Leverage
Lesson 2 II What is The Levreage ?Leverage is a tool provided to you by the forex company or your trading company, and this tool inflates your capital so that you can deal in the forex market
In other words, if the leverage is 1:10, then every $1 in your account equals $10 in buying value in the forex market.
And if the leverage is 1:500, that means that every $1 in your account equals $500 purchasing power in the forex market.
Therefore, you can start in the forex market with a small capital, starting from $50, with a leverage of 1:500, which gives you purchasing power as if your capital is equal to $25,000.
DOTUSD on 21-11-01 16:43While other L1's have taken the spotlight mid summer → mid Sept, Polkadot seems to have fallen out of the conversation until recently.
CT has been buzzing the last few days, IDK if there's any big news on the horizon? Only that the chart looks tasty. I'm looking to add to my bag as follows:
50% @ $44.70 (spot)
25% @ $42.10 (w 1x)
15% @ $39.07 (w 2x)
10% @ $47.18 (spot)
In addition to my regular DCA of a few DOT/wk. Hopefully a good EOY!
Bitcoin pain zone until the end of this epochWill we wick into the red zone?
This is my long term BLX chart. The basics are the curved logarithmic regression lines. Vertically the halvings are marked.
I haven't touched the full lines in quite a while, they seem to be holding up very well. Can you imagine someone trying to liquidate everyone up until 2x?
The red area looks the ultimate pain zone to me. Anyone else some thoughts on this chart and/or the red zone?
Greets,
enjoy your halloween!
What Is Capital Partitioning ? How will it help you as a trader?Hi everyone:
Let's talk about capital partitioning, which is a risk management approach for consistent traders to utilize to allow them to leverage their capital.
You may ask what exactly is capital partitioning ? well to simply put it in words, it is basically divide up your trading $ in the current trading account into 2 or more sub accounts.
So what's the point of doing that you may ask ?
Well, with leverage, a consistent trader does not require to have their entire money deposit into one trading account.
They can allocate the asset into different trading accounts to reduce risk as well as trading different markets available
Let's take a look here:
Say I have a $100,000 trading capital. I understand risk management, trading psychology, and will not over trade, over risk and revenge trade.
Hence, it's in my best interest to divide the $ in this account into a different accounts, or simply in a liquid-able account such as a savings account, stocks, bond..etc
Here are a few scenarios that you can implement into your trading accounts.
Understand that the % to allocate, what other trading accounts to deposit $ into, and how to move around the $ is totally up to you as a trader.
The most important is to make sure you are a consistent trader before you approach this type of method.
As more accounts you divide your capital into, the more % you will need to risk per account as you need to open bigger position sizes now.
Any questions, comments, or feedback welcome to let me know.
Thank you
I will share other risk management educational videos that can be helpful for you.
Risk Management: When/How to move SL to BE and to profit in a running trade ?
Risk Management: How to filter trading opportunities if multiple setups are presenting entries:
Risk Management: 3 different entries on how to enter the impulsive phrase of price action
Risk Management 101
Risk Management: How to set a Take Profit (TP) for your trades
Risk Management: How to Enter and set SL and TP for an impulse move in the market
Risk Management: How to scale in the impulsive phrase of the market condition?
Risk Management: Combine everything you learn to prevent blowing a trading account
BTC ready for last wave up? Wait for the dip to enterSo BTC has been performing very well and remained strong last week despite stock market downside. Currently BTC invalidated dead cat bounce theory and the higher probability is now running to ATHs. So far the price range is a bit extended, it would be ideal scenario to wait for the dip into 50-45k with invalidation close below 45k for better risk reward scenario. In trending markets usually its hard to get a perfect dip or position so the buy area is a bit wider than usual because of expected frontrun. At this moment funding rates are rising, meaning people coming back to aping into leverage trading therefore we could see some leverage flushes again so be careful using leverage.
BTC continuation downWe lost the support at 44k last night and saw a pretty sharp breakdown and is now acting as resistance on the smaller time frames.
Expecting a continuation move down to the area of interest around 38-40k before seeing another attempt and trying to change market structure.
IMO the market is still bearish and any bullish rally we have is a short term recovery.... You know how everyone screams "BUY THE DIP" in a bull market?
Well in a bear market we "SELL THE RECOVERY"
If you have trouble looking at charts objectively because of a confirmation bias, try inverting the chart and having another look
4 hour SPY chart.Let's keep this simple. SPY on the four hour chart. One more day of consolidation will complete the right shoulder. Lower then average volume, to many bad bad super bad catalyst to not have this play out. Evergrande, debt ceiling, over leveraged banks, and hedge funds, housing bubble, inflation, fed tapering. Don't kid yourself.
Annual report released. This stock is undervaluedPAF released their annual report today.
Positive
Yearly earnings up 63% , now PER is at about 4. This is incredible !!!
Insiders (CEO and financial executive) bought a lot of shares recently
Dividend will increase 28.5% (vote in November)
Stock buy-back announced (to be precised later)
Awaiting a lot of infrastructure developments and prospection results (incredibly huge gold concentration vein investigated since 1 year)
Strong graphical position, just above unbroken support (only momentarily broken by COVID crash)
Gold leverage
Penny stock that is at the moment not bought by big fish due to small market cap.
Negative
Yields forecast to increase ? But PAF has an incredibly low PER and reduced his debt a lot.
Operates in South Africa (country has inherent risk)
All in sustainable price for gold increased by 9% at $1260/oz
My target is graphical only (so medium term target), the true value of PAF (long term) is above 50 GBX.
