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MFI From Scratch Hello, traders! As you know, the knowledge of a coin be overbought or oversold can be very profitable for any trader. That's why it's very important to identify these states. Moreover, the indicator that help us has already been invented. Well, today we'll speak aboout Money Flow Index. The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100. Unlike conventional oscillators such as the Relative Strength Index (RSI), the Money Flow Index incorporates both price and volume data, as opposed to just price. For this reason, some analysts call MFI the volume-weighted RSI. There are two possible ways of using this oscillator - diverhence and detecting overbought and oversold regions. It's rather easy to detect divergence of price with MFI. If you don't know whhat divergence is, read our cheat sheet to be aware of such powerful tool. The overbought and oversold levels are also used to signal possible trading opportunities. Moves below 10 and above 90 are rare. Traders watch for the MFI to move back above 10 to signal a long trade, and to drop below 90 to signal a short trade. I hope, you'll find the information useful. I try to make the articles that are interesting for me. However, I want to know your oppionoin. Write down to comments what is intersting for you.
Education
by Skyrexio
3
BNBUSDT AnalysisHello, traders! Today will speak about BNB, one of the most powerful Altcoins. Looking at the chart, I can’t resist the temptation to make an analysis for you. So, here we go, without extra words, just have a look at the chart. As you can see, BNB has already retraced after a huge fell. However, it has a potential to go even higher, cause the reject from the buyer zone (0 Fib) was very sharp. Judging by even this, we can make a conclusion that bulls are more powerful in this cycle. However, lot’s of factors can correlate with BNB price, thus dump is possible too. Well, let’s just sketch some scenarios. Scenario A The price will break up the 0.5 Fib level, consolidate in «golden pocket» and probably, break the triangle above. Scenario B Some kind of events like tweets of «geniuses» LMAO or just money outflow can easily dump the price. However the probability of going lower than 0.236 Fib is extremely small. Scenario C Sideways or choppy market. Nasty period for any trader but cannot be written off. Thus, be ready and for such kind of price action I hope guys my thoughts inspire you to trade more and boost your skill every day. We’ll move together to our common cherish dream - come up richer and more successful. Have a nice trading day, ladies and gentlemen! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
2
Pitchfan From ScratchHello, traders! Today we’ll continue to speak about graphical tools of trading view. We have already completed Fib. Retracement, Gann Square and different kinds of Pitchfork. Today we’ll speak about extremely useful tool, that we are integrating in our strategies. So, ladies and gentlemen, love and favor, Pitchfan. A Pitchfan is a set of rays spreading out of the point of a trend's beginning. These rays inclined with the coefficients formed by a Fibonacci number sequence.it is recommended to apply a Pitchfan after the first wave of the trend has passed and the correction has clearly begun. To draw a Pitchfan, it's first and second points are to be set at the trend's extreme points, and the third point is to be set at the extreme point of the first correction wave. Basically, during the bullish trend, put the first point to the beginning of the trend, second to first confirmed higher high, third to the first confirmed higher low. Whereas during bearish trend put the first point to the beginning of the trend, second to first confirmed lower low, third to first confirmed lower high. When I say «confirmed», I mean two-three candles should close after the high lower and after the low - higher. Kinda difficult? Have a look at the chart and should become more clear. What does it say? Initially, if you plot it correctly, it’ll give you clear support resistance levels. This’s information, in my opinion is priceless for any trader cause it’s much easier to predict the future price movements. But the best of usage, seems to me, in conjunction with Fib Retracement or Trend based Fib. Extension. If it’s interesting to you, dear traders, write down to comments and advise the third indicator or tool. So, we’ll make the trading strategy together. Read my tutorials, write questions to comments and you are about to boost up. Have a nice trading week, dear traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
2
