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Stock Market CrisisHello my friends, today, im gonna show you the biggest falls of stock market SPX. First fall was in 1987 , stocks dropped over 20% in one single day, incredible. Market got back in 22 months. This day (19.11.) is always called " Black Monday ". The second fall was 9 years after "Black Monday". In august have SPX dropped about 15% . There were a lot of reasons, but the main reasons are Asian economic crisis, debt default by Russia and plummeting oil prices . we was back in 5 months. The worse crisis came in 2001 . This crisis is also called " Dot Com Bubble ". All technology companies have dipped and SPX was down 50% . Market got back in 7 years. Right after market got ATH (All-Time-High), market again dropped over 55% . Reason was american type of mortgage called " Subprime ". A lot of investing banks have bankrupted. One of them was Lehman Brothers or Bear Stearns . This crisis was one of the biggest opportunities that ever happened, because properties were really cheap . Market was back on his feet in 6 years. In 2018 dropped market over 15% ? because of interest rate hikes . Market was back in 8 months. The last crisis was an year ago, Covid-19 . Small companies have bankrupted . Market dropped over 30% . Back in 6 months. Okay guys, seems we are at the end, thanks for reading, hope you admire it, if yes, you can support me by Like and also you can Follow me, because i will do these things really often.
SP:SPX
by TommyTK247
14
Use Moving average for profitMoving Average You can use a moving average for support and resistance, so when the chart pattern will break the upper moving average then that will be the support for the chart pattern. If the chart pattern is testing the upper moving average and its bounces back again and again then that moving average will be your Resistance. You can use moving averages for daily trading plus Swing trades there are different strategies for both. Moving average lengths of 10, 20, 50, 100, and 200 are common. Depending on the investor's timeframe, these lengths may be applied to any chart's time frame (five minutes, daily, weekly, etc.). The "lookback period," also known as the time frame or duration of a moving average, can have a significant impact on its effectiveness. A Moving Average with a short time frame reacts to price fluctuations considerably faster than an MA with a large look-back period. The 20-day moving average closely reflects the real price in the graph below, but the 100-day moving average does not. When moving averages will cross each other than you can buy and sell your trades.
B
by rafay78
Gold: 8 Factors You Must Know, If You Trade Gold8 Factors You Must Know If You Trade Gold Gold has been a favorite of many for centuries. It's used as an investment and holds sentimental value all over the world. Let's take a closer look into some factors that affect these changes: supply & demand dynamics between countries holding large amounts while wanting lower rates so they won't have trouble selling off inventories; economic stability decides whether there'll be. Wh at Moves the Gold Price? There are many reasons plays behind the gold price. Let's discuss some. Supply and Demand Demand and Supply are two forces that constantly affect the price of Gold. When demand for this precious metal increases, its value goes up too. When there's less interest in purchasing or holding onto it, prices will naturally decrease over time due to supply constraints. That means you can buy more at any given moment without worrying about getting stuck paying the total retail cost later. Inflation Gold has been a good hedge against inflation for many years. When prices go up in an economy, people tend to invest their money into Gold and not a currency. Because it's considered stable over time while maintaining its value even when currencies change significantly from one day or year-to-year ranking/rating changes due to economic factors. Such as high unemployment rates, which increase demand by consumers looking for safe-haven assets. Central Banks Decision Gold is typically bought in large amounts by governments and institutions who view it as an essential store for wealth preservation. But this can also mean traders take notice. Central banks worldwide have recently been buying substantial quantities because they want to diversify their reserves away from US dollars which currently make up most international finance markets valued at close to $200 trillion (€170 T). The result has already shown itself, with spot prices rising 6 percent higher than last year despite economic uncertainty following recent hikes on interest rates over America's quantitative easing program. Interest Rates Interest rates are the driving force behind Gold's price