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What's in a Trading Plan? Here's All You Need to Include.Ready, set… plan? In this guide, we discuss why you need to plan your trading before trading your plan. Let’s roll. Table of Contents: »Importance of a Trading Plan »The Successful Trading Plan Doesn't Exi... »What's in a Typical Trading Day? »Markets, Strategies and Styles »Summary Venturing into trading without a plan is akin to setting sail on the ocean without a compass. Or taking the leap without looking first 😉. We can keep the metaphors rolling but if there’s one thing you must remember from this word salad of an article, it’s this: success in trading is possible with a plan. Without a plan, not so much. In this guide, we'll talk about the importance of creating a trading plan, what you should include in it, and how to follow it. 📍 Importance of a Trading Plan A trading plan is not just a list of dos and don’ts; it's the roadmap to trading success. Here's why it matters: ➡️ Streamlines Your Actions : Much like a roadmap, a trading plan outlines your objectives, time frames, strategies, and risk management techniques, and offers a clear path forward. ➡️ Limits Emotional Swings : By defining rules and parameters in advance, a trading plan helps to keep emotions in check, limiting impulsive actions that could lead to financial pitfalls. ➡️ Fosters Discipline : Sticking to a plan holds you accountable for your actions and allows you to see where you jump out of your rule book and into undisciplined FOMO-driven pump-chasing revenge trading. 📍 The Successful Trading Plan Doesn't Exi... Many traders believe that you can be successful by buying and selling random selections of stocks, forex pairs, or commodities. However, the reality is that the most — if not all — successful traders have one thing in common: a well-defined trading plan. Here's what makes for a successful trading plan: ☝🏽 Adaptability : A successful trading plan is not rigid but flexible, allowing for adjustments in response to changing market conditions. ☝🏽 Consistency : A plan helps you stay on track toward your goals as a trader, allowing you to stick to predefined rules and strategies, especially when things get hot and volatile. ☝🏽 Continuous Improvement : A successful trading plan is a work in progress. The more time you use it, the higher probability you will have to refine it as you drift along diverse assets, all swayed by different factors. 📍 What's in a Typical Trading Day? A typical trading day is a blend of preparation, execution, and reflection. And while you should leave room for new ideas, fresh approaches, and some surprises, there are mainstay components that you need to have in your trading plan. 📰 Reading the News : Staying in the know is always a good idea. For many successful traders, the first thing to do is check what’s the latest on the news front. Known as fundamental analysis, reading the news and doing your research will help you get a sense of investor sentiment. Moreover, you can stay ahead of the curve and anticipate big market moves by following the economic calendar. Lots of those sharp swings you see in forex or stocks are caused by regular data dumps such as the monthly US nonfarm payrolls report. The Federal Reserve’s decisions on interest rates or the monthly Consumer Price Index are also keys to anticipating volatility. And what better place to follow all that’s moving markets than the TradingView News section ? 📈 Following the Charts : if you’re here, this one won’t be too new to you. Chart reading, known as technical analysis, is one of the oldest ways to analyze anything — from stocks to crypto and even frozen orange juice. Think of a chart as your trading canvas. It’s your space to be creative, draft ideas, look for technical patterns and formations, and anticipate potential moves. Observing the chart and watching how prices behave will help you spot where a trend may form, extend, or reverse. Some of the most popular technical formations include double tops and bottoms, head and shoulders, cup and handle, and more. And some of the most popular technical indicators include the Simple Moving Average (SMA), the Relative Strength Index (RSI), and the Fibonacci sequence. All of that, and much more, is readily available for you almost anywhere you click on the TradingView platform. ⚒️ Work on Your Skills : Trading doesn’t have to glue you to the screen in constant monitoring of every blip. If you don’t see anything to trade, don’t trade just for the sake of it. Sometimes the best trading position is no position at all. Instead, use some of your idle time to build out your knowledge base. Grab some books on technical analysis or trading psychology. Or watch interviews of successful traders and investors and gain that educational edge to help you become a more aware, informed, and confident trader. 🏖️ Take a Break : Not everything you do needs to be related to productivity gains and trading improvement. Stare into space or read a great novel. Take your mind off trading and unwind, let the steam off, and recharge your batteries. Go out, enjoy a walk or do some people-watching. Taking time to zone out every now and then will help you get back to trading sharper, smarter, and more balanced. 📍 Markets, Strategies and Styles The world of trading is as diverse as it is dynamic, offering a flurry of markets, strategies, and trading styles to explore. Here's a glimpse into the landscape: 💹 Markets : Traders can choose from a variety of financial markets, including stocks , forex , and cryptocurrencies , each with its unique characteristics and opportunities. When you set out to create your trading plan, think carefully whether you want your portfolio to be concentrated into any one market or asset class. Or maybe you’d like to go for a diverse approach to trading and pull in assets from several markets. Knowing what your asset preference is will help you phase out markets so they don’t distract you. 🎯 Strategies : From technical analysis to fundamental analysis, you can adopt various strategies to identify trading opportunities and manage risk, ranging from trend following to mean reversion. News trading is a popular approach to markets as it allows you to bet on economic reports, geopolitical events, central bank updates, and more. On the other hand, technical traders tend to stick to the chart in efforts to gauge price movements and trends. Every chart tells a story. Deciphering it is the tough part. 🌈 Styles : Trading styles are equally important and they’re all tied to a specific time frame of holding your positions. If you’re more into short-term trading, you may pick scalping and target a few pips of gains before jumping out of your trade. Day trading and swing trading are two popular time-sensitive trading strategies that you may want to explore when building out your trading plan. 📍 Summary Your trading plan should be exactly that — yours. Tailor it to your specific goals, risk orientation, asset preference, and find out how it stacks up against market conditions. That way, you can navigate the markets with confidence and direction, instead of letting markets sway your decision making and lead you into uncharted waters. Embark on your trading journey armed with a well-crafted plan, and let it be your roadmap to trading success. 📣With that said, let us know in the comments: do you have a trading plan? What’s the most important element of it and are you always sticking to it?
COINBASE:BTCUSDEducation
by TradingView
40
Big Levels on Big TechBig technology stocks have moved sideways for the last month. Now there could be some important levels for names like Nvidia as investors digest today’s higher-than-expected inflation report. The main pattern on today’s chart is the March 11 low of $841.66. This level has provided support since the chip giant’s peak on March 8. (It’s also a weekly low.) Closing below it could make traders think about a test of the post-earnings gap on February 22. MACD has also been falling since mid-March. That could suggest direction has been turning more negative. At least two other AI-themed stocks may face similar predicaments. First, NASDAQ:SMCI Super Micro Computer formed a tight range above its March 20 low and a falling trendline. Traders may next eye the February 20 low of $692.50 as potential support. Second, NASDAQ:AMD Advanced Micro Devices has pushed toward its low from February 21. Traders may next eye around $149, the high in late December and early January before the stock broke out to new record territory. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
NASDAQ:NVDA
by TradeStation
11
Don't Trade These Trend Lines | Forex Trading Basics A lot of traders apply trend lines for trading and making predictions on different financial markets. Trend line can also be an important element of price action patterns. However, only few knows that some trend lines are better to be avoided. In this article, I will share with you the types of trend lines that you should avoid and not rely on for making trading decisions. Invalidated Trend Line Even the strongest trend lines may lose their significance with time. Before you take a trade from a trend line, make sure that it still remains valid. If the trend line is not respected by the buyers and then by the sellers, or by the sellers and then by the buyers, we say that such a trend line lost its significance, and it is better to not trade it. Have a look at that rising trend line on USDCAD. We see strong bullish reactions to that, and we may expect a bullish movement from that, once it is tested. However, it was violated and after a breakout it should turn into a vertical resistance. Retesting that, the price easily went through the broken trend line. The trend line lost its significance, and it is better to not trade that in future. 2 Touches Based Trend Line When you are looking for a strong trend line to trade, remember that the trend line should be confirmed by at least 3 touches and 3 consequent bullish / bearish reactions to that. Above is the example of a valid and reliable trend line. However, quite often, newbie trade 2 touches based trend lines. Most of the time, such trend lines are neglected by the market. Moreover, relying on 2-touches-based trend lines, your chart will look like a complete mess. Simply because there are too many trend line meeting that criteria. Receding trend line There are the trend lines that go against your trade with time while remaining valid. Have a look at a major falling trend line on NZDCHF on a daily time frame. You may open a swing long position from that on a daily or a day trade on intraday time frames like an hourly. You can see that the market may easily go against your predictions for a long time, while perfectly respecting a trend line. The price was sliding on that trend line for 6 consequent days before it finally started to grow. Such trend lines are better to be avoided . Make sure that a trend line and your trade have the same direction. Trend lines can provide very safe points for trading entries. However, the trend lines are not equal and while some of them can be very profitable, some of them can lead to substantial losses. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
20