Fib Retracement From ScratchHello, traders! As you can see, SkyRock traders always use Fib tools for our analysis and predictions. We find Fibonacci tools a great powerful series of instruments that’s necessary to use. Today we’ll speak about one of my favorite TA tools - Fib Retracement. Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Well, it seems to be not very important and attractive how to calculate Fib Retracement Levels. You should just know that they are based on something called the Golden Ratio. It’s believed that all natural laws are based on this ratio. However, the right usage of it is deadly important. To initialize it, put the first point to the previous lower low and the second to the confirmed higher high during the up-trend and vice versa during the sown-trend. What can it tell you? Initially, support and resistance. It could hardly be possible to find the tool better for such purpose. Then, the levels of it is usually reached, thus it may produce some signals. Although it’s very powerful tool, it’s kinda ridiculous idea to use it marginally. Also, the areas of sideways is also defined by it, cause of high probability of consolidation in «Golden Pocket». And at last, it helps ms to define Gartley and Elliott patterns. Well, guys, as you can see it’s really great and multifunctional instrument that can help every of you to trade and make money trading. Use it in the right way! Have a nice trading day, dear traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
4
COTIUSDT Small AnalysisHello, traders! Most of us asked me today to analyze Coti. Here you are. I hope you’ll enjoy my thoughts. Well, have a look at the chart. As you can see both on daily and weekly chart price is at the end of the cycle. That’s why it’s a good opportunity to earn some money. As we see on the daily chart, price is near the weekly pivot and the triangle will be broken up soon. I’m completely sure that it’ll go up with high probability of blowing up. I mean it, guys. The most pretty nice info the weekly chart gives. The previous price action looks like the first part of Elliott cycle. If it’s true, but I’m sure it is, it’ll blow very soon. So, I plotted the long opportunity on the chart. I hope, you are making your own analysis besides using my. I remember you, that it’s deadly important to get huge profits and boost your own trading skills. That’s why, don’t just follow my thoughts blindly. Analyze, think, and will gain success. Have a profitable day, traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Long
by Skyrexio
2
PSYCHOLOGY OF A TRADER | MASTER EMOTIONS & MASTER THE MARKET The market is driven by people. The crowds are always behind strong market rallies. What the majority fails to recognize is the fact, that being chaotics in its nature, the markets are always trading in predictable patterns . Believe it or now, but the market participants are driven by the same emotional impulses . It does not really depend on how wealthy is the person. With the core motive being to make a ton of money with a little risk possible, we can derive a universal archetype . Every asset, every financial instrument has an element of a "potential value" . Being 100% subjective, an attempt to calculate the future value drives the market. Depending on the current expectation of the crowd and its emotions it is necessary for a professional trader to learn to play with its behavior. With many years of constant observations, the cyclic psychological curve was derived to explain the relationships between our emotions and market cycles. On the chart, I have drawn 9 main stages of trader's psychology: 😶 INDIFFERENCE - No opportunities are spotted, searching for the right pick. 🙂 OPTIMISM – Positive outlook leading us to buy a certain asset 😃 EXCITEMENT – Being initially right in our pick, we feel excited as bulls push the market to the new highs The moment of happiness and feeling of being "a true investor" 🤑 GREED – Being thrilled we start to ignore warning signs and add more and more cash to the market believing that the market will never stop. 😕 ANXIETY – The market starts taking our gains back. Being biased and nihilistic we keep holding the position, thinking that it is just a pullback. 😩 PANIC – Tremor. We are frozen. Emotions are draining our power. We are clueless and helpless. We totally lose the sense of control. 😭 DEPRESSION – Position is closed. Money is lost. Considering trading & investment industry to be a scam. 🤔 HOPE – The dawn. The market returns back to its normal state. Aspiration & desire to start again. 😆 RELIEF – Again we start to believe in our strength. We return and the cycle repeats. Do you recognize yourself in these stages? Please, support our work with like and comment. It really helps.
