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EURJPY 4H AROON BREAKOUT TRADING STRATEGY#1 Aroon Breakout Trading Strategy How to spot consolidation and trade breakouts with Aroon? When Aroon Up and Aroon Down lines are parallel to each other it’s a signal that the price is consolidating. The Aroon interpretation is that no new highs or lows are made during the default period. You have two options to trade consolidations. Wait for the breakout to happen and take the trade in the direction of the breakout. Or, wait for the Aroon crossover followed by a centerline cross to add more confluence for the direction of the trade. More often these Aroon signals will happen before the actual breakout. So, you basically anticipate the breakout. This is like front running all market participants. You get to enter a trade before anyone else.
Long
by Tradingstrategyguides
1D SPDR S&P 500 ETF TRUST Know Sure Thing Indicator StrategyFor traders who prefer simple trading strategies, the KST oscillator should be considered for evaluating: Breakout trading signals. Assessing the strength of a trend. How to use the Know Sure Thing zero line to spot bullish and bearish momentum signals: A buy signal is triggered when the Know Sure Thing crosses above the zero line. If the KST moving averages hold above the zero line, a bullish trend is confirmed. A sell signal is triggered when the Know Sure Thing crosses below the zero line. If the KST moving averages hold below the zero line, a bearish trend is confirmed. Breakouts are usually the primary source for generating momentum bursts. The natural law of price behavior shows that stocks, futures, Forex currencies, commodities and cryptocurrencies move in short-term momentum bursts. Price tends to move back and forth from equilibrium (consolidation) to disequilibrium (expansion).
AMEX:SPYLong
by Tradingstrategyguides
GBPUSD 1H MASS INDEX TRADING STRATEGYFind Mass Index Indicator in TradingView under Public Library - Mass Index/HPotter Add to chart Stochastic Indicator default settings Mass Index Trend Reversal Strategy Mass index trend reversal is a powerful strategy to detect trend changes. You can find money-making trading opportunities that evade most traders. We use two forex reversal indicators to develop this reversal trading strategy: The obvious mass index tool Stochastic indicator used to determine the directional signal. Both of these forex reversal indicators will protect you from false reversal signals. As we already mentioned we use the trend reversal trading strategy in combination with the price. The secret to trading trend reversal like a professional trader is to combine the price with other technical tools. That’s exactly what we try to accomplish here. As this will help you spot high probability bullish and bearish trend reversal signals. Now you’re wondering: “How do I combine all these pieces together to actually identify trend reversal trading setups that work?” Knowing what indicators to use and what is the Best Combination of Technical Indicators can dramatically improve your chart reading skills. If you use the wrong technical indicators, this can lead to inaccurate price interpretation and subsequently to bad trading decisions. The mass index trend reversal strategy can be broken down into a three-step process: Identify the reversal bulge on the mass index indicator. Identify the prevailing trend prior to the reversal bulge. Use the Stochastic indicator to generate a directional signal. Here is how to actually do it: Step #1 Identify the Prevailing Trend Always zoom out to have a clear picture of what is the prevailing trend. The previous GBP?USD chart zoomed out revealed that the prevailing trend is bearish. Naturally, we assume that a bullish reversal signal will follow. The trading bias is upwards once we correlated the mass index reading with the price action. Generally, we also want to confirm that the price is expanding and that we’re indeed in the last stage of a trend. This information is revealed in the price chart. We simply compare the most recent candlestick bars with the previous ones. Are the candlesticks expanding? If yes, that’s what we need to see. The bigger the candles are, the higher the change that a bigger trend reversal is going to develop. Step #2 Identify the reversal Bulge The mass index reversal bulge was already revealed at the beginning of this trend reversal guide. The mass index must first go above the 27 level and then it needs to be followed by a drop back below the 26.5 level. There is a high degree that the market will reverse from here. That’s pretty much it. There is nothing we can add here as everything else comes down to the relationship between the price and the mass index reading. So far, so good. Huston, we have a problem. The mass index indicator is prone to also produce large moves by the time the mass index line it takes to drop back below the 26.5 level. This can create the false illusion of a trend. But, in reality this can be a simple trend pullback. We’re going to teach you another great trick to use to capture trend retracements and pullbacks using the mass index. Let me explain… A picture is worth a thousand words. In this case, we’re effectively trend trading. See below the last step before pulling the trigger: Step #3 Use the Stochastic for Trigger We have established our trading bias and we have a mass index bullish reversal signal. Next, is to wait for the stochastic indicator to provide us with a bullish signal to trigger our long trade. The classical stochastic crossover is the most popular crossover trade signal. The stochastic bullish crossover occurs right after the mass index dropped below the 26.5 level. This is our signal that the momentum has shifted to the upside and the trend is ready to reverse. So, you can go ahead and deploy your soldiers aka the money to capture more soldiers. There are always going to be pros and cons between reversal trading vs. trend trading. But what type of trader should you become? Should you be a Reversal Trader or Trend Trader? Each trading style has its own merits and proper use. While trend trading gives you the advantage of trading in the direction of the prevailing momentum, reversal trading gives you the advantage to buy low, sell high. But, if you don’t know what is your trading style, the chance of succeeding as a reversal trader or as a trend trader is very slim. If you’re searching for a trend following strategy that will turn your trading around make sure you check the MACD Trend Following Strategy. You need to develop your strategy to accommodate reversal trading if you want to catch tops and bottoms. There is no right or wrong between trend trading vs. reversal trading. The short answer is that you should be trading in a way to fit your own personality. While the trend is your friend, not many have the discipline to stay in a trade riding a trend. The fact is reversal trading can be a quick way to make some profits. The advantage of reversal trading is that you can be in and out of the trade very fast. Learn more about how to identify a Forex trend: Identifying Trends through Synchronization. Final Words – Mass Index Chart The Mass index indicator allows traders to predict trend reversals that other technical indicators may fail to notice. Using the mass index reversal bulge you can catch market tops and bottoms with deadly accuracy. You don’t have to be scared to try catching a falling knife. Most prominent hedge fund managers engage in reversal trading because it provides trade setups with high risk to reward ratios. You can always keep a mass index chart on the sideline to check if your favorite market is about to end a big trend cycle. The secret to trading trend reversal like a pro is to simply stop being scared of engaging in this type of trade activity. Just make sure you use wise risk management strategies before you put at work your hard-earned money. PM me if you want the link to the actual complete mass index strategy
