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CVD AI PRO - 3.1 Conservative Day Trader CVD AI PRO - 3.1 Conservative Day Trader (updated) Summary: This advanced technical indicator combines Cumulative Volume Delta (CVD), Dynamic Average True Range (ATR), and Percentage Change analysis to generate long trading signals. Designed for the discerning trader, it integrates a comprehensive approach by considering volume, price volatility, and trend momentum to identify potential market entry points. Features: • Timeframe Selector: Allows users to specify the desired analysis timeframe, enhancing the indicator's flexibility across different trading strategies. • Conservative Signal Filter: An optional filter that prevents the generation of consecutive buy or sell signals without an alternating signal, promoting a disciplined trading approach by ensuring that each buy signal is followed by a sell signal and vice versa. • ATR-Based Stop Loss Calculation: Utilizes a dynamic ATR multiplier to determine optimal stop loss levels, adjusting to market volatility. • Cumulative Volume Delta (CVD): Offers insights into market momentum by accumulating volume changes, providing a unique perspective on market sentiment. • MACD & Confidence Level Analysis: Incorporates MACD line movements and a custom confidence level based on CVD normalization to refine signal accuracy. • Volume Filter: Enhances signal reliability by including volume trends in the analysis, with options to activate or deactivate this filter based on user preference. • Customizable Parameters: Includes user-defined inputs for ATR length, CVD length, MACD settings, and more, offering a tailored analytical experience. • Signal Labels with Enhanced Visibility: Marks buy and sell signals directly on the chart with labels featuring increased font size, improving readability and decision-making speed. • Directional Trend Labels: Provides immediate visual cues about the market's direction, aiding in quick assessment of current market trends. Use Cases: Ideal for traders looking for a comprehensive, multifaceted technical analysis tool, this indicator suits various trading styles, from swing trading to longer-term investment strategies. The Conservative Signal Filter and enhanced signal labels particularly benefit users seeking to minimize risk and focus on clear, well-defined market entry and exit points.
by Crypto_Capital_Int
2
CVD PRO Buy Sell Signals for scalping in Crypto FuturesCVD PRO v3.0 - Crypto Capital International Indicator Overview: This indicator combines several key elements to provide insights into market trends and potential trading signals. It incorporates Cumulative Volume Delta (CVD), Dynamic Average True Range (ATR), Percentage Change, MACD (Moving Average Convergence Divergence), and G-Trend filters. By analyzing volume, price movements, and momentum indicators, it aims to identify potential buying and selling opportunities. 1. How It Works: • CVD (Cumulative Volume Delta): CVD is calculated by cumulatively summing the volume multiplied by the sign of price changes. This helps gauge the strength of buying or selling pressure. • ATR (Average True Range): ATR measures market volatility, providing insights into potential price movements. The dynamic aspect adjusts ATR based on market conditions. Percentage Change: This indicator calculates the percentage change in price over a specified period. • MACD: MACD is a trend-following momentum indicator that helps identify trend direction and potential reversals. • G-Trend: G-Trend identifies bullish or bearish trends based on price movements relative to a moving average. 2. How to Use It: • Buy Signals: Generated when confidence level surpasses a threshold, MACD signal is bullish, CVD is positive, and optionally, volume filter conditions are met. • Sell Signals: Generated when confidence level surpasses a threshold, MACD signal is bearish, and optionally, volume filter conditions are met. 3. Market Conditions It Works In: The indicator is suitable for various market conditions, including trending, ranging, and volatile markets. It's particularly effective in identifying trends and potential reversals during periods of significant volume and price movement. 4. Base Indicators Explained: CVD: Measures volume-based buying or selling pressure. ATR: Indicates market volatility and potential price ranges. MACD: Identifies trend direction and momentum. G-Trend: Helps confirm bullish or bearish trends. 5. Volume Filter: The volume filter optionally includes green (bullish) or red (bearish) volume bars to confirm buy or sell signals. Traders can toggle the volume filter based on how many signals will be filtered from the daily volume inflows or outflows Volume Bar Colors: The volume filter compares the current volume bar color with the previous volume bar color. A green volume bar indicates that the closing price of the current bar is higher than the closing price of the previous bar, suggesting bullish sentiment. A red volume bar indicates that the closing price of the current bar is lower than the closing price of the previous bar, suggesting bearish sentiment. Filter Logic: For buy signals, the volume filter confirms bullish momentum by checking if the current volume bar is green (indicating buying pressure). For sell signals, the volume filter confirms bearish momentum by checking if the current volume bar is red (indicating selling pressure). Usage: Traders can choose to enable or disable the volume filter based on their trading preferences. Enabling the volume filter adds an additional confirmation criterion to buy and sell signals, potentially increasing the reliability of trade decisions. Disabling the volume filter ignores volume bar colors and relies solely on other criteria (such as MACD, CVD, and confidence level) for generating signals. Considerations: The volume filter is optional and can be toggled on or off based on individual trading strategies. It's important to consider the overall context of price action and volume trends when interpreting volume bar colors. Traders may adjust the sensitivity of the volume filter or combine it with other volume-based indicators for more nuanced analysis. Implementation: The indicator code includes logic to check volume bar colors (green or red) and incorporates this information into signal generation. Buy signals are confirmed by green volume bars, while sell signals are confirmed by red volume bars.