OANDA:XAUUSDEducation
by UnitedSignals
26
BNBUSDT Short-term Analysis Hello, traders! As you know, BNB is one of the most powerful altcoins with high capitalization and great fundamentals. That's why we consider it profitable to trade BNB if market conditions allow. Moreover, we'll show you how to apply techniques that we described in tutorials to get as much profit as it's possible. So, have a look at the plot. The first and the most important thing is Elliott pattern. As you can see, the ascending motive wave has been already interrupted and price is in the faze of correction. As you remember from our Elliott waves analysis tutorial, the first wave of correction ABC (wave A) is in motive style (12345). If you don't understand what we mean, please, initially read our tutorial "Mastering Elliott waves principles". In our opinion, the Wave A has already finished, and we should see the ascending corrective wave. Firstly , the price has rejected from monthly pivot. Secondly , not also pivot is support for it, but also 0.618 Fib. The past price action says that the breaking out these levels could hardly be possible now. However, market is very tough thing and there's no anything impossible. Considering all these facts we have built some possible scenarios Scenario A (most probable in our opinion) The price will built wave B of ABC reject from the pivot and 0.786 Fib level and go down to "golden pocket" or even lower. So, here are two possible trades. Long, at the beginning of wave B and short at the end of it. Scenario B The Bulls get more power and the first pivot will be broken out and it will reverse on the second one. Two possible trades are also represented in the scenario. Scenario C Strong sideways cause of strong support and resistance. As you know, it is advised not to do any trades on choppy market. All the scenarios are possible. However, market conditions are able to change rapidly. That's why, before making a trade make your own analysis and research. Have a nice trading day, dear traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
7
The 8 Universal Rules of Successful TradingUTPs (Universal Trading Principles) are a set of trading rules you must not break. They cover entries, exits, strategies, and risk management. They form the backbone of your trading plan. Repeat these rules everyday, like a mantra, until you can recite them in your sleep. This will make you a successful trader. 1. Don't leave money on the table - I move my SLs to breakeven and lock in profits as the trade goes in my direction. The first rule of trading is to protect my trading capital. Without my capital, I am out of the game and cannot be a trader. So I do everything possible to protect it. 2. I scale in and out of trades - If my trade idea seems to work, I add to my position. If my trade doesn't work and approaches my SL, I am reducing my position. I am ALWAYS adding to working trades and NEVER to losing trades. This is how the most successful traders trade, and this is how I want to trade. 3. Final TPs - My final TP is based on horizontal S/R levels, weekly or monthly highs and lows. I confirm that markets are mostly ranging, i.e. my final TPs are always based on the normal distribution (e.g. weekly or monthly ATR). My TPs need to be REALISTIC. 4. Technicals are used only for entries and exits. The direction of the market is determined by fundamentals. I never trade against the fundamentals. 5. Position sizing - My stop-losses are always based on sound technical levels. My position size depends on the size of the stop-loss and the percentage of my trading account I want to risk on any single trade. I never risk more than 2% on a trade, and cut the risk-per-trade to 1% after a series of three losing trades. 6. Trading is a probability game - I acknowledge that successful trading is about probabilities. I don't know whether my next trade will be a winner, but I do know that I have a good chance to be in profit after the next 10 trades. 7. Trading is as simple as you make it - Fundamentals support my trades, but everything can happen (including a change of fundamentals and sentiment). Risk management prevents higher losses. There are always new opportunities. My goal isn't to be right, but to follow my UTPs. 8. Weekly journal reviews - I don't measure trading success by the profits I've made or the number of winning trades. My success is measured by how strictly I followed my UTPs. To review my trading, I am performing weekly journal reviews and try to identify any trading patterns that have a negative influence on my bottom line.