MATICUSDT Analysis showing possible drop.MATICUSDTPERP is showing a Head and Shoulders Pattern, which is a variation of an M formation. What I want to see to feel safe, is price drop during the next daily candle. It would be a complete fail is MATIC price exceeds the price of the current top of the Right Shoulder.
I will personally take a short because I can see different confluences in the chart that makes me think we will drop from now. The confluences I see are:
The left shoulder has pins to the high and a stop-hunt rise, drop.
We will probably see a stop-hunt rise in the 1h timeframe. Probably a sharkfin in the TDI before the drop.
The head has a big M formation.
We are in the level 1 retrace, we should see a level 2 drop, retrace, and finally a level 3 drop.
nPOC's below the actual price.
Lots of green vector candles (shorts built).
Talking about take profits I will close my positions in the following points:
1.3520 (Possible Retrace #1 - Bottom of the Right Shoulder.)
1.2644 (Possible Retrace #2 - 4h Candle nPOC)
1.2397 (Possible Retrace #3 - 1d Candle nPOC)
1.1757 (Possible Retrace #4 - 1d Candle nPOC)
Set SL at entry point once price touches 200 EMA (4h)
Set a SL at 1.3 when price touches 1.24
Happy trading!
DOTUSDT Analysis showing possible drop.BINANCE:DOTUSDTPERP is showing a Head and Shoulders Pattern, which is a variation of an M formation. What I want to see to feel safe, is price drop during the next daily candle. It would be a complete fail is DOT price exceeds the price of the current top of the Right Shoulder.
I will personally take a short because I can see different confluences in the chart that makes me think we will drop from now. Still, I'll play with a small % of my account because I cannot identify nPOC's and green vector candles. The confluences I see are:
The left shoulder has pins to the high and a stop-hunt rise, drop.
We will probably see a stop-hunt rise in the 1h timeframe. Probably a sharkfin in the TDI before the drop.
The head has a big M formation.
We are in the level 1 retrace, we should see a level 2 drop, retrace, and finally a level 3 drop.
Talking about take profits I will close my positions in the following points:
23.505 (Possible Retrace #1 - Bottom of the RIght Shoulder.)
Set SL at entry point once price touches 200 EMA (4h)
Close 100% of the position 800 EMA (4h)
Bullish Pennant 🟢 Target Price: $0.035-$0.04, Leverage: x2.5Bullish Pennant 🟢 Target Price: $0.035-$0.04, Leverage: x2.5
Who are we?
We're a small group of Artificial Intelligence (AI) researchers primarily from Russia.
We developed an AI ("OXY AI bot") for detecting technical analysis patterns on multi-timeframe charts.
Our bot recognized a Bullish Pennant on this chart and so, we open a long position:
🟢 Target Price: $0.035-$0.04, Leverage: x2.5
(Please note that I share it in the UTC time-zone.)
BUY SUSHIDOWNBuy: 0.003 - 0.00325
Stop Loss: 0.0028
Reason: retest of trendline and proprietary buy signal
POLKADOT // ALT COIN SHORTALT COINS ARE CURRENTLY LEADING THE MARKET
Most Alt-coins have already broken the 0.236 support on Fibonacci retracement, this means it will have an effect on the Ethereum and Bitcoin prices.
By the end of today Ethereum should be below 2450, and bitcoin will go to 36000 if it breaks 37545.
All-in BTC Short 🔻 TP: $31 700, x10All-in BTC Short 🔻 TP: $31 700, x10
🔴 KEY POINTS:
- RSI is strongly overbought
- Momentum hit RSI Resistance
- Price Action hit Channel Resistance
- Machine Learning (Artificial Intelligence, Linear Regression ) says upcoming Resistance
- Chart Pattern: This Technical Indicator Variation worked 100% in the past
We've opened a second BTC short. This time all-in.
First BTC short: Linear Regression "Short" 🔻 Bearish Divergence, Overbought RSI
ETH short: All-in Short 🔻 Double: RSI Resistance, Channel Resistance
Buy the rumor... sell the newsBITFINEX:BTCUSD is coming off its rally now on the denial from Amazon NASDAQ:AMZN that it will not accept Bitcoin. Prior to this the run up has been labeled a "short squeeze" as that term has become all the rage in 2021. It did in fact qualify as one seeing as how over 60% of leveraged short positions have cleared out in the bullish move.
From a contrarian perspective... clearing out the leveraged shorts actually increases the probability that a break of the consolidation lows (sub 30k) will induce a violent "long squeeze."
Cardano bullish? Falling wedge and inverted H&SI just opened a long position on ADA/USDT
two bullish patterns, one within the other: inverted head and shoulders | Falling wedge
1- falling wedge:
Stats:
Break-even failure rate: 11% in a bull market; 11% in a bear market
Average rise: 32% in a bull market; 26% in a bear market
Percentage meeting price target: 70% in a bull market; 60% in a bear market
2- inverted head and shoulders:
Stats:
Break-even failure rate: 3% in a bull market; 4% in a bear market
Average rise: 38% in a bull market; 30% in a bear market
Percentage meeting price target: 74% in a bull market; 58% in a bear market.
As always, risk vs reward is the key thing to consider for someone who wanna be a successful trader; I've already set up my stop loss and will shortly update this idea with price targets.
Trade carefully ;)
Longs are dented but not destroyedThis down move as of writing has finally slowed the acceleration of the record level of COINBASE:BTCUSD leveraged longs. Taking out the consolidation lows would truly see the capitulation. Trade wisely. The reward to risk is greater where there is the most potential pain.