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Visualizing the MACD EMAs on Bitcoin for tradesThe MACD is one of the most robust indicators that you can use due to the variety of signals you can use with hidden and traditional divergence on both the MACD itseft, as well as the histogram. Many people may tinker with the settings of the fast and slow EMA and they may look for crosses of the MACD and its own moving average, the signal line. Lots of attention is taken with looking at the MACD crossing the signal line for a change of trend but it seems fewer than would make sense look at the EMAs themselves, no matter which settings you use. And even when people see the MACD cross the signal they don't pay it enough attention. We had a massive uptrend in 2017 and again this year and it ends with a MACD-Signal Cross. I posted on the MACD-Signal signal cross and lots of people pushed back. Lots of people doing TA on Trading View or YouTube commented on it, but still thought we would continue upward at $60K and did not have a proper appreciation for the cross given bitcoins history. People saw a massive descending triangle in 2018 underneath a MACD-Signal cross and refused to accept it. The 12 and 26 EMAs crossed bearish, so the MACD and Signal line both went below zero, and people were still bullish. And really the charting come first. We get a chart pattern and then we should look to volume to confirm, and then we look for indicators to confirm. Lets do a rundown on our current situation: MACD-Signal Cross Development of a bearish head and shoulders The MACD EMAs, the 12 and the 26, are crossed bearish What is missing is the Signal line crossing the zero along with the MACD, and I see that happening soon, very high probability, like over 90%. Just take a look at this chart below. The 12-26 cross bearishly at the peak in 2011, 2014, and again in 2018. There was no bearish 12-26 EMA cross in 2013. Very simple TA has taken that off the table. But many people are still on that hopium. The 12-26 crossed in 2014 and there was some chop and a bear market. In 2017 it chopped to form a W pattern with the C19 dump but when we BTC cleared the bridge of the W we ran. What do we do? We see a bearish structure and the easiest thing to do is look for historic support, be it chart structure or moving averages or do targeting based on the chart structure (fibs). Here is a quick look at targeting. Most likely the 200 will be support. If we have a NASDAQ dotcom bubble pop or a 2008 type recession we could go lower. The linked ideas have a variety of long term (years) and intermediate (months) for if we go into a bear market or the dotcom type bust. Once again the charting isn't hard. It isn't hard to see the MACD-Signal cross and it isn't hard to see the 12-26 EMA cross bearish. It isn't hard to see the descending triangle and head and shoulders in 2017 and right now. But what is hard is accepting the facts in the charts against your hopes and bias. The chances that this resolves to the downside are extraordinarily high. The chances that this formation breaks to the upside is very low. We could have a conversation on if this will lead to a V-shaped recovery or a prolonged downtrend. Will we get over-performance or under-performance to the downside? All these conversations will very likely end up happing more in the future than conversations trying to target $100k or $300k or any other upside target before we talk to the downside. Thoughts?
COINBASE:BTCUSDShort
by This_Guhy
10
What are the candlesticks?Candlesticks are a way to express visually the size of the price movement. There are different colors used for the candlesticks, but in pairs of 2: one color for an uptrend (usually marked in green) and one for a downtrend (usually marked in red). Candlesticks are placed in graphics and by their movements create patterns. Starting from those patterns traders decide on a possible future pattern: where will/can the price go from now, based on the previous movements of the price. On any chart, you can use more ways to see the price of an asset: 1. Candles - full candles (usually red or green) 2. Hollow candles - a full candle for a candle that show a downtrend (usually red) and an empty one for an uptrend (usually green and used only on the edges) 3. Bar 4. Line 5. Mountain The main advantage of the candles is that they are more visual. In other words, you can see faster what is going on in your chart. Why usually red or green? The candles are said to show the emotions, so: Red when something is not good Green when something is loved/liked Why do most people use the candles system? The main advantage is that in any time frame you can see these prices: 1. Open price 2. Close price 3. High price 4. Low price What are time frames? There are many time frames: 1, 5, 10, 30 minutes / 1, 4 hours / 1 day / 1 week. For any time frame chosen by the trader the pattern of the candles changes. Depending on what you want to do (invest short, medium or long term) you look at different patterns/timeframes that the candles made. The body of the candle represents the price range between a determined timeframe. If the candle is red - the price is lower than 5 minutes ago (where 5 minutes is the selected timeframe) If the candle is green - the price is higher than 5 minutes ago (where 5 minutes is the selected timeframe) Sometimes the candle looks like a cross (the body for the candle is missing). That means that the opening and close prices are the same. Any candle has 2 wicks or “shadows”: 1. Up - representing the maximum price 2. Down - representing the minimum price There are bigger and smaller candles. Why? The bigger the candle the bigger the price movement. The smaller the candle the smaller the price movement. If the up wicks are smaller it shows that the price closed near the maximum price of that timeframe. The same is valid for a down wick. If the down wicks are bigger it shows that the price closed far from the minimum price of that time frame. The same is valid for an upper wick.
