USDCAD - 240 MINS TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
Educationalposts
'SANTA' of the 'TRADERS' !!!This publication is dedicated to thanking the 'Santa' of the ‘Traders’ i.e. the 'Stock Market'.
The lessons given to us as a gift of the market, not only help us to succeed in the stock market but also helps us throughout life.
This 25th December i.e. Christmas let’s thank our 'Santa' and have a detailed look at 5 Great Gifts of the Stock Market and thank her for these
life-awakening gifts.
-> Discipline: The most important teaching in markets is discipline. As the wording of Jim Rohn states “Discipline is the bridge between goals and accomplishment” stock market develops that bridge.
The market has its way of teaching and punishing, I think all of us had witnessed its punishment whether in form of not keeping stop loss or not following your trade system.
Discipline plays a vital role in an individual’s life. As said by Horace “Rule your mind or it will rule you. ”The disciplined person has the power to rule his mind whereas others lack this ability.
-> Patience: Another gem cultivated by markets in our personality and harvested by us throughout life. One of the familiar names of our school time Benjamin Franklin says “He that can have patience can have what he will.” market first teaches this gem to us and then offer us what we wish.
We all have at least once missed taking the real profit by not waiting till the target is achieved but leaving the trade in midway though it was moving in our direction the reason is we lack patience and the market gives profit only to eligible ones so, either you be eligible or market will make you fit for it by its way.
-> Ability to conquer 3 gateways of hell: According to ‘The Bible’ there are 12 gateways to hell and among them, the most dangerous are Lust, Greed, and Anger.
The market helps its students in conquering those strong emotions. The beginner in the stock market has a strong lust for making money very quickly and greed for making lots of money without that kind of effort and when he fails in his motive anger gets born in his personality from where degradation or hell starts.
Those few people who still have not left the hands of the market get the knowledge to conquer those emotions throughout their journey in markets.
-> Faith in yourself: One of the famous quotes by Ralph Waldo Emerson is “The best lightning rod for your protection is your spine.” market strengthen that spine so that we as its student can withstand any kind of storm in our life.
Taking any trade based on your analysis requires self-belief on the early days people hesitate but later they rely on their analysis because the market has taught them self-belief.
-> Crush your arrogance: Market is popular in crushing the arrogant guy along with this removing any trace of arrogance in his personality. The famous wording says “Close some doors today. Not because of pride, incapacity, or arrogance, but simply because they lead you nowhere.” market as a kind teacher keep a keen eye on her student for arrogance as she knows that as soon as arrogance arises person starts his fall.
All of us had witnessed that whenever we start thinking that we have mastered markets and try to neglect discipline market slaps us badly to awaken us that we are still newbies and still had to learn a lot.
I believe these 5 are the most valuable gifts of the market but if you have any gift of the market much valuable in your life please mention it in the comments.
Finally, Merry Christmas to all my trader mates.
The stock market gives success only to eligible ones so, either you be eligible or the market will make you fit for it in its own way.
Cognitive bias in TradingAnchor Effect
This cognitive bias causes a tendency to over-trust other people's judgments. And in a situation of uncertainty, the desire to find a foothold increases, which issomeone's authoritative opinion. The anchor effect makes traders look for hints of trend changes from analysts, and in advanced cases, from astrologers (however, they are not much different from each other). And even consult with "colleagues" on the forums, breaking through all levels of thebottom.
What to do? Think with your head
Monte Carlo effect
If two independent events occur sequentially (one after the other), a person tends toconsider them interconnected. And calculate the probability of the second eventoccurring in relation to the first What to do? Remember that the question: "Will mynext deal successful? there is only one answer: "Maybe it will, or maybe not." Atrader generally does not have the right to think in terms of individual transactions
Irwin effect (valency effect)
Sometimes, when we really want something, we tend tooverestimate the likelihood of a positive outcome. And vice versa - underestimate the probability of anegative. It can be said in a simpler way, without any valencies:unreasonable optimism is turned on. Traders often have this cognitive bias when making decisions. Because I really want money...