TVC:SPXEducation
by MujkanovicFX
ETHUSDT Short range Analysis | Both Long and Short PossibilitiesHello, traders! Today we gonna speak about Ethereum and possible trade opportunities on it. As you know, it's the most powerful Altcoin with great capitalization and powerful fundamentals. Moreover, some analysts call it the alternative of Bitcoin. We've already told, but you should remember that the great update will be on 21-th of July. Read about it in our related idea. Now, let's speak about technicals. Today we'll kill two birds with one stone. I'll show you the application of Gann Square and give some possible trades on ETHUSDT. Here we go! Let's have a look at the chart. As you can see, we have double top that tells us about the trend reverse. As you know, the range of the price goes down is the height of double top. As you can see, the price doesn't reach maximum level, thus the continuation of falling down is possible. Then, we have strong confirmed bearish divergence completed with crossover. This tells us about the highly probable price. Let's have a look at Gann Square. Here we can see that the price is in local triangle that can be break either up, or down. Moreover, we can see more global triangle that's broken broken below. Based on these knowledge, I see two possible outcomes. Scenario 1) Price returns to the blue triangle and after three bars closed inside it, we can enter the long positions. Take profit is on the top side of triangle, stop loss a bot lower than the current support-resistance line, entrance after 3 closed inside bars. Scenario 2) One-two bars closes under the triangle. Thus, we have consolidation under it and we can open short position. Take profit is put on weekly pivot and stop loss on possible level after the probable breaking down the resistance. Here you are my vision of future ETHUSDT. Please, don't enter position without your own analysis. It would boost your trading skills much better than just following over ideas. As you know guys, we work hard for you every day to make interesting and useful content. However, your opinion is extremely important for us. Thus, please, write down to comments what would you like to read about, what would you like to study and so forth. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
2
Introduction To Gann Theory | Gann Square From ScratchHello, traders! Today we gonna start one of the most complicated topics. Please pay as much attention as it possible and ask any questions you like. Gann technical analysis methods are a bit complicated because they are based on geometry, ancient mathematics, astrology, and astronomy. Popular technical methods like Gann Angles and the Master Charts are at Gann’s disposal. The Gann Square is also among the several powerful tools that Gann developed. How to use? It can be used in a variety of ways. One way is to start at the previous major pivot point (normally the end of the last 5 wave sequence) and draw it so that the 1 X 1 line follows the current market support areas to a good degree. Simply put, if you want to draw it from the higher high, the end should be at the previous lower low to follow the price cycles. And if you are drawing it from lower low, finish it at previous higher high. Another way is to highlight geometric formations that can forecast key support and resistance levels by counting forward from the all-time low or all-time high. Well, I understand the difficulty of the instrument. It's kinda difficult to use it from scratch. However, tomorrow I will elaborate this article with short analysis using this powerful tool. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio
4
Balance Of Power From ScratchHello, traders! As you know it's very important to identify the balance of bulls and bears. Today, we introduce you one of the most pretty and easy-to-interpret tools - Balance Of Power Oscillator. Balance of Power (BOP) is an oscillator that measures the strength of buying and selling pressure. Introduced by Igor Levshin in the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, this indicator compares the power of buyers to push prices to higher extremes with the power of sellers to move prices to lower extremes. When the indicator is in positive territory, the bulls are in charge; and sellers dominate when the indicator is negative. A reading near the zero line indicates a balance between the two and can mean a trend reversal. The Balance of Power indicator shows the direction and extent of price change during the trading period. Like most oscillators, the Balance of Power indicator can be used to identify trends, divergences from price, and overbought/oversold conditions. Zero-line crossovers provide buying and selling signals. Possible Signals Zero-Line Crossovers The scale of this oscillator ranges from -1 to +1, with 0 as the centerline. Zero-line crossovers indicate a move into positive or negative territory, and are often used as buy or sell signals. A cross above the center line generates a buy signal, and a cross below generates a sell signal. The data is smoothed with a moving average in order to reduce the number of whipsaws. An SMA with more periods reduces the number of false crossover signals, but also reduces the responsiveness of the indicator. While the main signal provided by the Balance of Power indicator comes from zero-line crossovers, it can also be used to determine the trend, look for divergences in price, and identify overbought/oversold securities. Trend identification A rising BOP line indicates an upward trend and a falling BOP line indicates a downward trend. The zero-line crossover confirms the trend change. Divergences with Price When price makes new highs but BOP doesn't, that is a negative divergence; when price makes new lows but BOP doesn't, that is a positive divergence. These divergences can foreshadow a change in trend. Conclusion The Balance of Power (BOP) indicator uses price to measure buying and selling pressure. It determines the strength of the buyers and sellers by looking at how strongly the price has changed, rather than using volume. As with all indicators, traders should use the Balance of Power indicator in conjunction with other indicators and analysis techniques.