movements. When interest rates increase, people sell their assets to earn higher returns on existing investments. At the same time, at other times, they might buy back in if prices have fallen too far for them not to make up that loss with purchasing power today - this increases demand for precious metals like never before. The relationship between these two economic indicators means different things depending upon one another. For example, when there is inflation (worst-case scenario), investors seek out safe-haven currencies such as Gold, which protect wealth against devaluation or hyperinflationary policies imposed by countries worldwide seeking currency stability through international agreements like SDRs. Central Banks Reserve The government holds a large number of gold reserves. Therefore, when most of the Reserve Banks worldwide start to buy Gold more than they sell. The gold prices increase because there will be insufficient supply in the future and vice versa when central banks sell greater quantity than it buys; therefore, these transactions result in currency rates against other currencies. Currency Fluctuations Gold is traded on the international market in US dollars. When you convert your currency from USD to any other currencies during import, it becomes more expensive as the price fluctuates concerning both currencies. Let's compare prices between countries like the United States and Saudi Arabia, where one has a more robust economy than others do. There can be a hike of up to 30 – 50% extra cost for purchasing an item because these economies have been performing better over recent years, meaning they provide higher rates of return that give them power over minting new coins. In contrast, some country's revenue may only last one year before another recession strikes, making importing items not profitable anymore. A co-relation with other asset class Gold is a highly effective portfolio diversification because of its low negative correlation to major asset classes. In addition, when shares fall in companies, there's an inverse relationship shown between Gold and equities. This makes it easy for investors looking at their investments from either side to have peace of mind when they know that one goes down. Then others will likely recover - especially considering how much more stable stocks tend towards being over time than fluctuating prices do. Geopolitical Factors Gold has often been seen as a haven during times of political and geopolitical turmoil. During such periods, Gold does well compared to other asset classes due to an increase in demand from investors who won't keep their money away from unstable markets or currency values that could change at any moment.
TVC:GOLDEducation
by Gold_Trading_Expert
How I made $$ on TSLA todayOpening range breakout is something that I use daily for almost all of my plays. Its very simple. If the high or the low of the first five minute bar is broken. Take an entry in the way the stoke broke. I have seen soooo much success with this strategy. There is much more that goes into it like stop losses and where to take profits. Those will all be explained in further tutorials. also this strategy is not at all a swing trade strategy, this is purely a day trade strategy that is only used in the morning as the market is opened. I challenge you guys to go through charts yourself and look for opening range breakouts. Also note this works best on the 5 minute chart. Hope you guys see as much success as I do with this very useful strategy!!!
NASDAQ:TSLA
by MindOverMarket
Are you revenge trading 😖🤔Revenge trading! It all catches us all out at some point in our trading journey's. The markets don't care about your loss and neither should you! Losses are a part of trading and have to be accepted. No one can be right 100% of the time regardless of method used. Revenge trading will add to those losses and compound that account draw down even more. Irrational emotions have no place in trading and they are what lead to revenge trading. The way to eradicate this issue is by going about your trading a logical manner. First off is build or use a strategy with a known proven edge. Second is follow that strategy to the letter and only enter trades when all your parameters/confluences are met. The markets take from the impatient and give to the patient ones. The example I am using on chart is using a trend following strategy of our own. This strategy is a good win percentage and I know that as the built in strategy tester shows me all the stats. As always the report box is at the bottom of the idea showing those very stats. A 61% win rate means losers still happen and as you will see on the chart the buy trade hit stop loss before price went on an upward trend. The old trader in me would of been pouring over this chart trying