by Crypto_Capital_Int
Beating the S&P500 (SPX) Buy&Hold strategy by 16 timesS&P500 (SPX) strategy using Stochastic RSI Min-Max, normalized Volatility and Trailing Stop signals, beats the Buy&Hold strategy by 16 times Embarking on the quest to time the market accurately, the 'Holy Grail' of strategies, led me to create a script to approach this goal. Unlike other strategies that I tested, this one not only surpasses the long-term S&P500 Buy&Hold approach but does so by a remarkable 16.38 times! Initially, I employed an A.I. program based on an LSTM Neural Network using TensorFlow. Despite achieving a 55% next-day prediction accuracy for short/long positions, I sought improvement using a heuristic pine-scripting approach, incorporating stochastic RSI oscillators, moving averages, and volatility signals. With default parameters, this strategy, freely available as "XPloRR S&P500 Stock Market Crash Detection Strategy v2" delivered a staggering 2,663,001% profit since February 1871. In the same period, the Buy&Hold strategy "only" generated 162,599% profit. Picture this: a $1,000 investment in 1871 would now be worth $26,630,014 by February 2024. Check it out for yourself loading this strategy. The script operates as a Stochastic RSI Min-Max script, automatically generating buy and sell alerts on the S&P500 SPX. What sets it apart? The strategy detects "corrections," minimizes losses using Trailing Stop and Moving Average parameters, and strategically re-enters the market after detecting bottoms using tuned Stochastic RSI signals and normalized Volatility thresholds. Tailor its parameters to your preference, use it for strategic exits and entries, or stick to the Buy&Hold strategy and start new buy trades at regular intervals using buy signals only. In the pursuit of minimizing losses, the script has learned the effectiveness of a 9% trailing stop on trades. As you can clearly see on the upper graph (revolving around 100), the average overall green surfaces (profits) of all trades are much bigger than the average red surfaces (losses). This follows Warren Buffets first rule of trading to "Never lose money" and thus minimizing losses. Update: Advanced S&P500 Stochastic RSI Min-Max Buy/Sell Alert Generator I have also created an Alerter script based on the same engine as this script, which auto-generates buy and sell alert signals (via e-mail, in-app push-notifications, pop-ups etc.). The script is currently fine-tuned for the S&P500 SPX tracker, but parameters can be fine-tuned upon request for other trackers or stocks. If you are interested in this alerter-version script or fine-tuning other trackers, please drop me a message or mail xplorr at live dot com. How to use this Strategy? Select the SPX (S&P500) graph and set the value to "Day" values (top) and set "Auto Fit Data To Screen" (bottom-right). Select in the Indicators the "XPloRR S&P500 Stock Market Crash Detection Strategy v2" script and set "Auto Fit Data To Screen" (bottom-right) Look in the strategy tester overview to optimize the values "Percent Profitable" and "Net Profit" (using the strategy settings icon, you can increase/decrease the parameters). How to interpret the graphical information? In the SPX graph, you will see the Buy(Blue) and Sell(Purple) labels created by the strategy. The green/red graph below shows the accumulated profit/loss in % of to the initial buy value of the trade (it revolves around 100%, 110 means 10% profit, 95 means 5% loss) The small purple blocks indicate out-of-trade periods The green graph below the zero line is the stochastic RSI buy signal. You can set a threshold (green horizontal line). The vertical green lines show minima below that threshold and indicate possible buy signals. The blue graph above the zero line is the normalized volatility signal. You can set a threshold (blue horizontal line) affecting buy signals. The red graph above the zero line is the slower stochastic RSI sell signal. You can set a threshold (red horizontal line). The red areas indicate values above that threshold. However real exits are triggered if close values are crossing below the trailing stop value or optionally when the fast moving average crosses under the slow one. The red areas above the threshold are rather indicative to show that the SPX is expensive and not ideal to enter. Please note that in bullish periods the red line and areas can stay at a permanent high value, so it is not ideal to use as a strict sell signal. However, when it drops below zero and the green vertical lines appear, these are strong buy signals together with a high volatility. These Parameters can be changed Buy Stochastic Lookback Buy Stochastic Smoother Buy Threshold Buy Only After Fall Minimum % Fall Sell Stochastic Lookback Sell Stochastic Smoother Sell Threshold Sell Only With Profit Minimum % Profit Use Sell MA Fast MA Sell Slow MA Sell MA Sell Threshold Use Buy Volatility Volatility Smoother Volatility Threshold Use Trailing Stop Use ATR (iso of a fixed percentage for the trailing stop) ATR Lookback Trailing Stop Factor(or fixed percentage if "use ATR" is false) Trailing Stop Smoother Important : optimizing and using these parameters is no guarantee for future winning trades!
