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Bull flags explainedBull Flags are one of the most well known & easily recognized chart patterns. The most important factor in identifying any flag pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern. After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards. Bull Flags have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target. Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on some of the examples. The liquidity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long position once the price confirms support back inside the pattern.
Education
by Worth_The_Ri5k
📖 A Guide to RSI Divergences - By Trading-GuruIn this guide I will walk you through the three main different kind of divergences and explain to you how you can spot them. I also show you the extreme power RSI divergences have by looking at BTC/USD and mark them on the chart. It's quite special to see all these three kinds immediately after another, and it's really nice to see them all working out here as well. Obviously, no signal will not provide a 100% success guarantee. But this text-book example on the BTC price showing how they work out every time is great for both learning and profit taking. It can be very hard to trade an asset that has seen such immense growth and nearly vertical upwards momentum. Using RSI divergences you will still be able to predict price reversals and trade successfully. So let's take a closer look at the three different forms of RSI divergences that I cover here on the chart. Exaggerated Divergences Exaggerated divergences are similar to regular divergences, but are considered weaker and less predictive variations. The term exaggerated refers to a circumstance where either the oscillator or price makes an equal high or low. Regular bullish divergences and regular bearish divergences both have two exaggerated variations, so there are four exaggerated variations in total. In this case we look at a bullish version where the price is consolidating the but the RSI shows an increase in momentum. Hidden Bullish Divergences A Hidden Bullish Divergence is considered a continuation signal in an uptrend. It refers to a circumstance where an oscillator reading falls down below its previous low, while price is still higher than its previous low. Hidden bullish divergences are most likely to occur in the middle of an uptrend – often after a healthy pull back – and indicate that the uptrend will most likely continue. The starting point of a hidden bullish divergence should be a clear swing, not just a red candlestick. Regular Bearish Divergence A Regular Bearish Divergence is considered a strong reversal signal in an uptrend. It refers to a circumstance where price rises and makes a higher high, while the corresponding oscillator reading is still lower than its previous high. Bearish divergences are most likely to occur in strong uptrends and signify that upward momentum is weakening. A reversal – or at least a pull back – is then expected to follow. Regular bearish divergences also appear in exaggerated form. Follow me for consistent high quality updates, with clear explanations and charts. Please like this post to support me. - Trading Guru -------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
BITFINEX:BTCUSDEducation
by Trading-Guru
25
EDUCATION: PitchforkHello, dear subscribers! Today we are going to consider a very important tool of trend trading - the pitchfork. What is the Pitchfork? The pitchfork is the variant of the trend channel. The difference is that pitchfork has an inner additional channel inside the big main trend channel. The median or the centraline divides these channels in to two parts. It is commonly known that the price usually tends to vary in the upper or lower pitchfork half. Thus the price can often find support and resistance next to resistance, support and central lines. Support, resistance and breakouts When the price breaks through the central line the price changes the half of the pitchfork. Sooner or later there will be the massive brakeout as a result of which the price escape the pitchfork. In our example the price broke through the resistance line and found the support above it. If the price has an attempt to return back to the pitchfork and this attempt was rejected we can expect the massive price growth. Trading Let's talk about the trading opportunities into pitchfork. We should observe carefully the monents when the price is next to the resistance, support or centraline. If there is a confirmation of the bounce off it the position should be executed in the direction of this bounce. DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
Education
by Skyrexio
39
One Trillion Market CapI've been curious as to what players would be involved to have the Crypto world have a one trillion dollar market cap. Looking at the top 20 coins, it looks as though we sit around $600 Billion, so less than a doubling of the current market. I truly believe the "FOMO" hasn't even arrived in the market and once they catch on that we'll see the trillion dollar mark by at least the end of 2018, if not earlier. The Crypto players that will be a part of this will involve a handful picked out from the top 20. 2018 will not only bring new dollars into the arena, but will also separate the good coin from the bad. Something has to give in regards to having a couple of thousand coins...mostly fluff coins with no apparent reason to exist other than to scam and tarnish the good products here. The former big three (BTC, ETH, LTC) will still be around, along with some new comers such as XRP, MON, IOTA...however, in what capacity they contribute to that trillion dollar market cap will be the interesting thing to watch as 2018 progresses. Happy trading!