to guess which way will it go? What should I do enter a long again? That would of paid of in this instance but not the logical thing to have done it would of been luck and luck only. Who knows with emotions at play would I of had a thought the price was going to head down? Then place a sell order? Luckily I didn't have to make any of those choices with emotions at play. I accepted the loss on the fact I know I'm trading a proven strategy and I simply waited for the next trade alert and let probability play out. The next trade was a short that found it's intended take profit target. This process is more simpler for those who are using a mechanical trading system like the one on chart. But regardless of system or approach in use if you are following the trading plan to the letter revenge trading shouldn't occur. Find an edge, apply that edge, stick to the proven plan and revenge trading won't be your issue. Instead you'll be one of the patient ones that the market is giving to 👌👍 ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
The most important words you need to know in fundamentalsHello everyone 😃 Before we start to discuss, I would be glad if your share your opinion on this post and hit the like button if you enjoyed it ! What Is Fundamental Analysis? Fundamental analysis (FA) is a method of measuring a security's intrinsic value by examining related economic and financial factors. Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued. This method of stock analysis is considered to be in contrast to technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume. Now you know what is fundamental analysis, But before you start to learn more about it, Its better to know the important words that authors use in their articles ! 📚 On this Article you'll learn about 25 of them and we'll continue to post the other in next educational posts; It's easier for you to read and remember ! 1. Assets: Capital that is frozen as in property, real estate or possession. 2. Bearish: The falling trend of assets and shares in markets. 3. Bonds: Governmental bonds that ensure a fixed rate of interest in often long term investment. 4. Boycott: To protest by refusing to purchase from someone, or otherwise do business with them. In international trade, a boycott most often takes the form of refusal to import a country's goods. 5. Bribe: A payment made to a person, often a government official such as a customs officer, to induce them to treat the payer favorably. 6. Broker's fee: The fee for a transaction charged by an intermediary in a market, such as a bank in a foreign-exchange transaction. 7. Bubble economy: Term for an economy in which the presence of one or more bubbles in its asset markets is a dominant feature of its performance. 8. Bubble: A rise in the price of an asset based not on the current or prospective income that it provides but solely on expectations by market participants that the price will rise in the future. When those expectations cease, the bubble bursts and the price falls rapidly. 9. Budget deficit: The negative of the budget surplus; thus the excess of expenditure over income. 10. Budget surplus: Refers in general to an excess of income over expenditure, but usually refers specifically to the government budget, where it is the excess of tax revenue over expenditure (including transfer and interest payments). 11. Bullish: A rising trend in the significant increase of funds and shares in the stock market. 12. Capital: the large amount of money or investment. 13. Capital loss: The loss in value that the owner of an asset experiences when the price of the asset falls, including when the currency in which the asset is denominated depreciates. It contrasts with capital gain. 14. Cartel: An agreement among, or an organization of, suppliers of a product. A group of firms that seeks to raise the price of a good by restricting its supply. The term is usually used for international groups, especially involving state-owned firms and/or governments. 15. Cash dividend: Cash distribution of earnings to stockholders, usually on a quarterly basis. 16. Commodity: Could refer to any good, but in a trade context a commodity is usually a raw material or primary product that enters into international trade, such as metals (tin, manganese) or basic agricultural products (coffee, cocoa). 17. Compensation: whoever violates agreement rules must compensate other countries by lowering tariffs or making other concessions, or be subject to retaliation. 18. (CSR) Corporate social responsibility: The responsibilities that corporations have to workers and their families, to consumers, to investors, and to the natural environment. 