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Moving_average

NFLX - uptrending along rising trendlineSince breaking up a base formation neckline @ 252, NFLX had began a rather choppy rise with moderately deep pullbacks. Longer term trader could place trailing stops slightly below the rising trendline for now and until such times when this trendline becomes irrelevant. This bull could have some way to go. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:NFLXLong
by Juliac
3
NQ - Bull intact but approaching near term resistence Despite a generally choppy market since February this year, Nasdaq had a Golden Cross on 13 March which turned out to be sustainable and some encouraging signs are also observed since: 1. NQ began to lead the other indices (namely SPX and IWM), a sign of a "risk off" sentiment as it means more money had been piling back into "riskier" tech & discretionary stocks 2. NQ had stayed above it's 50 day moving average (> 2 months now) with rather "shallow" retracements no more than 38% of each mini swing. 3. However, SPX was mostly stuck in a range for the past 1.5 months (despite being above it's 200 day MA), hence it can still make trading the wrong stocks rather frustrating. 4. IWM (Russell 2000, ie., small caps) has been the laggard, still unable to rise (much, if at all). This is normal during an "early" bull market. Small caps usually begin to rise in a more sustainable manner when the bull market is well underway, and should they start to get extremely bullish, then it is usually a sign that a market top might be in the horizon. Now that Nasdaq has been taking leadership (especially the FAANGS) for the past 2 months+, the sentiment remains sanguine. Some caution now as it is approaching a critical resistence zone 13650 - 13720 (prior peak in Aug2022), and some pullback in the near term will not be too surprising The depth of the next retracement going forward will give a clue if the uptrend is still intact. Should NQ be able to clear this resistence zone (13720) eventually, then the overall market sentiment could get a good boost (including the small caps). Perhaps the resolution of the Debt Ceiling could be the catalyst? But until then. Just my take. Let's see :) Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:NDX
by Juliac
2
The Honey Chai RSI InidcatorHere is a fun new way to view the RSI. A new TradingView Indicator for you RSI enthusiasts. This is the Honey Chai RSI Indicator. This indicator combines the RSI oscillator with additional features to enhance its functionality and visual study. The purpose of this indicator is to provide a more comprehensive view of the RSI and aid in identifying trends, potential entry / exit points, and ranging conditions. How it's Built. The RSI: The RSI is represented by its common line which you can turn on and off, as usual. Japanese candlesticks: In this indicator, are also Japanese candlesticks giving you their representation of the RSI. This provides a clearer visualization of the RSI movements across its Open, High, Low, and Close, unlike the OHLC of the Heiken Ashi candles in the Heiken Ashi Algo. In addition to the RSI line and Japanese candles, there are two moving averages applied to the RSI value. For the purpose of keeping with my CoffeeShop theme, the High average line is the Honey Line and the Low average line is the Chai Line. The user can choose between Exponential Moving Average or Simple Moving average. These moving averages are calculated based on the high vs low values of the past RSI readings, with the high average acting as the leading line. When the Honey line is above theChai Line, it indicates an uptrend, whereas when the Honey Line is below the Chai Line, it suggests a downtrend. If the price is moving up but the Honey line is still below the Chai line, you're technically still in a downtrend and you should trade this like a pullback. Identifying Trends. To identify short entries, you need to wait for the Japanese candles to open and close below the Honey line while the Honey line is below the Chai Line. Conversely, you wait for the Japanese candles to open and close above the Honey line while the Honey line is above the Chai Line. This confirmation helps in identifying potential reversal points. Range Bound Market. The indicator also incorporates a visual representation of a ranging area. The 60 and 40 levels