BITSTAMP:BTCUSDEducation
by thinzman
2
Elliot Waves Complete Guide | Chapter 3.1 - "Corrective Waves"Hello Traders. Welcome to Chapter 3, where we talk about corrective waves. In chapter 3.1, we will be discussing Zig-Zag waves. The zig zag wave is one of the common of patterns in corrective Elliot Waves. Many of us see this on a daily basis, but did you know that there was a meaning behind all of the fluctuations in the price action? Chapter 3 Glossary: 3.1 Zig-Zag Waves 3.2 Flat Correction, Expanded Flat 3.3 Running Flat, Contracting Flat 3.4 Barrier Triangle, Expanded Triangle 3.5 Double-Three 3.6 Triple-Three ----- We have to understand that markets also move against the trend of one greater degree only with struggle due to intraday traders. This is why Elliot Waves is another technique to organize the chaos within the market, as two forces are pulling in each direction regardless of how we want it to move. Let's talk about the MAIN important note for correction waves - they never have five waves. If they do, they are only a motive part of the overall corrective pattern. It's that simple. Corrections can be classified into two different classes of styles. There are the sharp corrections, which move sharply against the major trend. Their angle is rather steep. On the other hand are sideways corrections, they don’t retrace much in price, but can take a long time to finish. Apart from the two styles are in general three correction pattern: • Zig-Zag (5-3-5) • Flat (3-3-5) (regular, expanded, running) • Triangle (3-3-3-3-3) (contracting, barrier, expanding and running) Combination of these pattern form either a double three or triple three correction. These prolonged corrections are separated by a wave X. All of these will be discussed in the following chapters. Zig-Zag Patterns A single Zig-Zag is a simple three-waved corrective movement which is labelled as an ABC wave. It’s structure is 5-3-5, and the top of wave B is noticeably lower than the start of wave A as shown above. There are rules to this. If you are still not sure of what we are talking about, you need to go back and review chapter 2. Rules: • Wave A has to be a motive or diagonal • Wave B can only be a corrective pattern • Wave B has to be shorter than Wave A • Wave C has to be an impulse or ending diagonal along the way This is the most common corrective pattern in Elliott Wave Theory and is usually a sharp correction within a descending wedge structure. For those not able to see it from an Elliot wave perspective, most traders can identify this pattern as a pennant continuation pattern. But the chaotic movements inside can be organized via Elliot Waves. The length of wave C is between 100%-161.8% of wave A. Zig-Zag corrections appear most of the time as a wave 2 only, but are also very common as a connective wave in more complex corrections like a double as shown above! Occasionally Zig-Zag corrections will occur in two, sometimes even three times in a row. This happens usually when the first Zig-Zag does not correct far enough from a price action perspective. ❗If a double Zig-Zag occurs, the single ZigZags are separated by a three-waved reactionary move, which is labelled as Wave X and is always corrective on the way down. Note: Zig-Zag corrections often fit into a parallel channel! It is drawn between the highs of wave A & B to determine the end of wave C. Thank you! Trade Safe.
BITSTAMP:BTCUSDEducation
by XForceGlobal
61
EDUCATION: Logarithm Growth Curve Hello, dear subscribers! Today we are going to examine very simple and intersting instrument which is applicable for the global price movement analysis. The logarithm growth curve is based on Fibonacchi retracement levels. As it is known the Fib retracement based on swing high and low levels. But in case of growth curve we use the logarithm scale to take in account the periods of the fast growth (to the moon periods). The price usually faces with difficulties to break through the Fibonacci levels. We can notice massive pullbacks near these levels or the price growth in cases of breakouts. Let's consider the current situation on the Bitcoin market. There is a rejection of 50% Fibonacci level. Now we should observe if the price break through this level or the drop began now. If the first scenario occurs we can see a massive growth to 61% or 100% Fibonacci levels. DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
BITSTAMP:BTCUSDEducation
by Skyrexio
6
EDUCATION: Rising Wedge PatternHello, dear subscribers! Today we will continue to consider the chart pattern. The risisng wedge is the topic of this article. We can see the rising narrowing wedge formation when the scatter of highs and lows is decreasing during the time and price make higher highs and higher lows. There are clear support and resistance lines which have different angles of slope as you can see on the chart The rising narrowing wedge is usually described as the bearish pattern but in practice it is not always true. In fact the direction of the breakout is the most important evidence for the price movement prediction. In this example we can see the break through the resistance line and the massive price pump. The breakout can be fake, in that case the price returns back to the wedge. If it is true breakout the price can make an attempt to return back but there is a rejection as you can notice in our example. DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
Education
by Skyrexio
