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EXAMPLE for creating a Strategy! How to make money with TA! #1Hey tradomaniacs, most of all beginners out there (I was at this point aswell), don`t know how to create a strategy and trading plan and are not able to make money WITH the market. At this point, I just wanna give you an example and tell you why it`s so important to have valid signals and a strategy you can trust in. Emotions - The Cash-shredder Emotions are the reason why 90% of all retrail-traders fail! We, as a human being, are visceral still living in the Stone Age controlled by FEAR & GREED. That`s why we need pre-conditions whose undertake these responsibillitys and determine our trading. CONDITIONS are part of your Strategy and you should treat them like your BOSS telling you when to trade! This picture does not includ important things like Stop-Loss, Take-Profit, Risk-and Moneymanagement and so on.. THIS IS one EASY example for a TREND-FOLLOW-StRATEGY, which is easy to use for beginners. Don`t start with crazy shit like Gartley, S/H/S and other Patterns whose have extra conditions and things to know that you can`t know as beginners. I will tell you more about this in another post it`s late here in germany! ;-P I just want this to be an inspiration for lost beginners. Peace and happy learning Irasor trading2ez PS: Have at least 4 of 6 conditions!
KRAKEN:XRPUSDEducation
by Trading2ez
10
Bitcoin impact on altcoins on Ethereum exampleDear friends, I continue my series of forecasts. Anyone, who has trades in in the crypto market, faces hard times; many are just tired of waiting when this crypto nightmare will end and altcoins will at last start growing in price. Today, I’d like analyze Ethereum, and see how Bitcoin affects ETH price. Taking into account the recent extreme price jumps, featured by all altcoins, I’ll try to study ETHBTC pair not just as a trading instrument, but also as an indicator of altcoin market state. From the fundamental point of view, all cryptocurrencies are pressed now by Bitcoin that serves a transit window for many unsuccessful investors, who are disappointed in the cryptocurrency market and want to withdraw what is still left. You are likely to have seen this chart of cryptocurrency market cap, but I’ll present it once again. (chart here) As you see, since early 2018, the market cap is down from 800 billion USD to 200 billion at the moment; it means, first of all, lower prices for cryptocurrency assets themselves, and second, less amount of money in crypto economy. Amid the ongoing crypto collapse, there was a very typical news bit that Tether issued another $50 million. For those, who are not that good at economic sciences, I’ll explain that a cryptocurrency price is formed according to demand/supply ratio. In the current crisis, many are escaping to the cryptocurrency that is backed by fiat money. Growing demand for USDT results in deficit of these coins. Therefore, Tether has two options now: either set USDT rate free and let grow, following the demand, or cover the deficit by means of issuing more assets. As you understand, in the first case, the USDT close link to to real USD will be broken, and so, Tether, in fact, just can nothing else, as it doesn’t have anything to cover the deficit. Increased demand for USDT amid the reduction of cryptocurrencies market cap is a sure sign of panic in the market and escaping from risks. That is why altcoins look so weak, compared to BTC. Bitcoin serves as a passage between the cryptocurrency world and the Fiat, and many exchange altcoins for BTC only in order to withdraw their money. Ethereum situation is worsened by big proportion of coins, held by ICO owners. You shouldn’t forget that companies, conducted initial coin offering, are startups or operating businesses, which were raising funds for big expensive projects. Having acquired large Ethereum stacks, it would be reckless to dump everything at once in the market. However, general negative cryptocurrency context and fueled pessimism make investors go away from risks and exchange the budget, completely or partially, for USD and other fiat assets. I think this factor to be one of the main fundamental reasons for Ethereum weakness. On the other hand, Ethereum one of the top coins for mining. And now, when ETH price is breaking through all support levels and goes down directly, without any rebounds, even the advanced miners can give in to panic. (chart here) In the chart above, there is alternative.me Crypto Fear index. It is a rather complicated tool that takes into account volatility and trading volume in the market and the sentiment from social networks and other media. In the chart above, you see a line chart for BTCUSD. If you compare it to the Fear Index line, you can see an amazing regularity, when each new Bitcoin low wasn’t followed by new lows of Fear Index. How this signal can be interpreted? In common technical analysis, this phenomenon is considered to be a bullish convergence and is a pivot signal. In our case, this situation can be explained by that people are getting more confident in the idea that the last BTCUSD low is local, and that there won’t be second