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USOIL, Short term long position opportunitiesThe oil has reached its 50% fibonacci retracement level, and making a flag pattern. The entry trigger also presents itself, which is the engulfing candlestick pattern forming around the 50% fibonacci retracements (which i considered as an area of value). The other trigger is with the stochastics oscillator, it turns out that there is a divergence between the price and the oscillator, which indicates a momentarily possibility of a reversals. To summarize why take a long position; Pros: 1. The price reach a 50% Fibonacci retracements level while making a flag pattern (considered as an area of value) 2. There are divergence between the stochastics oscillator and the price leve (entry trigger) 3. The candlesticks forming a bullish engulfing pattern (entry trigger) Cons: 1. 50% Fibonacci retracements area sometimes is not reliable 2. The higher time frame trends still not showing a clear trend Considering the pros and cons, i made a decisions to go for a long position with small lot to compensate for the cons.
FX:USOILLong
by HeriPardi
What is an Hard Exit ? and a few notes on trading managementHi everyone Today I'm traveling so can't really share a script because A) it's not coded B) I'm tired C) no inspiration today so instead, I'll be spreading a bit of wisdom (if I may call it like that) I see a lot of traders out there solely depending on two main signals to exit a position : 1) A signal in the opposite direction 2) A stop loss to exit a position (fixed, or trailing) Those two points are a very good practice but what if you could exit a position before "sh*t will hit the fan" (pardon my french). For instance, you enter a trade, you see it's going against you, you're down 2% and your stop-loss is only a few % more away. Thanks to your experience, you know that when one of your trade goes down below a given threshold, it will wreck (= rekt in crypto terminology) you even deeper with a high probability. Obviously, sometimes it will, sometimes it won't and you'll never figure out the right stop loss level to handle all the edge cases... Let's now introduce the concept of a hard exit . What is it exactly? In short (no pun intended.... actually yes it was...), now thanks to your experience, you know that whenever a given indicator gives an opposite signal, you'll have to exit your trade if you don't have a positive trade balance. If positive, you know, that you should either set your stop loss to breakeven (entry-level of your trade) or exit it completely. When such a scenario happens, maybe sometimes, it's better to exit a trade completely when you have that signal before going to bed... Hands up anyone who took a trade before sleeping, thinking they'll wake up way richer and finally discovered they got margin called? or lost way too much money because their stop loss wasn't hit because that mean broker decided to use the "SUPER WRECKING SLIPPAGE" function to go beyond your stop loss... Your stop loss is looking at those candlesticks going above and doesn't understand what's going on... The example in the screenshot is very interesting. Let's assume a very simple strategy using the supertrend. When it's green, we go long, when it's red, you go..... (finish it) You noticed that the MACD Zero Lag will often allow you to exit the position before your stop loss will be hit and before the trade will go in the opposite direction. Sometimes, it won't save you any $$ doing so... but most of the time it will save you a few % of capital per trade and this will add up very quickly. (imagine saving a few percents or capital per trade multiplied by dozens of trades) I'm not advising to use the correlation between the Supertrend and the MACD Zero Lag here. This is just an educational example :) Warren Buffett said this: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”. We all believe we're smarter than the average but 95% of us is losing on the market... this doesn't add up :) 95% is losing... let that sinks in. Does it mean that most of the things you read on Trading Twitter about guys taking leveraged trades and waking up with a brand new Lamborghini might be a fake story? (rhetoric question) Am I saying that you should close your trades before sleeping if not already winning? (rhetoric question again) "But sir I'm sure of those trades, I know the market, I'll be promised to go to the Valhalla by John McCaffee if I hold this XVG, XRP and TRX positions" (no one actually told me this that way but that's what I hear when someone finds reasons to keep losing trades overnight/over weekends) Those