Bitcoin Halving 2024 – This Time It’s DifferentREPORT HIGHLIGHTS: The fourth bitcoin halving event, scheduled on or around April 19, 2024, heralds a significant transformation in the cryptocurrency landscape. This halving, marked by the reduction of bitcoin supply subsidy, the emergence of a liquid investment ecosystem via CME Group futures and options, the advent of spot Bitcoin ETFs and the introduction of Ordinals, brings forth novel dynamics that could reshape prevailing narratives around bitcoin economics. The Halving Mechanics At its core, the quadrennial halving event entails a reduction in the reward granted to miners for each block mined on the bitcoin blockchain (the block subsidy) as determined by the bitcoin protocol. It is scheduled to occur roughly every four years, or every 210,000 blocks until the entire 21 million bitcoin supply is mined, approximately by 2140. As part of bitcoin's deflationary approach to its capped supply, the upcoming halving will reduce the bitcoin supply subsidy from 6.25 bitcoin per block to 3.125 bitcoin, fostering a more stringent supply landscape. By gradually decreasing the number of bitcoin entering into circulation, and, so long as the adoption of bitcoin grows over time, the halving mechanism ensures that the laws of supply and demand will consistently impact the value of the asset. Satoshi Nakamoto, in the bitcoin whitepaper's Incentives section, noted: “In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes. I’m sure that in 20 years, there will either be very large transaction volume or no volume.” Impact on Price Dynamics Source: CME CF Bitcoin Reference Rate Historically, each halving event has been accompanied by a significant surge in bitcoin price in the months preceding and following the event. Notably, in the 365 calendar days after the November 28, 2012, halving, bitcoin prices rose 8,447%, when the reward was cut from 50 bitcoin to 25 bitcoin. In the year following the July 9, 2016 halving, bitcoin prices rose a more modest, but still impressive, 283%, and the block reward was reduced to 12.5 bitcoin. In the 12 months after the May 11, 2020 halving, where the reward was cut to 6.25 bitcoin per block, bitcoin prices jumped 527%. The pre-halving rally has shown a diminishing trend over time, likely due to miners selling off their bitcoin holdings to secure profits ahead of the impeding reward reduction. Nevertheless, the historical pattern suggests the potential for bitcoin to reach new all-time highs in the aftermath of the 2024 halving. Impact of Bitcoin Spot ETFs The landscape surrounding bitcoin has evolved significantly, particularly with the approval of spot Bitcoin ETFs and the influx of institutional capital into the market. These ETFs have generated substantial daily demand, surpassing the pace of new bitcoin supply even before the halving and have the potential to absorb a considerable portion of the limited new issuance, To put the spot Bitcoin ETF inflows into perspective, at the current rate of block rewards, the bitcoin network produces about 900 new coins per day, or around $54 million worth of bitcoin (assuming an average price per coin of $60k). In April 2024, issuance will fall to 450 coins, or about $27 million worth of bitcoin. During the month of February, net inflows into the U.S.-listed spot Bitcoin ETFs averaged $208 million per day, far outstripping the pace of new supply, even before the halving. This imbalance between new demand and limited new issuance has likely contributed to the strong upward pressure on the price. Evolution of a Large Liquid Derivatives Market The emergence of a robust, regulated derivatives market facilitated by CME Group Bitcoin futures and options marks a fundamental shift in the narrative surrounding the halving for three key reasons: it enables price risks to be hedged, facilitates the management of bitcoin demand risk and provides market participants with actionable price discovery. Miners typically sold their bitcoin for fiat currency as they mined them, to pay for operational costs. This constant selling meant that price appreciation was measured. After a halving event, miners would have fewer bitcoin to sell, meaning the price could go up. Mining is now dominated by larger, often publicly traded, companies and with a liquid regulated derivatives market, it is possible for these firms to hedge and lock in future bitcoin prices to cover expenses without selling their coins. If this is the case, then selling pressure from miners is less likely to act as a drag on bitcoin prices going forward. Through the emergence of a healthy options market, investors can take price signals and consensus estimates about market expectations. Options could allow for additional income to be earned by miners or enhance long bitcoin positions, which would further cushion the impact of the upcoming halving. A higher number of investors and traders means better liquidity and enhanced price stability for bitcoin. It’s worth noting that bitcoin has become less volatile in recent years, with fewer extreme moves both to the upside and to the downside (link to Erik.N’s article). Growing institutional participation drove Bitcoin futures average daily open interest to over $11 billion so far in March (+29,000 contracts). Year- to- date average daily volume in Bitcoin futures at CME Group is roughly $4 billion (+15,400 contracts). Large Open Interest Holders (a LOIH is any entity that holds at least 25 Bitcoin futures or Micro Bitcoin futures contracts) reached a record of 272 holders, indicating growing institutional interest for bitcoin exposure. Impact on Miners The impeding halving poses challenges and opportunities for miners, as evidenced by shifts in miner behavior and industry dynamics. Decreased bitcoin reserves held by miners, coupled with heightened competition and record high hashrates, underscore the need for operational efficiency and strategic adaptation. The number of bitcoin held in wallets associated with miners has dropped to the lowest level since July 2021, suggesting that miners are perhaps capitalizing on bitcoin's recent price surge, running down their inventory ahead of the halving or leveraging them to raise capital for upgrading machinery and mining facilities. The bitcoin hashrate, a measure of network security, is near an all-time high and a sign of high competition, meaning miners need to marshal ever more computing power to earn new rewards. The difficulty in mining a single block is also at a record, and with high energy prices, the mining landscape remains tough. In previous cycles, there weren't many large-scale miners and even fewer publicly traded ones. The halving may catalyze merger and acquisition activities among mining firms, driving industry consolidation and fostering innovation in sustainable mining practices. Several publicly listed mining firms have already indicated they will use the halving to capitalize on strategic opportunities as mining rewards decrease and competition among miners intensifies. Depending on the operational cost of each miner, less efficient, unprofitable miners may be forced to leave the network or merge with larger companies to survive. In a more competitive landscape, miners will be driven to enhance their overall operational efficiency, including machine optimization, enhanced security and best-in-class risk management practices. This could likely spur increased innovation throughout incumbent mining technologies and methodologies, ultimately benefiting the industry as a whole. As the world becomes increasingly conscious of environmental impact, bitcoin miners that are at the forefront of adopting eco-friendly, sustainable practices and renewable solutions, such as carbon capture and heat waste recycling, will likely ensure that the future of crypto aligns with global sustainability and ESG goals. The rise of Ordinals The recent surge in retail demand can be attributed in part to the rise of bitcoin Ordinals BRC 20 tokens, which are reshaping the crypto landscape. These tokens, often likened to “NFTs for Bitcoin,” have the potential to drive on-chain activity and increase transaction fees, thereby bolstering miners’ revenue streams amidst declining block rewards post-halving. Long Term Outlook Bitcoin’s designation as digital gold underscores its role as a store of value, particularly amidst the scarcity reinforced by halving events. Institutional investors who view bitcoin as a hedge against inflation may find the halving supportive of its perceived value. Shifts in central bank policies, such as prolonged higher interest rates and potential quantitative easing measures, could further bolster bitcoin’s appeal as a hedge against currency devaluation. Looking ahead, the implication of bitcoin’s programmed scarcity intersecting with evolving demand dynamics remains intriguing. With 28 more halving events expected over the next 112 years, the future trajectory of bitcoin adoption and network growth warrants close monitoring – especially when broader retail and institutional access to bitcoin was only made possible in the U.S. less than 90 days ago with the approval of spot bitcoin ETFs. In conclusion, while past having cycles, with the associated price rallies offer valuable insights, the 2024 halving presents a unique confluence of factors that could usher in a new era for bitcoin. As institutional and retail interest converges with regulatory developments and macroeconomic shifts, maintaining a balanced perspective is imperative to navigating the evolving landscape of cryptocurrency. If you have futures in your trading portfolio, you can check out on CME Group data plans available on TradingView that suit your trading needs www.tradingview.com By Payal Shah, Director of Equity Research and Product Development at CME Group. *CME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc. **All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
CME:MBT1!Education
by CME_Group
9
📈 Bullish Perspective on BTC: On a Higher Time Frame Analysis! Despite recent market jitters and bearish sentiments stemming from a significant drop, I remain bullish on Bitcoin, particularly in a higher time frame analysis. The recent downturn may seem daunting, but it's crucial to recognize that such fluctuations are often part of Bitcoin's volatile nature, especially in the midst of its ongoing bull market trajectory and the upcoming Halving. In this analysis, I've employed the Fixed Range Volume Profile tool, which is readily available on TradingView for free. By pulling the fixed range volume profile from the inception of the triangle formation to the current price, several key insights have emerged. Firstly, it's noteworthy that price found robust support at the Value Area Low (VaL) of $64,550 at the start of April. Subsequently, we witnessed a temporary rejection from the Value Area High (VAH) of $72,440 on Monday, April 8th. As for now, price is hovering below the previous day's open of $69,360. A possible scenario I'm considering involves a potential retracement towards the 0.5 Fibonacci level and the base of the triangle. Notably, at this juncture, we encounter another significant level of confluence: the Fixed Range Volume Profile (FRVP). The red line within the FRVP denotes the Point of Control (POC), situated within the $67,000-$66,800 range. This area holds the potential to serve as a support zone. Maintaining an overarching bullish sentiment, it's essential to acknowledge the imminent halving event and the ensuing price fluctuations it may entail. As long as we remain entrenched within the confines of the triangle without flipping it as resistance, alongside holding the POC, red line, and the base of the triangle as support, we can anticipate higher price trajectories. However, it's prudent to exercise caution and monitor closely the $68,000 area, which coincides with the monthly Volume Weighted Average Price (MVWAP). In terms of actionable trading strategies, I'm eyeing long positions for shorter time frames (STF) around $68,450 as a POC of the last drop/$67,000 area at the base of the triangle in case of another drop, with a cautious approach after reclaiming. For higher time frame (HTF) longs, I'm considering entry at $65,550 as a Naked POC made on April 4th. Conversely, shorts could be considered for shorter time frames (STF) at the $71,300-$71,700 area and for higher time frames (HTF) at the all-time high if signs of weakness manifest as a failed action. *STF trades should be monitored closely, taking profit within the first reasonable sign of weakness! In conclusion, while short-term fluctuations may rattle market participants, a broader perspective reveals a bullish outlook for Bitcoin, underscored by technical analyses and market dynamics. **Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice!