of the RSI are visually differentiated to indicate this range. When the Japanese candles are opening and closing within this range and the RSI remains contained within these levels, it suggests that the price is likely in a ranging phase, and traders should wait for a breakout from this range before taking action. In summary, this custom indicator provides a comprehensive view of the RSI oscillator by incorporating Japanese candlestick visuals, moving averages, and a visual representation of the ranging area. By analyzing these elements, traders can gain insights into trends, potential entry points, and ranging conditions in the market. All the parts Downtrend Example Ranging Market HOW TO TRADE LONGS AND SHORTS An example on how to use this in a long trade is to wait for your moving averages to be high (yellow) over low (orange). For the purpose of the description in this indicator you're looking for the honey to be over the chai. Even if the RSI and Japanese candles in the oscillator are falling, however the honey is above the Chai, you are still in an uptrend. The positioning of the moving averages will always determine the direction of the overall price trend so in this position you're looking for long entries. take a long position as an entry when the open and the close of the Japanese candle in the oscillator is above your honey line. when you notice a bearish candle closing below the honey line in an uptrend position you can exit your trade. Confluence for short trades would be just the opposite and using the moving averages in an upside down pattern. In other words the honey needs to be below the chai and your Japanese candle needs to be closing bearish however they open and the close of that candle needs to be below both of your moving averages. exit when you get a bullish candle closing in between the averages. TRADING RANGES Wait for your moving average to enter into the range bound 60/40 area as well as your Japanese candles to Wick above and below this area but not close above and below the area. At this point you can mark off the high and the low of the range as it pertains to your price chart and start using your range trading strategy.
by CoffeeshopCrypto
4
Trade Analysis: $PEPEPEPE has had its short time in the spotlight after crashing 72% from its all-time high- which doesn't mean much for a coin that has only existed for a few weeks. But we're not going to get into the ethics of meme coins in this post, so we'll table that thought and let you wrestle with it. Our goal in this post is to help you understand how to use our "TBO" indicator to recognize where trends begin, signs of when it would be wise to take profits, glaring signs of bearish sentiment, and how to identify re-entry points. #1: "TBO" Open Long (green triangle) signals a confirmation of an uptrend, measuring 1275% from Open Long to all-time high. #2: on faster time frames (like the 4-hour), it's important to understand that faster doesn't equal stronger. In fact, it's the opposite when it comes to indicators. Longer time frames are stronger with indicators, but faster time frames give earlier warning signs and alerts. With that said, when the price is stuck sideways, eventually a red line from the "TBO" will be printed, indicating "TBO" Resistance. These can be considered early take profit warnings/suggestions. #3: whenever the price exits below the "TBO" Cloud, consider it strongly bearish. Usually these piercing events will be quick and fast, and bounce back into the "TBO" Cloud (as we see here on the chart. #4: the red X is the "TBO" Cross Down symbol, forewarning that a bearish cross to the down side could be coming soon (which was accurately indicated). #5: the pink triangle is the "TBO" Open Short, which confirms the bearish trend. Note that Open Longs and Open Shorts will typically be quite late to the trend. Their purpose isn't to give an early warning about a new trend, but to confirm the trend. #6: lastly, for those who are risk-averse, we can use the green "TBO" Support line to identify future support and areas where the price might bounce. While the price did bounce about 12% off the "TBO" Support line, we have to remember that the 4-hour time frame is fast, and therefore weak. We hope that this explanation of the "TBO" in action on PEPE will help some of you understand the power behind this seemingly simple indicator!