people generally have a plan in mind and they want to stick with it. Either because they're scared to exit and to see then their trade going in the desired direction... or because they're too stubborn. And even then, if you have a system giving you a few signals and you count on each of them to pay your rent.... you're doing that trading thing wrong my friend Either way, you have the choice between not losing or risking to lose big but maybe winning when you'll wake up. The best traders I know constantly doubt, optimize their strategies but never assume the market will favor them, not even once. However when they see a great potential profitable setup with an amazing Risk:Reward, they know that's with those trades, they'll have to go real BIG (betting the house, the wife, the kids, the car, ...) but certainly not with the already losing trades and hedging before sleeping ... (who...came up with those expert advisors using martingale during sleeping hours...very dangerous... ) If you wonder who I am to give all those lessons and scripts. I worked in a bank alongside traders for years, and I saw hundreds of traders/investors losing everything and I mean they lost more than their trading capital. This is truly sad because trading is a psychological game between you and the casino (market). We surely have more hedge than playing cards in a casino for sure thanks to technical analysis and that's why I got so deep into TA 6 years ago, made it a full-time job in a bank and learned everything I could to secure my trades/investments and become an emotionless machine when trading. That's why I made the Algorithm Builder, to remove most of the psychological aspect. This made my own and my clients' trading way more enjoyable. More to come about it tomorrow or the day after. Wishing you a great end of your day Dave ____________________________________________________________ Be sure to hit the thumbs up - I'm an officially approved PineEditor/LUA/MT4 approved mentor on codementor. You can request a coaching with me if you want and I'll teach you how to build kick-ass indicators and strategies Jump on a 1 to 1 coaching with me - You can also hire for a custom dev of your indicator/strategy/bot/chrome extension/python - if you like my work and wants to buy me some coffee : - BTC TipJar: 3MKDve7stWTe1io99oFxeQXvP8XB4zCQ8m - LTC TipJar: MC5oeBAhw9BLqyi65TR3J1Lid8io9uHADw
NASDAQ:AAPLEducation
by Daveatt
11
70% midterm potential on EthereumI'm not sure if you were around when ETH made a double top around $400 but I do remember it like it was yesterday. At that point, a friend bought it nearly at the second double top price. Just a few dollars below that. He did not listen and as a novice "crypto investor" he wanted to be smarter then experienced ones and even than the market itself. Traders that have been around for some time know that it's the riskiest to buy just before the breakout happens unless you have really solid ground and knowledge about why you are so sure it will. By solid, I don't mean "BTC went to ATH, so ETH will do it now also". It did not! At some point, he and his portfolio were down. Emotionally and financially. At least he did listen and did not sell at the bottom but he waited for some months before ETH broke $400 mark and for him to finally be in the profit zone. He bought high and nearly sold low. Instead of buying low and selling high. Right now ETH is relatively low. I wrote about that in the "Catch short term potential on ETH!" post that you can find in the links to related ideas bellow. This post is more about midterm potential. Maybe 70% is not much for somebody but if we do compare that to other financial markets it's great for a few weeks. Even for a few months. And the beauty is that you can buy it, put automatic sell order on the next strong resistance if you are happy with that profit target and forget about it. Financially and emotionally. As you can see there is a nice cup and handle pattern forming. It's should take us really close to that $400 resistance again. However, it all depends on what game you are playing but if you devote some funds to short-term play, others to midterm gain and leave the rest for longterm potential your emotional wellness can be well served. At the end of the game, health is more important than money and going thru the same stress as my friend did is for sure not good for your energy and well being. Sometimes even the close ones can get sick of you being under the stress all the time. You might get a bit more money but you might lose something even more precious. Is it worth it? PS: It's just an idea. It's not investment advice!