19. Corporation: Form of business organization that is created as a distinct legal person composed of one or more actual individuals or legal entities. Primary advantages of a corporation include limited liability, ease of ownership, transfer, and perpetual succession. A business form legally separate from its owners. Its distinguishing features include limited liability, easy transfer of ownership, unlimited life, and an ability to raise large sums of capital. 20. Decline: The falling of stocks or prices in the market. 21. Breakout: The breakout of a virus or the breakout of a war. 📚 There's a difference between this breakout with the breakout we call in chart analyzing ! 22. Minutes: The report from a meeting. (minutes from Fed’s meeting will be released) 23. Consolidate: The prices are reaching a plateau and becoming more stable. (the prices are consolidating) 24. Stimulus measure: The government is giving the banks a stimulus measure to be bailed out for the financial crisis. 25. Retreat: The management is retreating from their initial position to deduct the salary of the workers. (it's an example of retreat) 📍 We'll continue this series of educational posts in next days, STAY TUNED and don't forget to follow this idea, So you'll be notified after I post the new one... Hope you enjoyed the content I created, You can support us with your likes and comments 😉🙋🏼‍♂️ Have a good day! @Helical_Trades
NSENG:ACADEMYEducation
by Helical_Trades
11
What Does the Inverted Hammer Candlestick Pattern Mean? Hello Traders! Have you ever wondered when will a strong trend end? Do you struggle to spot candlestick patterns that potentially signal when the bulls or bears might take over? Take a look at this example of EUR/CAD and let's see how the trade plays out! :) About the Inverted Hammer Candlestick Pattern and Why It Forms: The Inverted Hammer is a bullish reversal candlestick pattern. It occurs when the price has been falling and suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers attempted to push the price back down. Since the sellers weren't able to close the price any lower, this is a good indication that everybody who wants to sell has already sold. And, if there are no more sellers, who are left? Buyers! And just an important observation, the Inverted Hammer has a small real body, and has a large upper shadow with a small or no lower shadow (also known as "wick"). Would you like to receive more "live charting" tutorials like this?? Comment below and let us know! :) Happy Trading!
Education
by BKTradingAcademy
2
The importance to Hold Cardano toward long termCardano has became one of the best cryptocurrencies with their excellent technology that could to eliminate the barrier in the Blockchain technology. Today, I want to show you my prediction what I hope for Cardano, adoption, and my price prediction that I update today where I thinking to sell Cardano in my specific price, and combining with ADA/BTC & ADA/ETH ratios, Cardano Dominance and their market cap to know my exactly and precise information to sell this cryptocurrency just get a smart exit strategy Now, I want to talk about Cardano details. Cardano have 32.03 billion in supply with the market cap worth in $74 billion. Cardano it's the 3rd largest cryptocurreny by coin market cap. Now, if you want to sell Cardano at $100 USD. Cardano need to reach a market cap value in 3.20 trillion. Now, look in the right hand. You can to view Cardano Market Cap. I put these exactly targets and points strategic to sell my Cardano at $200 billion, $500 billion and $1 trillion. These are my potential market cap that Cardano could to reach one of these targets combining with the price. The price it's the best to calculate market cap multiply the supply with your price prediciton and then, it's a good way to get market cap future. Now, If you look, $50 USD it's more probably that Cardano hit this price than $100 becuase to reach $100 USD, Cardano need a market cap over $3 trillion. But for Cardano reach $50 USD, we need a market cap value in 1.60 trillion. Maybe, between $40 and $50 USD we could to look a historical ATH for this cryptocurrency. But now, we could to predict 100% that Cardano will reach $50 USD and it's the end of the bull rally. Remember, don't look the price, look the potential of this cryptocurrency and their fundamental analysis. Because we can't imagine that Cardano will hit $100 USD or more. We would need to be cautious and looking always whole timeframe to know what happen in the price backed up with fundamental analysis. A lot crypto-enthusiastic believe that Cardano it's the super-cryptocurrency and next Ethereum killer. All it's not guarantized, but using data, technical analysis and more resource during this rally, we could to find up best decision like market cap, dominance, price, fundamental analysis, and much more. If you like this educational content, please share this analysis with others traders to lean more!!!