NASDAQ:NVDAEducation
by AngelAlgo
2
The 8 Universal Rules of Successful TradingUTPs (Universal Trading Principles) are a set of trading rules you must not break. They cover entries, exits, strategies, and risk management. They form the backbone of your trading plan. Repeat these rules everyday, like a mantra, until you can recite them in your sleep. This will make you a successful trader. 1. Don't leave money on the table - I move my SLs to breakeven and lock in profits as the trade goes in my direction. The first rule of trading is to protect my trading capital. Without my capital, I am out of the game and cannot be a trader. So I do everything possible to protect it. 2. I scale in and out of trades - If my trade idea seems to work, I add to my position. If my trade doesn't work and approaches my SL, I am reducing my position. I am ALWAYS adding to working trades and NEVER to losing trades. This is how the most successful traders trade, and this is how I want to trade. 3. Final TPs - My final TP is based on horizontal S/R levels, weekly or monthly highs and lows. I confirm that markets are mostly ranging, i.e. my final TPs are always based on the normal distribution (e.g. weekly or monthly ATR). My TPs need to be REALISTIC. 4. Technicals are used only for entries and exits. The direction of the market is determined by fundamentals. I never trade against the fundamentals. 5. Position sizing - My stop-losses are always based on sound technical levels. My position size depends on the size of the stop-loss and the percentage of my trading account I want to risk on any single trade. I never risk more than 2% on a trade, and cut the risk-per-trade to 1% after a series of three losing trades. 6. Trading is a probability game - I acknowledge that successful trading is about probabilities. I don't know whether my next trade will be a winner, but I do know that I have a good chance to be in profit after the next 10 trades. 7. Trading is as simple as you make it - Fundamentals support my trades, but everything can happen (including a change of fundamentals and sentiment). Risk management prevents higher losses. There are always new opportunities. My goal isn't to be right, but to follow my UTPs. 8. Weekly journal reviews - I don't measure trading success by the profits I've made or the number of winning trades. My success is measured by how strictly I followed my UTPs. To review my trading, I am performing weekly journal reviews and try to identify any trading patterns that have a negative influence on my bottom line.
TVC:SPXEducation
by MujkanovicFX
How To Trade Breakouts !!Hello everyone , as we all know the market action discounts everything :) I have created this short video to explain How To Trade Breakouts , everything you need to know about this strategy is here. First we got to understand what is a breakout but before u start using this strategy take your time and understand the information well . so what is a breakout : a breakout occurs when the price breaks out and closes above a resistance level or below a support level A support line can be identified by connecting the points of low and the price bouncing back up , the support line needs 2 point to be formed but I think 3 gives a stronger signal and its safer. the resistance line is the same as the support line but it connects the highs instead of the lows and they act as the ceiling on which the market bounce down after hitting it. Both the Support & Resistance lines can be horizontal or angled . so when we combine the support and resistance together we get a trading range which keeps the market price in a certain range until the price makes a break either above or below. trading ranges are formed form the supply and demand and the market phycology so when the price breaks out of the range it signals a change in the supply and demand and the beginning of an upward or a downward trend so lets talk about the concept of a breakout For a breakout to happened you one need a support or a resistance line u don’t need both , but having both will create a trading range which will help you take advantage for breakouts in both directions up or down . There are several ways to trade breakouts : 1.At the actual breakout (this could be very risky in case it was a Fake breakout) 2.Using a pending order at a higher price then the market range 3.Waiting for the conformation on the breakout. Now lets talk about fake breakouts , it happens when the price breaks past the support or resistance level and moves back into the trading range as you see here : waiting for a confirmation is really important as u minimize the risk you are talking , this way u will lose some of the momentum of the trend but u will insure that’s the trend is going the way you want it to go. Make sure to Follow and Like for more content If you have any questions please ask Thank you for reading & watching .