What to do? Turn on defensive pessimism
Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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EURJPY - DAILY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
STOP LOSS TRADING STRATEGY!Hi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Hey traders,
In this post, we will discuss 3 classic trading strategies and stop placement rules.
1) The first trading strategy is a trend line strategy.
The technique implies buying/selling the touch of strong trend lines, expecting a strong bullish/bearish reaction from that.
If you are buying a trend line, you should identify the previous low.
Your stop loss should lie strictly below that.
If you are selling a trend line, you should identify the previous high.
Your stop loss should lie strictly above that.
2) The second trading strategy is a breakout trading strategy.
The technique implies buying/selling the breakout of a structure,
expecting a further bullish/bearish continuation.
If you are buying a breakout of resistance, you should identify the previous low. Your stop loss should lie strictly below that.
If you are selling a breakout of support, you should identify the previous high. Your stop loss should lie strictly above that.
3) The third trading strategy is a range trading strategy.
The technique implies buying/selling the boundaries of horizontal ranges, expecting a bullish/bearish reaction from them.
If you are buying the support of the range, your stop loss should strictly lie below the lowest point of support.
If you are selling the resistance of the range, your stop loss should strictly lie above the highest point of resistance.
As you can see, these stop-placement techniques are very simple. Following them, you will avoid a lot of stop hunts and manipulations.
What Is a Stop-Loss Order?
A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. Suppose you just purchased Microsoft (MSFT) at $20 per share. Right after buying the stock, you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.
Stop-limit orders are similar to stop-loss orders. However, as their name states, there is a limit on the price at which they will execute. There are then two prices specified in a stop-limit order: the stop price, which will convert the order to a sell order, and the limit price. Instead of the order becoming a market order to sell, the sell order becomes a limit order that will only execute at the limit price (or better).
Advantages of the Stop-Loss Order
The most important benefit of a stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold.
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One way to think of a stop-loss order is as a free insurance policy.
Additionally, when it comes to stop-loss orders, you don't have to monitor how a stock is performing daily. This convenience is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period.
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Stop-loss orders also help insulate your decision-making from emotional influences. People tend to "fall in love" with stocks. For example, they may maintain the false belief that if they give a stock another chance, it will come around. In actuality, this delay may only cause losses to mount.
5
No matter what type of investor you are, you should be able to easily identify why you own a stock. A value investor's criteria will be different from the criteria of a growth investor, which will be different from the criteria of an active trader. No matter what the strategy is, the strategy will only work if you stick to it. So, if you are a hardcore buy-and-hold investor, your stop-loss orders are next to useless.
At the end of the day, if you are going to be a successful investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.
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Finally, it's important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions. If you don't, you'll lose just as much money as you would without a stop-loss (only at a much slower rate.)
Types of Stop-Loss orders
Fixed Stop Loss
The fixed stop is a stop loss order triggered when a particular pre-determined price is hit. Fixed stops can also be timed-based and are most commonly used as soon as the trade is placed.
Time-bound fixed stops are useful for investors who want to provide the position with a pre-set amount of time to profit prior to moving on to the next trade.
Only utilize time-based stops when positioned sized properly to permit major adverse swings in share price.
Trailing Stop-Loss Order
Trailing order caters to the capital gains protection of an investor, while simultaneously providing a hedge against any unexpected price downturns. It is set as a percentage of the total asset price, and the order to sell is triggered in case market prices fall below the stipulated level. However, in the case of a price rise, the trailing order adjusts automatically in tune with an overall increase in market valuation.
Suppose, in a trailing stop-loss market, an order for execution is set if the price of a security falls below 10% of the market value. Assuming the purchase price is 100 an order to sell the security is executed automatically by an authorised broker if the price falls below 90.
In case the share prices rise to 120, the trailing order stands at 10% of the current market price, which is 108. Hence, if prices consequently start falling after peaking at. 120, a stop-loss order will be executed at 108. It allows an individual to enjoy a capital gain of 8 (108 – 100) on his/her investment corpus.