SP:SPXEducation
by XPl0RR
ETH Renko (Daily 14pd ATR block size), Potential Reversal @$3k My recent idea of a rising wedge bearish continuation pattern may be invalidated at this point because of ETH's pop up the 3k (unless i'm willing to accept the blemish of a large fakeout breakout). However, it still remains that things are looking overheated on multiple time-frames (w.r.t regular candles). Moreover, volume has been decreasing throughout this entire extended uptrend. So I took a step back and tried to see if renko bars could off a clearer view of that's going on with ETH. Looking at fib lines, there appears to be confluence around the $3000 level where ETH is currently meeting short term resistance. To a naive eye like mine, stoch rsi (14) and regular rsi (14 & 7) appear to be in a slowing/coiling uptrend. Perhaps a trend reversal is due assuming assuming the $3000 level holds as a stiff resistance and we get a legit bearish cross on the stoch. In the event of reversal, i'll be looking at $2500 and $2100 as the first levels levels to add. However i'm aware that we could go quite a bit lower if we actually reverse trend. Full disclosure, I sold around $2650 so yes i'm a little salty that we popped up to 3k haha.
INDEX:ETHUSD
by rlando
Mastering Stop-Loss with ATR IndicatorMastering Stop-Loss and Take-Profit with ATR Indicator What is the ATR Indicator? The Average True Range (ATR) indicator is a nifty tool that helps traders gauge the market's volatility. Simply, it tells you how much an asset typically moves in a given timeframe. Placing Stop Loss to Avoid Getting Stopped Out Step 1: Identify ATR Value Look at the ATR indicator on your chart; it's usually at the bottom or top of your screen. Note the ATR value; the higher it is, the more volatile the market. Step 2: Setting Stop Loss Set your stop loss beyond the ATR value to avoid getting prematurely stopped due to regular market fluctuations. For instance, if the ATR is 50, consider placing your stop loss at least 60 points away to give your trade room to breathe. Understand ATR's Role ATR not only helps with stopping losses but also guides in setting realistic take-profit levels. It gives you an idea of how much the asset can move in a given time, assisting you in capturing profits before a potential reversal. Final Tips for Beginners Adapt to Market Changes: ATR values change as market conditions shift. Stay adaptable and reassess your stop-loss and take-profit levels accordingly. Practice on Demo Accounts: Before diving into live trading, practice using the ATR indicator on demo accounts. Gain confidence and refine your strategy without risking real money. In essence, the ATR indicator is your ally in navigating market volatility. By using it wisely, you can enhance your risk management, safeguarding your trades from unnecessary stop-outs while optimizing your profit potential. Happy trading! 📈✨
VANTAGE:SP500Education
by Elite_Forex
Thriving in Volatile Market ConditionsNavigating financial markets often involves confronting periods of high volatility. For traders, the question invariably arises: what is the best way to deal with volatility? This article aims to provide a comprehensive overview of understanding market volatility, managing risks, choosing appropriate trading styles, and utilising key analytical tools to help traders survive and thrive in volatile conditions. The Meaning of Market Volatility Market volatility refers to the degree of variation in a financial instrument's price over a specific time frame. Simply put, it's the measure of how wildly or moderately the price of an asset, such as a stock, currency, or commodity, fluctuates. Several factors contribute to market volatility. Macroeconomic indicators like inflation rates, unemployment data, and geopolitical events can send ripples through the market. Furthermore, company-specific news, such as earnings reports and mergers, can result in sharp price swings. Understanding volatility is essential for traders because it directly impacts the risk and reward profile of any trade. Why Volatility Isn't Always Bad Contrary to popular belief, market volatility isn't necessarily a negative phenomenon. While it does introduce an element of unpredictability, it also creates opportunities for traders to capitalise on price movements. Volatility expands the trading range, allowing for potentially higher returns when executed correctly. The key is to manage market volatility, meaning aligning trading strategies to exploit these fluctuations rather than shy away from them. In more static markets, such opportunities are limited. Volatile markets can be highly lucrative, especially with the right approach to risk management. Risk Management in Volatile Markets In volatile market conditions, effective risk management becomes even more crucial. One indispensable tool is the stop-loss order. Unlike stable markets where narrower stop-losses can work, volatile markets often require wider stop-losses to avoid premature exits due to temporary price spikes. Position sizing is another pivotal element. In a volatile market, the theory states it may be best to reduce the size of individual trades, usually risking between 1-2% of your account balance. Smaller positions equate to reduced risk, allowing traders to absorb unexpected market shifts without significantly damaging their accounts. Diversification in the context of trading volatile markets often means spreading trades across multiple, uncorrelated markets. For instance, if you're trading equities, consider diversifying into commodities