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Leveraged

NAIL- an ETF of Homebuilders 3X leveragedNAIL- is an ETF of Homebuilders; It is 3X leveraged. Price is up over 30% in the first two weeks \ of June. It is shown here on the 30-minute chart with the "Market Bias" indicator which shows uptrends in green and pull-back zones in gray. Presently, price is pulling back - when the gray colored trend indicator changes back to green, an optimal entry can be made.The ADX indicator has topped out as part of the early pullback. When the ADX goes below 25 and then crosses 25 from below, an entry can be made. An ADX over 50 and rising suggests that it is too late for an entry and not to chase but rather wait for a pullback. Overall, NAIL's price is now in early pullback by the "Market Bias: trend indicator and the ADX which shows now a decreasing trend directional strength. Price is more than one standard deviation above the mean anchored VWAP which is an level that professional traders want to sell from. Because of all of this I will wait for an entry on NAIL until a pullback is completed and the uptrend bullish continuation is seen.
AMEX:NAILLong
by AwesomeAvani
1
YINN China Leveraged 3x Bull Setting Up Reversal ShortYINN the China Bull EFT has uptrended dramatically of late however it is far extended above its moving averages while the RSI indicator shows decreasing strength as a divergence. Price rise is hitting the resistance of the POC line of the intermediate-term volume profile where sellers will step in and invoke selling pressure in a triple top making the resistance strong. I expect it to drop now and perhaps dramatically,. Inversely the YANG ETF, a bearish leveraged fund will rise. By a Fibonacci analysis, a 15% drop is expected before another inflection. Accordingly, I would set up a stop loss of 3-5% on the short swing trade setup .
AMEX:YINNShort
by AwesomeAvani
TPOR Triple leveraged Transportation ETF SWING LONGFundamentally, the stabilization of fuel prices helps push things down the road. A possible rail strike if no averted by Congressionaly action will cause a big macro effect. TPOR was downtrending into the end of September then reversed starting a trend back up. I see this as a good long swing buying initially now and then every time the price pulls back to the Hull 150 moving average trend line in back or even drops below it when the faster moving average ( Hull MA 20 in Blue) reverses from going down to up or crosses the long MA from below. I will exit when the relative strength tops out and shows bearish divergence.
AMEX:TPORLong
by AwesomeAvani
BOIL / GUSH RATIO- Leverage 3X Natural Gas ETFsAMEX:BOIL BOIL is the #X leveraged ETF for Natural Gas while KOLD is it inverse. On this 30M chart I setup the ration between BOIL and KOLD. This is to find precise swing entries without a lot of work for those only trading part time like myself. At the highs, BOIL has peaked relative to KOLDAccordingly, this is the time to exit BOIL and enter a position on KOLD. Conversely, when the ratio is at an inflection bottom, a trader should exit KOLD and enter a BOIL position. This chart shows several patterns including: a double or triple top which may breakdown as there is a newer cup and handle potentially breaking out above the handle in continuation of the prior uptrend. It the present chart, the Bollinger Band basis line the uptrending of its boundaries and the MACD all favor the probability of an uptrend., the spot markeri All in all, I am waiting to buy BOIL since natural gas is being liquified and shipped to Europe to make electric power to supply to air conditioner for the long hot summer. XNGUSD has had dramatic action in the past couple of months, all good for BOIL's price action. Three evening stars or three-bar plays marked with red down arrows. If not in a position at present, the chart should be observed for the cup and handle pattern completion towards a resumption of the uptrend. IF so, a BOIL position could be entered. If it fails the triple top controls the price action and a KOLD position could be entered. This chart demonstrates the importance of looking for patterns to help guide higher probability setup.