CRYPTOCAP:ADA
by harisonhbn9718
2
💡🎓 The Philosophy of Technical Analysis 🎓💡 To continue awareness our art of Technical Analysis, this idea is an educational post and summary of The Philosophy of Technical Analysis, from Technical Analysis of the Financial Markets, by John J. Murphy, 1999, Page 2-5 The Philosophy of Technical Analysis 1. Market Discounts Everything The cornerstone of TA is that anything that can possibly affect the price, is reflected in the price. - All that is required is a study of price action - Price action reflects shifts in supply and demand - If demand exceeds supply, prices rise - If supply exceeds demand, prices fall The underlying forces of supply and demand are the economic fundamentals of a market. This action is the basis of all economic and fundamental forecasting. It follows then that if everything that affects market price is ultimately reflected in market price, then the study of that market price is all that is necessary. Charts themselves do not cause markets to move, they simply reflect the bullish or bearish psychology. By studying price charts and a host of supporting technical indicators, the chartist in effect lets the market tell him or her which way it is most likely to go. The chartist does not necessarily try to outsmart or outguess the market. All of the technical tools discussed later on are simply techniques used to aid the chartist in the process of studying market action. The chartist knows there are reasons why markets go up or down. He or she just doesn't believe that knowing what those reasons are is necessary in the forecasting process. 2. Price Moves in Trends The concept of trend is absolutely essential to the technical approach. The whole purpose of charting the price action of a market is to identify trends in early stages of their development for the purpose of trading in the direction of those trends. In fact, most of the techniques used in this approach are trend-following in nature, meaning that their intent is to identify and follow existing trends. - Prices move in trends, a trend in motion is more likely to continue than to reverse. - A trend in motion will continue in the same direction until it reverses. - Issac Newton's first law of motion is empirical evidence of this. This is another one of those technical claims that seems almost circular. The entire trend-following approach is predicated on riding an existing trend until it shows signs of reversing. 3. History Repeats Much of the body of technical analysis and the study of market action has to do with the study of human psychology. Chart patterns, for example, which have been identified and categorised over the past one hundred years, reflect certain pictures that appear on price charts. These pictures reveal the bullish or bearish psychology of the market. Since these patterns have worked well in the past, it is assumed that they will continue to work well in the future. They are based on the study of human psychology, which tends not to change. Another way of saying this last premise is; History repeats itself The key to understanding the future lies in a study of the past What are your thoughts? yemala
Editors' picks
TVC:SPXEducation
by Yemala
40
Part 1 - How to identify Trend Reversal | Market StructurePart 1, We are going to look at how to identify a trend reversal using the Market Structure and BOS (Break of Structure). Important things to remember: 1. When the Market Structure is Bullish - Price will be breaking previous Swing Highs but respecting Swing lows. 2. When the Market Structure is Bearish - Price will be breaking previous Swing Lows but respecting Swing highs. 3. Always Expect Market to break structure at any time And monitor Market Structure on HTF. 4. In Bullish market focus on the swing lows not the swing high ( Buy Low) 5. In Bearish Market focus on the Swing highs not Swing lows ( Sell high) Stay tune to Part 2. We be analysing using Wyckoff Method. Leave a comment below if you find the tutorial useful.
UEducation
by DCFX-TA
6
The Evergrande Crisis ExplainedIn this post, I'll be providing an easy yet comprehensive explanation on the Evergrande crisis, and why it's important for us to understand the situation. Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. What is Evergrande? - Evergrande is China’s second largest property developer, founded in 1996. - To understand the size of this company, here are some numbers: - Evergrande is running more than 1300 projects in over 280 cities. - They’ve had success with real estate, so they also expanded horizontally, acquiring an electric vehicle company as well as Guangzhou F.C. - They own a lot of other smaller companies, but their main focus and main business is in the field of real estate. The Problem with Evergrande - The main problem with Evergrande is its liabilities. - The only thing you need to understand is that the company is in a lot of debt - specifically, $310 Billion. - The company is also going through hard times with insolvency issues, and underperformance in terms of revenue. - When the Chinese government put a list of companies that could pose a threat to the market and lead to its collapse, Evergrande was also on the list - It was also recently revealed they begged the government for help in their backdoor listing plan as well. Evergrande's Stock and Bond Prices - Overall, Evergrande's stock fell close to 90% from its all time high levels, and over 80% since the beginning of this year - The company’s dollar bond’s price has also dropped over 70%. - What’s also concerning is how the bonds of Evergrande’s real estate counterparts are also dropping