Short
by thebettertraders
HSY - Bull FlagHSY emerged from an 11-month sideway consolidation on 15th March and began a strong uptrend since. A bull flag is now apparent there could be opportunity to trade the breakup (if it materialises). However, the trend is rather extended at the moment hence it is prudent to trade a smaller size at this juncture. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:HSYLong
by Juliac
GOOG - Golden Cross in the horizon?GOOG hit into a long term support zone (83-85) on 3 Nov22 and began to form complex basing formation in the past 5 months (with some similarities to Wyckoff Accumulation Pattern). It now appears to be getting close to embarking on a more sustainable uptrend in the near future, perhaps Earnings expected on 24th of this month could be the catalyst? Signs favoring the beginning of a sustainable trend: 1. Stock is now above the 200 day MA that has begun to flatten out 2. recent pullback was shallow (38.2 % retraement of it's most recent AB swing) 3. which was also a retest of the 200 day MA and suggested this MA is likely now a near term support (100-102). It is now on the verge of retesting the high of 108.80 (the original breakup of the 200 day MA that subsequently failed) and the odds are getting better that it could break above within the next few days or week. Let's see if this works out! Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:GOOGLong
by Juliac
Unlocking the Power of Volume: Combining Volume with TAIn our previous blog posts, we explored the importance of volume analysis in understanding indicators that can be used for volume analysis. Today, we'll delve deeper into how combining volume analysis with technical analysis can provide valuable insights for traders and investors alike. We will do so by laying out a strategy that anyone can use that will utilize volume. The Significance of Volume in Technical Analysis We have previously discussed how volume plays a crucial role in technical analysis. It is essential to examine volume patterns alongside price action, as it helps traders determine liquidity and identify potential trading opportunities. When combined with technical indicators, volume offers a more comprehensive view of market activity and can enhance decision-making in trading. Indicators to Combine with Volume Analysis Here are some popular technical indicators that traders can use in conjunction with volume analysis: 1. Moving Averages Moving averages (MAs) are one of the most widely used technical indicators, as they help traders identify trends and potential support and resistance levels. The two most commonly used moving averages are simple moving averages (SMA) and exponential moving averages (EMA). We'll use a short-term EMA (e.g., 9-day EMA) and a long-term EMA (e.g., 21-day EMA) for a strategy later in this post. 2. Relative Strength Index (RSI) The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with readings below 30 indicating oversold conditions and readings above 70 indicating overbought conditions. The RSI can help traders identify potential trend reversals and entry/exit points. The Strategy That Incorporates Volume 1. Identify Trend Direction First, apply the 9-day EMA(shown in white) and the 21-day EMA(shown in purple) to your price chart. The trend direction is determined by the relationship between the two moving averages: Uptrend: The 9-day EMA is above the 21-day EMA Downtrend: The 9-day EMA is below the 21-day EMA Sideways: The moving averages are intertwined, with no clear direction 2. Confirm Trend Strength with RSI Apply the RSI to your chart, and use the 30 and 70 levels as reference points: For uptrends, look for the RSI to stay above 30 and preferably above 50. For downtrends, look for the RSI to stay below 70 and preferably below 50. 3. Analyze Trading Volume Compare the volume levels during the trend to the average volume over a specific period of your choosing using your desired volume indicator (see previous post on volume indicators). If the volume is above average during the trend or is rising, it confirms its strength. Conversely, a decreasing volume may signal a weakening trend or a potential reversal. 4. Entry and Exit Points Long Entry: In an uptrend, look for the RSI to pull back below 50, and then cross back above it. Confirm the entry with increasing trading volume. This indicates a potential buying opportunity. Short Entry: In a downtrend, look for the RSI to pull back above 50 and then cross back below it. Confirm the entry with increasing trading volume. This indicates a potential selling opportunity. Exit Points: Use the moving averages as trailing stop-loss levels. For long positions, exit when the 9-day EMA crosses below the 21-day EMA. For short positions, exit when the 9-day EMA crosses above the 21-day EMA. Practical Tips for Combining Volume with Technical Analysis Here are some practical tips for effectively integrating volume analysis with technical indicators: 1. Use Multiple Timeframes Analyze volume patterns and technical indicators across different timeframes to identify potential trends and reversals more accurately. We always recommend a top-down time frame approach, starting at higher time frames and working down to your desired time frame for entries. 2. Look for Volume Confirmation When a technical indicator signals a potential trading opportunity, confirm it with volume analysis to ensure the move is supported by strong market activity. 3. Monitor Divergences Divergences between volume and price action can signal potential trend reversals or continuations. Keep an eye on these discrepancies to make informed trading decisions. Conclusion: Combining volume analysis with technical indicators can help traders and investors make more informed decisions about market trends and potential trading opportunities. By understanding the relationship between volume and price action and incorporating this knowledge with technical analysis, traders can unlock powerful insights and enhance their overall trading strategy.