BITSTAMP:ETHUSDEducation
by GabiDahduh
4
Basic Options TerminologyOptions or options contracts are agreements to give the holder the right, but not the obligation, to buy or sell a specific amount of the underlying security at a specified price at or until a defined time in the future. Options are derivative instruments because their value depends on the value of the underlying asset. Further, options are “decaying” assets because, all other things being equal, their value will decline over time until they expire. All assets depend on some definition of value , which is then modified by demand-supply forces established by the market players. However, options depend on many other variables, the most notable being the strike price and the time left until it expires. In the following paragraphs, we will explain some basic options terminology. 1. Call options: A call gives the holder the right, but not the obligation, to buy a defined amount of the underlying security at a certain price at or by a certain date. 2. Put options: A put gives the holder the right, but not the obligation, to sell a defined amount of the underlying security at a certain price at or by a certain date. 3. Strike price: This is the price at which the holder of the option may buy or sell the underlying security. For example, a call option with a strike of 100 gives the right to the holder to buy the underlying stock at that price no matter what the price of the stock may be at that time. 4. Expiration: The date at which the holder no longer has any rights and the option no longer has value. 5. Premium: The price paid for the option 6. Open interest: The number of options contracts outstanding per strike/expiration combination. 7. Exercise: Using the rights acquired under the option to buy or sell the underlying security. 8. In-the-money: A call option with a strike price below the price of the underlying; a put option with a strike price above the price of the underlying. 9. Out-of-the-money: A call option with a strike price above the price of the underlying; a put option with a strike price below of the underlying. 10. At-the-money: An option with a strike price at or very close to the price of the underlying security. 11. Implied volatility: The calculated expectation of future volatility 12. American style: Options that may be exercised at any time up to and including their expiration date. 13. European style: Options that may be exercised only at expiration. Option prices contain both an intrinsic value and a time value . The intrinsic value is the value the option would have if it were to expire now. The more in-the-money the option is, the higher the intrinsic value. Out-of-the-money options don’t have any intrinsic value. Time value is the speculative component. The longer the option has until it expires, the greater the chance that it will move into profitability. This is why a call option with a strike price of 100 has some value even if the underlying security is trading at 50. If there is time left before expiration, there is still a chance the security could rally enough to make the option profitable. Trade with care. If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
Editors' picks
TVC:SPXEducation
by financialflagship
39
Xauusd Long Confirmations: Entry point Here because... A: Confluence 1. Imbalance 2. Manipulation 3. Four Hour Previous Market Structure 4. Fibonacci Golden Pocket (last Higher Low Before Break of Previous 4hr Market Structure) B.Structure 5.Higher Lows Forming 6. 2 weeks of Continuous Bullish Structure 1 to 4 risk to Reward tp 1 its all about The Risk to Reward If this trade clears at 1% risk, you'll make 4% Profit , Once Trade Goes to 1;1 Risk Stop loss at Break Even you can even decide to take Partials and let the rest Ride 1 to 18 Overall Tp What does that mean? If you Risk... $10 You Can make up to $180 No reason to Gamble 1% can make you 18% 2% can make you 36% 3% can make you 54% All on a single Trade Besides cryptocurrency youll never see a return that Great With investing Cfds / Margin Trading is the way to go If you dont have a trade plan Dont trade!!! Always know your potential Risk and How much You want to make Minimum For every trade Before you get in and Do Not Over leverage risk 1-3% Max per Trade This is what Separates The investor from the Gambler Simple but not easy
FOREXCOM:XAUUSDLong
by carluccifamily
1
Success Rate of Popular PatternsRemember Do not trade solely on Patterns only. Ultimately, traders should seek out the best combination of patterns and price action to create an analysis strategy that works for them. Experiment with different approaches and combinations until you discover a method that suits your trading strategy and goals. Here are the success rates for these patterns: Inverted Head and Shoulders Pattern (83.44%) Head and Shoulders Pattern (83.04%) Bearish Rectangle Pattern (79.51%) Bullish Rectangle Pattern (78.23%) Triple Bottom Pattern (79.33%) Triple Top Pattern (77.59%) Double Bottom Pattern (78.55%) Double Top Pattern (75.01%) Ascending Channel Pattern (73.03%) Descending Triangle Pattern (72.93%) Ascending Triangle Pattern (72.77%) Bull Flag Pattern (67.13% Success) Bear Flag Pattern (67.72% Success) Bullish Pennant Pattern (54.87%) Bearish Pennant Pattern (55.19%) These success rates presented are the result of a study conducted by a group of professional traders. They studied 10 different patterns independently from one another in 5 different markets (Forex, Futures , Equities, Crypto and Bonds), for a time period of 22 months with more than 50 case studies for each and every single pattern.