Stop trading demo, I tell you why.Those traders who argue that you should practice with virtual money until you see that you win, ignore the most important aspect, and I repeat, most important of trading, which is the mental. There is no use for you to earn fake money if then you get so nervous when you risk your money that you end up losing it. There is a click, a change at the subconscious level that makes the person who operates in a demo account and the person who operates in a real account, to be different people. As you learn, you should familiarize yourself with the sensations surrounding trading. The fear of losing and the greed to win more will make you stop following the rules and end up self-sabotaging. The biggest enemy in the market is yourself. The path of the winning trader is not based only on having an acceptable strategy. It goes much further and transcends those superficial aspects. I'm going to give you a very simple example: imagine that you want to master the skill of public speaking because you have a presentation in two months in a pavilion of 50,000 people, and you get a course to learn to express yourself in public. However, you decide to put this knowledge into practice with puppets or stuffed animals, rather than real people, and you keep practicing until your intonation and gestures seem perfect. You have the feeling that you are going to make an extraordinary presentation. The months pass and the day arrives. Since you have woken up that morning, you are nervous. In fact, you haven't slept all night, you can't stop thinking about those 100,000 eyes looking at every millimeter of your body. What are they thinking? How will they judge you? However you remember that you have taken a course, and that reassures you. The day passes and we reach the key moment. You are there, backstage remembering your gestures, and you finally walk through the door and onto the stage. Immediately you see that infinite crowd watching you, and in that moment your body becomes blocked. Your adrenaline levels in your blood are extreme, you start to sweat, your neocortex is deactivated and the limbic system activates its damn fight or flight system. You have entered a state of panic, and as much as you try to apply the theory that you have practiced in front of the stuffed animals, having real people in front of you you are simply blocked, the words do not come out. You finally gave a bad presentation. What happened here? That you have not taken into account the psychological aspect. There is no use in mastering the theory if then your mind plays a trick on you and does not let you apply that theory. The correct way would have been to perform progressive conditioning. That is, having practiced first in front of your family, then in front of your group of friends, then having signed up for a small talk at a school, and so on. The same goes for trading. Even if you have the same strategy, you will get very different results when you are investing 100 euros than when you are investing 1 million, in the same way that it will be much more difficult to speak in front of a pavilion of strangers than in front of your family. The difference between the top traders and the current trader is not in their strategy. You will realize that the technical aspect can be reduced to something very simple and simple. The difference between a pro trader and an ordinary one is that the pro trader does not shake his finger when entering the market with 10 million euros and hold the position up to where it has been marked, while the ordinary trader will panic when he sees how Hundreds of thousands of euros move in real time, and you probably won't hold even ten seconds before closing your trade. Trading is a path of personal conquest, which is the most difficult of all.
BITSTAMP:BTCUSDEducation
by jonfuentesX
1
How to Properly Use the Fibonacci Retracement ToolI've recently come across a lot of posts where the fibonacci retracement tool was erroneously used, and this gave me a good idea for an educational post. Introduction: The Fibonacci Sequence - Before talking about fibonacci retracements, it's important to understand what fibonacci sequences are. - Fibonacci sequences are numbers that are equal to the sum of the preceding two numbers, starting with 0 and 1. - So a fibonacci sequence would look like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on. - The fibonacci sequence is also known as nature's code, as these numbers are commonly found among nature as well. The number of petals of flowers is a prime example. The Fibonacci Ratio - The fibonacci ratio is derived by dividing the numbers within the fibonacci sequence - The 0.618 (61.8%) for instance, is approximately the value when we divide 21 by 34, and 55 by 89 - The 0.382 (38.2%) ratio is calculated by dividing a number by another number located two spots to the right. - The 0.236 (23.6%) is calculated by dividing a number by another one three spots to the right. - Just like the fibonacci sequence, fibonacci ratios are commonly found in nature as well, through flowers, galaxy formations, and spirals on shells Fibonacci Retracement - The fibonacci retracement is a tool in which horizontal lines are drawn to help traders identify support and resistance - These horizontal lines are based on the fibonacci ratios - Interestingly enough, just as the fibonacci ratios are commonly found in nature, they are also found in the market, reflected by charts - A fibonacci retracement can be identified by connecting the swing high to the swing low of a downtrend, and the swing low to swing high of an uptrend - The connection between the high and low points are where most traders get confused. Application - On the left hand chart, we can see that the swing high has been connected with the swing low - As a result, we could identify possible resistance levels for Bitcoin's bullrun in 2019. - Prices touched the 0.618 fib resistance level , and eventually attempted to break the 0.5 fib, but failed - We can also see that the 0.382 and 0.786 levels played a key role as support and resistance - On the right hand chart, we can see the swing low connected to the swing high - Based on the fib levels of this retracement, we could identify strong support at the 0.786 level, around $4k. Conclusion The fibonacci retracement tool can be a very effective way to identify areas of support and resistance , but they need to be applied correctly. Don't forget to connect the swing highs and lows based on the trend! If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
BITSTAMP:BTCUSDEducation
by Michael_Wang_Official
43