AMEX:BOILLong
by AwesomeAvani
2
HGU: Confirmed MACD Golden Cross on a monthly basisSince inception in 2007, this ETF has lost more than 90% of its value and it seems nobody is looking at it. However, there is no denying that this ETF has been performing pretty well while techs are failing pretty badly these days. As we can confirm MACD Golden Cross on a monthly basis, we might be facing a great opportunity to be in. We should be aware of the risk of this ETF as it is leveraged. Otherwise you can crack the shell and see its holdings to directly invest - extra analysis for each stock is recommended. List of Holdings as of today BARRICK GOLD CORP 25.28% FRANCO-NEVADA CORP 17.69% AGNICO-EAGLE MINES 14.22% WHEATON PRECIOUS METALS CORP 12.45% KINROSS GOLD CORP 3.94% YAMANA GOLD INC 2.98% B2GOLD CORP 2.67% SSR MINING INC 2.64% ALAMOS GOLD INC 1.82% PRETIUM RESOURCES INC 1.73%
TSX:HGULong
by Tomatrader-X
Why You Shouldn't Hold Leveraged Tokens Long Term🤔❌❗🚫💥Leveraged tokens, is an invention of the FTX exchange , with leveraged exposure without taking care of the margin, requirements, management, and liquidation risk. In other words, Leveraged tokens are the easiest way to do leverage trading but are still not safe from the risks of severe losses, although the risk of liquidation is no longer It does not exist, but it can reduce asset to zero, especially in the long term. 🔰Leveraged tokens are often the most misunderstood products in the crypto industry. These tokens are essentially funds that use derivatives and leverage to amplify the returns of an underlying asset. Typically, a leveraged token offers a multiplier of an index or a specific asset's daily return. For instance, a 3x Long BTC will generate triple the daily returns of Bitcoin. leveraged tokens are built to multiply the underlying asset's daily return-the main component to remember here is DAILY. The leverage factor of a token will be reset every day. As a result, the performance of a token and its underlying asset can differ over the long term. ✳️While the comparison of daily and total returns can sound trivial, the math behind them differs in contrast. For example, even a non-leveraged portfolio that loses 10% on one day would not be able to break even with a simple 10 % increase on the next day. An investment of $100 that loses 10% on one day is worth $90 at the end of the day. But if the price goes up 10 percent on the second day, that's a 10 percent rise from $90, bringing the price at $99. Clearly, the math didn't add up as you would expect. As such, in the event of losses, a portfolio needs a return greater than its loss to break even. The graph in above chart shows the subsequent rate of return needed to break even at varying levels of portfolio losses. -------------------------------------------------------------------------------------------------------------------- 💜 if you're a fan of my analyses follow me and give a big thumbs 👍 OR drop a comment 🗯💭 🙏with Best Regards
FTX:BCHUSDEducation
by PRO_SMART_Trader
The dangers of Leveraged TokensMost experienced traders know that leveraged tokens should be avoided at all cost. Exchanges advertise these products to ignorant traders who are afraid to trade on leverage, with phrases like "Now you can use leverage without the risk of liquidation!". Be aware that these products have been carefully designed to take your money, and then some. The underlying algorithms are incomprehensible for anyone without a higher level math degree (myself included), but a look at price action is all we need. While in theory you may not get liquidated, during certain events it is possible for leveraged tokens to depreciate immensely in value. This happened for example during the May flash crash, where a cascade of liquidations of the underlying assets combined with rebalancing events caused some leveraged tokens to loose up to 95% of their respective value. See the SUSHIUP token for example in the image below. The token dropped around 93% in a single day and is currently trading at a wopping -98.7% of their pre-crash value. While technically this might not be a liquidation, in practice this comes down to the same thing. To make matters worse, during the flash crash, DOWN tokens also took a nosedive leaving a legion of traders outraged. Binance say they warn against these types of major price drops during times of extreme volatility. They did however offer some (very meagre) compensation to those affected when agreeing to the condition that you would be banned from trading leveraged tokens ever again. For those still holding on to their leveraged tokens from before the crash in the hope that they will one day recover, have a look at the image below. The image shows what volatility does to leveraged tokens over time compared to the value of their underlying assets. The image shows the performance of ETH vs ETHUP (Binance), ETHBULL (FTX) and ETH3L (Kucoin) over a period of 4 weeks. Volatility (both up and down swings) eats away at the value of your tokens. October 8th ETH was trading at the same level as a previous high, the leveraged tokens not so much. In short, your tokens will never recover. Sell them at a high or top of a bull run and put your money elsewhere. Conclusion, stay away from leveraged tokens and just use 3X leverage instead, which also makes it near impossible to get liquidated anyway.