Education
by LeafAlgo
Trailing Stop Loss Explained Trading orders known as "trailing stops" enable investors to control their losses while also perhaps locking in profits as a deal goes in their favor. An instruction to sell a security after it reaches a specific price is the same as a conventional stop-loss order, which is identical to a trailing stop. A trailing stop, on the other hand, has an extra feature that enables it to move with the security's market price rather than being fixed at a particular price. The stop-loss order will be triggered at a certain percent or dollar amount below the current market price when an investor sets a trailing stop. The trailing stop "trails" behind the market price of the security as it increases, retaining the same percentage or amount below the current price. The trailing stop stays in place if the market price drops further until it is activated by the predetermined percentage or dollar amount below the new market price. An investor may be able to secure their gains on a profitable trade by employing a trailing stop, as well as reduce their losses on a losing investment. It can be particularly helpful for traders who want to let their profits grow but also want to make sure they don't give back a significant portion of their earnings if the market swings against them. Technical analysis, which involves utilizing charts and indicators to examine historical price and volume data in order to spot patterns and make trading choices, is frequently used in conjunction with trailing stops. Several of the following indicators can be used as trailing stops: 🔹Moving Averages: The average price of a security over a given time period is calculated using moving averages. The stop loss can be set at a certain percentage or dollar amount below the moving average by traders who want to utilize moving averages as a trailing stop. The stop loss will go up with the moving average as the price of the security increases, helping to lock in profits. 🔹Technical indication known as the Parabolic SAR (Stop and Reverse) can be used to set a trailing stop. Based on the trend, it produces points on a chart that show where the stop loss should be placed. The SAR points get closer to the price as the trend continues, which can help safeguard gains and reduce losses. 🔹A technical indicator that gauges a security's volatility is called the average true range (ATR). By multiplying the ATR by a specific multiple (such 2 or 3), subtracting the result from the current price, traders can utilize the ATR to set a trailing stop. This will establish a stop loss that is modified based on the volatility of the security, assisting in protecting profits and limiting losses. 🔹Bollinger Bands: Bollinger Bands are a technical indicator that consists of a moving average and two lines that are plotted two standard deviations away from the moving average. Traders can use the upper or lower band as a trailing stop, depending on whether they are long or short on the security. As the price moves in the desired direction, the stop loss will move along with the upper or lower band, helping to lock in profits.
PEPPERSTONE:XAUUSDEducation
by ChristopherDownie
Chebyshev vs. Butterworth Chebyshev vs. Butterworth Filters: Speed, Quality Factor, and Making the Right Choice Introduction: When it comes to selecting a filter for signal processing, Chebyshev and Butterworth filters are two of the most popular options. Both filters have their unique strengths and weaknesses, and choosing the right one can greatly impact the effectiveness of your signal processing. In this post, we'll explore why the Chebyshev filter is faster than the Butterworth filter and delve into the trade-offs associated with the quality factor of the Chebyshev filter. We'll also provide an explanation of the quality factor to help you make an informed decision. Quality Factor: A Brief Overview The quality factor, also known as the Q-factor, is a dimensionless parameter that represents the "sharpness" of a filter's frequency response. In other words, it measures how well a filter can separate signals with close frequencies. A higher Q-factor indicates a more selective filter, with a steeper roll-off between the passband and the stopband. A lower Q-factor, on the other hand, results in a smoother transition between the passband and the stopband. Chebyshev vs. Butterworth: Speed and Performance The