Why do you NEED a diaryMy philosophy is based on simplification. I believe that reducing a problem to its fundamental parts helps us to better interact with them, and by being fundamental, our results are maximized. It's like fixing a room. It is no use spreading our attention to details such as the type of lamps while neglecting the underlying problem, which can be a large coat of paint or an unforgivable hole in the ceiling. If habitability could be classified in points, at the same time invested, we will earn many more points by fixing the block earlier than by reflecting on the type of light in the bulbs. Of course everything must be dealt with, but trading has a lot of variables, and most importantly, a lot of emotionality. Investing in the stock market notably activates the limbic part of our brain, and it robs the neocortex of prominence, making it more difficult to identify problems with this emotional blindness. Therefore I think that we must minimize the variables to the most important to maximize our attention in each one of them. But to reduce trading to the fundamentals, the person must first be analyzed to identify the root of their problems. Does the person have adequate knowledge? Perhaps he has good technique in theory but the execution is not good, or his problem lies in the situation of keeping an open operation, something very common, since our survival instinct makes us exit the market at the minimum profit opportunity, without having Keep in mind that this profit must cover the losses we have until the next profit occurs. The reverse is also very common, people who had carried out an analysis and the price has overflowed negatively, but are unable to close the operation because they do not want to accept having lost, and finally the price continues in that direction contrary to their analysis, causing them to lose a lot more money. As much as when going to the doctor, advancing in the trading career requires identifying what individual problems you have and applying the appropriate remedies, that is, working on the weaknesses. For this, it is essential to review the operations at a time and draw conclusions, and for this it is essential to keep a daily trading journal, preferably in a physical notebook, of each day of operation, so that it can be reviewed each end of the trade. week and progressively correct mistakes and enhance what already works for us, to avoid committing them again and spending years going around in circles. I personally use a physical notebook for a lifetime. I do it this way for various reasons, and although in principle it can be argued that it is much more practical to write it on a computer, with the option of uploading it to the cloud and accessing it from anywhere, each person works in a different way, and I, After trying in virtual and physical, I have decided on physical, because it works better for me personally. The reasons I have, again I stress very personal, are the following: - I usually use the computer a lot so I always end up with a desk full of documents, shortcuts, stickers of ideas that come to mind ... keeping a diary requires discipline, and added to the fact that I am quite clueless, if I do not have a notebook There are times when I don't even remember writing it when I open the operations. However, when I have the notebook next to the computer and always in my range of vision, I never forget it. - Writing with a pen requires more time than using a computer. I learned to type and can type at high speed on the keyboard, however writing on the notebook is much slower. This, far from being a disadvantage, I see it as a great advantage, since as I write I have more time to reason it, so it is easier to reach conclusions as it is written and that the result has more value for later analysis. - It is easier for me to add graphic parts to the written part. When I write when I open a trade, I always tend to draw more or less the shape of the price it has at that moment and indicate with an arrow my entry point and stop loss. This could be done on a computer and then added to the text document if it is made virtual, but it seems faster and easier to me to just stop writing and draw it. - Writing in a physical notebook is totally private, they will never be able to sneak a virus into you and steal your information if you write it on paper. As you can see, virtual or online is not always the best for everyone. That said, the way I keep my journal is as follows: - The first thing I do is write the date. - I write the time and the market symbol of the trade I have opened, the why, and then I draw more or less the current price and the stop loss level. - On Sunday I review every week. What I do is start with the first trading day of that week and see what the price really did. I write the newspaper in blue, and the weekly review in red: I draw in red more or less the price movement that happened after the operation. I also write if I was right or wrong. If I was correct, I see if I could have won more and to what extent. If I have failed I analyze why. I finally draw a conclusion, if there is one, and move on to the next day. Sometimes the only conclusion is that simply the price movement has gone against and no sense can be found, so I assume it as an irreparable statistical loss. After the page of the last day of that week, I write the date and a title with "reflections of the week", and I write again all the conclusions that I have drawn each day and then I make a final reflection on those conclusions to see if You may see a pattern of behavior or technical failure that may change for the following week. As you can see, I am very methodical when it comes to my trading, and this has helped me greatly to polish mistakes that I could not have realized if I did not keep a journal. In the day to day of life many things happen that can distract you and sometimes keep you making very absurd mistakes, that if you had reviewed your operation a little, you would have quickly realized. For these reasons I believe that anyone who boasts of having results in this business must realize that it is necessary and make an effort to create this habit.
