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How I Trend Trade (3)You can trade the market and make money using only the KS and nothing else. This is a good method for someone who does not have a lot of time. More complete and complex methods will be mentioned as we go along TRADING STEPS FOR PURE KS TRADING: 1. Decide on the market direction using the direction of the KS as mentioned previously. If price is inside the kumo (clouds) do not trade for that day. 2. Your job after that is easy. Buy/Sell with an order at the KS 3. Place the stop loss (SL) at the previous day's high/low 4. Everyday, update your SL to the previous day's high/low 5. If the KS goes flat for longer than 25 candles then liquidate the position 6. If you are stopped out then restart the process I hope you try this method and enjoy its profits Good luck
Education
by Ichimoku_Trader
138
How I Trend Trade (2)It is really important to understand the KS and to apply this knowledge to your trading so as to become successful. With this line alone, you can trade the market and make money. So please give yourself some time to study, understand and apply this knowledge. Please note that I am only sharing my knowledge and experience with you. So please use this information at your own risk. Your questions and comments are most welcome Please like and follow to make sure that you get more information once I publish it Note: for this chart, you must surely know that I am still bullish. Remember that important news easily trumps the H1 technicals. So be very careful trading the NFP today Good luck
Education
by Ichimoku_Trader
72
How I Trend Trade (1)...Following the market is the most important element that differentiates a trend trader from other types of traders. In the Ichimoku system, the KS is the element that informs us of the current timeframe's trend direction. So whenever we see the KS moving up we ONLY want to buy and visa versa The KS has many other uses that I will discuss later, but for now we need to understand the importance of following this line if we want to be safe when trading. Please note that I am only sharing my knowledge and experience with you. So please use this information at your own risk. Your questions and comments are most welcome Please like and follow to make sure that you get more information once I publish it Note: for this chart, you must surely know that I am bullish Good luck
Education
by Ichimoku_Trader
67
Head & Shoulders // Educational ®"Since the beginnings of technical analysis, classical technical patterns have been repeating over and over in all time frames and in all markets. It’s interesting that these patterns have not changed in centuries. They are truly a reflection of crowd psychology. Many times you will see the structures of the patterns form with exact Fibonacci ratios. Adding the Fibonacci ratios to these patterns will give the trader an additional tool for timing entries and controlling risk." LARRY PESAVENTO & LESLIE JOUFLAS Safe Trades;
Education
by Andre_Cardoso
2
The Butterfly Pattern // Educational ®By LARRY PESAVENTO & LESLIE JOUFLAS HISTORY OF THE BUTTERFLY PATTERN: Bryce Gilmore Bryce has spent a lifetime studying the works of the great masters—R.N. Elliott , W.D. Gann, and many others. He developed the Wave Trader Program in 1988; it was the first computer program to use all the numbers of sacred geometry, including the Fibonacci summation series. This pioneering led to the discovery of the Butterfly pattern . Almost two decades and thousands of Butterfly patterns later, it can be said that it is one of the most profitable trading patterns with the proper use of stop-loss orders. Safe Trades;
Education
by Andre_Cardoso
4
How To Read Market Structures, Trends and Their ReversalsHow To Read Market Structures, Trends and Their Reversals – Example EURUSD It is astonishing fact that most of us still get confused when it comes to reading a market. This is the biggest killer in Technical Analysis and differentiating factor between Wining and Losing trades. No matter what trading strategy traders use, they must always be able to read the chart with naked eyes without any indicators. Below is an example where I have tried to explain it a bit in steps. Lets walk this through together. Reading A Market Trend: 1. On a chart we always start with a Swing High or Swing Low. In this example we have a Swing High. We call that Initial Structure High (ISH). In case of bull market we will call that as Initial Structure Low. We see that the market has been in heavy bearish action in Step 1. it creates a New Structure Low (NSL) i.e. Swing Low.reading market trend structure reversal 2. Then in in Step 2 it reverses from NSL and tries to retest upwards and gets rejected. However it comes back down to NSL and does not violate it. This is the first major sign of trend reversal as no new Lows are being made. Remember, for a market to stay in bearish trend it has to create new lows. 3. Market then rallies to create a NSH which violates the previous high (Marked In Yellow). This satisfies the second condition for an Up Trend. Remember for an Up Trend we need two conditions i.e. Higher Lows and Higher Highs. This confirms that market trend has shifted. 4. In 4th step we enter a consolidation phase where price moves in a range. In consolidation phase the price does not violate Highs and Lows. It stays in a range. 5.In 5th step, we see that market breaks out of the range upwards creating further new highs. Now for it to stay in up trend it must respect previous low. It is common for the price to come back to retest those lows but it must not violate previous lows. How To Take Trading Opportunity (S.E.T.): 1. Stop Placement: If we were to take a trade at the market we must have our stops below previous major lows. 2. Entry and Targets: For targets always look at the previous highs. The new previous high from here is the Initial Structure High. So a retest of that High will be our target. But if we are conservative in trading your first target must always be 127.2 Fibonacci Extension of last high. However, this in this chart gives a little less than 1:1 Risk/Reward ratio. If that does not work for us we can either wait for the market to go down a bit and take the entry at market to give us better R/R ratio. Good Trading @TradeYodha
