Get started

Educationalposts

Donchian Channel Indicator: The Complete A Trader's GuideChannel forex trading strategies are very popular among traders. This fact is because the channel within which the quotes move is regularly formed on any instrument, any time frame, and can be used in a variety of ways (breakout strategy, rebound strategy, etc.) as a ready-made trading tactic. There are Linear Progression Channels, Bollinger Bands, Fibonacci Channels, Envelopes, Ichimoku Channels, and Donchian Channel, which is created based on the Donchian Channel Indicator. It will become the main character of our today`s article. Let us consider in more detail the principle of its use and the rules for placing orders. The Donchian Channel Indicator: Description And Main Signals Richard Donchian is one of the legendary traders of the last century. He was the originator of the Turtles trading system. As it often happens, the peak of his popularity and success came to him late, at a respectable age. Donchian was a true workaholic, giving much energy to trading and creating effective trading theories. His works were used by a lot of traders, some of which were included in the top ten of the best market professionals, for example, Linda Raschke. Initially, the Donchian Channel was developed for trading by breakout strategies when the price goes out of the channel and crosses one of its borders. As a rule, a new powerful trend starts at such moments. What Does The Donchian Price Channel Look Like? The algorithm looks like two curves, one of which corresponds to the upper limit of the corridor and the other - to the lower one. The upper curve shows the price maximums for the selected time period. The lower boundary shows the levels of price lows, also for a certain period of time. When price minimums/maximums are updated, the lines are rearranged and the channel width decreases or increases depending on the market situation. Another broken dotted line runs in the center of the channel. The price position relative to this line shows the market trend: When the price breaks out of the middle line of the channel from the bottom up and rises higher, it indicates the bulls' advantage in the market. Price is trending upwards. When the price crosses the middle line of the channel from top to bottom and goes lower, it indicates a bearish advantage in the market. The price goes downward. The Donchian Channel is also called a volatility indicator because it uses chart extrema in its calculations. The tool looks a bit like Bollinger Waves, but its lines are smoother and do not react as strongly to price changes as Bollinger Bands lines. Channel Boundaries Signals According to the indicator, trades can be opened at the moments of a breakout as well as a rebound from the channel borders. Signals arising when price breaks out a channel edge are called trend signals: If the price breaks out the upper level of the Donchian Channel from the bottom up and the breakout candle closes above it, this is a buy signal. An uptrend begins; If the price crosses the lower level of the Donchian Channel from above downwards and the breakout candlestick is closed under it, this is a sell signal. The downtrend begins. The breakout can be not only a true breakout when the boundary is crossed by the candle's body and the candle closes outside the range but also a shadow one. It can be called a shadow breakout, which was made by the candlestick's shadow, but the candlestick itself closed inside the Donchian Channel. The shadow breakout occurs before the price reverses after the rebound from the channel's boundary: If the shadow of the candlestick breaks out the lower boundary, and then the price returns to the channel and closes inside it, this is a signal of an upward reversal. You can place a buy order; If the shadow of the candlestick crosses the upper boundary, and then the price goes back inside the channel and closes there, this is a signal of a downward reversal. You may enter into a sell trade. A shadow breakout usually indicates a price reversal from the broken-out boundary. Price may not only break out the channel boundary but also rebound from it. In this case, the price moves inside the channel, and then, having touched one of its boundaries reverses in the other direction. Signals when the price rebounds from the Donchian Channel boundaries: If the price rebounds from the upper boundary of the channel, this is a sell signal; If the price rebounds from the lower boundary of the channel, this is a signal to buy. Changing the channel width also indicates a change in the market situation. For example, if the Donchian Channel becomes narrow, it indicates a flat. The market is calm at the moment, the volatility is low. When the price extremums are updated, the channel starts expanding, indicating the increase in market volatility: If the channel expands as a result of updating price lows, you can open a sell trade; If the channel expands as a result of updating price highs, you can open a buy trade. Even though the Donchian Channel is quite an effective tool, it is not recommended to open positions only by its signals. It is necessary to use additional tools for signal confirmation. Calculation Of The Donchian Channel Indicator To plot the Donchian Channel, we should