BITSTAMP:BTCUSDEducation
by jonfuentesX
How Much BTC Do You Need to Create Generational Wealth?Hi Tradingviewers, in this article I am going to break down this question into smaller items and try to give a concrete answer to the question: “How Much BTC Do You Need to Create Generational Wealth?” First, we’ll have to define what ‘wealth’ means. Then we need to define how we look at the ‘generational’ part. Lastly, we also need to take into consideration long term outlooks on Bitcoin. Let’s try and put some actual numbers on this and see how much BTC you would actually need. I’ve been on Twitter a lot lately (putting some more effort into my account!) and got inspired to answer this question as this was a very common topic on Twitter. The interesting thing is that I saw a lot of people talking about this, but nobody actually made an effort to go through the math. Without further ado, let’s dig into the numbers. First let’s look into some options to define wealth. Using data from the World Inequality Database and Statistics Canada), it takes about $488,000 to be considered part of the top 1% in the U.S in 2019. Let’s assume that this applies to the number needed in a family/household. Let’s make ~$500,000 our first option, I’d say belonging to the top 1% in the US would be a pretty fair definition of wealth. If we look further than the US, we can also use this same 1% methodology to define wealth on a global scale. In that case you would need at least $744,400 in combined income, investments, and personal assets according to the global wealth report from the Credit Suisse Research Institute. A slightly more ambitious goal compared to our first option but we could define this as ~$750,000. Another option to look at wealth is to look at financial independence . My preferred way to define financial independence is to have enough wealth such that you can completely live off the dividends. A common rule used by the FIRE community (Financial Independence, Retire Early) is the 4% rule. The 4% can be summarised as a safe withdrawal rate that will not lower your total wealth over the long run. Even when there are temporary downturns in the global economy. This assumes you invest all your money in the stock market. The median household income in the US is $61,937 per year. We could consider a passive income of the median household income as wealthy. If we divide $61,937 by 4% from the safe withdrawal rate above we get to a total of $1,548,425. So using this logic you would need roughly ~$1.5M in total assets in order to be considered wealthy. Now, let’s discuss the generational part. Honestly, I was surprised when I found the exact definition: “ generational wealth represents assets passed down from one generation to the next. If you can leave behind a notable inheritance to your descendants, that constitutes generational wealth. These assets can include real estate, stock market investments, a business, or anything else which contains monetary value. I had somehow expected it would be something more ambitious such as that for x generations they would all have to be considered “wealthy too”. Achieving generational wealth would then be relatively easy given method one and two. You would just need to make sure something is left of your $500,000 or $750,000 respectively. Option three even has it implied. The whole idea behind option three is to never actually spend any of your wealth, you’re simply living off the dividends. This leaves us with the most difficult one: how much Bitcoin would you need? The first and most obvious approach is to directly calculate the amount of bitcoin that represents our different definitions of wealth given the current price. If we take a Bitcoin price of $30,000 that would give 16 bitcoin for option 1, 25 bitcoin for option 2 and 50 bitcoin for option 3. Now let’s bring in some of the nuance. First of all if you’re expecting to live off your dividends you cannot have all of your wealth be in bitcoin itself as it doesn’t pay any dividends directly. Normally the wealth would be in the stock market or in real estate. Also, if you assume that the value of bitcoin will keep rising you would obviously need far less bitcoin today to achieve generational wealth later. For example, Bloomberg analysts have predicted a price target of $50,000 for Bitcoin in 2021, implying a $1 trillion market cap for just this cryptocurrency. JP Morgan analysts estimate the price of Bitcoin to grow more aggressively, as they estimate a value of $650,000 by the end of 2022. Let’s be more conservative on the date, but keep an aggressive price target for the sake of the argument here. If we take a $300,000 price target by the end of 2031 how much bitcoin would you need today to achieve generational wealth? This would give us 1.6 bitcoin for option 1 2.5 bitcoin for option 2 and 5 bitcoin for option 3. Specifically for option three it would still mean though that you would have to cash out all your crypto assets and convert them into dividend generating assets instead. Also, with a possibility to see hyperinflation later given that 35% of all dollars in existence have been printed during the last 10 months it is questionable whether thinking of generational sustainable health should even be expressed based on dollar figures to begin with. I wouldn’t know how to express it in any other way, but am really curious to hear if anyone has good alternatives on this point. I am really curious to hear your views on this. I used many assumptions here, how would you have approached this? Are there any flaws you see in my logic? Feel free to comment on anything, and please feel free to absolutely destroy it! I’d love to have the discussion. Just to summarize, based on this you would need today: 16 bitcoin to be considered among the top 1% wealthiest in the US 25 bitcoin to be considered among the top 1% wealthiest in the world 50 bitcoin to achieve generational financial freedom Trading-Guru p.s. You might have seen a few reposts of this article as Tradingview was struggling with a faulty spam detector. The moderators kindly helped blocking and unblocking some posts. Thanks @scheplick!