Editors' picks
BITSTAMP:BTCUSDEducation
by MoonBets
86
The 6 Principles Of The Dow Jones Theory !!!Hello everyone , as we all know the market action discounts everything :) I've prepared a video explaining the 6 principles of the Dow Jones theory , everything you need to know about the Dow Jones theory is in this video or if you prefer to read i got you :) The Dow Theory is a trading concept conceived by Charles H. Dow, an American journalist and founder of the ‘Dow Jones & Company’ financial firm. The ‘Jones’ part refers to the statistician and co-founder of the company who also took part in the development of Charles Dow’s concepts. Initially, it consisted of 255 editorials. Dow himself didn’t actually create and name the theory. After Dow’s death, Rea, Schaefer, and Hamilton gathered the editorials, formed the theory and named it after Dow. Even though it’s more than 100 years old, this is the theory that technical analysts use and swear by today. The 6 Principles Of The Dow Jones Theory : 1_ The market action discounts everything 2_The market has 3 types of Trends : The Primary Trend: It can be as long as years and is the ‘main movement’ of the market. The Secondary Trend: lasting between 3 weeks to several months, retraces the last primary move some 33-66% and is difficult to decipher. The Minor Trend: is least reliable, lasting from several days to few hours, constitutes of noise in market and may be subject to manipulation. 3_The market trend has 3 phases : The beginning of a primary upward (or downward) trend in a bull (or bear) market is known as the accumulation phase. Here, Smart traders enter the market to buy (or sell) stocks against common market opinions. The participation phase, more investors enter the market as business conditions improve and positive sentiments become evident. This results in higher (or lower) prices in the market. The distribution phase is marked by excessive buying by inexperienced investors. This could result in great speculation. At this stage, it is ideal for investors to book profits and exit. 4_The averages must confirm each other : Dow, is referring to the DJIA and the Transport Index , meant that no important bull or bear market signal could take place unless both averages gave the same signal, thus confirming each other. He felt that both averages must exceed a previous secondary peak to confirm the inception or continuation of a bull market. He did not believe that the signals had to occur simultaneously, but recognized that a shorter length of time between the two signals provided stronger confirmation. When the two averages diverged from one another, Dow assumed that the prior trend was still maintained 5_Volume most confirm the trend : According to Dow theory, the main signals for buying and selling are based on the price movements of the indexes. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting From this tenet it follows that volume should increase when the price moves in the direction of the trend and decrease when the price moves in the opposite direction of the trend. The reason for this is that the uptrend shows strength when volume increases because traders are more willing to buy an asset in the belief that the upward momentum will continue. Low volume during the corrective periods signals that most traders are not willing to close their positions because they believe the momentum of the primary trend will continue. 6_A trend will continue until on apposite force is applied : An uptrend is defined by a series of higher-highs and higher-lows. In order for an uptrend to reverse, prices must have at least one lower high and one lower low (the reverse is true of a downtrend). However, the longer a trend continues, the odds of the trend remaining intact become progressively smaller. Make sure to Follow and Like for more content If you have any questions please ask Thank you for reading & watching .
AMEX:DIAEducation
by GabiDahduh
3