bottom. Unfortunately for Ethereum and other altcoins, even if Bitcoin price is growing, there still risks that the downtrend extends, instead of a reversal and a bullish rally. It explained by Bitcoin dominance in the crypto market and the general trend for accumulation BTC positions. (chart here) In the chart above, you see the capital is flowing from altcoins into Bitcoin at full power. The last local peak of Bitcoin dominance was as early as in December, 2017. Everybody, who remembers that time, knows how the market was going mad, as the common following bitcoin by altcoins was replaced by completely opposite situation; and when BTCUSD price was flying up, altcoins not only didn’t grow in price, but, on the contrary, their prices were corrected downwards, or staid still, at best. The chart above quite well shows this situation. In the first half of the chart, you see that up to its dominance peak, Bitcoin price was rising, Ethereum was staying almost the same or even falling down; after the that, the things were going on in the opposite way; Bitcoin downward correction was followed by Ethereum price rise. It was the same for almost all altcoins at that time, and was explained, first of all, by the fact that Bitcoin has lost logical link with the rest of cryptocurrencies, and continued increasing in price without any corrections. An internal driver, pushing Bitcoin price up, was obvious. AS it became known later, it was Tether that was issuing more and more USDTs, which, at first, were pushing BTC up, and then, we re-distributed among all altcoins. It was a paradox. Now, the situation is the same, only the trend is bearish. Bitcoin dominance is increasing, market is moving without any redounds, and new USDTs are being issued. All of these suggest that the situation may repeat, when the capital inflow to Bitcoin and issuing more and more new USDTs due to the panic demand will result in BTCUSD going up or, at least trading flat; and all altcoins will be falling down or breaking through lows. In ETHBTC monthly chart this situation is quite clear. You see, Ethereum price to Bitcoin has broken out the key level at 0.054. The next support level for Ethereum will be 0.029. Oscillators in ETHBTC one-week chart don’t suggest any support to the ticker. According to these signals, Ethereum is likely to continue falling down against Bitcoin. In Ethereum daily chart, there also no strong support levels. The ticker broke through 0.232 Fibo and went down; lower, there is only Keltner channel’s bottom border at 0.0297 December, 2017 low at 0.0239 BTC. Summary: ETHBTC price is flying down. According to technical analysis, there are no supports, that is, ETHBTC is likely to continue falling down after a short consolidation. The scenario can be changed only by a sudden buyout of Ethereum, if its price goes higher than 0.0543 BTC. But, taking into account the angle of drop and its strength, I don’t think it is likely. That is my trading scenario for ETHBTC In general, the situation for other altcoins is similar; but some certain assets have their special features, which can be crucial in the future. Which assets and what features? You’ll learn from next posts. Good luck and good profits! Best regards, Mikhail @Hyipov PS. If you agree with the forecast write “+” in the comments, if you don’t agree, put “-”. If you liked the post, just write thank you, and don’t forget to share the post with your friends. It is easy for you and I will be very pleased :) Stay informed on the latest cryptocurrency news, follow my posts in the blog.
by Hypov
4
Education: The ascending wedge. BNBBTC ExampleThe ascending wedge is a pattern in price action that has an uptrend with higher lows and higher highs, however the lines that connect the lows and the highs are tightening. This usually suggests that bull strength is running out, as every rally running toward the resistance is shorter lasting and moves less in terms of price action. Ascending wedges can break to the upside as continuation, or to the downside as reversal. However they don't usually reverse the underlying, longer term trend. The standard target on a bearish entry on the break of the ascending wedge is the starting point. You can see in the BNBBTC example that the price reversed up very close to the same level that marked the start of the wedge. Sometimes the ascending wedge will break bullish, to the upside, but the chances of that are lower as the support line is rising faster - what this means is that if the price traded sideways, it would eventually break the support line and thus the bears need less strength to break that support line than what the bulls need to break resistance. In this example the ascending wedge is going with the trend, as BNBBTC is very bullish on the daily and weekly, as such the expected outcome of the ascending wedge is not a trend reversal, rather it is a retracement back down to the starting level and likely continuation to the upside in the medium term. An ascending wedge during a downtrend is much more likely to be a continuation pattern, and short term bulls that played this wedge should make their exit as soon as there is a close below the support line.
