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.
Btc-bitcoin
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.
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!
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: 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: 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: 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: 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: 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: 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: Bollinger Bands Hello, dear subscribers!
The next topic of our education is the Bollinger Band channel.
What is Bollinger Bands?
BB channel consists of three lines: the moving average of close price, the MA plus/minus 2 standard deviations. This channel defines the most likely price swings range.
How to trade with BB?
There are two different situations for the BB trading.
The first one is the trading during the consolidation phase.
You should open the long positions when the price broke the lower BB and close when it reached the centraline. The short position you can open when the price hits the higher BB and close on the centraline.
The second situation is the trend trading. According to theory the periods with low volatility are preceded by the high volatility periond. When the the volatility is low the BB channel is squeezed and it is a good time to searching for the potential trend beginning. You can use Money Flow Index or other volume-based indicators for the trend confirmation. For example, when the price hits the higher BB and the money flow index value rapidly increased it can be the evidence of potential uptrend beginning.
The most difficult and important problem of the BB trading is the trend direction definition. If the trend is defined correctly this strategy becomes very profitable.
EDUCATION: MACDHello, dear subscribers!
Today we will examine another one lagging indicator - MACD. It is very useful indicator but you need to use it carefully because usually it is just adds other indicators and can to generate a lot of fake signals.
What is MACD?
MACD consists of:
1)MACD (blue) = EMA(12) - EMA(26)
2)Signal (red) = EMA(9)
3)Histogram = MACD - Signal
The MACD line is the long EMA value substracted from fast EMA value. It shows the trend direction. If the MACD>0 the market is bullish, if MACD<0 - bearish. The difference between MACD and Signal line is the proxy of trend strength.
How to trade with MACD?
The classical approach to MACD is to search the MACD and Signal line crossovers: when the MACD crossed the signal line from down to up it is the bullish signal, in opposite case - bearish. The MACD and zero line crossover means the trend confirmation. But this approach is not good enough to make profit. As you can see on the chart it can generate fake signals or signals which are too late - the price have already grown. If you want to use only MACD, please, find really strong signals. For example, if the price demonstrated higher low and MACD - lower low, it is the hidden bullish divergence. With the further MACD and signal lines crossover it gave a really nice long signal.
Summary
1)Find the price/MACD divergence
2)Wait for the MACD and signal line crossover
3)Enter an appropriate position
4)Be careful about weak signals
5)Use MACD with other indicators as an addition confirmation sign
EDUCATION: Pivot LevelsHello, dear subscribers!
Today we are going to talk about one of the most useful indicators in cryptotrading - pivot levels(points). We have already considered the lagging and leading indicators and decided that the second one is the most valuable.
Definition
Pivot levels is the leading indicator which define the potential pivot levels for the next trading period (in our example - month). The formulas for the levels calculation you can see on the picture. It is known that when the price is up of the central pivot - the market is in the uptrend, if the opposite - in the downtrend.
How to trade with pivot levels
It is great to use pivot level with some lagging indicator to confirm the entry points. This indicator can give the information about levels when the price can bounce off or reverse. You can see the points with small red arrows where the price bounced off pivot levels and went down after it - this points can be used for the short position. The green arrows demonstrate the potential price growth points. But there are also a lot of breakpoints (blue circles), to avoid the trade execution next to these point you need to use some confirmation with lagging indicator.
Summary
1)Define the trend direction
2)Open short if downtrend, long - if uptrend
3)Define the entry points next to pivots
4)Find the confirmation with some lagging indicator to avoid the pivot break points
5)Execute the trade, set the sloploss level
Good luck!
EDUCATION: Moving Average Support LineHello, dear subscribers!
Today we examine another one support line type - moving average support.
Definition
Moving average support line is one of the advanced types support lines. It based on price moving average for any period which can be chosen for every particular case. MA helps to define the trend direction at current moment. If the price closed above the MA for at least ten candlesticks in a row we can identify this situation as uptrend.
How to trade with MA support?
Because the uptrend is identified we cam use the MA and price crossing points as entry points. In our case, when (1), (2) and (3) occurs, the next points from (4) to breakpoint can be used to enter the position. In case of success we will see the price touched and bounced off the MA. In opposite, the price break the MA line down, but the stoploss usage can help to eliminate huge losses.
Summary
1)To identify the uptrend when the price closed above the MA 10 times in row
2)To entry the position when the price touched the MA
3)Fix the profit with it's bounce off the MA
4)Set the stoploss to eliminate the losses in case of sharp price decline
EDUCATION: Trend Support LineHello, dear subscribers!
Yesterday we considered the simple support line. Today we continue to examine support types.
Definition
Trend support line occurs where the price is in the uptrend and is formed by the lows on the candlestick chart. Next to this line the price is likely to bounce off it because the demand/supply imbalance.
How to trade with trend support?
When we can draw line which connects 3 lows (1,2 and 3 points), the next lows which are lying on this line can be the properly entry points. Also we need to take a stop loss to eliminate the significant price decline effects. According to the chart this strategy would bring profit at points (4), (5), (6), (7) and (8). The first loss would be at the breakpoint (B), but the stoploss level reduce it.
Summary
1)To define the support line by three points
2)To enter the position next to the line
3)To fix profit in case of success
4)To fix a small loss with the stoploss setup in case of support breakout
Learning to trade the Head And Shoulders Pattern with Bitcoin.The Head & Shoulders Pattern & Inverse Head & Shoulders Patterns are quite common on Bitcoin and have had great results on the higher timeframe charts.
Here are the main characteristics:
• VOLUME MIMICS PATTERN
• 3 PEAKS, LEFT & RIGHT SIMILAR HEIGHT
• TRIANGULAR IN APPEARANCE
• FOUND AFTER UPTREND
• HIGH SUCCESS RATE
• CAN BE SLANTED
Price forms 3 distinct peaks after a strong uptrend, the left and right peak should have a similar height (shoulders), the middle peak (head) has to be the highest or this can not be a HS pattern. They should seem triangular in appearance but as long as it fits the main characteristics can still be a valid pattern.
The right shoulder should form a lower high which is a early sign of trend change, this is entry A, with entry B being the bearish retest of of the “neckline” (marked on chart #2). The idea is to gain an early entry on the pattern at point A to maximise profits and reduce risk. Once price moves above the middle "peak" it is likely that the pattern is not valid anymore so this allows us to get a tight stop loss upon entry. We measure the height of the pattern and add it to the breakout level for a maximum possible price target.
Volume should also paint the same pattern with the 3 peaks, strong volume on breakout increases success rate.
In this example on Bitcoin earlier this year it played out perfectly, hitting target, when having another great short opportunity on the Bearish Retest. A bearish retest is just a Support & Resistance flip off the pattern breakout level.
After the pattern played out we also saw one more great opportunity with General Pattern failure.
What is General Pattern Failure?
General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout.
Pictured above in the original post is a normal breakout on a Head And Shoulders Pattern while the lower example shows General Pattern Failure on the same pattern. Note how the first example has a Bearish Retest (B) while the second example is coming back inside that area and finding support for a potential long setup.
(The below chart is the above example continued)
General pattern failure can also be considered a Liquidity Grab or can be referred to as a “Fake Out” also when it happens more rapidly after the original pattern breakout.
Learning to trade patterns such as these can provide great opportunities if you understand price action and how to identify the key areas of the pattern that other traders and investors may be focusing on too, these areas become important psychological levels on the chart.
Market Cycles: How to Overcome the Fear of Missing Out (FOMO)In this post, I'll be providing an educational post on the cryptocurrency's market cycle, and how to overcome the fear of missing out, also known as fomo.
It's important to understand that the cryptocurrency market has very clear market cycles.
In order to profit in the cryptocurrency market, it's important to think like a whale .
1. To begin with, whales keep their assets in the form of fiat, or tether (USDT) before the beginning of a market cycle
2. Whales buy Bitcoin with their cash at hand, and this is when we see Bitcoin rally alone
3. Since Bitcoin is the only cryptocurrency to rally, Bitcoin dominance soars up along with Bitcoin's price
4. However, the market trend soon changes as the whales, who have profited from Bitcoin, move onto large cap altcoins
5. These are our typical altcoins at the top 20 in terms of market cap
6. After these coins rally, capital then flows into the undervalued coins with a much smaller market cap
7. Because there isn't enough liquidity, these less popular coins tend to break out the hardest, and demonstrate immense risk
8. After whales profit from small cap alts, it's time to convert their assets back to Bitcoin
9. This process is repeated during a bull run, and ultimately converted to fiat in a bear trend.
So, what are we currently seeing in the market today?
Bitcoin
- For Bitcoin, we are seeing a textbook bearish divergence
- In my previous analysis, I have provided consistent updates, in which the divergences I have spotted, both bullish and bearish, have played out perfectly.
- You can check the previous analysis above.
- As such, it's reasonable to expect this divergence on the longer time frame to play out as well
- The higher highs on the price, and lower highs on the Relative Strength Index (RSI) is extremely concerning
- The Moving Average Convergence Divergence (MACD) also demonstrates decreasing bullish histograms, with a potential death cross in play
Does that mean we have missed the train?
While Bitcoin may be done for the short term (since the uptrend is still intact, and we are seeing higher lows and higher highs on the longer time frames), but there are opportunities to be spotted in the cryptocurrency market.
Ethereum
- Ethereum has been consolidating for a while on the weekly, and has been inactive on the daily
- The Ethereum 2.0 Countdown just recently began, providing bullish stimulus for prices
- Based on the market cycle theory explained above, Bitcoin's short term bearish signals suggests an opportunity for Ethereum to break out
- Considering that Bitcoin dominance is trading within a downtrend over the long term, we could expect price action from Ethereum in the coming days
- For my analysis on ETH's long term price action, check my previous analysis below:
Conclusion
In summary, seeing everyone else make money while you sit on a pile of cash, might be frustrating mentally. But as I always emphasize, trading is a psychological game. Successful traders have a good understanding of the market psychology and cycles. As such, capitalizing on trading opportunities require a combination of proper knowledge and patience. There will always be opportunities, regardless of the market situation, as beauty is in the eye of the beholder.
And the wind blew, the earth split and it appeared ...The birth of BTC pumpkin. One dark dark evening, in a terrible 2017, when huge incomes of investors drove them to euphoric blood-strokes, it was born... Vegetable electronic evil , the king of margin calls, garden crypto ganster - BTC pumpkin.
With the right hand, it weakens the growing trend , and with the left hand it attracts with overbought stochastics, bear patterns and low volumes of bold sellers in the position ...and vice versa...
And no one knows peace from it for 3 years!
BTC Pumpkin's worst weapon is its mood. The bipolar disorder of this vitamin monster changes the mood every six months .
Will we see a new wave of BTC Pumpkin bad mood?
What is more terrifying, grater, blender or saw?
Today is the day when the crypto pumpkin knocks on the deposit house of every investor and says "treat or margin call?"
We hope you love sweets!
Can the BTC market free itself from the Pumpkin shackles? It remains to wait only six months...
P.S. Drug use is bad for your health and hampers your trading.
How to trade GOLD/SILVER RATIO in Any platform!?This is the first educational post I Make on Tradingview so make sure you like and comment and follow if you like it,
in this post I will explain how to trade The GOLD/SILVER RATIO in any platform
You can use the same strategy to trade ETH/BTC in Binance Futures with leverage ...
first lets define what is gold silver ratio ,
The gold/silver ratio (GSR) is the current price of an ounce of gold divided by the current price of an ounce of silver. It's a simple numerical calculation that shows how many multiples gold is trading relative to the price of silver, a common indicator used by precious metals investors worldwide.
this indicator help us know which is going to gain more or wich is going to lose more in some cases when there is high volatility in the markets you might find this chart stable with very strong trading opportunity for example back in the 26/2/2020 when the markets were uncertain and volatile this chart made a very good breakout and huge gains! you can find that on the chart above
so now lets explain how to trade it in any platform that have GOLD/USD and SILVER/USD
if you want to short the GSR
all what you need to do is to sell short GOLD and buy long SILVER with the same amount of money and leverage in each of the positions
Example
if you open a long position with 1000$ and x3 in SILVER/USD you have to open a short position in GOLD/USD at the same moment with 1000$ and x3 leverage.
If you want to long the GSR
all you need to do is the opposite of shorting we buy GOLD/USD and sell SILVER/USD with same rules again we should use the same amount of money and us the same leverage in each of the two position.
thanks for reading good luck
BTCUSD: Decision Time - What Will Autumn Bring $9K or $12k?What will the break of the symmetrical triangle bring: $12K, $9K or more $10K?
Bitcoin Hash Rate, Dominance, Energy, NVTS & Volume
Logirthmic Curve & Network Growth : $100K in 2021?
Elliott Wave Analysis For BTCUSDBTCUSD is coming higher, now very close to former swing low at 11150 so bearish impulse can be invalidated soon. That is why we adjusted the wave count, and are now looking for wave X rally, but still same bias; recovery is in three waves so bears are possible but only confirmed when trendline support of current upward channel is broken. If on the other hand, coin will continue to rise and break the trendline resistance with an impulsive recovery away from the low, then we will turn bullish again and look back towards August high.
It this development the most important is close observation of current bounce that should be key to identify whats next for BTC.
The difference - Double Top & Head and ShouldersHello my friend | Welcome Back.
Please support this idea with LIKE if you find it useful.
***
What Is Double Top and Bottom?
Double top and bottom patterns are chart patterns that occur when the underlying investment moves in a similar pattern to the letter "W" (double bottom) or "M" (double top). Double top and bottom analysis is used in technical analysis to explain movements in a security or other investment, and can be used as part of a trading strategy to exploit recurring patterns.
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What Is a Head And Shoulders Pattern?
A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.
Nothing unexpected we covered this signal 26th AugustNothing unexpected we covered this signal 26th August
Here is an update with previous drawdowns between 23% & 91%. NOT ADVICE DYOR.