by StihlBtChainSaw
40
TradingView Masterclass: The power of Bar Replay🚀 Unlocking Your Trading Potential with Bar Replay on TradingView In the whirlwind of trading, having ace tools up your sleeve can dramatically shape your strategy and success. The spotlight shines bright on TradingView’s Bar Replay feature, a gem that offers a rewind on market movements, setting the stage for strategic mastery. Let's dive into what makes Bar Replay a must-use for traders eager to refine their game. 🕒 Understanding Bar Replay on TradingView Bar Replay is one of TradingView's standout features, allowing traders to select any point in history on their chart and watch the market's movements replay from that moment. It's a game-changer for visualizing price actions and volume changes without the stakes of live trading. Whether you're aiming for an in-depth analysis or a quick market recap, the adjustable speed of Bar Replay caters to all your needs with unmatched flexibility. 🤿 Why Dive into Bar Replay ? The magic of Bar Replay lies in its exceptional ability to simulate market scenarios, offering a practice ground for strategy testing and gaining insights from historical market behavior. Newcomers find a safe space to learn and experiment, while the pros get a robust tool for refining strategies. Our tutorial video steps it up by walking you through practical uses on a top company's chart—marking crucial levels, applying indicators, and making trade decisions, all within the Bar Replay environment. ✨ Conclusion: ReplayYour Path to Trading Excellence Bar Replay isn't just another tool; it's your companion in the quest for trading excellence, turning theory into actionable insight. Whether you're just starting or fine-tuning your strategy, it bridges the gap to more informed and decisive trading. Ready to explore Bar Replay 's power and make each session a step closer to your trading goals? Let's embark on this journey together. ❓ Ever tried Bar Replay in your trading adventures? We're all ears! 📢 Whether it's been a strategy game-changer or you're navigating its integration, drop your stories below. Let’s navigate the market's waves together. 💖 TradingView Team PS: Check out our other Masterclasses in the Related Ideas below 👇🏽👇🏽👇🏽 and give us a 🚀 and a follow if you don't want to miss any of our future releases!
COINBASE:BTCUSDEducation
by TradingView
7
Double EMA Strategy...For Beginners Hey Rich Friends, Happy Monday! It's a new week which means many new opportunities to get into the market...but it doesn't mean that you have to take all of them. Make sure you focus on finding the best setups by sticking to your plan and following your confirmation checklist. The best out of 25 will give you a good idea of your win/loss ratio. If you are still struggling to find a SIMPLE strategy that works for you, try using this Double EMA strategy that I apply to my trades. Let me know what you think and if it works for you! Today we will cover: 1. How to use EMAs on Tradingview 2. Double EMA Strategy 3. Feel confident taking a buy or sell in Forex trades 4. Trade with the trend Peace and Profits, Cha
Education
0
by MoneyMantraCha
19
How to Use Fibonacci Retracements for CryptoHow to Use Fibonacci Retracements for Crypto Fibonacci retracements have long been used in traditional financial markets. However, with the advent of crypto trading, they’ve also found popularity amongst digital asset traders. In this article, we answer the question “What is Fibonacci in crypto?”, discuss how to trade retracements and offer some strategies you can get started with today. Understanding Fibonacci Retracements Fibonacci retracements are based on the Fibonacci sequence mathematical concept. This sequence was discovered by Leonardo Fibonacci, a 13th-century Italian mathematician, and consists of a series of digits where each number is the sum of the two preceding ones, starting from 0 and 1. The sequence is 0, 1, 1, 2, 3, 5, 8, and so on. The most interesting aspect of this sequence is the so-called Golden Ratio of 1.618. This ratio can be found throughout artificial and natural structures, including the Taj Mahal, tornadoes, and spiral galaxies. This ratio, and complementary ratios, also seem to significantly influence the financial markets. Fibonacci retracement levels are percentages derived from the Golden Ratio. The most widely used retracement levels are 38.2%, 50%, and 61.8%. These levels represent potential support and resistance areas where the price of an asset, like a cryptocurrency, might bounce back or reverse during a trend. Additional retracement levels, like 23.6% and 78.6%, are also sometimes used, although they are considered less significant. As traders, we can use the Fibonacci sequence in crypto trading to identify potential areas where a price may reverse or stall, allowing us to make informed decisions about when to enter and exit a position. The retracement levels can be applied to any timeframe, making them versatile tools for different trading styles, including day trading, swing trading, and position trading. What Does Fib Mean in Crypto? “Fib” is an abbreviated term describing Fibonacci retracements. While there are other types of Fibonacci tools, such as extensions, fans, and spirals, Fibs will almost always refer to retracements. How to Use Fibonacci Retracements for Crypto Trading Using Fibonacci levels in crypto has become increasingly popular in recent years, especially for the world’s largest and most popular digital asset, Bitcoin. The highly volatile nature of cryptocurrencies makes it crucial for traders to identify potential areas of support and resistance where prices may reverse. To find and use your own Bitcoin Fibonacci levels, follow these steps: Plot the Bitcoin Fibonacci retracement levels by selecting an extreme low and high in an uptrend and vice versa. This can be done using the Fibonacci retracement tool available in most charting software, including the TickTrader platform by FXOpen. Observe price action at the 38.2%, 50%, and 61.8% levels. Each level acts as an area that may prompt a reversal. If the price breaks through one level, it can be assumed the trend is continuing and that the asset will move to the next level. When drawing the Fibonacci retracement, it’s essential to follow these two rules: When looking to plot support levels, set the first point at a swing low and the second at a swing high. When looking to plot resistance levels, set the first point at a swing high and the second at a swing low. Optimising Entries and Exits While Fibonacci retracements can help traders pinpoint support and resistance levels, there are a few factors to consider to make the most out of Fibs for crypto trading. Trade with the Trend Like many technical tools, Fibonacci retracements are best applied in line with a broader trend. While you might be looking for a short-term reversal, the setup will have the highest probability of working as expected when it conforms to a higher timeframe trend. In other words, you would want to look for retracements in a larger uptrend and vice versa. Think of the Levels as Areas Like traditional support and resistance levels, Fibonacci retracement levels shouldn’t be treated as the exact point where the price will reverse. It happens occasionally, but the price will often move slightly beyond the level before reversing as expected. It may even stop just short of it. Instead, you can treat them as areas of interest and then wait for confirmation using other tools. Combine Fibs with Other Technical Tools When looking at a crypto Fibonacci chart, it can be tempting to simply set a limit order at one of the significant levels and call it a day. While this sometimes works, there’s no guarantee these areas will remain consistent. It’s better to evaluate the likelihood that the area will hold, or is holding, using other tools. For example, you could look for it to line up with a horizontal support/resistance level or a trendline. Momentum indicators, like the relative strength index (RSI), can also offer insights into whether the trend is weakening and is due for a reversal. Additionally, candlestick and chart patterns can provide extra confirmation. Strategies for Trading Bitcoin with Fibonacci Retracements Let’s take a look at some specific Fibonacci retracement strategies you can use to trade Bitcoin and other cryptocurrencies. Trend Trading with Support and Resistance This approach simply requires identifying a broader trend and waiting for a pullback to one of the key levels that lines up with the horizontal support and resistance level. Entry: Limit orders can be set at the level within the support/resistance area. Alternatively, you could wait for the area to show signs of reversal before entering with a market order. Stop Loss: Stop losses can be set just above (in an uptrend) or below (downtrend) the horizontal area. It should be somewhere that invalidates your idea without being unnecessarily wide. Take Profit: Traders often begin to take profits at the chosen high or low. In the example shown, we could start to take profit at the retracement’s swing low. Relative Strength Index (RSI) Divergences and Fibonacci This strategy combines the popular momentum indicator, the relative strength index (RSI), with the Fibonacci retracement tool. Specifically, we’re looking for divergences that indicate a potential reversal as the price moves to a Fib level. Entry: Wait for a regular divergence to appear at a significant Fibonacci level (right-hand trendline). When the price shows signs of reversal, validating both the retracement and the divergence, traders can enter with a market order. Stop Loss: A stop can be placed above or below the entry candle, depending on the direction of the trade. Take Profit: As with the previous strategy, a good place to consider taking profit is at the high or low of your plotted retracement. As a bonus here, we also have a hidden divergence (the left-hand trendline) that indicates that bullish momentum is likely to happen. Fibonacci and Chart Patterns In this strategy, we use chart patterns to confirm the level is holding. In the Bitcoin Fibonacci chart shown, we’ve used a bullish wedge (a common reversal pattern), but you can use any pattern you prefer. Entry: After observing a chart pattern at a retracement level, you could wait for the pattern to be confirmed with a breakout. Then, you may enter on the retest of the pattern’s trendline. In this example, we could wait for the upper trendline to be broken before