BITSTAMP:BTCUSDEducation
by Trading-Guru
11
EDUCATION: Head And ShouldersHello, dear subscribers! Today we are going to consider the most reliable chart pattern - Head and Shoulders (HS). We ask you to support us with likes, it's not difficult for you and it will help us a lot. Thank you! The Head and Sholders chart pattern is the most popular pattern and if you use it in correct way it can give you a relevant confirmation for your trades. First of all we should understand that HS is the reversal pattern. It has a bad perfomance when it is used for the trend continuation definition. As you can see on the chart the price was in uptrend for a long period of time. After that two price swings formed the left shoulder and the head, but at the moment of head formation it is not understandable that it is HS pattern. You should observe the market carefully when the price bounced off the left shoulder top level and started to form the right shoulder. The HS formation is completed when the price reached the neck line area. This is a nice moment to short. Let's talk about the neck line. It is not obligatory should be horizontal. It can be ascending or descending in the dependence of lows levels between left shoulder and the head and the head and the right shoulder. DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
Education
by Skyrexio
3
EDUCATION: Money Flow Index (MFI)Hello, dear subscribers! The topic of this article is Money Flow Index Strategy (MFI). Definition This is the oscillator type indicator, which looks like RSI, but takes in account the volume. Thus it demonsrates not only the price momentum, but also the money volume. It is calculated as a ratio of the positive or negtative money volume divided by the total money flow. MFI indicates the overbought and oversold conditions. The asset is overbought when its value is above 80 and oversold, when below 20. The strategy Let's take a look at how to execute the long positions. Initially we should make sure that the market is in global uptrend now. For this purpose we will use the 200 period SMA. If the price is above the SMA, which has a positive slope the market is in uptrend now. The second step is the bullish hidden divergence identification. As we told in the previous education article the hidden bullish divergence with the oscillators means the uptrend continuation. The third point of this analysis is that the asset now is in oversold zone according to MFI.
Education
by Skyrexio
EDUCATION: Hidden Bullish DivergenceToday we consider very powerful technical analysis tool - the Divergence. Definition The divergence is a situation when the price change is not supported by the oscillator. There are four types of divergences: 1)Regular bullish - the price shows lower highs, while the oscillator shows higher lows 2)Hidden bullish - the price shows higher lows, while the oscillator shows lower lows (you can see on the chart) 3)Regular bearish - the price shows higher highs, while the oscillator shows the lower highs 4)Hidden bearish - the price shows lower highs, while the oscillator shows the higher highs Divergence Trading Rules Let's consider the market uptrend situation. If there is the hidden bullish divergence it means the uptrend continuation. In case of regular bearish divergence there is a high probability of trend reverse from uptrend to downtrend. Another situation is when the market is in downtrend. The regular bullish divergence in this situation can be the evidence of trend reverse in the future. In case of hidden bearish divergence the downtrend will continue with high probability. Indicators You can search the divergences not only with Stochastic RSI. Other oscillators are also suites great here. For example, CCI, RSI, Volume oscillator, MACD and other.
Education
by Skyrexio
1
EDUCATION: Scalping 3-EMA StrategyHello, dear subscribers! Today we are going to talk about the popular 3EMA scalping strategy which is usually used on the 1-min timeframe, but we can demonstrate it only on the 15-min chart because of restrictions. Step 1 First of all we should define that the market is in short, medium and long term uptrend. The 200EMA shows the long, 100EMA - medium and 50EMA - short trend. Consequently all the three EMAs should follow in one direction, it's slope should be strictly positive for the uptrend identifying. The uptrend is an obligatory condition for the long position execution. Step 2 If the step 1 condition is true the next step is to identify entry points. We should enter long position when the price crossed the 50EMA from up to down, but after couple of candles crossed it again from down to up Step 3 Take profit and stop loss identifying. You should stop loss if the price crossed the 100EMA line from up to down. Take profit setup can be different: the fixed % growth, the price and 50EMA crossover and the price and 100EMA crossover
Education
by Skyrexio
1
EDUCATION: Parabolic Growth PatternHello, dear subscribers! Today's topic is parabolic growth pattern (PGP). This pattern can be applied for the current BTC price analysis. What is the parabolic growth pattern? This is a price growth pattern which is formed by the sequence of the bases and price pumps. The base is the price consolidation period after the price growth period. How to draw it? The main rule for PGP formation is that the parabola have to touch at least two points from the different bases. You can use arc to apply it on the chart. How to analyze with PGP? You can obtain some useful information for the price movement analysis when two bases have already formed and the third base formation is in progress. The main feature of PGP is that when the base 3 is completed the massive growth with a high probability there will be. This growth can be equal to the price change from the beginning of the formation of the parabola, but this growth is much more rapid. After the last huge price move we should wait the pullback to the base 3 level. This pullback can be sharp or smooth but it is inevitable.