use the absolute minimum and maximum of the quote for the definite period. The upper boundary of the channel is drawn through the specified maximum, and the lower – through the minimum for the same period. In the time period, only the number of candlesticks is always considered. For example, period 10 for the D1 chart is equal to 10 days, for the H1 chart – to 10 hours, and for the M5 – to 50 minutes. In other words, a breakout of a 10-day channel on the D1 chart means that the 10-day maximum is broken out when the upper boundary of the channel is broken out, or the 10-day minimum when the lower boundary of the channel is broken out. In other words, the upper boundary is equal to the maximum value of the quote for the selected period, the lower boundary – to the minimum value, and the average boundary is equal to the sum of the upper and lower bounds divided by 2. Donchian himself used the value of the channel period 20 for daily charts because it equals the average number of working days in a month. But we can experiment with the period value, considering that we can trade in any time frame. The most popular and well-proven variants are 18, 24, and 55. Donchian Channel + RSI Trading Strategy Let's consider an example of a simple trading strategy based on the Donchian Channel and RSI oscillator signals. Chart time frame – H1. Currency pair – any currency pair with average or high volatility. Positions may be opened on the rebound of the price from the boundaries of the Donchian Channel. The RSI indicator will confirm the rebound signal, coming out of the oversold or overbought area. A long position may be entered under the following conditions: The price reaches the lower boundary of the Donchian Channel, fails to break it out, and turns in the opposite direction. Either there was a shadow breakout and the price returned to the channel limits. RSI exits the oversold area, breaking out the 30 level from the bottom to the top. Take Profit should be set on the upper curve of the Donchian range. Stop Loss can be placed outside the lower boundary of the Donchian Channel. A sell order may be made under opposite conditions: The price reached the upper boundary of the Donchian Channel. It fails to cross the upper boundary of the Donchian Channel, it rebounds and turns in the opposite direction. The second option - a shadow breakout occurs and the chart returns to the channel. The oscillator has left the overbought area, breaking out the line of 70 downwards. Fixing Take Profit should be set at the lower border of the Donchian Channel. A protective Stop-Loss can be placed outside the upper boundary of the Donchian Channel. Donchian Channel + MACD Trading Strategy This strategy involves opening a trade at the Donchian Channel boundaries breakout moments. Trading will be done based on the trend. To confirm the signals of border breakout a trend oscillator MACD is used. The time frame of the chart is M15. The asset to be traded should have medium or high volatility. It is possible to open a long position, provided that: The Donchian Channel begins to widen in the direction of the uptrend. The maximums of the chart begin to increase sequentially; The candlestick breaks out the upper boundary of the Donchian Channel and closed above it; The MACD indicator is above zero, and the histogram is increasing. If all three conditions coincide, it is possible to open a buy order. Stop Loss is placed behind the local minimum. Profit can be fixed by Take Profit, calculated using the formula SL*2, or manually when the opposite signal is received. You may enter a short position when receiving the following signals: Donchian Channel corridor begins to expand in the direction of the downtrend; The price minimums start to decrease consistently; The candlestick crosses the lower level of the channel and closes under it. The MACD indicator is below zero, the histogram is decreasing. If all three signals coincide, one can open a short position right away. Stop Loss is placed behind the local maximum. The profit can be fixed by Take-Profit, equal to at least two Stop Losses. You can also fix the profit manually by closing the order when the signal to the contrary appears. Advantages And Disadvantages Of The Donchian Channel Indicator The Donchian Channel has its own characteristics. Among the advantages, we can note its simplicity and efficiency. The indicator consists of only three lines, which are superimposed over the chart of price movements. The Donchian Channel gives sufficiently high-quality signals. However, it may sometimes be wrong in low time frames, as there is market noise on such charts. Therefore, it is recommended to combine it with other indicators. Donchian Channel perfectly combines with oscillators, such as RSI, Stochastic Oscillator, MACD, etc. While trading price breakouts, the Donchian Channel is combined with trend indicators - Parabolic SAR, Power Fuse, MACD, Moving Average, etc. Conclusion Although the Donchian Channel signals look simple, they have already proven to be effective. Understanding the basis of channel formation, you can make your own "add-ons" to the strategy, such as using the MA as an additional indicator, etc. To better filter, the signals, try combining them on the chart with other indicators and oscillators.
