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Moving Averages

Heiken Ashi Algo and the Mass Effect Moving Average: Almost HereWell ladies and gentlemen I think I have created a monster and I'm really happy to call it the heiken Ashi algo and the Mass Effect moving average combination. Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you. So what is the heiken Ashi algo oscillator? it is an oscillator much like the original heikin-ashi RSI with a ton more features. As you know a little while ago I came out with the CoffeeShop Crypto HARSI, Update to the original HARSI. And as development on that oscillator continued I had to change the name to the algo because now the oscillator actually speaks to you while trading is taking place. But as you know you should never use a single indicator by itself to enter and exit trades and understand what's happening on your chart. you should always use something as a secondary Confluence or even a tertiary confluence. Because the more confluences you have the better right? So with that I continued development on the Mass Effect moving average and you can use them beautifully in combination. In this video I don't want to get into the technical Aspect of all the details on how the oscillator and the moving average work but I do want to show you the parts that have been developed and what they mean. feel free to leave your suggestions below and I will make adjustments if needed. I'm probably going to need one more week before fully releasing both of these together and until then I'd love to communicate with you on anything to make it more fluid. With that let's take a look at my chart and see the breakdown. The Heiken Ashi Algo Double Stochastic - Uses a mean regression calculation for pullback notifications but it also adds support to knowing when a trend is in full swing. This happens when you see both stochastic ribbons touch each other while they are the same color Green touching green is a move to the upside. It matters most When it's above or below the 50 level. the other thing you can see here is when they touch and when they touch again as the same color is a clear sign of a Divergence. IBXL - Inside Bar Calculation. This will be moved to the Mass Effect MA as well Resistance / Support / are dynamic levels which change over time Bull Key level - Are Significant price or Price action levels which almost never change over longer periods of time. when I get a key level alert I Market on my chart with a thick line and I lock it in place. These are the major areas of supply and demand Zone on your chart and you want to watch them closely when price gets near these levels Pull Back - Helps you draw out targets to your trend lines. Now let's talk real quick about the mass effect moving average and what it will include. this uses a mean regression strategy so that you can swing trade- And get your confluences of when prices going to move up or down so doesn't matter if you are in an uptrend or a downtrend . Stop lost Trend color - Is this really a stop loss line which will follow your price action and depending on its color will tell you if you should be using a stop loss of a guy or a stop loss of a sell. Obviously if it's red you should be selling and if it's green you should be buying. do not use it incorrectly. Just because it changes to Green doesn't mean you by and just because it changes to Red doesn't mean you cell. It only means you are in an area where you should be buying or selling. The EMA's - it includes four different exponential moving averages which you can set appropriately to your style. The VWAP - Included in this is a VWAP Moving average. Even though the VWAP is used as a moving average against the RSI in the oscillator below, I included the VWAP in the Mass Effect moving average because once you switch to a daily chart The VWAP in the oscillator disappears but you can still have it on your chart in the Mass Effect moving average. So switching to a daily chart you will still be able to see your VWAP. The V-CROSS - This indication shows up so that you can see when the V WAP is crossing over your price level. This helps you know from point to point if you are above or below a support or resistance level and where is your price in relation to your VWAP. This will also help you notice when price is overbought or oversold. Fractals - Show you pivot points in market structure. I use them to find exit points for trades when there is no immediate swing low or high to be seen. Usually i look further left and use one of these points to exit. But they have even more application which I'll get into in another video. The Trend Ribbon - Is a bullish and or bearish colored ribbon to show you the trend that works in Confluence with your stop loss line which also changes from red to Green. when they are both the same color you are in a trend in that direction of up or down. The good thing about the trend ribbon is it's always seeking the same level as the VWAP and when it finally catches up to it that's when the trend usually goes flat and then reverses.
Education
by CoffeeshopCrypto
29
SK Chart OverlaySK Chart Overlay by Stephen Kalayjian and TradeEZ is advertised as a "cutting edge proprietary chart overlay, with built-in predictive analytics for trading" . The same set of indicators and similar chart setups were used by Stephen Kalayjian in his previous failed projects KnowVera and Ticker Tocker . A closer look into these projects reveals that these indicators are just rebranded well known indicators with a little bit of lipstick. Trade EZ MA - Welles MA (10) / EMA (19) Trade EZ 1 - MACD(12, 26, 9) Trade EZ 2 - DMI (14, 14) Trade EZ 3 - Stochastic (5, 3, 3) Trade EZ 4 - ATR Supertrend (52, 2.5) + Welles MA (5) / EMA (9) - previously known as KnowVera Trend Channel and later Ticker Tocker Trend Channel Chart setup is available at www.tradingview.com
CME_MINI:ES1!Education
by fktrdr
9
Everything I've learned about the RSI BINANCE:BTCUSDT In this post, I'll make an attempt to share everything I've learned over the Relative Strength Index (RSI) Over the past 24 months. Nothing described in this post is financial advice, it's just me, sharing thoughts and ideas with you. nb: this post is more suited for traders and investors that are already educated about the RSI Indicators. A brief introduction about the indicator itself : The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate whether it's better to buy, sell, or wait. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The RSI is probably the most used oscillator in finance nowadays, by both retail traders and institutions, hence meaning that when used well , it can be used as a great edge to profitability. RSI popular uses : - An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. - The RSI can give us insights on a potential trend's loss of momentum or validity when the price pivots levels are diverging with the RSI indicator (hidden and regular divergences) - The most popular RSI length is 14 periods. My findings 1. Overbought and oversold: myth or reality? RSI's 30 and 70 levels never proved themselves to be a strong enough edge for me to be used as a standalone signal for trade entries. As an example, just look at the irregularity of the results you would get when using just these zones : My take on it is that as a price oscillator when it crosses into extremes, it simply means price momentum is at extreme levels. To me it's basically like a mountain cyclist in the middle of a race: he might very well go faster and higher, however, the quicker and higher he goes the more unlikely he is to keep up with that speed. Eventually, he might either decrease its speed or even go backward. What does this tell us ? The RSI 30 and 70 levels seem to be better used when used as timing indicators. For example, the 70 and 30 levels could be used as a filter for a trader to eliminate market noise when using a trend reversal strategy (mean-reversion). For trend traders, the levels could be used to timing signals where they'll start looking for price to do a pullback (consolidation) to get in the trend. My experience using the 30 and 70 levels as exit signals however has been better (when it comes to using it as the only signal for a trade exit). Say you are long on BTCUSD, in profit, and you get an RSI closure above 70. Well, in that case, you could exit 50% of your position and wait for the oscillator to cross down the 70 levels to exit the rest (as the overbought and oversold zones are rarely a defining factor for trend reversals and corrections). 2. Divergences in the overbought and oversold zones : The lower the time frame you are trading on is, the higher the noise when it comes to divergences, especially with volatile assets such as BTCUSD. So you might want to filter out most of the ones you see to only take the best ones. On the 15M and 5M timeframes, on BTCUSD, I find that on average about 1/3 of the divergences I see play out. However, we are not expected to take every divergence we see. Here's what has helped me get better results with divergences : - When approaching supply and demand zones, especially the higher timeframe ones, we might want to be more aggressive with the divergences we enter into. As the hit rate is not always amazing, the R:R is usually much better, and if the trade works out, it might give you great results which accounts for the low win rate. - If you want to increase your win rate, I also find that going for higher timeframes is usually better when it comes to divergences. - Take only divergences where RSI divergence's first pivot point is over 70 or under 30. Ideally, you don't want the noise to go below 60, or above 40, so that your trade has the necessary momentum to play out. - For extra confirmation, wait for a break of the noise level to enter the trade. - Regular and hidden divergences play hand in hand creating a form of momentum equilibrium. Hidden divergences always create regular divergences and vice versa. Hence a hidden divergence can be considered an early pullback warning to get in a bigger-picture trend. - Regular divergences tend to play out better than hidden divergences. This is especially true when the volume is decreasing, or after a longer period of consolidation when volatility has been contracting and might be about to expand soon. - Regular divergences in strong trends can be both a disaster and a treat. "The trend is your friend". This saying is especially true here. However, 2-3 drives of regular divergences are a great indication of a potential reversal, with enough confirmation factors to produce (often time) a great entry. - The angle of the trend line between divergences pivot points, both on the price chart and the RSI, can be a good indication of the severity of the divergence occurring. - The ideal lookback period for detecting divergences for me has proved to be between 5 and 28 bars. (Below 5 bars is not enough to confirm a true pivot point for me and above 28 bars has probably already played out in past price movements). - Like all edges, using a divergence strategy always produces better results when used in confluence with other signals. I find the best confluences happen when divergences occur: alongside a stochastic cross, near medium-slow moving averages, near horizontal supply and demand zones, alongside volatility expansion, when the volume is decreasing (meaning market makes are in disagreement with the move occurring), near Bollinger bands 2.5 to 3 standard deviations (period 20). - Convergence between your timeframes and higher timeframes is key to understanding how to better choose your trades. Try to play the big divergences but enter smaller timeframes divergences. - When you lose a divergence trade, don't get disappointed. Jump back in because often time, and price will need to do several divergences before getting in your desired direction (however, be careful not to jump in tilt mod. Know your win rate and R:R and keep your money management serious. You'll get blown out if you start tilting on this, especially if you trade reversals with divergences, as it's difficult to get the right timing every time). 3. RSI as a trend filter? - I've found that in trending markets, when RSI's Exponential Moving Average (EMA) crosses above the 50 line, it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - I've found that in trending markets when the RSI line crosses above the EMA (I use a 12 period), it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - As an indication of the trend's direction, I don't find any value in using bullish and bearish control zones. The only use I can find them is when using them for divergence levels filters. This is the end of the first post of this 2 parts series. There's just so much more you can discover about this indicator that it simply cannot be constricted to a few lines of writing. However, you are welcome to take a few of my findings and go test them out using replay and backtesting. See for yourself, and find your balance. Most of my learnings have been made through screentime, trial, and error, backtesting, mistakes, and research. Have a good day, Arthur Girard
Education
by arthurgirard15
HOW TO USE TECHNICAL INDICATORS TO MAKE PROFITS IN TRADING Always combine technical analysis with fundamental analysis Successful traders always combine the two types of analysis. This is because technical analysis tends to focus on the past events and fundamental analysis focuses on the present and future issues. In addition, there are certain situations where technical analysis will not provide adequate solutions. For instance, technical indicators are not programmed to predict the outcome. In such situations, it is important to rely on fundamental analysis and avoid the market because no one knows the exact number and how the market will react. Understand the indicators It is also important to understand the indicators to use. Different one have different ways of analysis. It is important for you to take time to learn these indicators and how they should set up. There are many learning materials which one can use to learn how the indicators work. I recommend that you take at least 2 months to learn the indicators using a demo account before using real money. Use Few Indicators As stated before, many traders make the sad mistake of using very many indicators at a go. Always remember that two is a company, three is a crowd. Traders who use more than two indicators at a go make mistakes because of poor visibility and poor market data interpretation. Therefore, I recommend that you use at most 2 indicators per trade. Patience In day trading, patience is an important aspect without which no trader can make it. In fact, some indicators are usually require more time before their predictions can come true. Following these tips, your indicator-trading will go to the next level. Do you agree with all these tips? Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
11
It’s trading wheaty (pretty) high now...Continuing the topic of spreads between related commodities, the Hard Red Winter Wheat – Soft Red Winter Wheat spread is another one trading at an extreme level now. A brief explanation on the different types of wheat we are referring to here: 1) The Hard Red Winter Wheat (HRW) is the most widely grown class of wheat. A high protein product, used for breads, some types of Asian noodles and general-purpose flour. 2) The Soft Red Winter Wheat (SRW) is the third largest class of wheat variety grown in the US, lower protein wheat used in producing confectionary products such as cookies, crackers, and other bread products. Generally, the HRW Wheat Futures (KE) trades at a premium to the SRW Wheat Futures (ZW) due to the higher protein content, however other factors such as production levels and supply demand dynamics may disrupt this spread, as seen from the wide range it has been trading since 1977. Currently, this spread is trading close to 132 cents, with only one instance where it has traded higher, which was in March 2011 when this spread reached an all-time high of 164. We attribute the spread trading at a high now due to the following 2 reasons: 1) The 2022 HRW production is currently the lowest on record since 1963, due to widespread droughts across many of the HRW production regions. 