Stop-Loss Order Vs Market Order
While a stop-loss order performs a sale of underlying securities provided the price falls below a prescribed limit, a market order is issued to a broker to conduct trade (both buying and selling) at the prevailing market price. Stop-loss orders are designed to reduce the risk factor, while market orders aim to increase liquidity in the stock market by eradicating the bid-ask spread difference. A market order is the most basic form of trade order placed in a stock market.
Stop-Loss Order and Limit Order
Limit orders execute a trade of stipulated securities if the price reaches a pre-set value. While a buy limit order facilitates the purchase of any securities if the price falls below the given limit, a sell limit order is executed if the price rises above the value. Limit orders are designed to maximise the profitability of an investment venture by maximising the bid-ask spread. It is in contrast to stop-loss orders, which are implemented only if the price is equal to the limit stated by investors, as a method of minimising losses in a bear market.
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How To Succeed In Your TradingFocus on one single trading strategy
One thing that many people try and do is switch between strategies constantly. This is setting you up for failure, and if the concept of probabilities is truly understood, you will comprehend the reasons why a single strategy will work.
Any strategy is not going to have a 100% win rate, so first you should attempt at getting 50% of your trades right. After that mastering a 2:1 Reward to risk ratio is what will make you profitable. Trying to juggle many strategies will have you working tirelessly, but not moving forward in any particular one.
Less trading, more education
Many people have the conception that spending countless hours in front of the screen looking for potential set ups is how it should be, however that is completely wrong in my eyes. I spend minimal time now looking at charts and set ups, I highlight key levels I want to look at, along with alerts, and simply wait for the market to head there. Time spent looking at charts should be simply for education and mastering your strategy through back testing or simply understanding previous data.
Approach the market from a neutral position
Anyone that knows me knows how big I am on trading psychology and how I believe it is the most important aspect of trading.
Emotions in trading can be one of your greatest enemies as it can lead you to failure even after your success. There are scenarios where you can take trades and be in positive which will lead you to feel over confident, happy, and those will ultimately will lead to irrational decisions if you let them. Those emotions will make you believe you are better than the markets, or that you can outsmart them, ultimately leading your successful trade to turn into a failure. The same can happen when you feel the opposite and lack confidence to enter another trade due to a loss, or think have feelings of doubt.
This is why the market needs to be approached by a completely neutral position. Once you understand that for every person on one side of a trade, there is someone on the opposite side, you will begin to understand that the market itself is just a whole bunch of neutral information moving in nobody’s favour.
Write your goals
Affirmations are great and something that has helped me in every aspect of my life and not just trading. It is very important to write down your goals in order to manifest them into reality. All ideas first begin in the mind, and then come into the physical. Your goals need to be solidified, definite, and written down in order for your mind and yourself to know exactly what you are going after.
Every single day, you need to read your goals aloud, envision them in your mind with every bit of detail possible in order to bring them into the physical. In order to achieve a goal you need to arrive at the destination first in your mind.
Relax
There is no need to rush a single thing in your trading journey, and believe me take it from my experience, every time I tried to, I failed. People attend university for years before going out into a career which then takes many years before mastering it, yet people want to master trading in a year.
Patience is required in all aspects of trading, whether it’s on the charts themselves, or with your strategy, or with your learning curve. It all requires patience. If you are going after trading as a serious life career which you aim to remain in, then relaxing and taking your time is the first step. Nothing great comes from rushing it, especially the markets.
Know how to handle your trades
Based on your strategy and the concept of probability there are a number of things needed in order to appropriately handle your trades.
Firstly, don’t touch your stop loss. I cant say this enough, but stop losses are determined as the final barrier before the trade is invalid, and they are determine before entering the trade. If you find yourself moving your stop, ask yourself why. You will find out mostly its out of fear of losing your money, which is one of the 4 fears of trading. Accept your loss and let the trade stop out, you had it there for a reason.
Also, don’t leave trades behind out of fear. If you have a strategy that you have confidently developed, you should understand that the overall should be a greater number of winners than losers, and you should not leave trades behind out of fear, because they can be the ones that perform the best and make up for the losers.