Chebyshev filter is generally faster than the Butterworth filter due to its equiripple frequency response. This equiripple response allows the Chebyshev filter to achieve a steeper roll-off between the passband and the stopband with fewer filter coefficients. Consequently, the filter requires fewer calculations, resulting in faster signal processing. The Butterworth filter, in contrast, is characterized by a maximally flat frequency response in the passband, which results in a slower roll-off between the passband and the stopband. This means that more filter coefficients are required to achieve the desired level of attenuation, leading to slower signal processing. Trade-offs: Quality Factor and Filter Performance The primary trade-off between the Chebyshev and Butterworth filters lies in the balance between the quality factor and the filter's performance. The Chebyshev filter boasts a higher quality factor, which translates to a steeper roll-off and better selectivity. However, this comes at the expense of ripples in the frequency response, which can introduce distortion or signal artifacts. The Butterworth filter, with its maximally flat passband, provides a smoother frequency response with no ripples. This results in lower distortion and signal artifacts but a lower quality factor, which means the filter may struggle to separate closely spaced frequencies. Is the Trade-off Worth It? Deciding whether the trade-off between the quality factor and filter performance is worth it ultimately depends on your specific application and signal processing requirements. If your primary concern is speed and selectivity, the Chebyshev filter may be the better choice. Its higher quality factor and faster signal processing make it an excellent option for applications where steep roll-offs and rapid response times are critical. However, if minimizing signal distortion and artifacts is more important, the Butterworth filter may be more suitable. Its smooth, ripple-free frequency response ensures a cleaner output signal, even if it comes at the cost of a slower roll-off and reduced selectivity. Conclusion: When choosing between the Chebyshev and Butterworth filters, it's essential to consider the balance between speed, quality factor, and filter performance. The Chebyshev filter offers a faster response and a higher quality factor, making it ideal for applications where selectivity and rapid response are crucial. However, its equiripple frequency response can introduce distortion, which may not be suitable for all applications. On the other hand, the Butterworth filter provides a smoother, ripple-free frequency response, but with a lower quality factor and slower roll-off. Ultimately, selecting the right filter for your trading strategy depends on your specific needs and goals. In the world of trading, making timely and accurate decisions is crucial, and the filter you choose plays a significant role in achieving this. Carefully consider the trade-offs between the speed, quality factor, and filter performance when deciding between the Chebyshev and Butterworth filters. By understanding the strengths and weaknesses of each filter type, you can choose the one that best suits your trading requirements and achieve the desired results in your market analysis. Remember that the best filter choice might vary from one trading strategy to another, so always be prepared to reassess your decision based on the unique demands of each trading approach and market conditions.
Education
by The_Peaceful_Lizard
SKX - Cup & HandleSKX has trended above it's 200 day moving average since 11 Nov 2022 and began to consolidate in a mini cup pattern ("handle" if we look at the monthly timeframe) for the last 3 months. It has just broken above this mini cup neckline @ 49 strongly after earnings beat and is now heading towards a more significant neckline (54 - 56 zone). If it is able to break and stay above this major neckline, then there is room to go higher as it begin a new up trend. Ideally we would like to see a minor pullback shortly after the breakup to retest and affirm that the neckline has become the new support. However this may or may not happen and we should manage the trade with trailing stops (usually placed at near term pivot lows, gap fill or some fib levels). Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie postion sizing, stop loss etc) is important! Take care and Good Luck!