or currencies that are not strongly correlated with stock market performance. This strategy can provide a safety net, diminishing the impact of adverse moves in any single market. Trading Styles for Volatile Markets When it comes to thriving in these market conditions, selecting an appropriate trading style is paramount. Two styles that are often effective in volatile markets are swing trading and scalping. Swing trading involves holding positions for several days or weeks to capitalise on expected upward or downward market shifts. This style allows traders to take advantage of larger price swings and bypass the short-term noise often prevalent in volatile markets. Scalping, on the other hand, is all about making quick profits from small price gaps that are usually created by order flows or spreads. In volatile markets, these opportunities arise more frequently, allowing scalpers to profit from quick moves. Both styles have their own set of advantages and disadvantages, but they share the common trait of requiring strict risk management techniques to be effective. The choice between them largely depends on a trader's risk tolerance, time commitment, and skill level. Tools for Analysing Volatility In order to navigate volatile markets effectively, traders often turn to specific technical indicators designed to measure and interpret volatility. Two such popular tools are Bollinger Bands and the Average True Range (ATR), both of which you’ll find waiting for you in FXOpen’s free TickTrader platform. Bollinger Bands consist of a middle band, which is a moving average, and two outer bands calculated based on price volatility. When the bands widen, it suggests increased volatility; conversely, narrowing bands indicate lower volatility. The Average True Range, on the other hand, measures market volatility by calculating the average range between the high and low prices over a specific period. A rising ATR signifies increasing volatility, while a falling ATR indicates decreasing volatility. The Bottom Line Successfully navigating volatile markets requires not just strategic planning and the right tools but also a strong psychological approach. Maintaining discipline and focus in the face of extreme price swings is essential. Mindfulness practices and a well-structured trading plan can help traders keep strong emotions in check. For those ready to apply these principles in a live trading environment, consider opening an FXOpen account. Once you do, you’ll gain access to hundreds of markets, from stable to highly volatile. Good luck! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
6
Currency scuffleAs you can see we prepared update for the currency agenda, we have added gd, jpy, rub, and inr to the fuse, as you can see fibonacci cycles stayed the same in the anbsence. We think or at least clearly see on a chart that rub was the most profitable currency available. In the later arrivals we will try to discover most profitable assets nominated in rubles and compare them to assets in other curencies. Feel free to read, analyse, comment and enjoy the party.
by UnknownUnicorn462803
1
Tuimaz Zavod AvtobetonovozovInteresting company for a long run investment in the tracking production area, concrete field. Low volume less than 100 000 000 ₽ but speaking of a chart of the company it looks like ATR could go back to the 10.9 level where it was during first days of the september. Cherry on a pie is price in the moment of pumping do not go out of the R5/S5 pivots this means traders love the company and do not over-buy or over-sold it. Price target could be 280 ₽ or 360 ₽ for the common stock. Current relation of capitalisation to volume is 22.76 this means even due to low volume and low capitalisation company has a lot of minoritaries and this is good.
RUS:TUZA
by UnknownUnicorn462803
UJ: “Bat” harmonic Setup on “Limit” Entry (25/100)System has identified a “BAT” playbook setup and executed a buy “limit” entry during pre-market of the ASIA 12-Candle Window. RISK: 1R TARGET: 4R ***DISCLAIMER*** This is a new system based strategy being live tested for the purpose of gathering data. The system generates between 3-6 signals per session upon detecting a qualifying setup and entry signal. Currently being tested only in ASIA and only using USD/JPY pair. The win rate and expectancy are unknown. Please do not take these trades.
Long
by USA_Capital_Funds
Long ETH - Adapting to a successful backtested strategyCurrent position is Long at 1640. Stop loss 3.5% The RSI and ATR on multiple timeframes has indicated a trend reversal from short to long. Thus we adapt. No Bias, no emotion. Pure TA and risk management. Is the current position down a few percent? yes... does it matter? No! The entire portfolio is up over 4400% since 2020 (Substatiated by the backtest). We stick to the gameplan, the intermediate market moves are irrelevant. Our risk profile is planned for. We follow the strategy that has consistently had major net profits year on year (Substatianted by the backtest) and we don't get swayed by emotional bias. Adaptation is a fundamental component of implementing a proven and backtested strategy. In financial markets and various other domains, adhering to a well-researched and tested approach is essential for achieving consistent success. The dynamic nature of these environments necessitates the ability to adapt when circumstances change. Therefore, recognizing the importance of adapting to current market realities while still adhering to a proven strategy is paramount for long-term sustainability and success.