Another thing to have in place is an appropriate strategy for exiting your trades. Many people have trades that are in profit, however due to the lack of knowledge on how to exit their trades, they still end up not profitable. You need to have a system on how to exit your trades appropriately and at what levels. Always remember, the profit running on a trade is not yours until its closed.
Risk management
Yes, I know you have heard it and read it a thousand times already, but you have no idea how important risk management is until the day you master it and recognise it was the single greatest thing holding you back from success.
People can have amazing strategies, the best reward to risk ratios, but with the inappropriate risk management trust me it means absolutely nothing. I have seen people overleverage on a trade simply because it “looked too good” compared to other trades, only for it to be the worst of the bunch.
I have seen people lose tremendous amounts of money and one thing I can promise you is not a single one of these people lost 100 trades in a row at 1% a trade. Every single one of them lost their entire accounts due to ONE trade that they married.
Risk management should be one of your main areas of focus, because believe me if you have mastered it, even with an average strategy you are doing much better than someone with an exceptional strategy with no adequate risk management.
Keep track of your performance
The only way to improve in any aspect of life is to first recognise what needs change and then work on it. It is very important to actually understand your positives and negatives and have them all tracked. A journal is one of the first steps in order to look in the mirror. Being completely honest is the only way a journal will work, and lying is only lying to yourself. If you are after serious improvement you need to appropriately identify all your flaws in order to better them.
You should never feel down or behind, remember trading the markets is one of the biggest psychological challenges one can face, and that is exactly why not everyone is suited for them. Instead see it as a challenge to better yourself and achieve the perfection and discipline you have always desired on and off the charts. Trading the markets will teach you lessons that you will carry with you throughout your entire life and not just on the trading floor.
What is US dollar index (DXY)? Dollar Index History
DXY began in March 1973, shortly after the Bretton Woods system collapsed. Initially, the value of the US Dollar Index was set at 100,000. Since then, the index has peaked at 164.7200 in February 1985 and hit a low of 70,698 on March 16, 2008, and is currently trading at 103.715.
The arrangement of the "basket" took place only once, at the beginning of 1999, when the euro included several currencies. The arrangement of the "basket" does not yet include countries with high trade volumes, such as China, Mexico, South Korea and Brazil. On the other hand, although Sweden and Switzerland do not have large trade volumes, they continue to be included in the index.
What is the Dollar Index?
The US Dollar Index (USDX, DXY) is an indicator of the value of the US Dollar against foreign currencies. It is also referred to as a money basket by US trading partners. The index is designed, maintained, and published by ICE Futures and. It is also registered with the name "U.S Dollar Index".
How Is The Dollar Index Calculated?
The dollar index is calculated by the weighted geometric average of the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
✅Euro (EUR)= 57.6% by weight
✅Japanese Yen (JPY) = 13.6 weight
✅British Pound (GBP) = 11.9% by weight
✅Canadian Dollar (CAD) = 9.1% by weight
✅Swedish Krona (SEK) = 4.2% by weight
✅Swiss Franc (CHF) = 3.6% by weight
Its formula is:
DXY = 50.14348112 × EURUSD -0.576 × USDJPY 0.136 × GBPUSD -0.119 × USDCAD 0.091 × USDSEK 0.042 × USDCHF 0.036
Why Dollar Index Increases?
👉🏻Every move that will strengthen the dollar in the United States, decrease in unemployment, positive employment data, high growth figures
👉🏻The depreciation of the local currencies of the six main countries included in the DXY
Why Is The Dollar Index Declining?
👉🏻Data that will cause the dollar to depreciate in the United States, growth figures below expectations, unemployment rates higher than expected
👉🏻Strengthening of the economies of the six main countries in DXY, appreciation of their local currencies
DXY is updated as long as the USD market is open. DXY can be traded as a futures contract on the ICE exchange. It is also available in exchange-traded funds (ETFs), options, and mutual funds.
What is day trading?What is day trading?
Day trading is the buying and selling of stocks, foreign exchange, commodities and other assets or financial derivatives during a single trading session. Traders speculate on the movement in asset prices by employing various strategies.