Education
by Skyrexio
1
Short-term ETHUSDT AnalysisHi, traders! Today we continue to talk about Ethereum. It's considered to be one of the most powerful altcoins that could be an alternative of BTC. Well, let's have a look at the chart. On daily chart we can see descending channel. However, 0.236 Fib level is respected and tested actively by the price action. In out opinion, breakout and trend reverse is rather possible. However, common market conditions are bearish. That's why probability of breakout is kinda low. Thus, acting in this Chanel till September looks most likely. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
1
Chaikin Oscillator From ScratchHi, traders! Today we'll speak about one of the most pretty instrument of divergence detection. The Chaikin oscillator is named for its creator Marc Chaikin.1 The oscillator measures the accumulation-distribution line of moving average convergence-divergence (MACD). To calculate the Chaikin oscillator, subtract a 10-day exponential moving average (EMA) of the accumulation-distribution line from a 3-day EMA of the accumulation-distribution line. This measures momentum predicted by oscillations around the accumulation-distribution line. The purpose of the Chaikin oscillator is to identify underlying momentum during fluctuations in accumulation-distribution. Specifically, it applies the MACD indicator to accumulation-distribution rather than closing prices. For example, a trader wants to determine whether a coin price is more likely to go up or to fall and MACD is trending higher. The Chaikin oscillator generates a bullish divergence when it crosses above a baseline. The baseline is called the accumulation-distribution line. A cross above that line indicates that traders are accumulating, which is typically bullish. The Chaikin oscillator utilizes two primary buy and sell signals. First, a positive divergence is confirmed with a center-line crossover above the accumulation-distribution line, signaling a potential buying opportunity. Second, a negative divergence is confirmed with a center-line crossover below the accumulation-distribution line, signaling a potential selling opportunity. A positive divergence signals a coin price is likely to rise, given the increase in accumulation. A negative divergence signals a coin price is likely to fall, given the increase in distribution. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
3
ETHUSDT Short OpportunityHi, traders! As you have already guess we've found a possible opportunity of short of ETHUSDT. Have a look at the plot. Initially, have a look at a great support zone that the previous price actions has built. In out opinion bears are too weak to break it now. Moreover, we've found the great Elliott Corrective pattern. As You can see on the plot, the probability of corrective wave B to go up is pretty high. However, considering the market geometry and mechanics C will be the motive descending line. Moreover, Schiff Pitchfork, pretty nice instrument that out friends Trading View give us, is respected by the price action. It helped us to put stop-loss level and confirm our assumptions of price action. We put stop loss a bit higher than the top border cause of the possible market manipulations. We would advise you not to follow us blindly, but also make your own conclusions based on our analysis. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
1inch Foundation Upgrades Governance FrameworkThe 1inch Network’s governance framework will have many of the hallmarks of Ethereum-based projects in a move that prioritizes user experience and broader network participation. 1inch Foundation, the non-profit arm of the 1inch decentralized exchange aggregator, has introduced important changes to its governance framework intended to streamline the proposal process. On Wednesday, the Foundation announced the creation of the 1inch Network Governance, which complements the “instant governance” framework the protocol launched back in December 2020. Instant governance gave 1inch token stakers the ability to vote on changes to protocol parameters. 1inch Network Governance is described as “a system similar to that of many other leading Ethereum-based projects,” including a user-friendly process for proposing protocol improvements. “Unlike instant governance, which is focused on protocol parameters, the 1inch Network Governance will be focused on major improvements that would make a difference for the entire 1inch ecosystem and, possibly, for the DeFi space at large,” the Foundation said. Users can participate in the governance process by visiting the 1inch public forum and selecting a subcategory for their proposal. The proposal process consists of three stages: Discussion, formalization and snapshot. It’s during the snapshot stage that off-chain voting for the proposal will be completed. All 1INCH token holders, and not just stakers, will be able to participate.