Long
by Tradingstrategyguides
XRPUSD 1H EMA CROSSOVER STRATEGYStep #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade above the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade above both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover, which will add weight to the bullish case. We refer to the EMA crossover for a buy trade when the 20-EMA crosses above the 50-EMA. By looking at the EMA crossover, we create an automatic buy and sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bullish sentiment is strong enough to push the price further after we buy to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. Step #3: Wait for the zone between 20 and 50 EMA to be tested at least twice, then look for buying opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for two successive and successful retests of the zone between the 20 and 50 EMA. The two successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend. Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to buy. This brings us to the next step of the strategy. Step #4: Buy at the market when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and buy at the market price. We now have enough evidence that the bullish momentum is strong to continue pushing this market higher. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Los 20 pips below the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is up. As long as we trade above both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips below the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. Step #6: You choose TP or Take Profit once we break and close below the 50-EMA In this particular case, we don't use the same exit technique as our entry technique, which was based on the EMA crossover. If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse. Note** The above was an example of a BUY trade. Use the same rules – but in reverse – for a SELL trade. However, because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. After the EMA crossover happened.
COINBASE:XRPUSDLong
by Tradingstrategyguides
AUDNZD 1D STOCHATIC INTRADAY TRADEFind daily pair where Daily Chart 1: Stochastic lines have crossed below 20 level 2: K line above D line 3: K line crosses above 20 level - then 4: Look at 15m chart for swing low pattern 15m Chart - Swing Low Pattern 1st candle higher low 2nd candle lower low 3rd candle higher low Look for 1: Stochastic lines have crosses below 20 level 2: K line above D line 3: K line crosses above 20 level - then look for swing low pattern 4: Buy Stop at breakout of Swing Low Pattern Highest High 5: SL 5 pips below previous swing low 6: TP is a 1x2 risk reward
Long
by Tradingstrategyguides
2
XRPUSD 1D/1H DMI TRADING STRATEGYDMI & RSI were developed by Welles Wilder DMI has a 0 to 100 range DMI determines price direction and trend strength ADX line is non-directional. Determines trend strength regardless of trend direction When ADX is upward trend is strong. Doesn't matter if trend is up or down DMI + measures strength of an upward bullish move DMI - measures strength of a downward bearish move When Price goes up DMI + is above DMI - When price goes down DMI - is above DMI + We use DMI + or _ to gauge direction WE use ADX to measure strength of trend When - is above + bearish downward trend When ADX is climbing up the trend strength is increasing DMI Strategy Rules - manually make a 20 and 40 horizontal line in DMI Day Chart Step 1 Determine dominant trend of the day - which DMI is on top - wait for ADX to cross below/above 20 level 1H Chart Confirm which DMI on top matches days trend ENTER when ADX closes below/above 20 level SL below/above last swing low/high TP exit when ADX crosses below/above 40 level
BITSTAMP:XRPUSDLong
by Tradingstrategyguides
HOW TO TRADE WITH EMA STRATEGYExponential Moving Average Strategy (Trading Rules – Sell Trade) Our exponential moving average strategy is comprised of two elements. The first degree to capture a new trend is to use two exponential moving averages as an entry filter. By using one moving average with a longer period and one with a shorter period, we automate the strategy. This removes any form of subjectivity from our trading process. Step #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade below the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade below both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover, which will add weight to the bullish case. We refer to the EMA crossover for a sell trade when the 20-EMA crosses below the 50-EMA. By looking at the EMA crossover, we create an automatic buy and sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bearish sentiment is strong enough to push the price further after we sell to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. Step #3: Wait for the zone between 20 and 50 EMA to be tested once on a sell trade (twice on a buy trade) then look for selling opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for one successive and successful retest of the zone between the 20 and 50 EMA on a sell order but twp retests on a buy order. The two successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend on a buy order. However, because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. After the EMA crossover happened. . Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to buy. This brings us to the next step of the strategy. Step #4: Sell at the market when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and sell at the market price. We now have enough evidence that the bearish momentum is strong to continue pushing this market lower. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Los 20 pips above the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is down. As long as we trade below both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips above the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. Step #6: You pick your own TP strategy or Take Profit once we break and close above the 50-EMA If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse. Note** The above was an example of a SELL trade. Use the same rules – but in reverse – for a BUY trade. However, because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. After the EMA crossover happened. The exponential moving average strategy is a classic example of how to construct a simple EMA crossover system. With this exponential moving average system, we’re not trying to predict the market. But rather to react to the current market condition which is a much better way to trade the market. The advantage of our trading strategy stands in the exponential moving average formula. It plots a much smoother EMA that gives better entries and exits.
Short
by Tradingstrategyguides
6