BITFINEX:ETHUSD
by TradingAlgorithms
SPX weak move poised for a return to the VPVR Point of ControlIntroduction The recent uptrend in equities has been called a “hated rally” by several financial news organizations (www.afr.com) and lots of people are “sitting on their hands” for this uptrend. That type of behavior seems ripe for people to try and sell the local high and buy lower down. The monthly ADX has remained very low. When the ADX goes from below 20 to the middle zone it is a sign that the volatility and move may proceed in a more sustained manner and when the ADX is above 40 that is a technical sign that there will be a sustained uptrend. A move from above 40 to below 40 is a sign the move is running out of steam. Likewise, the Average True range has been falling during this uptrend. The ATR measures price volatility and this falling volatility combined with a increase in price is broadly bearish. The black arrow on the chart shows that just prior to SPX’s all time high the ATR was falling. The ATR falling again suggest a similar reversal and a new local low. The green arrow also shows some divergence on the ATR. The ATR is good for both regular and hidden divergences so the fact that SPX shows both is a stronger suggestion that this uptrend will reverse. One simple targeting stratify is to assume that price will pull back to the Point of Control at the VPVR. When using the Volume Profile Visible Range it is important to have a defendable starting point and I have set the screen to see the price action since the bottom of the 2008-2009 financial crisis. I find that to be a very defendable place to see the volume by price action. Recall, most volume charts show volume by session wile the VPVR shows volume by price over a specific date range. I have my VPVR defauls set to 68 so I get a close as possible to seeing 1 standard deviation of volume area and I set the number of rows to 147 simply because that gives me 100 rows in the value area. We can see from the main chart that there was a lot of resistance the Point of Control (price where most trading happened) there between 2014 and 2016 and the C19 dump retested that level. In uptrends price has a tendency to be above the value area and correct to it as support and in downtrends price is below the value area/point of control and tends to rally to it and then reverse. In the long run price returning to the Point of Control might set up a head and shoulders but that is a problem for a later time. The quarterly chart below shows that the price target of 2099 puts the price between the 2.0 and 2.618 Fib extension ratios. That is about the max target we could expect from a ABC correction based off a strong understanding of Elliot Wave theory. Elliot Wave Resource forex-indicators.net pg 45 Figure 4-8 Figure 4-9 In a regular flat correction, waves A, B and C are, of course, approximately equal, as shown in Figure 4-10. In an expanded flat correction, wave C is often 1.618 times the length of wave A. Sometimes wave C will terminate beyond the end of wave A by .618 times the length of wave A. Both of these tendencies are illustrated in Figure 4-11. In rare cases, wave C is 2.618 times the length of wave A. Wave B in an expanded flat is sometimes 1.236 or 1.382 times the length of wave A Conclusion I am going to remain on the sidelines of the equities market until I see some bullish divergence on indicators on the weekly or monthly time frames. I have a nagging assumption that as the equities markets top that the broader crypto market will have a last hurrah for 2-3 years and that will begin its drawdown.
SP:SPXShort
by This_Guhy
2
How to Use the Supply and Demand Deluxe Indicator Welcome, fellow traders, to this exciting tutorial where we dive deep into the world of supply and demand analysis using the powerful Supply and Demand Deluxe indicator that I launched this morning. Prepare yourself for an enjoyable learning experience as we unravel the mysteries of supply and demand levels across various timeframes. So, grab your favorite trading beverage, sit back, and let's embark on this adventure together! Section 1: Understanding Supply and Demand Analysis: Before we delve into the specifics of the Supply and Demand Deluxe indicator, let's understand the importance of supply and demand analysis in trading. Supply represents the availability of shares or contracts for sale, while demand represents the number of buyers interested in purchasing those shares or contracts. By analyzing the interaction between supply and demand, traders can identify potential turning points, support and resistance levels, and areas of high buying or selling interest. This knowledge forms the foundation of effective trading strategies, and the Supply and Demand Deluxe indicator is here to assist us in this journey. Section 2: Introducing the Supply and Demand Deluxe Indicator: The Supply and Demand Deluxe indicator is a powerful tool designed specifically for TradingView. Its primary goal is to identify supply and demand levels on various timeframes, including weekly, daily, and hourly. With visual plots and customization options, this indicator empowers traders to make well-informed decisions based on the principles of supply and demand. It caters to traders of all styles and timeframes, from day traders to long-term investors. Section 3: Getting Started: Installing and Adding the Indicator to Your Chart: To begin using the Supply and Demand Deluxe indicator, install it on your TradingView platform. Visit the TradingView website, navigate to the indicators section, and search for "Supply and Demand Deluxe (Stock Justice)." Click on the indicator to access its details and add it to your chart. The indicator will be added and ready to unlock its potential. Section 4: Exploring the Key Components and Functionalities: Let's explore the key components and functionalities of the Supply and Demand Deluxe indicator, which help us identify and interpret supply and demand levels effectively. 