EEducation
by FOREXN1
9
Point and figure (Part 2)Box size: The minimum price movement required for a new column to be added to the chart. Reversal amount: The number of Xs or O's in a column before a new column is added. Support and resistance levels : Areas where the price has difficulty falling below (support) or rising above (resistance). Price targets: The level at which a trader expects the price to reach. Stop-loss levels : The level at which a trader exits a trade to limit their losses. Double top and double bottom: A chart pattern that is formed when a security's price reaches a high or low level twice and then falls back. This can indicate a trend reversal and a potential buying or selling opportunity. Triple top and triple bottom: A chart pattern that is similar to the double top and bottom but the security's price reaches the high or low level three times before reversing. Breakout strategy : A strategy where traders buy when the price breaks above a resistance level or sell when the price breaks below a support level. Trend following strategy: A strategy where traders buy when the price is in an uptrend and sell when the price is in a downtrend. Mean reversion strategy: A strategy where traders buy when the price is undervalued and sell when the price is overvalued, based on historical price levels. It's worth noting that point and figure charting is a discretionary method of technical analysis, and it requires a certain level of experience and knowledge to correctly interpret the chart and to use the strategies mentioned above.
NSE:NIFTYEducation
by pratik2358
Learn point and figure chartPoint and figure charting is a type of technical analysis that is used to identify trends and potential buying or selling opportunities in a security's price. Unlike traditional bar charts, which display a security's price and volume over a while, point and figure charts only show price movements, disregarding the passage of time. The chart is constructed using a grid, with X's and O's plotted on it. An X is plotted when the security's price increases above a certain level, known as the box size. Conversely, an O is plotted when the price falls below that level. The box size is the minimum price movement required for a new column to be added to the chart. The point and figure chart are read by looking for patterns of X's and O's. A series of consecutive X's indicates an uptrend, while a series of consecutive Os indicates a downtrend. The number of Xs or O's in a column before a new column is added is known as the reversal amount. Support and resistance levels can also be identified by analyzing the chart. Support levels are identified as areas where the price has difficulty falling below, while resistance levels are identified as areas where the price has difficulty rising above. Traders can also use point and figure charts to set price targets and stop-loss levels. The price target is the level at which a trader expects the price to reach and the stop-loss is the level at which a trader exits a trade to limit their losses. In point and figure charting, a double top or double bottom is a chart pattern that is formed when a security's price reaches a high or low level twice and then falls back. This can be a sign of a trend reversal and could indicate a buying or selling opportunity. Another pattern is the triple top and triple bottom, which is similar to the double top and bottom but the security's price reaches the high or low level three times before reversing. It's worth noting that point and figure charting is a discretionary method of technical analysis, and it requires a certain level of experience and knowledge to correctly interpret the chart. It's more commonly used in stock trading, but it can also be applied to other securities such as futures and commodities.