sharply, and signaling a potential crash. Evergrande's Debt - Out of Evergrande’s $310B debt, about $85B comes from bonds and loans from banks. - These are the liabilities for which Evergrande actually pays interest on. - $67B comes from shadow banking systems; money from shady sources. - The rest of the $158B is actually the most important part. This is the amount of accounts payable. - When Evergrande is does business and they’re developing real estate, they need to buy the materials and resources needed. - But when they bought whatever they needed from their suppliers, they didn’t pay in cash. - It all went down as accounts payable, which basically means that they owe the suppliers money. The Anatomy of a Market Crash - Financial institutions and suppliers rely heavily on Evergrande, and a lot of companies could go bankrupt if they’re not paid. - This is essentially a domino effect of the entire Chinese market, with Evergrande at the center of it. - Not only that, we also need to think of Evergrande’s employees. - The company has over 123,000 employees alone, and that doesn’t include the number of construction workers who are hired for each of their projects. China's Real Estate Market Situation - China's real estate market is the biggest in the world - The market also accounts for 10% of China's entire economy. - Taking this into consideration, a complete collapse would cause devastating repercussions to not only the Chinese economy, but also the stability of the CCP, and the global economy as well. Why the Chinese Government is Capable of Bailing Evergrande Out - If we take a look at the numbers, it could also be said that they might get a government bailout. - While their liability amounts to $310B, the interest they actually need to pay imminently, amounts to $669m - This is also still a lot of money, but much more manageable than $310B. - So while Evergrande is having a hard time with insolvency, if the government were to help out just a little bit, they might just be able to get back on their feet. - And with investors gathering up in front of the Evergrande building and the probability of a political risk increasing, $669m might be a small sacrifice for the stability of the regime. China's Indirect Intervention - The Global Times, a media that directly reflects the stance, position, and opinion of the Chinese government, said that Evergrande was "not too big to fail". - But, China’s central bank injected $14B in cash in Sep. 17, and another $15B today through Open Market Operations (OMO). - And since the liquidity they provided was the most they’ve done in the past 8 months, it’s safe to say that they had Evergrande in mind Expert Opinion on the Matter - Michael Burry, founder of Scion Capital LLC, shared a tweet by @INArteCarloDoss, who states some important points. - The 3 redlines, which are the debt related restrictions, began last year. - China has been lifting the real estate market by leveraging a lot of debt, and the government wants to deleverage. - It’s almost certain that Evergrande’s bankruptcy is a matter of time, but the question is how severely other companies and financial institutions will be affected. - Of course the Chinese government will provide liquidity in the market, but won’t directly intervene and solve the problem for Evergrande. - Overall, it could be said that Michael Burry agrees with this thread that says Evergrande’s bankruptcy is inevitable, and that the Chinese government will indirectly intervene, if it does decide to intervene at all. - So a crisis in some form will certainly take place, it’s a matter of the degree to which it takes place. - On the other hand, we have @BaldingsWorld - Christopher Balding is a professor at Peking University - His logic is that we won’t see a financial crisis because we’re applying the logic of the free market to a country’s market that is actually completely under control of its government. - So this professor believes that a bailout for Evergrande is inevitable. How to Prepare for a Potential Crash - Since nothing is set in stone yet, the best we can do as investors is to keep my eyes open and look at how the Chinese government might directly or indirectly solve the issue. - Depending on how the situation deteriorates, increasing one's cash holdings might be prudent in case the US stock market also is affected. - This is especially important as the S&P500 index is currently testing the 60 Simple Moving Average (SMA) on the daily. (chart below) Conclusion Evergrande's debt situation might have greater implications than we can anticipate. Regardless of whether the Chinese government intervenes or not, and whether it does in an indirect or direct manner, there will be repercussions to the Chinese economy. As such, it's important to keep an eye on how the situation may unfold and affect the US stock market as well. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
Editors' picks
HKEX:3333
by Michael_Wang_Official
121
Candle Stick PatternsCandle stick patterns can give us an indication that the market will reverse or continue. These patterns often form at the high's or low's of the market and can be found on all timeframes. Candle stick patterns are only 1 part of all the elements needed for a high probability trade but an important one for me because once the candle has closed it is a confirmed indication that buyers or sellers which ever it may be are stepping in. Now we are using facts to build a trade execution plan, not hopes and beliefs. Candle stick patterns are a pretty basic but often overlooked & when in line with other confluences have a high probability of playing out.