4.1 Daily and Weekly Pivots: Daily and weekly pivots provide essential reference points. The indicator allows you to plot the previous week's high and low, yesterday's high and low, and the midpoint of yesterday's range. Visualizing these pivots helps gauge potential areas of interest and determine price behavior. 4.2 Weekly Supply and Demand Levels: Weekly supply and demand levels are critical for understanding the broader market context. With the Supply and Demand Deluxe indicator, you can plot these levels, customize the number of levels displayed, choose line colors and styles, and decide whether to extend the lines. Enabling the "Show Price" option enhances your analysis. 4.3 Daily Supply and Demand Levels: Similar to the weekly levels, daily supply and demand levels provide valuable insights into intraday price dynamics. Customize the number of levels displayed, choose line colors and styles, and determine line extensions. Enabling the "Show Price" option visualizes corresponding prices. 4.4 Hourly Supply and Demand Levels: Intraday traders will appreciate the Hourly Supply and Demand Levels feature. The indicator automatically identifies these levels based on the highest and lowest values of the past 10 bars. Customize the number of levels displayed, choose line colors and styles, and even show prices associated with these levels. 4.5 ATR Expected Moves: The ATR Expected Moves feature calculates expected price moves based on the Average True Range (ATR). Customize the lookback length and multipliers. Extend lines, choose colors and line styles, and display prices. Incorporating ATR Expected Moves helps set realistic profit targets and manage risk effectively. 4.6 Futures Levels: For futures traders, the indicator provides specific levels for the Midnight Open, London Open, Asian Open, and the 8:30am EST level. These levels act as potential reference points, aiding in identifying intraday opportunities and aligning trades with global market dynamics. Section 5: Customizing the Indicator to Fit Your Trading Style: The Supply and Demand Deluxe indicator offers customization options to align with your trading style and preferences. 5.1 Adjusting Input Parameters: Fine-tune the indicator by adjusting parameters such as the number of levels plotted, lookback length, multipliers for ATR calculations, and more. Experiment with different settings to better suit your trading strategy. 5.2 Customizing Visual Elements: Customize line colors, styles, and extension options to enhance aesthetics and readability. Choose colors, line styles, and decide whether to extend lines to the left, right, or both. This level of customization ensures a visually pleasing trading experience. Section 6: Practical Applications and Trading Strategies: In this section, we explore practical applications and trading strategies using the Supply and Demand Deluxe indicator. 6.1 Identifying Key Supply and Demand Levels: The indicator helps identify key supply and demand levels across different timeframes. Analyzing these levels in conjunction with other technical analysis tools can identify high-probability trade setups. 6.2 Using Pivots for Reference Points: Pivots, both daily and weekly, serve as crucial reference points. Consider price reactions around these pivots and consider them in conjunction with supply and demand levels to gain valuable insights into market dynamics. 6.3 Incorporating ATR Expected Moves in Risk Management: Use the ATR Expected Moves feature for risk management. Set realistic profit targets and define appropriate stop-loss levels based on expected price moves. This statistical framework helps adjust position sizing and manage risk effectively. Section 7: Tips and Tricks for Maximizing the Indicator's Potential: To enhance your trading experience with the Supply and Demand Deluxe indicator, consider these tips and tricks: 7.1 Leveraging Different Timeframes: Analyze supply and demand dynamics across different timeframes. Use higher timeframes for overall market context and lower timeframes for precise entries and exits. Combining multiple timeframes improves analysis accuracy. 7.2 Combining Multiple Timeframes: Combine the Supply and Demand Deluxe indicator with other technical analysis tools such as moving averages, oscillators, or chart patterns. This synergy provides confirmation signals and increases the probability of successful trades. Section 8: Conclusion: Congratulations on completing this comprehensive tutorial on the Supply and Demand Deluxe indicator! We've covered the fundamental concepts, explored features and functionalities, and discussed practical applications and trading strategies. Experiment with different settings, customize visual elements, and integrate the indicator into your trading plan. As you gain experience, you'll be well-equipped to make informed trading decisions. Keep exploring, stay disciplined, and may the markets bring you success!