NSE:NIFTYEducation
by pratik2358
Can I Learn Forex On My Own?A question that is frequently asked is "Can I Learn Forex On My Own?". Like any other ability, learning how to trade currencies can be self-taught through books, the internet, and practise. The learning process can be substantially accelerated and your chances of success increased, though, by having a mentor. You can discover when learning to trade independently that you are lacking crucial knowledge or have inaccurate beliefs about specific trading tactics. A mentor can offer direction and explanation, clearing up any misunderstandings and bridging any knowledge gaps. A mentor can also offer insightful criticism on your choices and assist you in recognising and breaking any negative habits you may have formed. A mentor might also introduce you to fresh techniques and equipment that you might not have found on your own. Expert traders can assist you avoid the common blunders that inexperienced traders frequently make because they have a lot of information and experience to draw from. Additionally, a mentor can act as a sounding board—someone you can talk to about your analysis and breakdowns, and receive a second view from. They can help you discover areas that need improvement and provide a strategy for doing so. Instead of having to learn everything on your own, it is far faster to learn from someone who has previously gone through the process and has the necessary information and expertise. The accountability element is another advantage of having a mentor. Having a mentor can improve your motivation to succeed and hold you responsible for your actions since you have someone to answer to. Having a mentor can significantly shorten the learning curve and improve your chances of success, even though it is possible to study FX trading on your own. A mentor can offer insightful advice, criticism, and encouragement that will speed up your progress and help you avoid frequent pitfalls. The two main ingredients for success in any endeavour are accountability and motivation, both of which mentorship may assist with.
BITSTAMP:BTCUSDEducation
by opes_trading_group
📈 What Are the 10 Fatal Mistakes Traders Make 📉Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. It is important to know that no matter how experienced you are, mistakes will be part of the trading process. That’s why you should be prepared to expect them and if possible not make them. Easier said than done you would say and you will be completely right. That is why I have compiled a list of trading mistakes that you should be trying to avoid. Real-life trading will show you how “easy” that could be. 1) Trading without having a predefined trading plan The first fatal trading mistake that traders make is trading with no plan. Having a written predefined trading plan will help you for two reasons. Trading depends on several aspects, which include the situation in the markets around the world, the status of overseas markets, the status of index futures such as Nasdaq 100 exchange-traded funds. Considering index futures is a wise option for evaluating the overall market conditions. Make a to-do list and build a habit of researching the market before calling your shots. This will not only keep you from taking unnecessary risks, but it will also minimize your chances of losing money. 2) Over-leveraging Over-leveraging is the second mistake of “what are the 10 fatal mistakes traders make”. Over-leveraging is a two-edged sword. In a winning streak, it could be your best friend, but when the trend changes, it becomes the greatest enemy. Recent talks about banning leverage higher than 1:50 for experienced and 1:25 for new traders in the UK have been a result of a lot of traders losing their money too fast. Whether it will happen next year or not is a matter of time for us to see. This is good news for most inexperienced traders because it will somehow limit their exposure. It will allow them to follow their money management rules easier. For greedier and more impatient traders, this is terrible news. Fortunately, this might lead to a better result in their performance in the long term, as well. Over-leveraging is a dangerous way to believe you can make more money quicker. A lot of traders are misled into this way of thinking and end up losing all their money in a short period of time. Some brokers are offering insane amounts of leverage (like 1:2000) that can lead to nothing more than oblivion. Therefore, one needs to be extremely careful when selecting those levels and the brokers that represent them. That’s why diversification among different brokers is probably the best strategy. 3) Staying glued to the screen a) Set entry rules Computer systems are more effective for the purpose of trading because they don’t have feelings about the things that go into the trading environment and they are neither emotionally attached to the factors that are in one way or the other related to trading. Moreover, computers are capable of doing more at a time as compared to mechanical traders. This is one of the several reasons that more than 50% of all trades that occur on the New York Stock Exchange are computer-program generated. A typical entry rule could be put in a sentence like this: “If signal A fires and there is a minimum target at least three times as great as my stop loss and we are at support, then buy X contracts or shares here.” Computers are more rational when it comes to taking quick decisions following a set of rules. No matter how experienced traders are, sometimes they tend to be hesitating in taking a decision no matter what their rules state. b) Set exit rules Normally, traders put 90% of their