Decades ago, day trading was undertaken only by investment firms, financial institutions, trading funds and brokerages. Today, online trading platforms have brought day trading to the palm of a retail investor’s hand.
According to US investment bank BNY Mellon, retail investors have become a “growing force to be reckoned with”. Their share of total equities traded went up to nearly 25% in 2021, from the 10% to 15% reported in the first decade of the 2000s.
For many retail investors, day trading has become a career. Others have burnt their hands trying to make profits from this risky and fast-paced short-term strategy.
Now that we have gone through the definition of day trading, let us read more about day traders, their techniques and strategies, and day trading examples.
Life of a day trader
An experienced day trader’s session will start hours before the market opens or the night before. The trader will take their time to analyze price charts, investor sentiment, corporate news, macroeconomic developments and more.
As the stock market opens in the morning, some traders may sit on the sidelines in the first hour of a trading session to avoid the opening minutes that tend to be volatile.
After the market settles, day traders spend the day scanning for market opportunities. Day traders usually stick to securities that they have experience with as they will be aware of the little intricacies regarding that particular security.
The day trader will open and close positions according to their price targets and risk tolerance. A trader’s setup may involve hedging to protect against unexpected losses.
Day trading is particularly popular with foreign exchange traders. Popular Forex pairs have deep liquidity and tight spread, which allow day traders to speculate on small price movements.
Strategies used by day traders
To understand how day trading works, readers need to know about the various intraday strategies used by traders.
Scalping
Scalping involves a day trader aiming to speculate on small changes in an asset’s price. Traders place numerous short-lived scalp trading bets in a day so that small profits add up to a significant daily gain. Day traders need to implement a strict exit strategy to prevent large losses.
Range trading
Day traders are known for their use of technical analysis which involves identifying support and resistance price levels and analysing price trends, volume and volatility.
Range trading involves buying and selling of securities between a range of price where the top price is determined by the price resistance level and the bottom is determined by the price support level.
Algorithmic day trading
Algorithmic trading involves execution of trade orders based on pre-programmed instructions based on price, time and volume of a security.
Algorithmic trading is extensively used by hedge funds and investment banks to carry out day trades in large orders at high speed. This is also known as high-frequency trading.
News-based day trading
The trader will set up his trade setup based on trading opportunities arising from expected corporate and macroeconomic developments. An example of this type of day trading is anticipating a fall in broad markets before the publication of market-moving data such as inflation numbers or corporate earnings calls.
Day trading explained through examples
To better understand day trading, let’s look at the following example. Note that it is for educational purposes only and does not constitute investment advice.
John is a self-taught day trader who has learnt the art of intraday trading over time through trial and error. He specialises in stock trading and is particularly interested in the US equity market.
Over the years, John has traded Apple (APPL) shares extensively and is well-versed with developments at the iPhone maker.
Before Apple’s fourth-quarter earnings announcement, John conducted a thorough research on Apple and concluded that the company will report strong revenue and profit growth.
John aimed to trade using news-based trading and range bound trading techniques on the day of the result announcement.
The trader opened an intraday position with a target price of $155, based on identified resistance levels, and a stop-loss at $135, based on identified support levels for Apple shares trading at $145.
If Apple announces higher-than-expected earnings, which would cause the stock to rise to a level above $155, John will book profit. In case the company surprises on the downside, causing the stock price to fall, John’s position will automatically close when the price falls below $135, booking a loss.
During the day, John will constantly monitor Apple’s intraday performance to react to unexpected market volatility and to adjust his profit-taking and stop-loss levels, according to real-time performance.
by capital.com
WEEKLY CHART - RANA SUGARS LTDThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
RANA SUGARS - MY VIEW - EXPECTED 150.63% RETURNS/ GAINS ✅✅✅✅
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
5 IMPORTANT INDICATORS FOR BEGINNERSHi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Moving Average
A moving average is a technical indicator that combines price points of an instrument over a specified time frame, and divides by the number of data points, to give you a single trend line. It is popular amongst traders because it can help to determine the direction of the current trend, while lessening the impact of random price spikes.