waiting for a pullback and entering. Stop Loss: Stops can be placed above or below the pattern’s opposing trendline. Here, we’d place it below the wedge’s bottom trendline. Take Profit: You could take profit at the retracement tool's extreme points. This setup also had extra confirmation with the double bottom before the wedge broke out, providing a high-probability trade. Confirming Fibonacci with Other Technical Indicators Of course, RSI isn’t the only indicator you can combine with Fibonacci retracements. Here are some other popular indicators to use: Moving Averages: Moving averages can offer dynamic support and resistance levels that add extra confluence to a Fib setup. Longer-term averages, like a 50 or 200-period moving average, are often respected. Meanwhile, pairing two faster moving averages can help confirm reversals when they cross over. Bollinger Bands: Bollinger Bands are often used to spot potential reversals. Touches to the band that move away sharply can be a sign of a reversal and, when combined with a retracement level, can make for a decent entry. MACD: MACD is another momentum indicator that can help traders find reversals. When the MACD and signal lines cross at a Fibonacci level, this can indicate a reversal is inbound. Risk Management Techniques As with all trading strategies, risk management is critical to a sustainable system. However, there are a few techniques that are specific to Fib retracements. Look For High-Quality Setups The first step in managing your risk is to only trade the best setups. This means looking for Fibonacci trades that have multiple confirmation factors and waiting patiently to see what you want to see. You might miss some moves this way, but it’ll also keep you out of many losing trades. Set Logical Stop Losses When using Fibonacci retracements in crypto, it can be tricky knowing where to place your stop loss. It’s good practice to consider the wider context of your trade idea and how your stop-loss placement fits into it. If you’re confident that the retracement level will hold or are trading short-term price movements, setting a stop loss beyond the entry level is suitable. Likewise, if you’re less confident that the area will prompt a reversal or are taking a longer-term view of the market, then you may prefer to set your stop loss at the high or low of the Fibonacci retracement. Establish Take Profit Targets in Advance By knowing where you want to exit a profitable trade, you prevent yourself from giving up too much profit by holding on too long. Using the take-profit levels discussed is a good place to start, as are Fibonacci extensions. Develop a Rule-Based System Having clearly defined rules for Fibonacci entries will remove a lot of the guesswork that comes with discretionary trading. It helps you find the best quality setups, avoid impulsive decision-making, and means you can easily adjust your strategy as you progress. Common Mistakes to Avoid When using Fibonacci in crypto trading, traders can sometimes fall into pitfalls. Let’s examine some of the most common errors. Confusing Highs and Lows: As mentioned, selecting a high or low as your first point when plotting the retracement depends on whether you’re looking for support or resistance. Be sure to follow the rules described earlier to avoid any confusion. Confusing Fibonacci Retracements for Extensions: Retracements identify potential support and resistance levels during a price pullback, while extensions project potential target levels beyond the original high or low. Double-check the name of the tool you’re using to avoid getting the two mixed up. Ignoring the Bigger Picture: Always consider the overall market context and trend before making a trade. If the market is strongly trending in one direction, a reversal at a Fibonacci level might be less likely. Misidentifying Significant Price Points: Selecting the correct high and low points is essential for accurate retracement levels. This usually means selecting the most extreme swing highs and lows that are easily visible. Take your time to identify the most significant price points, and be prepared to adjust your points as the market progresses. Closing Thoughts In summary, Fibonacci retracements can make for an excellent addition to your crypto trading arsenal. While they shouldn’t be used in isolation, combining Fibs with other technical tools and indicators can make for an effective strategy. However, the tips, techniques, and strategies described here aren’t exclusive to crypto: they can be applied to whichever market you prefer to trade, like forex, stocks, and commodities. Want to see for yourself? You can open an FXOpen account to gain access to these markets and the advanced TickTrader platform, where you’ll find the Fibonacci retracement tool and the indicators discussed waiting for you. Good luck! *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
BITSTAMP:BTCUSDEducation
by FXOpen
6
Embracing Failure: The Key to Unlocking Trading SuccessIn the pursuit of trading mastery, the path is often littered with setbacks and failures. However, it's essential to recognize that these hurdles are not just obstacles but invaluable learning opportunities. Learning how to fail – and more importantly, learning from failure – is a critical step towards enhancing your trading success. This article explores the significance of embracing failure as a vital component of your trading education. ➡️ The Role of Failure in Trading Trading, by nature, involves uncertainty and risk. Even the most seasoned traders face losses; it's an inherent part of the game. However, the difference between successful traders and those who struggle lies in their response to failure. Successful traders view failures as feedback, using them as a springboard to refine strategies, hone skills, and fortify mental resilience. ➡️ Failing Forward The concept of "failing forward" means using setbacks as a catalyst for growth. Instead of letting failure deter your progress, it involves analyzing what went wrong, understanding the factors at play, and adjusting your approach accordingly. This mindset shift is crucial in trading, where the same mistake can be costly if repeated. ➡️ Lessons from Losses Every loss carries a lesson. It could be a flaw in your strategy, a gap in your market knowledge, or even an insight into your psychological biases. By meticulously reviewing your failed trades, you can uncover these lessons and apply them to avoid similar pitfalls in the future. Remember, in trading, experience is measured not just by your wins but also by how you navigate and learn from losses. ➡️ Some famous quotes Thomas A. Edison : " I have not failed. I've just found 10,000 ways that won't work. " Winston Churchill : " Success is stumbling from failure to failure with no loss of enthusiasm. " Michael Jordan : " I've failed over and over and over again in my life and that is why I succeed. " Henry Ford : " Failure is simply the opportunity to begin again, this time more intelligently. " J.K. Rowling : " It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all—in which case, you fail by default. " Oprah Winfrey : " Failure is another stepping stone to greatness. " Theodore Roosevelt : " The only man who never makes mistakes is the man who never does anything. " Albert Einstein : " A person who never made a mistake never tried anything new. " Coco Chanel : " Success is most often achieved by those who don't know that failure is inevitable. " Johnny Cash : " You build on failure. You use it as a stepping stone. " James Joyce : " Mistakes are the portals of discovery. " Samuel Beckett : " Ever tried. Ever failed. No matter. Try again. Fail again. Fail better. " Robert F. Kennedy : " Only those who dare to fail greatly can ever achieve greatly. " John C. Maxwell : " Fail early, fail often, but always fail forward. " Arianna Huffington : " Failure is not the opposite of success; it's part of success. " Abraham Lincoln : " My great concern is not whether you have failed, but whether you are content with your failure. " Dale Carnegie : " Develop success from failures. Discouragement and failure are two of the surest stepping stones to success. " Mary Kay Ash : " When you fail, you have to be able to say, 'I believe in myself enough to try again. '" Steve Jobs : " Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important. " Richard Branson : " Do not be embarrassed by your failures, learn from them and start again. " As you can see, you're not the only one who fails, the famous people quoted all had their fair share of fails. The fact that they did not give up is testimony to their eventual success. ➡️ Building Resilience Repeated exposure to failure, coupled with a constructive response, builds resilience. This mental toughness is invaluable in trading, helping you maintain composure and clarity in the face of market volatility. Resilient traders are better equipped to stick to their strategies, manage risks effectively, and seize opportunities without being swayed by emotional extremes. ➡️ Practical Steps to Learn from Failure ☝🏽 Keep a Trading Journal : Document every trade, including the rationale, outcome, and any emotions felt. Review this journal regularly to identify patterns in your failures. ☝🏽 Seek Feedback : Engage with a trading community or mentor. External perspectives can offer insights you might overlook. ☝🏽 Educate Continuously : Use failures as a cue to fill knowledge gaps. Whether it's technical analysis, market fundamentals, or trading psychology, there's always more to learn. ☝🏽 Develop a Growth Mindset : Cultivate the belief that your abilities and intelligence can grow with effort. This mindset encourages resilience and a positive attitude towards learning from failure. ➡️ Conclusion In trading, failure is not the opposite of success; it's part of the journey to success . By embracing your failures, analyzing them, and extracting lessons, you can continually improve your trading performance . Remember, every great trader has faced setbacks; what sets them apart is their ability to learn, adapt, and evolve from those experiences. So, next time you encounter a setback, see it as an opportunity to grow and inch closer to your trading goals. ❓How do you deal with failure? Do you let it get the best of you or do you dust yourself off and continue with renewed drive and energy? Share your experience in the comments below 👇🏽👇🏽👇🏽 Liked this article? Give it a boost 🚀 Follow for more! Thanks for reading, meet you in the comments.