TVC:DXYEducation
by UnknownUnicorn26193975
Breakouts Tips! How to be more sure on a breakout !Hello everyone! For my 100th analysis I want to give you some of my tips, to make it educational! Let's begin... I use 3 steps/signs to confirm me that a breakout is a real breakout: Step 1: 2 consecutive daily candles below or above the trend line, support resistance etc. Step 2: 1 to 3% of price breakout below or above the trend line, support etc. Why? .... A strong move show us a a strong power on the other side of participants. Step 3: Friday close....What is Friday close? Friday close is the end of the week, if the Friday candle close below or above of my levels it means that the power remain on the other side(bullish or bearish). So it is a big probability to continue like this on the next week! Enjoy it!
COINBASE:BTCUSD
by BogdanUng
Momentum indicatorsMomentum deals with the rate at which the prices are changing. For example, in an uptrend, prices are rising and the trend line slopes upward. Momentum measures how quickly the prices are rising or how steeply the trend line is sloping. Momentum is similar to acceleration and deceleration. Speed is equivalent to the slope of the price trend – the number of points gained per day, for instance. Momentum is the car’s acceleration and deceleration and is the measure of the price trend’s changing slope. The trend can be thought of as direction and momentum can be thought of as the rate of speed of the price change. Technical analysts have developed many indicators to measure momentum, and these measures have become leading signal generators or confirmation gauges, telling us whether the trend slope is changing. When momentum is confirming the price trend, a convergence or confirmation occurs; when momentum is falling to confirm the trend slope by giving a warning signal, a divergence occurs. As a sign of price trend change then, the technical analyst often looks for a divergence. Confirmation is also used to identify overbought and oversold conditions. In the next paragraphs, we will describe the most common price momentum oscillators. There are many ways of calculating momentum, but because all of them arrive at essentially the same result, we describe only the most common and most popular. 1. Moving Average Convergence-Divergence (MACD) Gerald Appel, the publisher of Systems and Forecasts, developed the MACD oscillator. A variation of the moving average crossover, the MACD is calculated using the difference between two exponential moving averages. Traditionally, a 26-period EMA is subtracted from a 12-period EMA, but these times are adjustable for shorter and longer period analysis. This calculation results in a value that oscillates above and below zero. A positive MACD indicates that the average price during the past 12 periods exceeds the average price over the past 26 periods. The MACD line is plotted at the bottom of a price chart along with another line - the signal line. The signal line is an exponential MA of the MACD; a 9 period EMA is the most common. A histogram of the difference between the MACD and the signal live often appears at the bottom of the chart. The MACD is useful in a trending market because it is unbounded. When the MACD is above zero, suggesting an upward trend, buy signals occur when the MACD crosses from below to above the signal line. The downward crossing is not reliable while the trend is upward. 2. Relative Strength Index (RSI) In 1978, J. Welles Wilder introduced the relative strength index (RSI) in an article in Commodities magazine. The RSI measures the strength of an issue against its history of price change by comparing “up” days to “down” days. Wilder based his index on the assumption that overbought levels generally occur after the market has advanced for a disproportionate number of days, and that oversold levels generally follow a significant number of declining days. RSI measures a security’s strength relative to its own price history, not that of the market in general. To construct the RSI, you must make the following calculations: RS= UPS/DOWNS RSI = 100 – |100/1(1+RS)| The RSI can range from a low of 0 to a high of 100. In his original calculations, Wilder used 14 days as a relevant period. Overbought and oversold warnings are the same as with many other indicators. Wilder considered above 70 to indicate an overbought situation and an RSI below 30 to indicate oversold condition. Similar to other oscillators, RSI divergences with price often give a warning of a trend reversal. 