A moving average will enable you to examine the levels of support and resistance, by analysing the previous movement of an asset’s price. It is a measure of change that trails the previous price action of an asset, assessing the history of market movements to determine possible future patterns. A moving average is primarily a lagging indicator, which makes it one of the most popular tools for technical analysis.
Calculating an MA requires a certain amount of data, which can be a large quantity depending on the length of the moving average. For instance, a ten-day MA will require ten days of data, while a one-year MA will require 365 days’ worth. A 200-day period is a very commonly used timeframe for MA.
The indicator is described as ‘moving’ because the introduction of new figures will replace old data points and ‘move’ the line on the chart.
Bollinger Bands
Bollinger Bands are typically plotted as three lines:
An upper band
A middle line
A lower band
The middle line of the indicator is a simple moving average (SMA).
Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands.
The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average).
If you’re freaking out because you’re not familiar with standard deviations.
Have no fear.
The concept of standard deviation (SD) is just a measure of how spread out numbers are.
If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.
If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.
Relative Strength Index ( RSI )
RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80.
Note: During strong trends, the RSI may remain in overbought or oversold for extended periods.
RSI also often forms chart patterns that may not show on the underlying price chart, such as double tops and bottoms and trend lines. Also, look for support or resistance on the RSI.
In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance. These ranges will vary depending on the RSI settings and the strength of the security’s or market’s underlying trend.
If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred.
MACD(Moving Average Convergence Divergence)
Moving average convergence divergence, or MACD, is one of the most popular tools or momentum indicators used in technical analysis. This was developed by Gerald Appel towards the end of 1970s. This indicator is used to understand the momentum and its directional strength by calculating the difference between two time period intervals, which are a collection of historical time series. In MACD, ‘moving averages’ of two separate time intervals are used (most often done on historical closing prices of a security), and a momentum oscillator line is arrived at by taking the difference of the two moving averages, which is also denoted as ‘divergence’. The simple rule for taking the two moving average is that one should be of shorter time period and the other longer time period. Generally, exponential moving averages (EMA) are considered for this purpose.
Description: The main points for an MACD indicator are:
a) Time period or interval – which the user can define. Commonly used time periods are:
Short-term intervals – 3, 5, 7, 9, 11, 12, 14, 15-day intervals, but 9-day and 12-day durations are more popular
Long-term intervals – 21, 26, 30, 45, 50, 90, 200-day intervals; 26-day & 50-day intervals are more popular
b) Momentum oscillator line or divergence or MACD line – which can be simple plotting of ‘divergence’ or difference between two interval moving averages
c) Signal Line – which is exponential moving average of divergence data e.g. 9-day EMA
d) Normally a combination of 12-day and 26-day EMA of prices and 9-day EMA of divergence data is used, but these values can be changed depending on the trading goal and factors
e) The above data is then plotted on a chart, where the X- axis is for time and Y-axis is price, to get MACD line, signal line and histogram for the difference between the MACD and signal line, which is shown below the X-axis
Volume
Volume, or trading volume, is the number of units traded in a market during a given time. It is a measurement of the number of individual units of an asset that changed hands during that period.
Each transaction involves a buyer and a seller. When they reach an agreement at a specific price, the transaction is recorded by the facilitating exchange. This data is then used to calculate the trading volume.
Trading volume can be denominated in any trading asset, such as stocks, bonds, fiat currencies or cryptocurrencies. For example, if Alice sells Bob 5 BNB for 20 USD each, the volume of that transaction can be either 100 USD, or 5 BNB, depending on what the trading volume is denominated in.
This also means that for a stock, for example, the trading volume refers to the number of individual stocks that were traded during the measured period. So if 100 shares are traded in one trading day, the daily volume of the stock is 100 shares.
Traders tend to use the volume indicator as an attempt to gain a better understanding of the strength of a given trend. If volatility in price is accompanied by high trading volume, it may be said that the price move has more validity. Conversely, if a price move is accompanied by low trading volume, it may indicate weakness of the underlying trend.