COINBASE:BTCUSDEducation
by Nico.Muselle
9
TSMC Secures Historic $11.6 Billion U.S. InvestmentIn a groundbreaking move to bolster domestic semiconductor manufacturing, Taiwan Semiconductor Manufacturing Co. ( BCBA:TSMC ) has secured a monumental $11.6 billion investment from the United States. The initiative, spearheaded by President Joe Biden, underscores a strategic effort to fortify America's position in critical technology production. Under the terms of the agreement announced by the U.S. government, BCBA:TSMC is set to receive $6.6 billion in grants and up to $5 billion in loans to facilitate the construction of a third chip manufacturing facility in Arizona. This investment is poised to unleash a cascade of economic activity, with TSMC's total investments at the three Arizona plants projected to exceed $65 billion. The newly announced factory, slated to utilize next-generation 2-nanometer process technology, is anticipated to become operational before the end of the decade. U.S. Commerce Secretary Gina Raimondo emphasized the significance of these advancements, particularly in driving emerging technologies like artificial intelligence and fortifying national security capabilities. Raimondo remarked, "For the first time ever, we will be making at scale the most advanced semiconductor chips on the planet here in the United States of America, with American workers." This milestone underscores a pivotal moment in the Biden administration's push to revitalize the U.S. semiconductor industry, as outlined in the 2022 Chips and Science Act. TSMC's commitment to expanding its manufacturing footprint in the U.S. aligns with a broader trend of major semiconductor companies repositioning their operations to American soil. Intel Corp. and Samsung Electronics Co. have also inked substantial agreements under the Chips Act, signaling a seismic shift in global semiconductor production dynamics. The significance of TSMC's investment extends beyond economic implications, carrying political weight as well. With Arizona emerging as a pivotal battleground state, the infusion of jobs and investment from TSMC's projects aligns with President Biden's vision of revitalizing the American economy and securing reelection support. Moreover, the BCBA:TSMC grant includes provisions for workforce training and is expected to generate 6,000 high-tech manufacturing jobs, alongside over 20,000 construction jobs. This influx of employment opportunities underscores the transformative impact of the semiconductor industry on local economies. While the road ahead may present challenges, including navigating labor disputes and market uncertainties, TSMC's commitment to its Arizona projects underscores a long-term vision for technological innovation and economic growth. As the company enters a due-diligence period before finalizing agreements, the promise of a revitalized semiconductor industry on American soil looms large on the horizon. Technically, TSM stock is in the consolidation zone after accumulating liquidity might spike to a new Resistance level.
NYSE:TSMLong
by DEXWireNews
7
The TradingView Digest - April 8thHey everyone! Welcome back to the TradingView Weekly Digest. In today’s edition, we’re highlighting the top ideas from our community, which includes a write-up on Tesla, an informative post about Keltner channels and Bollinger bands, a hot script on trailing stop management, and all the latest headlines, earnings, and economic events. We hope you find this week's edition exciting and engaging. Let's dive in! 😀 💡 Tesla Stock Down 30% This Year. What Happened to the EV King? - by TradingView The electric-car maker is in dire need of charging after losing more than $260 billion this year and turning Elon Musk into the biggest loser among the world’s wealthiest. Tesla stepped into 2024 as the world’s largest EV seller with a valuation of more than $780 billion. None of that is true today. 💡 Keltner Channels vs Bollinger Bands - by FXOpen If you're a trader, you likely know that indicators are valuable tools for identifying trends and determining entry and exit points. Two popular indicators are Keltner Channels and Bollinger Bands. Both help measure volatility, but which one is better? In this article, we'll delve into the differences between the two, explain their components, and discuss which one is best. 🔝 Top Stories 📰 U.S. March Nonfarm Payrolls +303K; Unemployment Rate 3.8% 📰 Johnson & Johnson to Buy Shockwave Medical in $13.1 Billion Deal 📰 Gold Shines Above $2,300, Ends Another Week At Record High 📰 Solar Eclipse On April 8 Could Give Whopping $1.5 Billion Boost To Businesses 📰 New users flock to Ethereum while long-term holders are less active than ever 💵 Earnings highlights from the previous week: 💲 Levi Strauss (LEVI) Q1 Earnings and Revenues Surpass Estimates 💲 BlackBerry reports surprise profit on demand for cybersecurity services 💲 Conagra (CAG) Q3 Earnings Beat, Organic Sales Decline Y/Y 💲 Lamb Weston (LW) Q3 Earnings Lag Estimates, Guidance Lowered 💲 Greenbrier 2Q Revenue Declines But Beats Wall Street's Forecast 💡 Nvidia - Entering a Bear Phase! - by basictradingtv For more than 6 years, Nvidia stock has been trading in a long-term rising channel formation. The last retest of support occurred in 2021, followed by a +650% rally to the upside. As of now, Nvidia stock is retesting the upper resistance of the channel, and we might see a short-term correction towards the downside to retest the previous all-time high. 💡 Don't Get Duped by the RSI - by ParabolicP The Relative Strength Index (RSI) is a common technical analysis tool used by traders to gauge whether an asset is overbought (priced too high) or oversold (priced too low). It analyzes price movements over a specific period (often 14 days) and displays a score between 0 and 100. Generally, an RSI above 70 suggests an overbought condition, while an RSI below 30 suggests an oversold condition. 📆 Economic Calendar ⚡️ April 10th (United States) — Core Inflation Rate YoY ⚡️ April 10th (United States) — Inflation Rate YoY ⚡️ April 10th (United States) — FOMC Minutes ⚡️ April 12th (United States) — Michigan Consumer Sentiment Prel ⚡️ April 16th (China) — GDP Growth Rate YoY 🔥 What's New? ✅ New chart type — Volume candles 🌟 Script of the Week 📜 Trailing Management - by Zeiierman This tool provides an automated and visual approach to trailing stop management, aiding in systematic decision-making for trade entries and exits based on risk-reward metrics. 💭 Our Weekly Thought: “The trend is your friend.” We hope you found this helpful. Please share your feedback, remarks, or suggestions with us in the comments below. 💖 TradingView Team 📣 Want to be among the first to know all the news? Give us a follow !