Education
by TradeYodha
10 more things I learned in my short trading career1. Go online and connect with other traders, ask the right questions (keyword: right) and talk shop. Joining TradingView is the best decision I made by far since I started trading. Social networks add value and my trading has improved a lot by being exposed to different ways to trade and by being able to see what works and what does not. But never trust a trader at their word; always do your own research. 2. One thing is certain; there will be losing trades. With good money management techniques you give back little profit when the market moves against you and you can accept losing trades as a controllable cost of making yourself available for the winning trades. 3. You cannot control the outcome of a trade. You can only control the setup and the risk you accept. 4. Patience is key. That’s why I (being a day / swing trader) don’t work with daily targets, but rather with monthly targets, to avoid chasing trades and forcing setups that are sub par. Take only good set ups with sufficient confirmation and if you don’t see one: don’t trade. 5. No single system will be right 100% of the time. Build the case for entry, using several kinds of input into your decisions. Go for confluence to increase the edge. 6. Don’t psychologically micro manage your trades, monitoring each candle as it develops. Once stops and targets are clearly defined, let a trade play out. Sometimes stepping away from the screen helps. 7. A trading plan can help you identify whether a series of losses happened due to market conditions or due to trading errors. 8. I look at trading as running a small business with no customers, no suppliers, no psychical stock to maintain, no brick and mortar business space to rent, no government mandated opening hours, no chasing of your payments, no employees to manage and no colleagues to depend upon. What’s not to like? 9. It helps to be a positive person. I don’t mean delusional or overconfident (there are plenty of those), but just positive. Trading is an activity where analysis, risk and stress come together and your trading psychology will be helped greatly if you have a positive disposition. 10. Practise prudent portfolio management where you start small and slowly grow the portfolio step by step by adding more pairs / instruments.
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Education
by JazzForex
104
My Butterfly pattern rules GBPUSDHere on the GBPUSD im getting closer to my short orders being filled and the butterfly pattern completing. stops for me go just above the 1.414 ext and target is the .382 retrace of the A to D-leg. Butterfly rules: 1= Atleast a .786 retrace of the X to A- leg but cannot break X. 2= Atleast a .382 retrace of the A to B-leg and can go past .382 just cannot break A. 3=Pattern completion for the butterfly pattern is a .127 ext of the A to B-leg. Thats were i place my orders. If you have any questions about this pattern or if you would like me to post more educational content about advanced patterns just leave me a comment in the comment section and i will help you with it any way that i can. Thanks for checking out my idea and Good luck on all your trades!!
Education
by StevenH
8
Key Heuristics and Biases in Trading - Educational PieceThere is an extremely famous psychology paper written by Daniel Kahneman and Amos Tversky named ‘Judgement Under Uncertainty: Heuristics and Biases’ (psiexp.ss.uci.edu) (Kahneman won a Nobel Peace Prize in 1992 for his work in the field, specifically on prospect theory) which explores the decision making process. As trading requires decisions to be made constantly – stop loss adding, lot size, whether a trade is right to take etc – I think a quick write up would be highly applicable. Essentially, there are several ‘heuristics’ or ‘biases’ which I will attempt to put into a trading context. 1) Reliability . Making sense of data on the spot is a difficult task to undertake. When you look at a chart, you are looking at a representation of the market and not the actual market. Adding more and more indicators causes the reliability of this data to further decrease, possibly leading to a distorted view (however, if you are profitable with indicators then that is all that matters). 2) Representation . We normally feel that if a pattern is forming that it will play out in the way we expect. When back testing, you may look for data to represent the notion you have about a certain set up and ignore the set ups that have failed, therefore leading to a skewed view of that strategy. Indicators represent a potential set up and not what is actually occurring – indicators are used to fit a concept in your head. The fact that something is more representative does not make it more likely to occur. 3) Anchoring . Do you remember that month when you did fantastically and the next month you lost 5% of your account under the belief you could continue your run and then possibly ditched your strategy to start from scratch? This is called anchoring – you place some meaning on a certain set of results with the thought that the initial point is meaningful. You will face losses. Maybe even a quarter where you make no money. On the flipside, you may triple your account. The market is impartial to you, your strategy and your money. 4) The Gambler's Fallacy . When an event occurs more or less is a short time period, you may believe that it will happen less or more in the future. As said before, the market is impartial. Past events do not change the probability of future events occurring. 5) Hindsight bias . ‘I knew that was going to happen’. This is reasonably self explanatory and I think everyone has faced this once or twice (maybe nearer 1000) times in their trading career! Automated traders do not have the problem of biases as the emotion is taken out of the trade, which is why possibly developing an algorithm can be hugely beneficial if you have a stringent set of rules that you can programme into a computer. There are many more biases. Which have you noticed in your trading?
Education
by DavidBelleFX