BTCUSD vision, advicdes, strategies.Hello:)
First i`ll say few words about situation right now. We are in the previous resistance, we didnt brake it, we made some divergence on indicators, but watch out: same situation was on the last week (circled and pointed on macd). So, if they are similar, so black arrow shows the possible movement. Nobody can say how it will behave itself, but i believe resistance will not be broken. How to trade now? i`ll say it further id the educational part that i promised!:)
Today i want to give you some useful info about how we can trade in such situation.
First, i want to say about one thing, that should be never been forgotten: support and resistance. Yes, simple. Very simple. But most of traders belive that their succes depends on confusingly difficult instruments. And that is not true.(same with triangles, but tsss :D, P.s explain later)
Look on the grafic, and for example at the zones that i marked yellow. They shows really good how it works. It doesnt matter what kind of movement do we have, up or down: previous levels, where the prices stoped will surely affect following picture: prices will bounce around them.
This was said to realize one thing: indicators dont work on their own, they just help us to make a decision and sometimes they can tell us about impulse, that rises an opportunity to break present levels.
So, what is important about trading whith indicators? I noticed some really strong signs, that tells about turn of price: 1. Divergence should be formed in with free indexes: AO columns, MACD columns and MACD grafical constituent. This is the stongest sign of the turn. Example
2. Volume decreasing, that means that bulls/bears are not interested in buy/sell and they are losing their strength. But dont use small timeframes when you want to measure volume. My experience says that for the intraday 1-4 hours (in comparrison) are the best.
3. Usually it takes 2-4 waves to form strong enough divergence to make a turn.
Also, there are some thin moment in indicators analasing. Sometimes it can be useful to analyse the single columns in macd and ao. Take some last min/max on graphic and watch the indexes on macd/ao. It can help to track some minor movements like this, but this sign is not strong enough to trust it much, but you can use it placing stoploss very near to your order.
And the final part for today is the thing, that i realised about 20 hours ago:) Did you see on youtube that succesful traders usualy have 2-4 monitors? Turned out that it`s not just farce:))) I have not very good tradition: i usually miss some good movements:) And i realized the stupid reason of it: it`s very difficult to observe chart from the one window, where you always switch timeframes. This way you cant summarise compare indexes well or summarazi them, because of using different graphic scale and because indicators show the situation in different ways. I prefer 15 min timeframe for the intraday, but the general situation on the market is the most important thing, and when i cocentrate on 15 mins i cant objectively evaluate the situation. And the exit is simple too: create more windows for every timeframe:) For one monitor the most comfortable variation is the next: two vertical windows, one for the 30 mins till 2 h timeframes to switch, and second for the 3min-15min timeframes to switch. First one helps us see the general conjuncture, second one helps us to make an accurate order. That is because, as i said above, different timeframes shows different indexes for the indicators. Big timeframes helps to find the movement with good amplitude, small timeframes helps to take an accurate swim in this flow.