CME_MINI:ES1!Education
by StockJustice
Stop Losses: A Trader's Best DefenseIn a perfect world, every trade would go our way, but alas this is usually not the case. A stop loss is a risk management tool used by traders and investors to minimize their losses when trading. It is a predetermined price level at which a trader's position will automatically exit the market, causing the loss to be realized. Stop losses are crucial to any trading strategy, as they help traders limit their losses and stay disciplined. In this blog, we will look at what stop losses are, why they are important, how to set realistic stop losses, and five different examples of stop losses with a description of how to set the stop loss. What are Stop Losses? A stop loss is an order to sell a security when it reaches a particular price. It is a predetermined price level at which a trader's position will automatically exit the market, causing the loss to be realized. This means that if the price of the security falls to the stop loss level, the trader's position is automatically closed, and any losses incurred are limited to that level. Stop losses are essential because they help traders limit their losses and stay disciplined. Why are Stop Losses Important? Stop losses are important because they help traders limit their losses and stay disciplined. In trading, it is easy to become emotional and let your losses run. Stop losses help traders avoid this situation by automatically exiting the market when the price reaches a predetermined level. This ensures that losses are limited, and traders can move on to the next trade without being emotionally affected by the previous loss. Setting Realistic Stop Losses Setting realistic stop losses is crucial to any trading strategy. A trader needs to consider the volatility of the security, the trading style, and the risk-reward ratio when setting stop losses. The stop loss should be set at a level where the loss is acceptable but not too close to the current price level, as this may result in the stop loss being triggered prematurely. A stop loss should also not be set too far away from the current price level, as this may result in the trader losing more than they are willing to risk. Stop Loss Examples Below we will list five examples of setting effective stop losses. For consistency, we are going to use the same long stop loss example, but these same examples can be set for stop losses for short positions as well. Percentage-Based Stop Loss: A percentage-based stop loss is a stop loss that is set at a specific percentage below the purchase price. For example, if a trader wants to place a long at $0.088602 and sets a 0.5% stop loss, the stop loss would be triggered at $0.88160. For a short stop loss at 0.5%, you would add the value instead and have a 0.89035 stop loss. To set a percentage-based stop loss, the trader needs to determine the percentage they are willing to risk and place the stop loss order at that level. ATR-Based Stop Loss: An ATR-based stop loss is a stop loss that is set based on the average true range of the security. The average true range is a measure of volatility and is calculated by taking the average of the high and low prices for a particular period. To set an ATR-based stop loss, the trader needs to determine the number of ATRs they are willing to risk and place the stop loss order at that level. For a long stop loss, you would subtract the ATR times its multiplier from the current price. For a short-stop loss, you would add the ATR times its multiplier to the current price. The unique upside to this stop-loss style is the ATR accounts for market volatility which can aid your risk management and help set more appropriate stop losses. Using Moving Averages or Super Trend: Moving averages and super trend are technical indicators that can be used to set stop losses. Moving averages are calculated by taking the average price over a specific period, while the super trend is a trend-following indicator that uses the average true range to calculate the stop loss level. To set a stop loss using moving averages or super trend, the trader needs to identify the period and place the stop loss order at the appropriate level. The Moving Average or Supertrend can then act as a moving stop loss as it trails the price. 1. Moving Average: 2. SuperTrend: Donchian Channels: Donchian channels are a technical indicator that can be used to set stop losses. Donchian channels are created by taking the highest high and lowest low over a specific period and plotting them on a chart. To set a stop loss using Donchian channels, the trader needs to identify the period and place the stop loss order at the appropriate level. In the example below we use a more standard 20-period Donchian level to identify areas of lowest low interest that would be a good place for a stop loss. If we were setting a short order we would look to recent highest highs as potential stop-loss areas Conclusion Stop losses are crucial to any trading strategy, as they help traders limit their losses and stay disciplined. When setting stop losses, traders need to consider the volatility of the security, the trading style, and the risk-reward ratio. Stop losses can be set using many different techniques, including percentage-based, ATR-based, using moving averages or super trend, and Donchian channels. By setting realistic stop losses, traders can minimize their losses and stay disciplined, which is essential for long-term success in trading.