KRAKEN:ETHUSDLong
by Samoto
Strong Bulls, Weak Bears, Strong Bears, Weak BullsStrong Bulls are always looking to buy. Strong Bears are always looking to sell. Weak Bulls and Weak Bears are usually indecisive and wait until its too late, entering at the worst possible time. In general, Strong Bulls sell to Weak Bears, and Strong Bears buy from Weak Bulls. When both Strong Bulls and Strong Bears sell (strong bulls to take profits, and strong bears to initiate shorts), there is only one direction for the market to go. This is when leads to strong moves in the markets. When prices are in a strong bull trend Strong Bulls buy at any price, including a high price. This strong trend can be in the form of a spike or a tight bull channel . The Strong Bulls are aware prices are in a strong trend, and therefore are willing to buy high. This buying prevents a pullback and instead prices continue to rally. Strong bears see this and are not willing to sell yet, and so the lack of selling pressure creates a vacuum and also prevents a pullback. The same is true for Strong Bears in a strong bear trend. When prices are in a weaker bull trend, such as a broad bull channel , bulls who buy high tend to get trapped and are either forced to exit and buy lower, or scale into their position at a lower price. This is also refereed to as "averaging in to a position." When strong bulls see that bulls who buy high are getting trapped, they will only look to buy at a discount, or a pullback and will sell to take profits when prices reach near the highs. This is what feeds the bull channel , which is a form of a slanted trading range. When prices are in a trading range, both Strong Bulls and Strong Bears will only look to buy low and sell high. Most will also scale into their position if prices go against them, and they tend to take smaller profits like 1X risk. What about Weak Bulls and Weak Bears? Weak bulls and Weak bears tend to flip flop in their positions. In other words, they see a bear leg and assume prices are going lower and sell low in the bear leg, just before a rally begins. This is most obvious when prices are in some form of trading range or weak channel where there is heavy two sided trading. Weak bulls also buy high in a bull channel , or high in a trading range. They buy from strong bears who are selling high prices. They are then forced to exit or scale in, and contribute to the selling if they exit. Then when prices are near the bottom of the channel, they become convinced the market is now selling off, and sell low. This repeats over and over as they hope for a breakout and fail to realize what is occurring. A major key in learning to become a profitable trader is the ability to understand what the institutions (strong bulls and strong bears) are doing at any given time. This is how you follow "smart money." If you do not understand what prices are telling you; you are more likely to act as a Weak Bull and Weak Bear, and contribute to the market. To learn more about how to understand institutions and price tendencies, see below. If you found this helpful please like! Feel free to comment or ask questions.
by tradersmentality
1
How to connect your indicator with the Trade ManagerHi everyone On Today's tutorial, I wanted to highlight how you can upgrade your own indicator to work with the Trade Manager Let's take the dummy example of the double MM cross Step 1 - Update your indicator Somewhere in the code you'll have a LONG and a SHORT condition. If not, please go back to study trading for noobs (I'm kidding !!!) So it should look to something similar macrossover = crossover(MA1, MA2) macrossunder = crossunder(MA1, MA2) What you will need to add at the very end of your script is a Signal plot that will be captured by the Trade Manager. This will give us : // Signal plot to be used as external // if crossover, sends 1, otherwise sends -1 Signal = macrossover ? 1 : macrossunder ? -1 : na plot(Signal, title="Signal") The Trade Manager engines expects to receive 1 for a bullishg signal and -1 for bearish . Step 2 - Add the Trade Manager to your chart and select the right Data Source I feel the questions coming so I prefer to anticipate :) When you add the Trade Manager to your chart, nothing will be displayed. THIS IS NORMAL because you'll have to select the Data Source to be "Signal" Remember our Signal variable from the Two MM Cross from before, now we'll capture it and.....drumb rolll...... that's from that moment that your life became even more AWESOME The Engine will capture the last signal from the MM cross or any indicator actually and will update the Stop Loss, Take Profit levels based on the parameters you set on the Trade Manager I worked the whole weekend on it because I wanted to challenge myself and give you something that I will certainly use in my own trading Please send me some feedback or questions if any Enjoy Dave
BITSTAMP:BTCUSDEducation
by Daveatt
19
GBPJPY Short With 5-to-1 Reward!A short signal just triggered on the GBPJPY. Our swing trading system will target a 5-to-1 reward for the risk taken with this trade! These sort of setups don't happen too often but when they do they make all the difference between a profitable and money-rolling-in trading month. We will be taking 50% profits at the first target area as illustrated on the chart and then ride the last 50% of the position out, going along with the momentum from the current and all higher timeframes. Updates to follow. Protect your capital and be safe!
Short
by FollowMyForex
1