Education
by Skyrexio
1
EDUCATION: Ascending TriangleHello, dear subscribers! Today we will talk about the most popular chart pattern - the ascending triangle. This is commonly known bullish pattern and its correct recognition will help you to earn money. How to identify the Ascending Triangle? First of all we should clearly understand that the price now is in global uptrend. The socond one is the uptrend support line. There are should be at least three attempts to break this line down. The last component of the ascending tringle formation is the horizontal resistance line. How to trade with the ascending triangle? If the ascending triangle pattern is formed you should identify the breakout point. It is the most difficult part of the analysis because the ideal triangle pattern is rare. We have to find some confirmation of the uptrend continuation with another indicators. The last question is how to set the take profit. It is usually used the triangle height for the take profit setup.
Education
by Skyrexio
EDUCATION: Fibonacci Extensions Hello, dear subscribers! The topic of this article is Fibonacci Extensions. What is Fibonacci Extensions? This indicator demonstrates the hidden potential resistance levels for the uptrend and support levels for the downtrend. Here is as example of the uptrend Fib Extensions. Let's make a reservation right away that the Fibonacci Extensions is not the same as Fibonacci Retracement. The second one is usually used for the pullback levels definition after a huge dump, but not for the potential targets of the uptrend. How to define the Fibonacci Extensions? For the levels definition we should find the lowest (point A) and highest (point B) points of the last global swing. After that we should define the lowest point of current swing and the beginnig of the uptrend (point C). The extensions are defined with the Fibonacci numbers and the corresponding levels are 23%, 38%, 50%, 61%, 78%, 100% and 161%. This levels are calculated automatically in the TradingView. How to use Fibonacci levels? As you can see on the chart these levels are usually associated with the difficulties for the price to break it through. These are resistance levels and if some of these levels is broken by the price it is likely to see the next Fib level. For example, now the BTC price is testing the 161% Fib level and if it break this level confidently the next price target could corresponds to the next Fib extensions level.
Education
by Skyrexio
2
EDUCATION: Engulfing Candlestick PatternHello, dear subscribers! The topic of this article is the Engulfing candlestick pattern. To be honest the candlestick patterns are almost useless if you use only this. But this is a great trend confirmation, so we will consider engulfing pattern with the Alligator Indicator which was described in one of the previous articles. What is Engulfing Pattern? The Engulfing Pattern can be bullish and bearish. The bullish one is the situation when the red candle is engulfed by the next green candle. It is not important if the candleweak was engulfed too or not. This is a subject for thought. Also it does not mean if the only one green candle or two consecutive candles absorbed the previous red candle. The bearish Engulfing candlestick formation is exactly the opposite situation. The Strategy You can search by yourself the ehgulfing patterns on the chart and notice that it generate a lot of fake signals, it means that we should use the indicator for the trend definition. In our example we use the Alligator indicator to do it. As you already know the Alligator has two phases - the sleeping and feeding time. If the sleeping time is over the jaw, teeth and lips of the Alligator become wider. At this point we should find the Engulfing formation to confirm the new trend. You should enter a long position at the point which you can see on the chart.