by Skyrexio
1
Awesome Oscillator From ScratchHi, traders! Today we’ll speak about one of the most pretty and easy-to-interpret oscillator - Awesome oscillator.The Awesome Oscillator Indicator (AO) is a technical analysis indicator created by Bill Williams as a tool to determine whether bullish or bearish forces dominate the market. It measures the market momentum with the aim to detect potential trend direction or trend reversals. The market momentum is evaluated using a combination of a shorter time frame and longer time frame simple moving averages or stated differently, it considers the recent momentum in comparison with a higher frame momentum. The Awesome Oscillator is calculated as the difference between the newest 5 periods (bars) simple moving average (SMA) and the 34 bars simple moving average. But instead of the closing price, the indicator uses the bar midpoint value. The indicator is plotted as a histogram in a box at the bottom of the chart and the histogram bars are found in either of the two colors red or green (with some trading platforms the lines can be red or blue). When the midpoint value of the last price is higher than the previous bar midpoint, the histogram will be green (blue) and if the midpoint of the last bar is lower compared to the previous bar, it will be red. How to use Awesome Oscillator? There are a variety of strategies which could be used by traders to identify potential trading opportunities. Some of the well-known and basic trading setups are the zero-line and divergence. Awesome Oscillator and zero-line crossovers The basic alerts which are generated by the Awesome Oscillator are identified on the basis of the zero-line cross overs. * A bullish buying opportunity alerts occur when the AO indicator crosses above the zero-line, indicating that the short-term momentum is increasing faster compared to the long term. * A sell opportunity is detected when the indicator crosses below the zero-line mark displaying that the short-term momentum decreases more rapidly than the long-term. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio
Ulcer Index From ScratchHi, traders! Volatility is one of the most important parameters of the market. The measurement of it play a great role in technical analysis. Thus, it's kinda important to use tools that can tell you a lot about it. The Ulcer Index (UI) is a technical indicator that measures downside risk in terms of both the depth and duration of price declines. The index increases in value as the price moves farther away from a recent high and falls as the price rises to new highs. The indicator is usually calculated over a 14-day period, with the Ulcer Index showing the percentage drawdown a trader can expect from the high over that period. The indicator looks only at downside risk, not overall volatility. Other volatility measures, like standard deviation, treat up and down movement equally, but a trader typically does not mind upward movement; it is the downside that causes stress and stomach ulcers, as the index's name suggests. The Ulcer Index is recommended as a measure of risk in various contexts where the standard deviation is usually used. The Ulcer Index can also be charted over time and used as a kind of technical analysis indicator, to show coins going into ulcer-forming territory, or to compare volatility in different coins. Watching for spikes in the Ulcer Index that are beyond "normal" can also be used to indicate times of excessive downside risk, which investors may wish to avoid by exiting long positions. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
1
How Cheese, Knives and Chocolate Will Make Solana to The MoonHi, traders! Let’s discuss some crypto news. As you know the fundamentals are essentially important in trading. Thus, we’ll try to speak about them more in future. From the latest news, Switzerland-based token issuer Digital Assets AG, or DAAG, has officially launched its stock-tokenization infrastructure on the Solana blockchain, offering users of the FTX trading platform a novel way for accessing traditional equity markets. During the initial rollout, FTX users who have completed Know Your Customer documentation will have access to 55 free-floating stocks, available 24 hours a day, 365 days a year, Digital Assets AG announced Thursday. That means users in permitted jurisdictions will be able to buy, sell and withdraw the assets at any time. Free-floating stocks are assets that have received regulatory approval to trade on tokenized platforms. As DAAG explained, they represent the number of shares of a given asset excluding locked-in shares, such as those held by company executives. Solana has received tremendous support from investors, venture capitalists and other market participants. The crypto startup recently raised $314 million from several high-profile investors to expedite the development of its high-performance blockchain. Andreessen Horowitz and Polychain Capital led the raise, with additional contributions from the likes of Alameda Research, Blockchange Ventures, CMS Holdings and CoinShares, among others. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
2