MEducation
by LeafAlgo
40
WHAT IS ATR AND HOW TO USE IT?Investing and trading in the stock market can be a daunting task, especially for those new to the game. With so many different indicators and metrics to consider, it can be difficult to know which ones to focus on. One key metric that traders often use to measure market volatility is Average True Range (ATR). In this blog post, we’ll explore what ATR is, how it’s calculated, why it’s important for analysis, and how it can be used as an exit strategy. We’ll compare ATR with other popular technical indicators as well, so you have all the information you need to make informed decisions about your trading strategies. Defining ATR Average True Range (ATR) is an important metric used by traders to measure market volatility. It’s a technical indicator that can provide insight into strength or weakness in the markets, and can be used to identify breakouts and set stop-loss points for trades. ATR is calculated as an exponential moving average of true range values over a given period. True range is defined as the maximum of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close. This calculation provides a more accurate reading than simply measuring one day’s trading range or attempting to track changes in individual stock prices. ATR values are generally presented in decimal form (e.g. 0.1 or 0.3) rather than percentage form (e.g. 10% or 30%). This allows for more precise measurements when tracking market movement, which can be especially important for day traders who need to act quickly on market changes and opportunities. Traders use ATR to gauge overall market volatility as well as individual stock movements over time; it can also be used for trend identification and momentum strategies when combined with other technical indicators such as moving averages and Bollinger bands. And because ATR takes into account both recent highs and lows, it can also help traders set stop-loss points for their trades – at least until they become comfortable enough with markets to make decisions without them. Whether you’re new to trading or seasoned professional, ATR is an invaluable tool that should be incorporated into your analysis strategy if you want to stay ahead of markets and take advantage of opportunities when they present themselves. How to Calculate ATR In conclusion, ATR is a valuable tool for traders and investors alike. It helps measure market volatility and can be used to set stop-loss points as well as combine with other technical indicators to get a more accurate picture of where the markets are headed. Understanding and employing ATR can help traders become better informed about their investments, allowing them to make more informed decisions when entering or exiting positions. Analyzing ATR in Trading When it comes to analyzing the markets for trading decisions, Average True Range (ATR) is an invaluable tool that helps traders gain insight into market volatility. By understanding how ATR works, investors can measure the current conditions of a stock or index in comparison to its past performance, allowing them to identify trends and set stop losses accordingly. It also provides them with an effective exit strategy so they can take advantage of opportunities while minimizing their risk exposure. Ultimately, having a good grasp of this indicator will allow traders to make more informed decisions when engaging in securities markets globally. Using ATR as an Exit Strategy Using ATR as an Exit Strategy Average True Range (ATR) is a powerful technical indicator that can be used to measure market volatility and identify trends. It can also be employed as an exit strategy in trading, allowing traders to determine when the best time is to exit their positions and take profits or minimize losses. When using ATR as an exit strategy, it is important for traders to set the parameters for their strategy correctly. The most common approach is to set a multiple of ATR for both profit taking and stop loss levels. For example, if a trader sets the multiple at two times ATR, then they will take profits when the price moves by two times the average true range from their entry point and cut their losses if it moves against them by two times the average true range. In addition to setting up these parameters in advance, traders should also consider any potential rewards and risks associated with using ATR as an exit strategy. On one hand, it can help protect capital from large losses due to quick market movements, but on the other hand, it may cause traders to miss out on larger gains if prices move further than expected. There are various types of ATR-based exit strategies that traders can employ. Some of these include: fixed percentage or dollar exits; trailing stops; dynamic exits; time-based exits; or support/resistance exits based on chart patterns or technical indicators such as moving averages. Each type of strategy has its own advantages and disadvantages depending on market conditions so it is important for traders to understand which one will work best for them before implementing it into their trading system. Finally, traders should look at real-world examples of profitable trades made using ATR as an exit strategy. By studying these examples they can gain insight into how successful trades were managed and use this knowledge when formulating their own strategies going forward. With enough practice and experience, traders will eventually become adept at using ATR as part of their trading system and be able to capitalize on profitable opportunities more effectively in future investments. ATR vs Other Technical Indicators Average True Range (ATR) is a technical indicator used to measure market volatility and identify trends. Unlike other indicators, ATR measures the degree of price movement instead of the strength or weakness of a trend; this makes it ideal for spotting trading opportunities in volatile markets. Compared to indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), ATR offers traders a greater understanding of market volatility so they can more easily recognize good entry and exit points. In addition, ATR allows traders to set stop-loss points that are tailored to their individual risk tolerance levels. This helps them reduce losses when prices move against them but still provides an opportunity for profits if prices turn back in their favour. Ultimately, ATR is not meant to be used as an isolated indicator when making decisions about trades, but combining it with other indicators will improve accuracy when entering and exiting positions. Overall, ATR is a powerful tool designed for those looking to gain insight into market volatility and make informed decisions about their trades. By using this indicator in combination with others, such as RSI and MACD, traders can better understand the kind of environment they are working with which can help them maximize profits while minimizing losses. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
16
Introducing the Volatility Adjusted ADX (VADX)In this video, Stock Justice introduces you to the Volatility Adjusted ADX (VADX), a powerful tool that combines trend strength and market volatility. Learn how to customize your settings for optimal analysis and how this indicator, with its proprietary mathematical formulation, offers a nuanced perspective on market dynamics. Discover the benefits of normalized data and how to read and interpret the VADX line in conjunction with other indicators. All of this, delivered in Stock Justice's engaging style, will empower your technical analysis toolkit. Be ready to trade safe, trade smart!
NASDAQ:TSLAEducation
by StockJustice