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Confirmation

HOW-TO: Applying Profit Bands to the GKD trading system [Loxx]In this video I show how to use Profit Bands in conjuction with a Solo Confirmation Simple Backtest using the GKD Modularized Trading System. The purpose of this tutorial is show users how to see the entries/exits for the GKD-BT Backtest. Always make sure that the Backtest's volatility and volatility setttings match the Profit Bands volatility and volatility settings otherwise the entries/exits will not line up! █ Profit Bands What are Profit Bands? Profit Bands is a supplementary indicator to be used with Loxx's backtests and combination indicators that use volatility-based take profits and stop loss. This indicator includes two types of volatility: Average True Range and True Range Double. Additional volatility sources will be added in the future. The lines painted on the screen are multiples of ATR for Take Profits and Stoploss for Long/Short positions that you can change in the settings. 3 Take Profits and 1 Stoploss is supported. You can turn on/off each UI element. Position size is determined by calculating the size of an investment where you'd lose only X% of your balance if the Stoploss is hit. You can enter your total balance available to trade and the desired % risk you'd be willing to lose at SL. Typically this number is 1-2% of total balance per trade. Always remember to wait for bar close on a signal to and then peg this indicator to 1 bar backward to fix the price levels the then seed the exact levels you'll use for Take Profits and Stoploss. This indicator will match exactly the levels in other indicators in Loxx's scripts such as Kaleidoscope. You would overlay this script over any other script that uses volatility stops to see where to place your TPs and SL █ Giga Kaleidoscope Modularized Trading System What is Loxx's "Giga Kaleidoscope Modularized Trading System"? The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading. What is an NNFX algorithmic trading strategy? The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm: 1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc. 2. Baseline - a moving average to identify price trend 3. Confirmation 1 - a technical indicator used to identify trends 4. Confirmation 2 - a technical indicator used to identify trends 5. Continuation - a technical indicator used to identify trends 6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown 7. Exit - a technical indicator used to determine when a trend is exhausted How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above? Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are: 1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm) 2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm) 3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm) 4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm) 5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm) (additional module types will added in future releases) Each module interacts with every module by passing data between modules. Data is passed between each module as described below: GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy. This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm. What does the application of the GKD trading system look like? Example trading system: Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles as shown in the video above Baseline: Hull Moving Average Volatility/Volume: Waddah Attar Confirmation 1: DEMA MACD as shown in the video above Confirmation 2: Williams Percent Range Continuation: Fisher Transform Exit: Rex Oscillator Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain. Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm) Standard Entry 1. GKD-C Confirmation 1 Signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior Continuation Entry 1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously 2. GKD-B Baseline hasn't crossed since entry signal trigger 3. GKD-C Confirmation Continuation Indicator signals 4. GKD-C Confirmation 1 agrees 5. GKD-B Baseline agrees 6. GKD-C Confirmation 2 agrees 1-Candle Rule Standard Entry 1. GKD-C Confirmation 1 signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 1-Candle Rule Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees PullBack Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is beyond 1.0x Volatility of Baseline Next Candle: 1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees
Education
by loxx
2
BBY Double bottom WeeklyBBY is gearing up for a large move. One direction or another the move BBY is cooking will be nice and quick, with follow-through hopefully into the next week. On the left we see that BBY has completed a double bottom it's almost textbook. I suspect we will consolidate into tomorrow afternoon on BBY. The daily chart seems to confirm this with a similar double bottom. We have crossed the daily 200ema (Yellow Line). On the weekly chart (left) we see that BBY has a higher volume this week than last. Our retest of the weekly 8 ema and bounce off that level are a very bullish indicators. Looking at the daily chart (right) We see the break above the daily 200ema (yellow line) We see this level tested and confirmed several times. With a final bounce towards resistance @87. As stated above I think BBY will consolidate in this range for the coming days and hopefully with the cooperation of the SPY break out and up. This is invalidated with a break below the $78.60 area I believe the pattern is confirmed with a move above 86.46. The move has to be on high volume and with conviction. Until then I think we stay in the 78.60-86.46 range. (this is a broad range) Intraday targets are in this range, swing targets are outside of these ranges.