Price levels with historically high volume can also give traders an indication regarding where the best entry and exit points could be located for a specific trade setup.
Typically, a rising market should see increasing volume, indicating continuous buyer interest to keep pushing prices higher. Increasing volume in a downtrend may indicate increasing sell pressure.
Reversals, exhaustion moves, and sharp changes in price direction are often accompanied by a high volume spike, as these tend to be the times when the highest amount of buyers and sellers are active in the market.
Volume indicators often also incorporate a moving average, measuring the volume of the candles in a given period and producing an average. This gives traders an additional tool to gauge the strength of the current market trend.
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What is NFT Minting?NFTs, or non-fungible tokens, have emerged as one of the year's breakthroughs. NFTs have been making headlines recently in a variety of venues. Many inventors, artists, and corporate behemoths are eager to capitalize on this trend. Minting is one of the most critical phases in creating an NFT.
Minting an NFT means converting digital data into crypto collections or digital assets recorded on the blockchain. The digital products or files will be stored in a distributed ledger or decentralized database and cannot be edited, modified, or deleted.
The process of uploading a specific item to the blockchain is known as minting, and it is similar to how one mints a real coin.
Overbought & OversoldIf you can identify overbought or oversold conditions, as a trader, this can be highly profitable. In particular, these are two definitions that refer to the extreme values of the price in addition to their intrinsic value. So, when these conditions appear, a reversal of the direction of the price is highly expected.
What is Overbought?
When something is ‘overbought’, it means that the price is thriving for a long peri. Because of this, it’s trading at a higher price than it actually should be. In other words, the asset is overly expensive and a sell-off is about to happen.
What is Oversold?
When something is ‘oversold’, it means the price is in a negative momentum for an extended period. Because of this, it’s trading at a lower price than it actually should be. In other words, the asset is overly cheap and an upward rise is about to happen.
Indicators
Moreover, there’re plenty of technical indicators which you could use in technical analysis. To confirm the Overbought and Oversold conditions the three indicators commonly used are:
Bollinger Bands,
Relative Strength Index and
Stochastics
Bollinger Bands
The Bollinger Bands appear as a channel. Specifically, the middle line is often a twenty-period moving average. On the other hand, the upper band is the moving average plus two times its standard deviation. Furthermore, the lower band is the moving average minus two times its standard deviation. As a result, the price seems to fluctuate in this channel and normally doesn’t move out of the bands. However, when the price tends to move out of the upper band the price can be considered as overbought. Likewise, the same thing happens when the price moves out of the lower band, the price can be considered oversold.
Relative Strength Index
The Relative Strength Index is a momentum oscillator where the horizontal axis appears as a function of time and the vertical axis as on a scale of 0 to 100. In addition, the standard amount of periods used for this indicator is 14.
So, the Relative Strength Index measures the magnitude and the speed of recent price action. The indicator compares a security strength on days when prices go up to its strength on days when prices go down. Yet when the Relative Strength Index has a value higher than 70 the price can be considered as overbought. When the opposite happens and the price drops down a value of 30 the price can be considered as oversold.
Stochastics
Stochastics is like the Relative Strength Index, a momentum oscillator where the horizontal axis appears as a function of time and the vertical axis is displayed on a scale of 0 to 100. However, the stochastic oscillator is predicated on the assumption that closing prices should move in the same direction as the current trend.
Meanwhile, the Relative Strength Index is measuring the magnitude and the speed of the current price action. The Stochastic oscillator does calculate this value and expresses this value into a %K.
In addition, the standard amount of periods used for this indicator is 14. When the %K crosses a value of 80 the price can be considered as overbought. When the opposite happens and the price drops down a value of 20 the price can be considered as oversold.
