shows a higher low which viewed as an essential sign as the stock got some big players or managers' attention. So selling pressure is likely to make price consolidate with a tendency toward a downtrend for a period of days to weeks before advancing higher. A trade set up could made from here with a stop loss at the previous low or even higher to the recent consolidating base as the two lines underneath price shown above. For the target level, I would rather consider the previous base that stock consolidated before the bowl in the past. Cup and handle usually managed out the volatility risk as the ATR indicator is reaching to its yearly record low in this case, so only time and momentum(DMI, volume) matter to traders. Besides, I also find some similar candidates such as SFUN, CHAP. All three of them are from a different industry( Biotech, Energy, Internet services), so this is where you should really concerned about. The dissimilarity among them are CHAP has a shorter "U" length and SFUN got lifted a bit already (volatility picked up), so you may take these factors into your trade set up to see if you are gonna play with the pattern or not.
Z
by Khabilan
BOEING 1W DESCENDING TRIANGLE BREAKOUT SHORT TRADE Descending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:BAShort
by Tradingstrategyguides
XPTUSD 1D ASCENDING TRIANGLE BREAKOUT LONG TRADEPlatinum Ascending Triangle Breakout Long Trade Ascending Triangles are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
OANDA:XPTUSDLong
by Tradingstrategyguides
AUDCAD 1D ASCENDING TRIANGLE BREAKOUT LONG TRADEAscending Triangles are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Long
by Tradingstrategyguides
XAUUSD 1W ASCENDING TRIANGLEAscending Triangles are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
OANDA:XAUUSDLong
by Tradingstrategyguides
ETCUSD 1D DESCENDING TRIANGLE BEARISH BREAKOUTDescending Triangles, Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
BINANCE:ETCUSDShort
by Tradingstrategyguides
S&P 500 ETF 1D ASCENDING TRIANGLE LONG BREAKOUTAscending Triangle An ascending triangle consists of a strong resistance level. Strong levels are usually pretty obvious. There will be lots of wicks and bodies that touch a horizontal trendline. A trendline is not just a line but it is always a zone. So you can expect the price to push through the level sometimes. Other times price will just approach the level. Draw the line with the intent of finding the price where the activity seems to be most prominent. Draw it so there are no candle bodies above the line so the line can be used as a trigger price. A close above the line will be a trade trigger. Just like all ines this line is very subjective. You won't get it exactly right every single time. You can adjust this line if a head fake happens and price falls back inside the triangle. A far less important line but an important indicator of what is happening in this marketis the ascending portion of the triangle. This shows us that fewer and fewer traders are willing to see the price drop lower. Everytime the price is pushed down it gets pushed back up more quickly. Price gets trapped between these two lines and the pressure to break the resistance level gets stronger and stronger until it finallys breaks. If price pushes below this uptrend line then redraw it as long as the price goes back into the triangle. Watch that the volume continues to decline also. Watch that a triangle will break usually when price reaches 2/3 to ¾ of completion. Price could break sooner. As a confirmation of the consolidation pattern watch for a decline in volume and ATR/volatility. This represents boredom on the part of traders. Fewer traders are willing to participate in the consolidation and are sitting around waiting for it to break. Use the built-in Trading View volume indicator. Click on indicators- select built-ins – scroll down until you see volume – click on it. The volume will appear in the same window pain as the price action. To seperate it from the price action right-click on the indicator- select “move to” to “ new pane below”. This will seperate the volume frpom the price action pain. Select the default volume MA of 20 periods. Use the volume indicator with a moving average because we need to know what the average volume is. Right click indicator – select style – click volume MA. 20 periods is roughly 4 weeks of data for most markets. Volatility is trader speak for how much the price is moving around. For volatility use the average true range (atr) which is the average of the lengths of the last number of candles. Use the default of 14 periods for the Trading View indicator. This is a short er time period for the ATR so to bet a little quicker idea of what the volatilityis doing. 14 periods represent roughly 3 weeks of data for most markets. There are always anomalies, news events and a data release that is messing with these patterns. A brief hiccup in a pattern does not necessarily negate the pattern if the price falls back into the pattern after these events. Trade the ascending triangle only with a bullish breakout of the resistance level. Enter a buy trade on a breakout candle close of the resistance level on your timeframe. Our upper triangle trendline has no candle closes above it os a close above that level is significant. What if it is a false breakout or head fake? Look for volume on the breakout and just go with it. If there is a cnadle close back inside the consolidation triangle then close the trade for a loss and move on the keep the loss small. How to move on depends on what the chart does for the next few bars. If price settles back into the original triangle with the exception of the head-fake and the volume & ATR/volatility continue to decline, then redraw the resistance level to above the candle bodies on the head fake and look for another breakout. Otherwise just call it a blown pattern and look for other opportunities. Everything also applies to a descending triangle. Just look for a strong support level and for the break to the downside.