COINBASE:BTCUSD
by TradingView
7
Bitcoin: The Halving Range.Bitcoin appears to be in a consolidation (see converging lines on chart) as the halving event nears. Makes sense, especially since events like this tend to be "buy the rumor, sell the news". There is no way to know how Bitcoin will react going into the halving because there are many factors in play, often too many to effectively act upon. Many like to resort to history, but history does NOT repeat itself exactly the same way every time. The illustration on this chart shows the scenario that I am anticipating for the coming week. As of now, IF 68,850 is compromised, a new swing trade buy signal will be in effect on this time frame. IF the consolidation stays intact, then it is not likely to go very far (71K area resistance). This means a better way to participate is day trade with low expectations. I repeat that a lot because MOST of the time, there is little to no opportunities on the larger time frames that make sense in terms of the associated RISK. Sure you can enter at any price and it MAY go your way, but how much risk are you taking? Big wins with high risk = unsustainable account performance (exchanges, forex dealers, prop firms and casinos LOVE this idea). Another way to capitalize on this consolidation is to WAIT for supports to be tested such as the 66K and 64K levels. If 64K is compromised, a test of 60K becomes much more likely which would extend the range of the consolidation. Upon testing such levels, waiting for confirmation before entering is key because markets are HIGHLY random and there is no guarantee supports hold. Technical analysis helps to develop a plan, evaluate risk and manage expectations. It is NOT a method to forecast the future as many believe. Anything can happen, any time, all it takes is an unexpected piece of news. The information I provide here is to help you operate under a realistic set of expectations as defined by historical MARKET structure, NOT how I feel or think. Realize that this is actually a game of information. Whoever has the best information will profit from the majority of participants who "believe" they are acting on useful information. As a short term oriented trader, I am not trying to be "right". I am trying to gain insight into areas of price behavior that may offer a greater probability of a positive outcome. In other words looking for price action clues that point to repetitive behaviors that I can capitalize on. Let that sink in before consuming another Youtube video featuring a rocket ship. Thank you for considering my analysis and perspective.
BITSTAMP:BTCUSD
by MarcPMarkets
38
Is TikTok FOMO the Canary in the Crypto Coal Mine? How Memes and Hype Signal a Risky Market The meteoric rise of Bitcoin and other cryptocurrencies has captured the imagination of investors and the public alike. But amidst the excitement, a crucial question lingers: how do we identify when the market might be overheating? Traditionally, analysts have relied on technical indicators and economic data. However, the rise of social media, particularly TikTok, presents a new wrinkle in gauging market sentiment, especially with the influx of worthless meme coins and potentially misleading influencer endorsements. The Allure of Crypto on TikTok TikTok's short-form video format is a breeding ground for viral trends, and cryptocurrencies are no exception. Endlessly scrolling users are bombarded with enthusiastic pronouncements about the "next big coin" and testimonials of life-changing gains, often featuring meme coins with dog or cat logos. These videos exploit the "fear of missing out" (FOMO) mentality, pressuring viewers to jump on the bandwagon before prices skyrocket. However, many of these meme coins have little to no underlying technology or real-world application, making them inherently risky investments. The Mania Indicator: While social media can be a valuable tool for connecting with communities and sharing information, the sheer volume of uncritical crypto hype on platforms like TikTok, especially surrounding meme coins, can be a strong warning sign. When complex financial instruments are reduced to catchy slogans and presented as a get-rich-quick scheme with cute animal mascots, it suggests a market driven by speculation rather than fundamentals. Paid Promotions and Influencer FOMO: Further complicating the issue are influencers who promote specific cryptocurrencies, often without disclosing that they're being paid to do so. These endorsements can mislead viewers into believing these meme coins or hyped projects are legitimate investments. This lack of transparency can create artificial demand and inflate prices in the short term, but can also lead to dramatic crashes when the hype bubble bursts. A Canary in the Coal Mine? Historically, periods of intense social media buzz surrounding specific stocks or asset classes have often coincided with market peaks. Social media trends are fleeting, and the frenzy surrounding meme coins on TikTok could be a sign that the crypto market is nearing a period of correction. Beyond the Hype: It's important to remember that social media trends are fleeting. While these platforms can provide a glimpse into popular sentiment, they shouldn't be the sole basis for investment decisions. Conducting thorough research, understanding the underlying technology of a project, and employing sound risk management strategies remain paramount for navigating the ever-evolving crypto landscape. The Takeaway: The proliferation of meme coin cheerleading and potentially misleading influencer endorsements on TikTok serves as a stark reminder of the importance of measured analysis in the face of market exuberance. While social media can be a tool, responsible investors should prioritize fundamental analysis, avoid meme coins with no real-world application, and be wary of paid influencer promotions. A long-term perspective is essential when navigating the exciting, yet volatile, world of cryptocurrencies.
CRYPTOCAP:TOTALEducation
by ParabolicP
5
Keltner Channels vs Bollinger BandsKeltner Channels vs Bollinger Bands: Which Indicator Should You Use? If you’re a trader, you likely know that indicators are a valuable tool for identifying trends and finding entry and exit points. Two popular indicators are Keltner Channels and Bollinger Bands. Both help you measure volatility, but which one is better? In this article, we’ll dive into the differences between the two, explain their components, and discuss which one is best. Keltner Channels The Keltner Channel is an indicator that helps traders determine trends, momentum, and potential reversal areas in a given market. It’s named after Chester Keltner, who first introduced it in the 1960s. Keltner Channels are composed of three lines, forming an envelope. The middle of these three lines is an exponential moving average (EMA), usually set to 20 periods. The upper and lower lines are multiples of the Average True Range (ATR) added or subtracted from the EMA, often double. The ATR measures the volatility of an asset by taking the average of the true ranges of its price movements over a certain period. We can interpret Keltner Channels in several ways. The upper and lower bounds act as dynamic support and resistance levels, and traders use them to determine entry and exit points. Additionally, when price breaks through one of the bounds, it may signal a potential reversal or a continuation of the current trend, depending on price action and other technical factors. For instance, a market in a strong bullish trend will appear to stick close to the upper line, often retracing to the EMA before continuing higher. Meanwhile, closes far outside of the lines may sometimes signal a reversal, given how far price has moved beyond its expected true range. Following a ranging market, determined when the lines are effectively horizontal, these kinds of extreme moves may signal a breakout. Bollinger Bands The Bollinger Bands is a widely used technical indicator that helps us identify an asset's volatility and potential price movements. It was created by John Bollinger in the 1980s and has since become a popular tool among traders of all levels. Like Keltner Channels, the Bollinger Bands tool comprises three components: the middle line and two outer lines. The middle line is a simple moving average (SMA), typically 20 periods long. The upper and lower bands are calculated by adding and subtracting a multiple of the price’s standard deviation from the SMA, respectively. This multiple is set to two by default, but some will adjust it according to their preferences. Instead of using the true range, Bollinger Bands use standard deviation (STD) – the square root of the variance of a set of price movements over time. Because they utilise standard deviation, Bollinger Bands are slightly more responsive to volatility than Keltner Channels. When the range constricts, volatility is low; and when the range expands, volatility is increasing. Many traders prefer Bollinger Bands to gauge volatility in the market. As with Keltner Channels, the bands show dynamic support and resistance levels. They’re also quite effective when used to detect reversals – explained shortly. Additionally, we can apply Bollinger Bands to detect trends/breakouts when price hugs the bounds, though arguably not as well as Keltner Channels. Keltner Channels vs Bollinger Bands So, we know that using Keltner Channels and Bollinger Bands helps us to measure volatility while trading. But what exactly are their key differences? ATR vs STD The first and most fundamental difference is how each indicator measures volatility. ATR, used in Keltner Channels, takes the average of absolute changes in price, or an average of the true range. The standard deviation used by Bollinger Bands indicates how much price may deviate from its average. While the difference may seem subtle, it can be significant in certain market conditions. Standard deviation gives more weight to larger values over smaller ones, effectively making Bollinger Bands more responsive to volatility. EMA vs SMA The second is the moving average both indicators use. Keltner Channels employ an exponential moving average, which is more responsive to recent price action than other moving averages. Bollinger Bands implement the simple moving average, which reacts slower than the EMA. The impact isn’t as significant as ATR vs standard deviation, but the more responsive nature of the EMA may help traders get into positions more often if they’re trading pullbacks. Trading Trends To determine a trend with Bollinger Bands, we typically look for the bands to start widening, which indicates volatility (usually following a breakout). When the bands become tight, it’s expected that a new trend could be about to form. To identify a trend using Keltner Channels, we can examine whether it slopes up or down. Given that Keltner Channels are often slower moving, multiple closes outside the channel can show us that an asset has momentum and is looking to continue the trend. Trading Reversals Statistically, 95% of price action should be inside Bollinger Bands with two standard deviations. This is significant for identifying potential overbought and oversold areas; moves beyond the bounds indicate that the price action is extreme and has a strong likelihood of reversing. Keltner Channels can be used to find reversals, but it’s often much harder than with Bollinger Bands. A price will regularly breach or close outside of the channel in a strong trend while not crossing Bollinger Bands. It’s best to apply Keltner Channels to trend trading and identifying breakouts. Using Keltner Channels and Bollinger Bands in a Strategy Overall, Bollinger Bands are a more responsive indicator that may help us identify when volatility could be about to pick up (tightening) and when a new trend has likely started (widening). They’re well suited to trading reversals, thanks to the statistics of standard deviations. Keltner Channels tend to be less responsive to volatility, but they may be much better at identifying strong trends, especially when price hugs or continuously closes beyond the lines. When price ranges, Keltner Channels often show a new trend forming much faster than Bollinger Bands, thanks to the telltale sloping of the channel. So which one is best? Ultimately, it comes down to the individual trader and their style. Some may prefer to trade reversals with Bollinger Bands or jump on board breakouts with Keltner Channels. You could play around with both in the free TickTrader platform from us at FXOpen to get an idea of how to apply both indicators while trading. Closing Thoughts You should now have a solid overview of the differences between Keltner Channels and Bollinger Bands. While they may seem similar, taking the time to experiment with them will show you the qualities of each and how they could be applied to various scenarios. Once you settle on your favourite, why not combine it with other indicators, like RSI or Stochastic oscillator, to develop your own strategy? Then, when you’re ready, open an FXOpen account and start using your system for real trading! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