Combined
One indicator that matches the criteria for being ‘overbought’ or ‘oversold’ can suggest a small trend reversal. But once all 3 indicators combined are matching the criteria, the assumption of a trend reversal is very likely to happen. Therefore, for trading in general this can be a profitable and low-risk strategy.
nzdusdthe key in auctioning process ,
whether you looking at initiative buying -initiative selling / responsive buying-responsive selling
we start with the auction market process and value in the market as institutions do and then we learn to track responsive and initiative trades to be able to trade with them
trading is all about leverage and managing risk fast it's not about scalping trading all day everyday its all about finding trade locations based upon the auction process.
institution money flow its called tracking volume imbalances in order flow otherwise known as heavy volume all this does is indicate that there big money traders hedge funds pension funds mutual funds mangers large institution governments either putting lot of money to work or unlock or unwinding postion
basically, all the people that are in the know ok. you and I were not in the know we are we never gonna know we never gonna be inside there always gonna some one else
we don't want based upon what they saying there gonna do we want make their bets on what actually do the best way to track that is through large orders that come through either through a commitment of traders reports that's obviously a weekly report from CBOT .ORG OR SEC GOV
if you track day-to-day transactions and you and you keep track of that you can accumulate better levels of which to trade from therefore you have better probabilities
market is not trading base upon chart patterns candle stick patterns or anything else becuse thats all subjective thats subjective to what you put on your charts what you need to think about bigger picthure
we gonna identify higher opertunities your not just gonna buy just besuse everything selling off the same way wouldnt buy the all time all time highs just becuse it maid a new all time high or break out how maney times you buy breakout it reverse on you well if you want stop doing that you got better prepared is all im trying to say so the auction that these institutions speefically private equity smart money is going to do its going to leave imbalance in volume and they going to have to what these auction leaves to distingushed orderflow foot print that can have effect on the futhure price movement of a security or market whether its next 15 mintues or the next 15 more days if you follow institutional money flow you can determine whether you should be looking to buy something or to short it or just to adjust your risk what it really signals is that those who those who track institution money there is lot of inventory or supply to move
imbalance volume i track, buy imbalance, sell imbalance, crossed market trade auctionning market where buyers lift and market come back in to these buying imbalnce area i can look opertunities given this information this tracking volume imbalance over time
www.cmegroup.com
USDJPY Short From H1 Supply Zone ( + 3,7 RR)A clean trade on US Dollar vs Japanese Yen was taken on December 5th and here is it's full breakdown:
We see an example of Drop-Base-Drop market movement. We took a Base of this movement as an Supply zone and went into shorts with the goal at the local low, because:
1) Fibo discount level (0.62)
2) Clean supply zone
3) Correlator DXY was showing short signal too
4) Supply zone on a resistance level
5) Imbalance to fill in
6) Price tapped the zone on a EU session
7) RSI divergence on M30
The TP wasn't lower due to the premium zone and more imbalance laying above. Typically, we wouldn't take this trade due to this factor, but all 7 reasons were solid and we were right.
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Golden Advice from Takashi Kotegawa🎥Takashi Kotegawa turned around $12K to $200M in just 8 years and reached a net worth of a whopping $ 1.8B from trading in his bedroom🍻 When I met Stocks Genius Takashi a few years ago, he gave me one of the best trading advice👇🏻
Trade with small size while learning
Only risk 1% of your account size each trade
Master one setup
Find a solid mentor
Journal your trades and study your data
Follow your plan consistently regardless of the outcome
Take Trading decisions as unemotionally as possible
Focus on these points, instead of focusing on goals like: I want to make 5K or 10K a month🍻
Don’t quit your job, yetLet me share with you a true story. Han (not his real name) just started trading the Crypto market. He funded his account and made a $1,000 profit after a few trades. So he thought to himself “If I can make $1,000 trading part-time, then I’ll make even more money trading full-time.”
So, John quit his job to trade full-time. The first few days were good as he was making consistent profits from the markets. Then the market changed and the losses crept in.
Eventually, he gave back all his profits and bust his account. Now, he’s back in the job market looking for work. So, what’s the lesson?
Don’t quit your job, yet. Just because you’ve made some money from the financial markets doesn’t mean you can do it full-time, it might be beginner’s luck. Also, full-time trading requires a different mindset, account size, expectations, consistency, a lot of patience, etc.
Natural Gas - WEEKLY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
NZDUSD- 60 MINS TIMEFRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy