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Harmonic Patterns

SPX with LongBuyLongSell Strategy How to Test Profitability BotPlease not this is only for EDUCATIONAL PURPOSE. Here i have used my own indicator "LongBuyLongSell Indicator" the strategy version to check 1. Which time frame it is working best 2. What are the Entry conditions and how to choose the Entry 3. What are the profitability and the Max Draw down 4. Is there any Risk of Blindly following the Strategy. 5. Back-testing Results Let me try to explain this one by one. 1. Which time frame it is working best 1. In order to be very profitable or successful in trading first we need to know in which time frame the Strategy works Best. as i used my own LongBuyLongSell indicator it was easy to switch timeframe and check in which frame it works best. As far as i tested the results are good in 30MIN,4H ,Moderate in 15min , Negative in 5min. This gives me a clear picture that i can trade on 30Min or 4H. 2. What are the Entry conditions and how to choose the Entry /Exit --> There is always good to choose a script which is simple to use and to get clear Entry and Exit. -->Next it is better to choose a strategy based on the Close of the Candled ,This means the trade will be open by the close price of the previous candle but in the current candle. --> The Advantage of Choosing "Close" or "Once Per Bar Close " strategy is the repaint or false trigger of the indicator will not impact the success rate as the entry is taken on the BAR /Candle Close. --> In this indicator there is two possibility Entry By Blue /Black Color Candle (After the Black/Blue) or Entry By BackGround Color (After the Red /Green) or --> Exit also has two clear and neat criteria Exit By Blue/Black Color Candle when opposite color appears on Close of the BAR or Exit By BackGround opposite Color (After the Red /Green Example : Blue candle is the Entry ,then Black candle is the Exit (Long Side) Red Background is the Entry then Green Background is the Exit(Short side) Now the Strategy is clear what are we going to do . 3. What are the profitability and the Max Draw down After the conditions are set ,it is better to test how profitable a strategy will be to use .In order predict this tradingview.com backtest (strategy tester ) will be very helpful. Here i have chosen 1year 5 Months for testing and did a testing since from 2018.Both results has given more than 10% profit and 25% profitability percentage . And one more finding i have seen is the draw-down is less which is 3-5% Please note the draw-down must be lesser than profit percentage ,this is the key for good strategy .If the draw-down is more then no use of using any strategy. 4. Is there any Risk of Blindly following the Strategy. Yes there is a risk of following anything blindly that is real trading will have huge difference than the historical this may be on the positive side or can go on the negative side as well. Since the strategy takes only the closing some time huge wicks or huge price variation may impact our trading as it will show huge loss and we tend to close emotionally . So before we trade anything we need to check the lowest points and highest points plus volatility.If the volatility is too high be careful while trading .Especially when doing Auto Trading. 5. Back-testing Results Check the back test in various time frames and adjusting the commission ,Tick order filling ,contracts ,capital and the start and end date of testing to come to a conclusion. As an example i have shown the 30min Back-test result of S&P here for your reference. Note : This is just an educational post to make some awareness. If you wish to see how the LongBuyLongSell Indicator works here is the link for both scripts. Alert version (that can be used for BOT trading Alert signal generation ) Strategy version If you wish to appreciate ,LIKE ,COMMENT and Follow me . Once all the data output is positive ,and the results are good for any strategy it can be taken for AUTO BOT trading .There are plenty of plugins available today to do this .Tradingivew helps getting the ALERTS to do automatic trading using the third party plugins. HAPPY TRADING ,STAY TUNE.