3. Stochastic Oscillator According to Gibbons Burke, Tim Slater, founder and president of CompuTrac, Inc., included this indicator in the company’s software analysis program in 1978. He needed a name to attach to the indicator other than the %K and %D we will see in the indicator calculation. Slater saw a notation of “stochastic process” handwritten on the original Investment Educators literature he was using and the name stuck. The “fast” stochastic, as seen in software, refers to the raw stochastic number (%K) compared with a three-period simple moving average of that number (fast %D). This number is extremely sensitive to price changes. To combat this problem, analysts have created the “slow” stochastic. The slow stochastic is designed to smooth the original %D again with a three-period simple MA. In other words, the slow stochastic is a doubly smoothed moving average, or a moving average of the moving average of %K. As in most oscillators, the stochastic works better in a trading range market, but can still give valuable information in a trending market. 4. Commodity Channel Index (CCI) The Commodity Channel Index (CCI) is also similar to the stochastic. Donald Lambert developed this indicator, describing it in the October 1980 issue of Commodities magazine. The CCI measures the deviation of a security’s price from a moving average. This gives a slightly different picture than the stochastic, and in some cases, the signals are more reliable. However, the difference between the CCI and the stochastic is so minuscule that using both would be a duplication of effort and liable to create false confidence. Trade with care. If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
Education
by financialflagship
16
The Art of Swing TradingHey, family, we are wishing you all a pleasant weekend and coming at you with another educational post. The topic of our article for today is the following: The Art of Swing Trading. As you all may know, Swing Trading refers to the practice of trying to profit from market swings of a minimum of one day and as long as several weeks. But what is it that makes this type of market trading so unique? Let’s follow through and find out! To start with, Swing Trading is safer than other types of trading such as day trading and scalping. This is due to the fact that with Swing Trading, you are less likely to overtrade, there is less stress and there is a reduced chance of making mistakes. Secondly, with Swing Trading, you are likely to spend much less time on the charts in front of monitors. You don’t have to open many positions within a day as opposed to intraday trading and scalping, which gives you plenty of free time in your hands. You can simply open your positions and then forget about those positions for days or weeks to come. You can go for a walk with your partner, grab a cup of coffee with your best friend, spend a quality time with your family, and do it all without being anxious about your trades. As the golden rule states: “Set (Your TP and SL) and forget”. Last but not least, financial news do not have a huge impact on your positions, as your SL is relatively higher than the Stops of day traders and scalpers. Therefore, you do not need to worry about some random spikes taking you out of the trades. However, as the famous proverb cites, every advantage has its disadvantage. When it comes to Swing Trading, he or she needs to have patience, patience and some more patience. Swing trades are meant to be held open for a few days of even few weeks (Well, at least till the price hits your Target Profit). And while the trade is running open, you should know how to remain calm, control your emotions, and not to stress out. Once again, set and forget. Do not monitor your positions every 10-15 minutes. Further to that, this type of trading generally requires a huge trading capital, or otherwise, the profits are gonna be minuscule. When it comes to the timeframes that need to be used, the Weekly and the Monthly are the best for identifying the direction of the trend, the Daily is the best for drawing the key zones and identifying the needed patterns, and lastly, H4 should be utilised for entering and exiting the market. As for the recommendations part, the utilised risk fully depends on the trading capital. The 1-1.5% risk would be the standard normal. As for the risk-to-reward ratio, 1:3 would be an appropriate one to go with. But remember not to be greedy in the markets. Take your profits and enjoy the fruits of your labor.
BITSTAMP:BTCUSDEducation
by Investroy
29