🎓 EDU 6 of 20: What Market Indicators do I Need to Follow?Hi traders, it's time for a new part of our educational series. This series aims to equip new traders with all the necessary tools to trade the forex market. Most of these tools are also used by large market participants in their daily analysis, and for making trading decisions. Getting started with trading isn't easy, mostly because the internet lacks quality when it comes to trading education. Yes, there are some great posts out there, but how are you supposed to know where to find them, and how to distinguish bad trading practices from good ones? This is why I created this educational series, to equip you with the main tools used by institutional investors and banks in trading. Alright, let's move on with the sixth part: What Market Indicators do I Need to Follow? Capital chases yield. Investors will move their capital to markets that offer better yields, be it in the USA, Europe, or Asia. Central banks play a huge role in determining yields when they hike domestic interest rates to fight inflationary pressures (making the domestic currency relatively more attractive), lower yields to support economic activity (making the domestic currency relatively less attractive), or keeping rates unchanged. To recap how this works, visit my previous post (EDU 5 of 20). Central banks follow market indicators to determine what is the correct monetary policy for current economic conditions. Just like traders, central banks follow CPIs, PPIs, industrial output, PMIs, and labor market numbers, to name a few. And if central banks follow them, you should too. 1. CPIs - Since most central banks have a specific inflation target they want to reach, Consumer Price Indices (CPIs) are one of the most followed market indicators. CPIs measure the change in the prices of goods and services at the retail level over a specific period of time (usually one year), and compares that change to a base period (in the US, the base period is 1982-1984, where the value of the CPI is set to 100.) However, markets are mostly focused on the annual rate of change in the CPI. 2. PPIs - While the CPI measures the change in prices at the retail level, PPIs do the same at the manufacturing level. For example, the PPI would catch changes in the prices of manufacturing input, such as raw materials or labor. Since most of the price changes are spilled over to the retail level, traders often follow PPIs to get early clues on where the CPI could be heading. 3. PMIs - The Purchasing Managers Index is a major leading indicator that catches trends in the overall economic activity. It's based on a survey of purchasing managers in 19 industries, who are asked to assess the current conditions on five major survey areas: new orders, inventory levels, production, supplier deliveries, and employment. Currencies often react with great volatility to PMI releases, making it an important market report to follow. 4. Labor Market Conditions - When talking about labor market conditions, we are actually referring to all the indicators which cover the labor market, including unemployment rates, unemployment claims, non-farm payrolls, average hourly wages, employment change, etc. Many central banks closely follow labor market numbers, as their mandate can also be to target full employment (in addition to an inflation target.) Labor market numbers can also provide some leading insights into the future economy, as the creation of many new jobs usually leads to higher economic output and GDP growth. Besides the mentioned reports, there are many more reports that can have a significant impact on the forex market. Some of them include retail sales and core retail sales, consumer confidence indices, GDP growth rates, etc. Check them out if you want to get a deeper understanding of the major market reports. What's important to mention is that markets are focused on the actual number vs the forecasted number. For example, if non-farm payrolls come in at 500k but expectations were set at 350k, this will usually lead to a strong positive reaction in the US dollar. Also, the reaction is stronger is the surprise comes in the direction of the central bank policy (for the example above, if the Fed is hawkish and the NFP comes in stronger, the reaction in the US dollar will be stronger than in the case of a dovish Fed and strong NFP.) If you find my educational series useful, please consider hitting the "LIKE" button to share the word. Thanks!
Education
by MujkanovicFX
Pitchfork and Its Modifications From ScratchHi, traders! Trading View gives us great opportunities to gain as much profit from analysis as it’s possible. Many tools indicators, including custom indicators let traders to extract all insights from the price action plot. However, many of us don’t know about very useful tools that TW gives us “from the box”. Well, today we’ll speak about pitchfork and its modifications. Pitchfork The technical indicator known as Andrews Pitchfork is not that well known and is rarely used by novice traders. However, it is a quick and easy way for traders to identify possible levels of support and resistance for price. It is created by placing three points at the end of previous trends and then drawing a line from the first point that runs through the midpoint of the other two points. The reason this indicator is called a "pitchfork" becomes apparent from the shape that is created in the chart. How to draw? Put the first point to the start of a new trend, second point on the next higher high, and the third to the lower low. Shiff Pitchfork But it’s good when we have no corrections. Try to draw pitchfork after it and you’ll fail. Fortunately, this problem has been solved with Shiff Pitchfork. It has the same properties like the Original one, but the “corrections bug” is fixed. How to draw? Put the first point to the start of correction (pump), second point on the next higher high/lower low, and the third to the lower low/higher high. Well, frankly speaking, the Original Pitchfork works well only on trend markets. For the corrections Shiff Pitchfork was invented. But what should we do with other cases? choppy market< for instance? Don’t worry, everything has been already invented. The Modified Shiff Pitchfork The Modified Shiff Pitchfork is heuristic above the Shiff pitchfork that specializes on sideways market movements. How to draw? Put the first point to the start of sideways movement, second point on the next higher high/lower low, and the third to the lower low/higher high. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio
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