TVC:SPXEducation
by MarxBabu
9
EURUSD: butterfly pattern + the price is breaking out?Happy Easter Monday catholic traders! Today the volatility should be low, however it could be possible, that there is a butterfly pattern forming on daily time-frame in EURUSD + the price is breaking out of the descending triangle chart pattern, which signals that the price could start going higher... However, moving average indicates that the trend (bias) is still bearish, which means further price confirmation is needed before joining bulls. Fundamentally, I would like to highlight some cons and pros, which might give a broader view about the current economic situation in both US and EU and might support the technical picture: Cons: 1. COVID-19 stats in EU are still pretty bad and number of confirmed cases are growing more than 2% in major European countries, while in USA the growing pace is around 1% (as of today) 2. USD could act as safe-heaven asset once-again, if equity market provides one more leg lower, thus it's possible to see another USD bullish rally in shorter term. 3. Despite of monetary easing, interest rate is still higher in US, meaning that swaps are negative, if buying EUR against USD 4. Unemployment rate in Euro area is higher (4,4% against 7,9% forecast), than in US (as of March 2020) 5. GDP Growth rate in US is 2,1%, while in Euro area it's 0,1% ( as of Dec 2019) 6. Inflation rate in US is 1,5%, while in Euro are it's 0,7% (as of March 2020). Pros: 1. USA has the highest number of COVID-19 confirmed cases 2. Consensus around eurobonds could support EUR and might act as a strong signal that Europe stands together 3. FED liquidity injection must have weakening impact on USD and lot's of companies are still going to default 4. Current account to GDP in US is -2,3%, while in Euro area it's +3,1% (as of Dec 2019) 5. Government debt to GDP in US is 107%, while in Euro area it's 85,9% (as of Dec 2019). // I would very much appreciate if you support my work by hitting like .) Feel free to share your opinion/position via comment and follow me to stay updated.
Education
by GIgor_021
LINK is the link to learn the Harmonics/Chart Patterns with FibsThose interested in harmonics and chart patterns must play with LINK-USDT as this volatility has been a treat for the harmonic traders and those interested in research on Harmonic and Chart patterns using Fibonacci levels. Each of the pattern drawn on chart will have to be carefully analysed using Fib retracement and Fib extension based on type of the pattern such as AB-CD, BAT/Gartley, Shark, Crab, Butterfly, Double Top/Bottom, H&S, 3 drive etc. (Not all spotted here), but you get the idea.
Education
by TradeChartist
How To Day Trade Consolidations Profitably With #FibonacciTraders, Several fellow day traders have been asking to show how they can day trade using fibonacci based analysis which I use for swing trading. The fibonacci based analysis is applicable to all chart time frames and on all instruments in all markets. It even works on tick charts. In this educational video I present how we could have made 130 pips easily with day trading GBPUSD using fibonacci based analysis. Support and motivate me by hitting the like button, subscribing to my channel and sharing this analysis with other traders. Comment below and let me know what you think of this analysis and what is yours? I welcome all comments, feedback, ideas and sharing of knowledge. Have a great trading week!
Education
by vikinsa
2
Looking at BitMex PI during March 29 to April 2, 2020.1.) As price approaches the 5850 support, we expect that sustained selling is necessary to break this support level. However, Premium Index does not reflect this. It goes slightly lower but stays rather flat. Then, suddenly we see a significant 'pop' in PI, and then quickly increasing again, indicating that the trend has reversed for now. 2.) As price wicks into mid 6400s, we expect sustained buying is necessary to break this resistance level. Premium Index does increase. Looks like there is enough buying to break resistance. 3.) Price consolidates and PI sharply decreases. Since price hasn't reacted, one could take this as an indicator to sell, or to look in the near future for a place to sell. The significant jump in PI suggests that the trend has reversed for now. 4.) The following sub-6400 tails are accompanied by an increase in PI, indicating some buying interest at/below that level. 5.) For the next two sections, price and PI diverge: price up, PI down. 6.) It dumps to 6265, then consolidates on that level while PI decreases. 7.) Another leg down to 6201. We expect that sustained selling is necessary to break this support level. However, this is not indicated in the PI, which is stabilizing. PI is making its 'pop' in the current direction to print a local bottom before a price reversal. 8.) Buy.
BITMEX:BTCUSD.PEducation
by alyosha