by BowserMan
5
How you can profit when Bitcoin crashesMarket Analysis BTC appears to be stabilizing after the 40% crash last week on the 12th of March. Unfortunately, many investors lost a substantial amount on this day. However, there are ways to still turn a profit or at least avoid large losses during bear markets. It goes without saying that it is much easier to make a profit as a day trader or even as a swing trader when the underlying trend is in your favor and when Bitcoin is on the rise. But how can you determine the underlying trend, and how can you automate this? This is what we will explore in this newsletter. Moving Averages Moving averages are trend following indicators and are very useful in determining the current trend. As such, day traders or short term swing traders may consult them on the broader time frames before entering a position. Some traders will choose to stay out of trading when the underlying trend is against them, while others will choose to short the underlying asset if it is in decline. Leveraged tokens The leveraged tokens take shorting to another level by magnifying the potential gains up to 3 times. Although this volatility can be very beneficial, it can also make trading much riskier by magnifying a trader’s losses three fold! The leveraged tokens are relatively new to the Cryptocurrency market and should only be traded by people who fully understand them as they can carry additional risks such as lack of liquidity and delays in price movements. Without further due, let’s see how you could have profited over the past weeks using the BEAR token. Automate your trading with triggers Setting up triggers in Cryptohopper makes it possible to not only disable your trading temporarily but also to change settings automatically for your hopper in order to prepare for a bear market. An example of this would be to set up a trigger based on the market BTC/USD where the cross between the 10 and 30 EMA on the daily chart changes the template of your hopper. Your bear market template can thus have the BEAR token for example setup along with a strategy that functions well with this token. In our example we have the cross between the 10 and 30 EMA, along with the ATR in order to decrease the amount of fake signals generated by these moving averages. You can also setup a bullish trigger for then the 10 EMA crosses over the 30 EMA on the daily BTC/USD chart, where you have your template and strategy setup for the bullish market conditions.
by cryptohopper
2
Long Term Bear, do not hold 3x futures based productsI enjoy trading DRIP and I believe long term, oil is worth less than today. ESG is a movement that will continue, especially when it comes to China and India's eventual and inevitable higher participating in the space. Day trade DRIP, but do not hold. The issue arises from the cost to roll the futures and the cost to leverage the future or ETF into a swap that returns the 3x. The cost is high, the slippage is insurmountable, and the product will deteriorate even if you chose the correct trade. Examples of this are everywhere. Trade events and noise, it is a risk / reward play. Saudi oil field was the last great play for this product, any large move up in CL1 would be a short term long DRIP. If you chose to trade the technicals, do not use the ETF, but CL1. This includes USO, this will also deteriorate away from CL1. **no position, but always waiting **happy to share further details on this topic and how these products function
AMEX:DRIP
by RCB1229
A scaled entry plan for SOXLOne of the best long-term performers in the stock market is the semiconductor sector. With a strong likelihood that AI will change the world in the next 10-20 years and disrupt every other industry, there are big profits to be made in semiconductor companies that are heavily invested in AI research and provide the processors to power it. That said, the current price point on SOXL is pretty high, so it makes sense to look for a lower entry. With the market (and especially the Nasdaq) turning downward this week on China trade war news, I've developed a scaled entry plan for SOXL. There are four entry points: the recent highs around 198, the high-volume node at 159, and the recent lows near 131 and 90. Normally I triple my position at each level, but I doubt we'll hit the bottom two targets on the current trade war news, so I'm weighting my entries a little more toward the two upper ones. I already made my first entry this morning near 198.
AMEX:SOXLLong
by ChristopherCarrollSmith
6
Watch JNUG for a trend line breakThe junior gold miners' leverage ETF has been making a long-term downward trend line since September as the dollar showed strength and gold showed weakness. Surprisingly, gold and JNUG have stayed in their downtrends despite dollar weakness throughout the month of October. That's presumably because the dollar index, now at 97.48, has a support trend line around 96.86. Gold and JNUG will break upward out of their downtrends if the dollar breaks downward through that support. It probably won't happen before the Fed meeting, although conceivably it could. Futures traders are pricing the probability of a Fed rate cut at 94%, and yesterday's headlines included "The Fed Just Printed More Money Than Bitcoin’s Entire Market Cap." The dollar is up today, but only because it's making a technical pullback from oversold territory. I expect it to touch its support line soon. Assuming the futures markets aren't completely out to lunch, we should get a rate cut next Wednesday and then our breakout should come.
AMEX:JNUGLong
by ChristopherCarrollSmith
5