Education
by pablo.lo.rivadeneyra
How to trade bat-pattern in non-USD currency? Look at thisHere I am going to explain how to trade a bat pattern in non-USD currency pairs . let's use AUD/CHF last week for example As you can see in 4H chart, B point and D point are determined by the Fib retracemen of XA t. Expecially for D point, it need to be 88.6% of XA, the price can't go far away from it. This is condition 1. For the bat pattern, the final reversal point is around 88.6% of the large trend--XA, and the previous small correction trend (AB) should not exceed 61.8% of the XA . Therefore, the use of XA retracement can help us to judge whether B and D meet the requirements. For point D, this is also around 2.618 BC. 1.618-2.618 times of the BC leg of is satisfied. So in fact we look for the zone made up by the specific Fib rate . Only need to use XA retracement and BC multiple to find the overlapping areas. That's where we need to short. But what is more important is to check if there is a signal in the price that there is a strong resistance here and where the target is. Learn from the history, this is the important support and resistance after the Swiss franc 2015, as you can find by moving prices forward. Although the price pierced 88.6% XA, but the closing price was unable to stay above the level ., this is the actual signal of the price blocked! At the same time, the RSI indicator gave us a short signal. So the trade of harmonic is to look for the area where the price reverses and then wait and see what the price action is. Take the opportunity to short! The first target is usually at the A-D 38.2% retracement,.Here you can see the price near the point several times after the rebound, indicating the existence of support, I slightly increase of 5 points, as the target position. Then wait and keep patient.
Education
by yitiancai
BTCE BoT short off failed rallyHere is a great example of The BoT in action in a shorting situation. BTCE had just rallied back into an OTE short zone on the higher time frame charts (and was quickly rejected) so a pullback was to be expected. The BoT came alive when prices moved from 440 down into the 407 area and then rebounded back to 430 area. Looking for an ab=cd price pattern continuation here (and an ultimate target just under $400) The BoT suggested the 420 area itself would represent a level where (according to the model) the potential reward to risk setup would be 3:1. Notice how price itself put in a nice double top right at that level and then slowly gave everyone multiple opportunities to get in. Once the trade got going in earnest both the stop to break even and stop to trail levels where hit in short order. Since the ultimate target (397.04) has yet to be hit, and there has yet to be a serious bottom registered in either volume or momentum, i recon stops just above recent rally peaks (and the 13ema) are warranted on the 421 shorts. Of course, with Willy rather stupid at the moment, shorts and or sales simply are not realistic. If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work : 1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5 & follow me on Twitter @CRInvestor
B
by CRInvestor
5
Crude Oil day trade setupHere is a really nice example of the BoT in action. Price had been basing through the overnight session as a wide double bottom was confirmed through the pre-pit open. That bottom setup long ideas and sure enough the BoT came alive when prices corrected to 103.26. I watched price action closely and was very fortunate to act when given the opportunity (wtg Brian). On news out of Russia, price surged higher and both the 'stop to break even' level and the 'stop to trail' levels where hit. Considering my poor performance yesterday, I wanted to book a nice positive day and so moved my stop up aggressively and was filled shortly thereafter. Interestingly, had I left my stop at break even through the following 10 minute pull back and then moved my stop to that pullback low (which is in my plan....tisk tisk Brian) I would have ultimately been filled at the ab=cd target. Still more to work on but am happy with booking a nice profitable trade on the day. If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work : 1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5 & follow me on Twitter @CRInvestor
FX:USOIL
by CRInvestor