NYSE:SKXLong
by Juliac
A Post-event look at Daisin Retail Trust (CEDU)Based on simple TA indicators on Monthly Chart note : Monthly Chart can be seen as long term view, but may not as long as 5~10 years ba long long term 1. price chart 2. 20 month SMA, quite a long-term Moving Average to break or reverse 3. RSI, like price chart, using previous High/Low as resist/support and trendline to determine breakout/breakdown 4. Volume may be ignored if too many irregular high volume months seen (maybe due to married deal) 1st part: RSI falls below L1 in Aug 2019, falls below 20 SMA too which signal a bearish sign. Since this was found in monthly chart, we can assume that something went wrong. (a decision point where investors still consider to hold onto or trim their position) 2nd part: RSI further falls below 40 in Feb 2020, stock continues to trade below 20 SMA, somethings' getting more wrong than right (investors seriously consider to hold onto or trim position) 3rd part: RSI bouncing around level 40 to form a Triangle with leveled support. Hugh breakdown below support in Jun 2021 is the final warning that the stock is in trouble. By now, 20 SMA has been trending down for nearly two years! ( long term to break or reverse as mentioned above )
SGX:CEDU
by Qijun168
AMZN - inverted Head & ShouldersAMZN went through a complex Wckyoff Distribution that began from Sep2020, lasting more than a year before succumbing to the bear market of 2022. Finally in Dec 2022 it dipped into a long term support area (80-84) and began to find support. The recovery since then has been choppy and an inverted head and shoulders (bottoming) formation began to take shape in this process. Last Friday, AMZN finally broke above the neckline (zone 104-105.50) to close 106.96. Could this be another "false" breakup as it had happened earlier on 2nd Feb this year? We will not know for sure however the odds have improved with the formation of an inverted H&S formation (a bullish reversal pattern with good odds of success, though nothing is 100%). With earnings expected on the 27th Apr, there is some risk taking a position now. However any dip going forward might find support around 95-06 region and could be opportunity to accumulate. Let's see what happens after earnings! Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! "Let winners run and cut losses short". Take care and Good Luck!
NASDAQ:AMZNLong
by Juliac
3
ONON - Still TrendingONON exhited strong price action since it's gap up after it's last earnings call on 21 Mar23 (pullbacks not withstanding). Volume continued to be good for the past 4 weeks with relative strength (relative to SPX) continuing to improve. However one can consider to ride this stock managing with trailing stops (pivot lows, fib retracement levels, moving average etc) to see how far it can bring us. Earnings is expected on 5 May, if it continues to run up till then, there is a possibility it could sell off after announcement (even on good news). Hence do be mindful of volality around then.
NYSE:ONONLong
by Juliac
Dow Inc – DOW – Wait to step inLeft chart – daily chart / 1 year • Resistance from the price gap formed mid-January 2023 at USD 56.58/57.02 • Resistance from 76.4% Fibonacci Retracement at USD 56.64 • Support from the price gap formed mid-November 2022 at USD 50.02/50.90 • It looks like that the MACD-Line is crossing the Signal line from the top to the bottom • If there is another negative day, the share price will cross the 100-day MA Right chart – weekly chart / since inception • Resistance from the price gap formed June 2022 at USD 60.58/61.86 • Resistance from the 100-week MA This doesn’t look like an entry point. The stock is trading between the price gaps from the short-term chart (left chart). The financial are coming out in 2 days. I would wait to invest and see an entry point at around USD 50.00
NYSE:DOWShort
by Oliver-Basel
DKNG - breaking out form base DKNG has been forming a (double dip) base for almost a year now, ticking off a number of criteria that could increase it's odds of being a successful medium term trade going forward: 1. Series of higher hi's (HH) and higher lo's (HL) since hitting the low on 28 Dec2022. 2 Golden cross on 28 Feb2022 3. It's 200 day MA has begun to turn up 4. Every dip (since hitting the low in Dec) did not violate it's 50 day moving average, signs of strength. It just broke above the base formation neckline (on average volume however) last Friday. It is possible for it to slip back below this neckline in the near term. I will be interested to stake any dips going forward (provided the dip is within 50% fib retracement of it's most recent mini upswing). Earnings is expected on 5 May hence do be mindful of volatility around then. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:DKNGLong
by Juliac
2
NFLX - uptrend NFLX fell 77% from it's peak before finding bottom @ 162.71 on 12 May 2022. It began to trade sideways for the next few months until it propelled out of this range on 20 July after earnings beat. After this, it again traded sideways in this new higher range for the next 3 months until another earnings beat on 19 October that finally propelled it above a rather significant neckline @ 251. 1 week+ after the breakup. it began a steep pullback that brought it all the way back to the neckline before rebounding strongly from there. By now, it is clear that NFLX has turned the corner and is in fact now above it's 200 day MA (potential Golden Cross on the horizon). Buy the dips going forward and trail protective stops up accordingly. Expect some resistence as it approach a major gap fill @322 area. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:NFLXLong
by Juliac