Education
by Skyrexio
CME Cheat Sheet 2021CME Group Futures Dates: Dec 2020 BTCZ20 16 Dec 2019 > 24 Dec 2020 Settlement: 28 Dec 2020 - Jan 2021 BTCF21 03 Aug 2020 > 29 Jan 2021 Settlement: 01 Feb 2021 - Feb 2021 BTCG21 31 Aug 2020 > 26 Feb 2021 Settlement: 01 Mar 2021 - Mar 2021 BTCH21 28 Sep 2020 > 26 Mar 2021 Settlement: 29 Mar 2021 - Apr 2021 BTCJ21 02 Nov 2020 > 30 Apr 2021 Settlement: 03 May 2021 - May 2021 BTCK21 30 Nov 2020 > 28 May 2021 Settlement: 01 Jun 2021 - Jun 2021 BTCM21 28 Dec 2020 > 25 Jun 2021 Settlement: 28 Jun 2021 - Dec 2021 BTCZ21 30 Dec 2019 > 31 Dec 2021 Settlement: 03 Jan 2022 - Dec 2022 BTCZ22 28 Dec 2020 > 30 Dec 2022 Settlement: 03 Jan 2023 - Source: www.cmegroup.com CME Bitcoin Gaps Study: marketsscience.com CME Futures Info: www.cmegroup.com CME Futures Open Interest Info: www.cmegroup.com Indicator To Track CME Sunday Opens:
CME:BTC1!Education
by The_Paradoxed_Prophet
1
EDUCATION: Ichimoku - Part 2Today we continue to study Ichimoku Indicator trading strategies. Last time we analysed in details the conversion, base and lagging span lines. In this article we apply Kumo cloud which is formed by Leading Spans A and B. The formulas for the calculation you can see on the chart. The Strategy Before considering the strategy we should understand that the Kumo cloud is projected forward for 26 periods. The simpliest version of the Ichimoku strategy employs just the Kumo cloud. We just should define the point where the Lagging Span A crossed the Span B from down to up and execute the long position. It is also recommended to define the long positions entry points more strictly. The price should be above the Kumo cloud and the conversion line should cross the base line from down to up near the Span A and Span B crossover. When to exit? You can exit long positions with three possible ways on your own preferences: 1)When the price crossed the Kumo 2)When the Span A crossed the Span B from up to down 3)When the conversion line crossed the base line from up to down You should test it by yourself.
Education
by Skyrexio
EDUCATION: Ichimoku - Part 1Hello, dear subscribers! Today we starting the training series of the Ichimoku Indicator trading. This article is about the Ichimoku definition and the easiest trading strategy using it. What is the Ichimoku Indicator? This indicator consists of 4 components: 1) Conversion Line - the 9 period high - low average price, demonstrates the short term period trend. When the price above it - the market is in local uptrend. 2) Base Line - the 26 period high - low avearge. It means the same as the conversion line but in the medium term period. 3) Lagging Span - close price plotted 26 period in the past. It can be used for the trend confirmation. When the lagging span is above the price it means the strong uptrend. 4) Cumo Cloud Lines - this lines will be examined in the next education article. Ichimoku Strategy (Conversion + Base + Lagging Span) The first Ichimoku strategy is very easy to apply for your trading. First of all you should filter signals with the lagging span: when it is above the price - it is time for long, in opposite - for short. When it is done you should find the point, where the conversion line crossed over the baseline from down to up and execute long position. You can exit long the conversion line bacame lower that the base line. The additional confirmation for exiting the position is the lagging span and price crossover. Next time we will examine the most interesting part - the Ichimoku Cloud and appropriate strategies.
Education
by Skyrexio
Elliot Waves Complete Guide | Chapter 2.1 - "Motive Waves"Hello Traders. I hope you enjoyed chapter 1 and studied hard. If you are having a hard time understanding chapter 2, please go back to chapter 1 and study that chapter first. Chapter 2 - Motive Waves: 2.1 Impulse, Leading Diagonal 2.2 Ending Diagonal, Truncation 2.4 Extension, Fifth Wave Extensions ------ 2.1 Impulse, Leading Diagonal: Impulse Wave As previously discussed in chapter 1, 'Motive Waves' are subdivided into five waves. These five waves always move in the same direction of the current trend by degrees. The countertrend of wave 2 never moves beyond the beginning of wave 1 and wave 4 moves never beyond the beginning of wave 3. The impulse wave is one of the most common of wave types. In the impulse, wave 4 never overlaps with the high of wave 1. Waves 1,2,5 are themselves are what is called "motive." Also, wave 3 is NEVER the shortest wave and always an impulse Leading Diagonal The leading diagonal is also considered a motive wave, but not an impulse. It is a subcategory of a motive wave because it also has corrective characteristics. Wave 4 overlaps with the top of wave 1 and can be the wave 1 of an impulse or a Wave A of an ABC correction. It's structure can be seen as: 3-3,3,3,3 or 5,3,5,3,5. For the leading diagonal, wave 4 overlaps with wave 1 and has a smaller retracement than our wave 2 as shown above. It is usually followed by a wave 2 in a motive wave or by a B wave in an ABC correction.
BITSTAMP:BTCUSDEducation
by XForceGlobal
34