8
Tesla Stock Down 30% This Year. What Happened to the EV King?The electric-car maker is in dire need of charging after losing more than $260 billion this year and turning Elon Musk into the biggest loser among the world’s wealthiest. Table of Contents » How It Started vs How It’s Going » Nothing Magnificent About It » Competition Revs Up » Teslas Pile Up on Weak Demand » If You’re Having a Bad Day, Read This 📍 How It Started vs How It’s Going Tesla (ticker: TSLA ) kicked off the year as the big tech highflyer we all know. With a valuation of more than $780 billion, the electric-car maker stepped into 2024 as the world’s largest EV seller. Deliveries were standing at record highs and chief executive Elon Musk was the world’s richest person and was looking at a gargantuan $55 billion pay day. All of that was taken away in one way or another. Chinese automaker BYD (ticker: 1211 ) dethroned the EV kingpin by selling 526,000 EVs for the fourth quarter of 2023, more than Tesla’s 484,000. Even as Tesla reclaimed the top spot in the January through March quarter, it flagged a worrying signal that its business was shrinking. As for Elon Musk, he lost a court battle over his lofty $55 billion pay package when a judge called it “an unfathomable sum.” Shortly before that, he handed the World’s Richest title to Amazon founder Jeff Bezos . 📍 Nothing Magnificent About It Chugging through first-quarter twists and turns, Tesla drifted away from the highly exclusive club called the “Magnificent Seven.” The group of companies with a snappy nickname is made up of Microsoft (ticker: MSFT ), Nvidia (ticker: NVDA ), Facebook parent Meta (ticker: META ), Google parent Alphabet (ticker: GOOGL ), Amazon (ticker: AMZN ), Apple (ticker: AAPL ), and outsider-in-the-making Tesla (ticker: TSLA ). How did that happen and why is Tesla at risk of falling out of the Magnificent Seven? Tesla’s valuation — which is notoriously volatile and hard to pinpoint — saw a massive 30% drop over the first three months of 2024, turning the stock into the worst performer in the S&P 500. More than $260 billion has been washed out since early January, giving the EV maker a price tag of around $520 billion today. Zoom further out, and you see Tesla peaked during the Reddit stocks meme-trading era of 2021 when shares hit an all-time high of $417. Back then, Tesla became the first car manufacturer to break into the $1 trillion club. Tesla stock has lost about a third of its valuation this year. Source: TradingView The drastic fall spotlights a stark difference between Tesla and the rest of the Magnificent Seven big shots. The other tech giants are at the top of well-developed yet competitive industries. Take for example Microsoft — the software mainstay has created for itself a competitive moat in the enterprise and retail software business. Tesla, on the other hand, is the trailblazer for the EV revolution but charged up rivals are shifting gears, threatening to soak up market share fast. 📍 Competition Revs Up Chinese smartphone maker Xiaomi (ticker: 1810 ) last week unveiled a slick-looking, tech-rich electric ride. The model is called SU7 and it clocked up 10,000 reservations in the first 4 minutes after launch. Then it got to 89,000 in 24 hours. The successful launch bumped Xiaomi’s market cap by $4 billion to around $50 billion, or 10 times less than Tesla. The SU7, however, is priced lower than a high-end Model 3. Tesla has more rivals to outsell, among them BYD (ticker: 1211 ) and the more-niche player Rivian (ticker: RIVN ). Rivian is an EV startup that marked a 70% increase in sales for the first quarter. The number, however, is a tiny 13,980 units delivered. 📍 Teslas Pile Up on Weak Demand Tesla’s year went from bad to worse this week when it announced it had delivered 386,810 EVs in the first quarter. The number was about 20,000 below the most bearish forecast on Wall Street. It was also 9% lower than last year’s first quarter, indicating that the company’s business is shrinking. More importantly, Tesla produced 433,371 units, leaving about 46,000 waiting to be purchased by customers. The difference between production and deliveries meant that unsold models are piling up. A demand issue maybe? 📍 If You’re Having a Bad Day, Read This In all that chaos, Elon Musk emerged as the world’s worst moneymaker, taking a huge blow to his net worth so far this year. According to the Bloomberg Billionaires Index , the eccentric engineer is down $45 billion to roughly $180 billion, taking the number one spot on the loser board. Elon Musk owns a 20.5% stake in Tesla worth about $120 billion, according to a December 31 filing . The stake consists of 411 million shares of common stock and 303 million stock options with a strike price of $26 a pop. The majority of Musk’s wealth is concentrated in his EV company, but he also owns private social media platform X, former Twitter, and space exploration company SpaceX, among other businesses. 📍 What’s Your Take? Are you buying the dip in Tesla stock? Or are you waiting for a deeper drop before scooping up some shares for yourself? Let us know your thoughts on Tesla’s future in the comments below! 🚀if you liked this article, give us a follow to make sure you don't miss any. 💖 TradingView Team
NASDAQ:TSLA
by TradingView
38
Nvidia - Entering a bear market!Hello Traders and Investors, today I will take a look at Nvidia. -------- Explanation of my video analysis: For more than 6 years, Nvidia stock has been trading in a long term rising channel formation. We had the last retest of support in 2021 which was then followed by a +650% rally towards the upside. As we are speaking Nvidia stock is retesting the upper resistance of the channel and we might see a short term correction towards the downside to retest the previous all time high. -------- Keep your long term vision, Philip (BasicTrading)
NASDAQ:NVDA
by basictradingtv
64
The TradingView Digest - April 3rdHey there! Welcome back to the TradingView Weekly Digest. We are thrilled to announce the successful conclusion of our first-ever paper trading competition - The Leap ! With immense joy, we share that over 90,000 traders enthusiastically participated, executing a staggering 2,700,000 trades and securing an impressive $119 million in profits. Heartiest congratulations to all the winners, and our sincere gratitude to every participant for their overwhelming love and support. In this edition, we’re excited to spotlight the top posts and ideas from our community. This includes an informative post on using stop-loss orders , a write-up on trading symmetrical triangle patterns , a hot script on volumes , and all the latest headlines , earnings , and economic events . We hope you find this week's edition exciting and engaging. And don't forget to participate in our Bitcoin halving contest for a chance to win our exclusive T-shirt. Without further ado, let's dive right in! 😀 💡 How to Use Stop Loss Orders in Trading? - by TradingView In trading, reducing risks is oftentimes all that matters to achieving success. One of the essential tools to protect your investments from steep or unexpected losses is the stop loss order. Understanding how to use stop loss orders can unlock your path to profitability by allowing you to balance your risk and reward ratio. 💡 A Comprehensive Guide to Fibonacci Retracements - by XForceGlobal Fibonacci Retracements are a set of ratios defined by the mathematically important Fibonacci sequence. This allows traders to identify key levels of support and resistance for price action. The Fibonacci retracement tool, although widely used by many traders, is almost always not correctly used by new traders. 💡 Bitcoin Halving Contest: Time’s Ticking, But When’s It Kicking? - by TradingView Buckle up, crypto enthusiasts! The Bitcoin Halving is on the horizon, and the countdown has begun. But here’s the twist - every Bitcoin clock out there is telling a different time for when block 840,000 will hit the scene. It’s like they’re all watching different episodes of the same thrilling show. 🍿 🔝 Top Stories 📰 Japan Manufacturers Sentiment Deteriorated for First Time in Four Quarters 📰 AMC Shares Drop 14% to Hover Near Record Lows After Filing to Sell $250M of Stock 📰 Reddit Stock Can’t Get Off the Volatility Train After Another Double-Digit Drop 📰 Bitcoin Halving Countdown: BTC Skyrockets to $71,000 Amidst Market Anticipation 📰 SEC May Delay Ethereum ETF Until December: Bitwise 💵 Earnings highlights from the previous week: 💲 McCormick (MKC) Q1 Earnings & Sales Top Estimates, Grow Y/Y 💲 GameStop Q4 Earnings Highlights: Retail Favorite Stock Plunges After Revenue, EPS Miss 💲 Compared to Estimates, Carnival (CCL) Q1 Earnings: A Look at Key Metrics 💲 Jefferies Financial Group Fiscal Q1 Earnings, Revenue Rise; Dividend Maintained 💲 Walgreens Sees Steep Loss After Major Write-Down of Clinic Operator VillageMD 💡 How To Trade A Symmetrical Triangle Break-Out - by TVM_MENA A symmetrical triangle is a geometric formation found in technical analysis, often appearing during periods of market consolidation. It's characterized by converging trendlines, typically drawn by connecting a series of lower highs and higher lows. This pattern reflects a balance between buyers and sellers, signaling indecision in the market regarding the future price direction. 💡 Bitcoin Heading Below 20K is A Good Thing! - by WicktatorFX/ This one is a bit of a hack but follows on from my video on how to set 'Stop Losses' on TradingView for Connected Brokers. To set a trailing stop loss, you need to open your broker account, place the trade there, and it will then be reflected on the TradingView interface. 📆 Economic Calendar ⚡️ April 3rd (United States) — Fed Chair Powell Speech ⚡️ April 5th (Canada) — Unemployment Rate ⚡️ April 5th (United States) — Non Farm Payrolls ⚡️ April 5th (United States) — Unemployment Rate 🔥 What's New ✅ New launch: predict market activity with unerring accuracy ✅ Scan your watchlists in Stock, ETF, and Crypto Coins screeners 🌟 Script of the Week 📜 Periodic Activity Tracker - by LuxAlgo This tool visualizes cumulative buy and sell volume for user-defined periods, offering insights into volume dynamics with customizable options. 💭 Our Weekly Thought: “ Weak traders focus on results - Strong traders focus on process. ” We hope you found this helpful. Please share your feedback, remarks, or suggestions with us in the comments below. 💖 TradingView Team 📣 Want to be among the first to know all the news? Give us a follow!