AMEX:SPYEducation
by Tradingstrategyguides
6
ATR PRE-ENTRY STRATEGYATR PRE-ENTRY STRATEGY The Average True Range or ATR is a measure of volatility. Volaltility = the amount the price of a market moves around. The highly volitile GBPAUD moves in hughs jumps. It can move a few hundred pips in a single day. You can win or loss a bunch of money of the GBPAUD. EURCHF is a very low volaltility market. Possibly 50 pips in a single days movement. You can find this out by looking at the ATR. The ATR is simply an average of the length of the last number of candles Most use an average of the last 14 candles which is roughly 3 weeks of the price data of most markets. That will give us an idea if the market is in compression (declining) or expansion (inclining). The ATR automatically adjusts for time frame market or market compression or expansion. So it is useful for everything. Including for determining a valid stop loss or target. Also how active a market happens to be. How to use ATR as an pre-entry technique. I look for a decline in volaltility during a corase of a pattern of consolidation to gauage the compression that is taking place in the market during that consolidation. The market is like a spring. The more you compreise it the more power it generates when the compression is released. The decline of the ATR during the consolidation means a bigger explosion in the breakout from the consolidation.
Education
by Tradingstrategyguides
NZDCAD 1D BEAR FLAG SHORT TRADEBear Flag is a form of range chart pattern. Ranges are repeatable trading chart patterns. Flag Ranges are consolidation chart patterns that have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
EURUSD 1H INSIDE CANDLE METHOD BREAKOUTINSIDE CANDLE STRATEGY What is an Inside Candle 1. Previous candle engulfs next candle. 2. 2nd candle high is lower that 1st candle. 3. 2nd candle low is higher than 1st candle. INSIDE CANDLE METHOD 1. Incoming Trend 2. Inside Candle – Opposite Color 3. Enter Break of Engulfing Larger Candle Inside Candle method is a great short term consolidation indicator. If your trade plan contains breakouts and consolidation then this method is for you. This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look. On a daily chart it may take weeks for a consolidation pattern to form. Inside candle represents a pause, consolidation or compression in the market after a big move. Often you will also see reduced volume on the inside candle. Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend. Enter a break of the larger engulfing candle in the direction of the break. Enter with a Stop Order a few pips above or below breakout level. Which trades you take is a matter of preference. Some like reversal trades or trend following trades. Scalping in doesn't matter what direction you may go. Trend following you will want to see this in context of a larger trend. Take all the trade setups and just shut down the ones that don't preform. Trade Management: Enter 2 trades Stop Loss is 1.5 x ATR for both trades First Take Profit is 1 x ATR for 1st trade 2nd trade there is no take profit. When 1st TP is hit move 2nd trades SL to breakeven. Let profit run on 2nd trade by following/trailing SL. If a candle closes back inside the larger engulfing candle close down trade. Watch for a setup for the next breakout.
Education
by Tradingstrategyguides
ETCUSD 1D DESCENDING TRIANGLE SHRT BREAKOUT TRADEDescending Triangles, Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
BINANCE:ETCUSDShort
by Tradingstrategyguides
2
HOW TO AVOID A BREAKOUT HEAD-FAKEAVOIDING FALSE BREAKOUTS 1. Declining Volume and ATR/Volatility. 2. Candle Close Outside the Consolidation 3. Significant Volume on the Breakout. 4. If You Get Head-Faked, Close the Trade. How to Avoid False Breakouts Prevent a Head Fake You can't avoid every false breakout. There is no magic formula. There is no way to know what the market is about to do. What we do as traders is take advantage of little patterns and clues that the market is going to possibly do a certain thing. This is all based on probabilities. These patterns and clues never worked out 100% of the time. That is why we manage our risk on every single trade because there are no sure things. There are things you can do to increase the probability that you are not going to get tricked by a false breakout. Lets take a look at them. AVOIDING FALSE BREAKOUTS 1. Declining Volume and ATR/Volatility. Watch for declining volume & atr/volatility on the consolidation before the breakout. This shows that there are fewer traders willing to risk money that price is staying in the consolidation. 2. Candle Close Outside the Consolidation. Candle closes, especially daily & weekly, are very important events. Day traders like to square their positions at the end of the day. A bearish day trader who is done for the day will close his open shorts which is a buy causing the price to pop up. If price has pushed below the consolidation during the coarse of the day, price will often retreat back into consolidation after day traders square their positions. A daily close below the consolidation means longer term traders are selling. Reverse is true for bullish breakouts. 3. Significant Volume on the Breakout. You want to see significant volume on breakout candle close outside of consolidation. If the volume is declining during the coarse of the consolidation and a volume spike on the candle close outside of the consolidation supports the fact that more traders are interested in the move. Look for the spike to be 100% of the average volume to enter a full sized position. You can enter a ½ sized position if there is at least 75% of the average volume. Use a 20 period simple moving average on the volume so it represents about a month of volume data on most markets. 4. If You Get Head-Faked, Close the Trade. You will eventually get caught in one. If you get a candle close back inside the consolidation, close the trade. You may have another opportunity to get back into the trade from a real breakout. Don't immediately give up on it. Especially if you see the volume and atr/volatility continue to decline. Taking a small loss early on will help you make it up on the real breakout.
Education
by Tradingstrategyguides
AUDUSD 1D BEARISH WEDGE SHORT BREAKOUT TRADEWedges are a form of Range pattern & Ranges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Ascending Bearish Wedge and Descending Bullish Wedge chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
2
DISH NETWORK 1D TRIANGLE BREAKOUTTriangles, Descending Triangles, Ascending Triangle and Ranges are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart ). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility ) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the volume settings on the chart – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
D
by Tradingstrategyguides