efforts into looking for buy signals, but they never pay attention to when to exit. At times, it is difficult to close a losing trade, but it is definitely wiser to take a small loss and continue looking for a new opportunity. Professional traders lose a lot of trades each day, but they manage their money and limit their losses, which leads to a profitable trading statement for them. Prior to entering a trade, you should be aware of your exits. There are at least two for every trade. First, where is your stop loss if the trade goes against you? This level must be written down. Mental stops don’t count. The second level is your profit target. Once you reach there, sell a portion of your trade and you can move your stop loss on the rest of your position to break even if you wish. As discussed above, never risk more than a set percentage of your portfolio on any trade. 4) Trying to get even or being too impatient What are the 10 fatal mistakes traders make? Rule number 4 is patience. Patience in FOREX trading eventually pays off as it allows you to sit back a bit and wait for the right trading setup. Most traders are too eager to jump in and trade whenever any opportunity arises. This is probably due to our human nature and the eagerness to make a “quick buck”. But if there is one thing that ensures a high probability of winning, it is having the patience to grasp all the necessary information before you trade. This apparently will take time as there are many factors involved in it, such as the forming of trends, trend corrections, highs, and lows. Impatience to look at these matters could result in loss of money. It could be helpful sometimes to take a break and allow oneself to have the time to look at the bigger picture, instead of focusing too much on one aspect. Remember that a single transaction might resonate in a series of future losses if executed at the wrong moment. It takes time and patience to wait for the market correction before you commit to a trade. BUT IT TAKES TIME…Some traders fail to realize that being successful will take time. They often fall prey to their own impatience in the hope of earning fast money. It could be a rough environment, and charts might be hard to read, so it is wise at times to step back in order to avoid costly mistakes. Don’t rush things out, or try to enter a trade at all costs by just following your gut. The market could be quite tricky and often does send out the wrong signals. Wait patiently for the best opportunities to align themselves and then act mercilessly. 5) Ignoring the trend “The trend is my friend“- another cliche sentence, which has helped me stay on the right side of the market for as long as I am a trader. If you think about trading the way I do, it could be a boring business, but at least one that makes money. I am not really interested in quick returns. I am not interested in penny stocks. I am not interested in the most popular trades that everyone is talking about. I like to do my own analysis. The more boring a trade looks, the better for me the trade is. Always consider the trend before placing the trade! 6) Having a bullish/bearish bias Folk wisdom says that if you throw a frog in boiling water, it will promptly jump out of it. But if you put the frog in lukewarm water and then slowly heat the water, by the time the frog realizes that the water has become boiling, it will already be too late. Studies of decision-making have proven that people are more likely to accept ethical lapses when they occur in several small steps than when they occur in one large leap. This statement also explains nicely the unfortunate process of unprofitable trading. Once you are in a losing position, you don’t realize if it slowly accumulates into a big loss. You have your own bias and it might lead you into obscurity. That is why one of the most important elements of successful trading is objectivity. It is also one of the hardest elements of mastering the field of trading. Inattentional blindness is definitely not helpful to human psychology and when it comes to trading, it could be detrimental. 7) Little preparation or lack of strategy Make sure that you close any unnecessary programs on your computer and reboot your computer before the day begins, this refreshes the cache and resident memory (RAM). Several trading systems allow you to set up the environment according to your needs, set it up in a way that allows for minimal distractions and helps you keep an eye on each in and out, alongside. Keep in mind that a flaw in the trading system can be costly. Make sure you have valid proof that your trading strategy does return positive results on a consistent basis. Do not rush into trading before that. 8) Being too emotional Trading the markets is like stepping into a battlefield- you need to be emotionally and psychologically prepared before entering the field, otherwise, you are stepping into a war zone without a sword in your hand. Make sure you have checked three things before you start trading: 1)you are calm, 2)you had a good night’s sleep, and 3) you are up for a challenge. Having a positive attitude towards trading is extremely crucial. If you are angry, preoccupied, or hung over then you are at a bigger risk of losing. Make sure you are completely relaxed before you step into the market, even if you have to take yoga classes, it is totally worth it. 9) Lacking money management skills Rule number 9 of the “What are the 10 fatal mistakes traders make” list is money management. Risking between 1% to 2% of your portfolio on a single trade is the best way to go. Even if you lose while betting on that amount you will be capable enough to trade some other day and make up for your losses. The amount of risk a trader can take is the amount he thinks he will be able to get back the next day. It is a wise option to start with a smaller amount and slowly and gradually increase the percentage. You can come back to point number 2 “Over-leveraging” and read it again. Having the right money management skills is probably one of the most important traits of a profitable trader. And of course- it is one of the most common mistakes among the losing traders. 