COINBASE:BTCUSD
by TradingView
4
Don't Get Duped by the RSIWhy This Popular Indicator Can Lead You Astray The Relative Strength Index (RSI) is a common technical analysis tool used by traders to gauge whether an asset is overbought (priced too high) or oversold (priced too low). It analyzes price movements over a specific period (often 14 days) and displays a score between 0 and 100. Generally, an RSI above 70 suggests an overbought condition, while an RSI below 30 suggests an oversold condition. While the RSI seems straightforward, there's a crucial catch: it's a lagging indicator. This means it reacts to past price movements rather than predicting future ones. This inherent lag can sometimes mislead traders, particularly when markets are volatile or trending strongly. Here's how the RSI's lagging nature can be deceptive: Overbought Traps: The RSI might reach overbought territory (above 70) during a strong uptrend. However, instead of signaling an imminent reversal, the price could keep climbing, potentially reaching new highs. This can lure traders into believing a correction is coming (based on the high RSI) only to miss out on further gains. Oversold Deceptions: Conversely, the RSI might dip into oversold territory (below 30) during a downtrend. This could be interpreted as a buying opportunity, anticipating a bounce back. But, in a strong downtrend, the price may continue to fall, and the RSI might stay oversold for extended periods. How to Use the RSI More Effectively: Despite its limitations, the RSI can still be a valuable tool when used strategically: Confirmation Tool: Combine the RSI with other technical indicators or chart patterns for confirmation. For example, an RSI divergence (where the RSI moves in the opposite direction of the price) might strengthen a potential reversal signal. Identify Trending Markets: The RSI can help identify the strength of a trend. During strong uptrends, the RSI may frequently reach overbought levels without signaling an immediate reversal. Conversely, in downtrends, the RSI may stay oversold for extended periods. Identify Overbought/Oversold Conditions: While not a precise timing tool, the RSI can indicate when an asset might be nearing extreme price levels, potentially due for a correction. However, be cautious about chasing these signals blindly. Beyond the RSI: Remember, the RSI is just one piece of the puzzle. Always consider other factors like market sentiment, news events, and overall price trends when making trading decisions. Here are some additional tips: Don't rely solely on technical indicators. Develop a comprehensive trading strategy that considers both technical and fundamental analysis. Backtest your strategies. Test your trading ideas using historical data to see how they would have performed in different market conditions. Start small and manage your risk. Don't invest more than you can afford to lose, especially when using potentially deceptive indicators. By understanding the limitations of the RSI and using it strategically, you can improve your technical analysis skills and make more informed trading decisions.
BITSTAMP:BTCUSDEducation
by ParabolicP
51
Trade like the pros in dark pools█ Trade like the pros in dark pools If you're accustomed to trading on the stock exchange, you know that an exchange operates like a digitalized marketplace. Buyers and sellers gather around a stock and indicate what they're willing to trade for, hoping that two orders will match. Before you decide at what price you're willing to trade, you likely look at the order book depth. There, we see how many shares are seeking buyers or sellers at a specific price. For a trade to be completed, the so-called spread needs to be crossed. The spread is the difference between the buying and selling price, in the example above 20 cents (226.40 – 226.20). In stocks that are traded very frequently, the spread is smaller and it's seldom a problem to execute very large volumes on the open market. █ Dark pools simplify trading in small companies Many stocks have too small a turnover to place a larger order without significantly affecting the price. Therefore, professionals have used dark pools for many years. Leading brokers are now making this flow available to all their customers. The advantage of a dark pool is that you don't need to show your order to other market participants until a trade has been completed. This facilitates, especially, trading in larger volumes. Another advantage of dark pools is that trades are made at so-called midprice. Returning to the example above, a trade would occur when someone is willing to pay the full spread of 20 cents. Had the order book been a dark pool, the midprice would have been 226.30 SEK. In this way, it results in a better price for both buyers and sellers. For those trading in larger volumes, this can mean a lot of money. █ All orders pass through dark pools The fact that dark pools are now available to everyone does not mean that all orders should be placed there. In fact, there are several barriers to how much trading can be routed this way before the dark pool is temporarily limited. When you place a regular order, thanks to so-called smart order routing, it will check if a better completion can be achieved via this dark pool than on the open market. So, whether you choose to actively place an order in the dark pool or not, you can benefit from the characteristics of the dark pool. █ Shouldn't the exchange be completely open? A criticism of dark pools is that they are exactly as they sound, hidden. But all trades made in Nasdaq Stockholm's dark pool are visible under completions. Stocks with low turnover can be difficult to trade without significantly affecting the price. ⚪ Let's take another example. Here we have a stock where the entire buy side corresponds to just over 130,000 SEK. That's a lot of money, but not an unreasonable holding for a private individual. This is also an order book from a company with a market value of about 1.6 billion. Thus, a small company, but not so small that trading for a couple of hundred thousand SEK should be unreasonable. Here, the spread is also 30 cents. Which is over one (1) percent on this stock price. Being able to halve this cost can save a lot of money both directly and over time. It is also possible to hide parts of an order today. In the advanced order placement on the open market, there is actually a tool for that problem as well. There, you can set the visible number of shares to be shown in the order book. █ When you should use the dark pool If you have never had problems with your order placement, you probably don't even need to consider placing an order in the dark pool. But if you trade stocks where you need to split your orders to not swallow too large a part of the order book, it might be valuable to try. ----------------- Disclaimer This is an educational study for entertainment purposes only. The information in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell securities. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on evaluating their financial circumstances, investment objectives, risk tolerance, and liquidity needs. My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
OMXSTO:ERIC_AEducation
by Zeiierman
3
Unlock the Mysteries of Your Portfolio with a Tarot Twist!Hey traders, ready for a cosmic journey into your investments? Dive into an uncharted dimension of market wisdom with our latest breakthrough – Tarot readings for traders! 🚀 Instant Insights : Just click, ask, and reveal! Your free daily Tarot reading awaits to guide your trading journey. 🌟 💡 Unlock Secrets : Uncover bullish signals or cautious advice through the mystical cards. Share your unique fortune and light up your network! 🔮 Grab your free reading today! 🌈 Share your experience in the comments below! ⬇️⬇️⬇️
COINBASE:BTCUSD
by TradingView
38