NYSE:BBYLong
by Battle-Trading
Confirmation entry 101Hello traders - In this example, we will talk about confirmation entry. - What is confirmation entry? - Confirmation entry is shown in the picture above, and in this situation, we chose a safer order block for our entry. - Below, we will break down the entire PA in detail and explain this example better. 1) We see that the momentum is present, the price has left an imbalance, and we have a nice candle close. 2) The price creates liquidity and returns to the retest, but in the end the price does not reach our order block, and here we have a missed entry. 3) The price impulsively broke through the low again, leaving the imbalance behind, and we see a nice candle close. 4) This second impulse can easily be a fakeout, so it is safer to wait for entry on the first order block 5) The price makes more liquidity that needs to be picked up 6) In the end, the price has taken out all the other traders who had open positions here, and our confirmation entry comes from where the price impulsively continues bearish. -When you trade, you have to learn to read the PA in small details in order to better understand the PA and the language of the market. - If this example helped you to better understand PA and confirmation entry, leave a like, and if you have any questions, you can ask below in the comments.
Education
by hybridtradingfx
1
NZDJPY Potential Bearish Continuation!Hello Traders, In Today's trading session we will be monitoring NZDJPY for a Selling opportunity in and around 84.7 area. Once we get a retest confirmation the trade will be executed and shared with our premium subscribers. - RISK DISCLOSURE TRADING IS NOT SUITABLE FOR EVERYONE. TRADING FOREX INVOLVES HIGH RISKS AND CAN CAUSE YOU A COMPLETE LOSS OF YOUR FUNDS! Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose! The high degree of leverage associated with trading currencies means that the degree of risk compared to other financial products is higher. Leverage (or margin trading) may work against you resulting in substantial loss. And feeling a sensation similar to getting sucker punched in the stomach. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Market Opinions BigGainLTD will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. YOU are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Internet Trading Risks There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since BigGainLTD does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. Distribution This site is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to in this website are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of and comply with any local law or regulation to which they are subject.
Short
by BiggainLTD
1
EDUCATION - Types Of Confirmations 📚When trading, it is important to have confirmations. Confirmations are when price moves in a a particular way which tells us that our setup is valid and even, ready for entry. We have 3 main types of confirmations. 1. Trendline Break This confirmation is very simple yet very effective. When price is following a trend, you can often find that there's a trendline that can be placed. This trendline is used as a guide. eg. When price stays below the trendline = bearish when price goes above the trendline = bullish Entry Method: Entry on break of the trendline with stops below the lowest price before the break 2. Break of structure Price tends to test and respect significant price points. e.g. We can draw a structure level when price rejects a certain price point and assume that when price stays below that level = bearish When price breaks above that structure level = bullish Entry Method: Entry on break of structure OR retest of that structure level 3. Moving Average Cross Over Using 2 moving averages can help you ascertain whether price is bullish or bearish. In the crypto market, the 100 and 200 moving averages are often used. eg. When the 100 moving average is below the 200 moving average = bearish When the 100 moving average is above the 200moving average = bullish Entry Method: Once there's a bullish cross over (100 over 200), we can assume price is bullish. We can look for pullbacks for entry COMBINATION Confirmations can be most reliable when more than one is used at the same time e.g. trendline break and break of structure. Please note that these types of confirmations work with ALL market, whether it is Crypto or Forex. See below for various examples of using confirmations when entering the market, particularly the crypto market. BITCOIN ETHEREUM LITECOIN Saveable post:
Education
by WicktatorFX
12
BTC in accumulation from 4/2021. Long-term bullish triangle!Today I want to present my main scenario. As long as 37400 holds I give this scenario the highest probabillity. I have identified an expanded triangle in the WB of the triagnle. Foundation for this scenario is WB which made HH and WC which has corrective nature and was unable to make LL thus it made HL. Now we are moving up in WD which is a complex correction with heavily overlapping structure. It is however still making HHs and HLs. As long this is the case we should be bullish. We have already seen some bullish indications such as D engulfing and swept liquidity below 39k. The probabillity of this scenario increases if we manage to get the confirmations labelled on the chart. If this scenario is correct we should finished the triagnle by summer and ultimately move to ATHs towards the end of the year (and perhaps reached the mythic 100k). We are forming our gameplan based on the indentified patterns which give us higher probabillity (they have been proven statistically significant) which in the long run should give us an edge (alfa = overperformance) in the markets. However, we should also be prepared for the alternative scenarios with lower probabillity so that we dont suffer large losses or get wiped out, even if it means limiting our profits and cutting losses when we are proven wrong. As TWC says, the only thing you can control in the markets is how much are you going to lose.
FTX:BTCPERPLong
by Tradern53
2
Unconfirmed bearish scenario for BTC. Watch out!Today I present to you inverted W chart of BTCUSD. We can see clear impulse down. Because we can count five waves we should form a scenario where PA will correct the impulse. So far we have gotten a reaction from lows and a HL which is the first indications of reversal. To confirm this idea we should see break of wave B of the recent correction in the channel and break of W4 of the large impulse. Moreover, this break would also confirm a Head and shoulders formation. When this happens, we should adopt this idea as a main scenario. Until then we should prefer bullish scenarios which will result in trend continuation. The move from the lows also doenst look that much impulsive and I tend to indentify it as a corrective move which supports the bullish scenarios. We are forming our gameplan based on the indentified patterns which give us higher probabillity (they have been proven statistically significant) which in the long run should give us an edge (alfa = overperformance) in the markets.
INDEX:BTCUSDShort
by Tradern53
3
Confirmation Sell For BTC/USDBTC is trading at 47,600 and moving higher. Here are two levels on my radar: Monthly 50% Retracement, $50,975 Monthly 38% Retracement, $46,721 Moving deeper into today’s session, I’ll be looking for price exhaustion beneath that 38% level. Here's the trade: 1) Wait for a 4-hour bar close beneath $46,721 2) Enter a short beneath $46,721 3) Initial stop above the most recent Swing High on 4-Hour chart 4) Apply a 1:1, 1:2, or 1:3 risk vs reward ratio This is a countertrend play, so confirmation of price exhaustion is a must.
BITSTAMP:BTCUSDShort
by TheTradingRoom
2
Double Bottom Chart PatternCompany info Wave Life Sciences Ltd., is a clinical-stage genetic medicine company that designs, optimises and produces novel stereopure oligonucleotides through PRISM. It is developing oligonucleotides target ribonucleic acid to reduce the expression of disease-promoting proteins or restore the production of functional proteins or modulate protein expression. Both the WVE and AGTC in my other trade idea have the same sector. The main ETF for this sector is the Health Care Select Sector SPDR Fund. However, there is an issue. Both these stocks are near all-time lows while the ETF is near an all-time high. So, the stocks are lagging behind. So, if you are going to trade these stocks be wary that they are going against the general market trend and there could also be other reasons as to why these stocks are not following the market. Double Bottom Analysis Type: Eve and Adam Length between Valleys: 5 weeks Volume Trend: Larger on the left valley Breakeven Failure Rate: 12% Throwback Rate: 65% Average Rise: 50% Price Target: 3.66 Percentage Change: 51% The double bottom analysis for this stock is the same as for AGTC. The length between the two valleys is within the ideal range at 5 weeks. Concerning volume , it is larger on the left side but not significantly. There does seem to be a downward trend of volume going from the left valley to the right valley. But this trend begins at the end of the left valley at the price spike that follows. The great thing about this patterns is, the stock is very close to their all-time lows. The left valley low was the all-time low. This means the stock has great upward potential. However, as stated above, the stock is not following the general market trend. Also, the stock has been on a downward trend since its inception. Regardless, the pattern is following all ideals even though the stock isn't. So, the pattern strengths are 3/5.
NASDAQ:WVELong
by BlackbearTrader