10) Lack of record keeping Keeping records is key to being successful at trading. If you win a trade, you should note down the efforts and the reasons that pulled you towards the trade. If you lose a trade, you should keep a record of why that happened in order to avoid making the same mistakes in the future. Note down details such as targets, the exit, and entry of each trade, the time, support and resistance levels, daily opening range, market open and close for the day, and record comments about why you made the trade and lessons learned. You should save your trading records so that you can go back and analyze the profit or loss for a particular system, draw-downs (which are amounts lost per trade using a trading system), average time per trade (in order to calculate trade efficiency), and other important factors. Remember, this is a serious business and you are the accountant. CONCLUSION: What are the 10 fatal mistakes traders make?? Successful paper trading does not ensure that you will have success when you start trading real money and emotions come into play. Successful paper trading does give the trader confidence that the system they are going to use actually works. Deciding on a system is less important than gaining enough skills so that you are able to make trades without second-guessing or doubting the decision. There is no way to guarantee that a trade will return profits. This is the actual beauty of trading and being consistent is based on a trader’s skill set and his/her eagerness to improve. Keep in mind winning without losing does not exist in the world of trading. Professional traders know that the odds are in their favor before entering a trade. It is a continuous process of making more profits and cutting down losses which might not ensure a win every time, but it wins the war. Traders or investors who don’t believe in this adage are more viable to making losses. Traders who win consistently treat trading as a business. While it’s not a guarantee that you will make money, having a plan is crucial if you want to become consistently successful and survive in the trading battle.
Education
by FOREXN1
11
The Momentum of MomentumUtilizing oscillators to confirm trend continuations and reversals is a momentum traders’ bread and butter. You most likely have the RSI or MACD saved to your favorites, but have you ever considered analyzing the momentum of an oscillator itself? You would be surprised at what insights the momentum of an oscillator can show you. In this article, we will look at how the momentum of an oscillator can help parse out false signals and give you an edge in your decision-making. Below is the BTC/USDT 15-minute chart, the True Momentum Oscillator (TMO), and a 50-day EMA. We have highlighted what appears to be a short-term double top, with a weakening oscillator momentum that failed to reach or exceed the previous level. The price consistently bounced around the 50-period EMA and had cleanly broken through with a retrace imminent. Whether you aim to trade the break of the EMA or the retrace and rejection, this appears to be set up for a potential short trade. Now we take the momentum of the TMO and its signal line and plot those lines (purple and white). Another layer to this story suddenly unfolds. We can now see from the new momentum lines that this move to the downside weakened almost as soon as it began. There is now a clear divergence between the oscillator and its momentum lines. What seemed to be a solid short setup now has upside potential. We must now question our next move. A few bars later, the price broke above the 50-EMA and quickly touched it one last time and is followed by a robust move to the upside. In the current market, it is easy to lean short. Eager traders might have taken the short only to be burned by the strong move against the desired trade. Adding the layer of the momentum of our oscillator helped us read between the noise. We had a better idea of where the next chapter could take us, or at the very least, we could avoid a risky trade. This is just one example of how the momentum of oscillators can be another valuable tool in our technical analysis tool belt. This momentum offers a unique visual aid for making quick decisions when trading.
Education
by LeafAlgo
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
Long
by Tradelikemee
2
'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.
TVC:DJIEducation
by Chaser30
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. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
2
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
Short
by Tradelikemee
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. 3 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. 4 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. 2 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. If you like our content, please feel free to support our page with a like, comment & follow for future educational ideas and trading setups.
Education
by CRYPTOMOJO_TA
5
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.
COINBASE:ETHUSD
by opes_trading_group
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.
ICEUS:DX1!
by Forexcues