2) The average protein content of the 2022 yield is higher than last year, as well as the average of the past 5 years, resulting in a higher quality crop. As a result, HRW is trading at a premium as supply shortage and a higher quality product pushes the price higher, while SRW sees average production and quality. While it is challenging to assess the production levels and quality for the next season, from a risk reward perspective, we see an opportunity here. The past few spread peaks have been clearly marked out by Relative Strength Index (RSI) pointing oversold. With the 10-year average for the spread at 6.3 cents and the RSI now oversold, we lean bearish on the spread. Referencing the average of the past 3 declines at 150 cents and lasting 511 days, we could set out trade levels. If the historical pattern holds this time, a conservative target of 120 cents and a trade length of 500 days points us to the 15-cent level. We see the current set-up as an opportunistic one, with similar episodes in the past pointing lower. CME also has the synthetic KC HRW Wheat-Wheat Intercommodity Spread, which can be used to express the same view and is financially settled. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. Sources: www.uswheat.org www.cmegroup.com www.cmegroup.com www.usda.gov
CBOT:KE1!Education
by inspirante
14
RSI Supertrend Moving average in Heiken Ashi Algo OscillatorDownload this Oscillator Free: My Tradingview Profile: www.tradingview.com Welcome to the coffee shop everyone this is your host and baristo Eric, You know what we do around here so pull up a seat at the table and get ready for your caffeine overdose . I am happy to say that as of today we are at the final stage of development basically on The Heiken Ashi Algo Oscillator. It has proven to be a very powerful tool, very popular,, and very easy to use. up until now I have basically been showing you what all the parts do and what they mean because I figure you can't necessarily use a tool unless you know what it's settings are for. NOTE ABOUT SUBTITLES: I really believe that this new update will be a scalper's wet dream when it comes to being able to sit there and stare at your chart watching the oscillator and waiting for a break in the trend so that you can stay in your trade or you can exit your trade. That being said this being the final development that needed to be done with this oscillator, any videos that you see related to the algo from me are going to be strategy videos. So let's get into the final change that I have just made and uploaded to Tradingview. The final change as of right now is that the RSI Moving Average is now a colored line. It appears red when your average on your RSI is trending down (lower values) , and green when it is trending up (higher values). It also takes into consideration the momentum of the trend so it will not effectively change colors until the previous momentum is lost and volume has changed enough to the opposing side. For example you could have heiken Ashi candles traveling flat on your RSI but you're RSI moving average is still red. It will not change to green until the momentum starts moving the opposite way. So not only will you know that the previous momentum is lost but you will also know when it changes direction. As you know in the previous update to the RSI and the RSI moving average have a trend Cloud that appears behind it which switches from red to Green evenly. However there is a third black color that appears from time to time in that Trend cloud. This black color means a loss of momentum. Trend Cloud Meaning: Trend Cloud (Black) = No Momentum and Volume Trend Cloud (Green) = Bullish Momentum and Volume Trend Cloud (Red) = Bearish Momentum and Volume Price will run flat if: If the Trend cloud is Back, while the RSI Moving Average is green, you have lost momentum to the upside. If the Trend cloud is Black, while the RSI Moving Average is Red, you have lost momentum to the down side Trend is changing direction If: Trend cloud was one color but slowly blended to opposite color without changing into a back color. Now with the RSI, moving average being able to switch between colors you can tell when the new trend has started or the old trend has restarted because, just because there was a loss in momentum of the previous Trend doesn't mean it's just going to switch the other way and it doesn't mean that it's going to continue the same way however the moving average will tell you what it's doing along with the trend cloud. If you were previously in an uptrend and then you get a black cloud Showing behind your candles you know that you have a loss in momentum. If you look at your moving average, you will see that it will switch to the opposing color however if it then switches back to the original color then all you had was a pause in your Trend and is going to continue the same way it was going before. Iif the moving average has switched colors when the trend Cloud went to Black and the moving average stays that second color you know that your trend has changed Direction. The RSI Formula explained: Trading Like the Banks Do: Trading Trendlines: Using Support and Resistance Alerts to draw trendlines Range Trading with the Heiken Ashi Algo Setting Alerts on the Heiken Ashi Algo Oscillator
Education
by CoffeeshopCrypto
5
RSI Trend Strategy GuidelinesThe RSI is a versatile indicator, and can be used to provide entry signals during a trend. To get the signals a moving average is applied to the RSI. 1. Trades are only taken in the direction of the trend. For an uptrend only take longs. For a downtrend only take shorts (puts). 2. During a downtrend the RSI must move above 60 to indicate a pullback. When the RSI crosses back below its moving average (can be at any number, just as long as the RSI is or was above 60 recently) go short. 3. During an uptrend the RSI must move below 40 to indicate a pullback. When the RSI crosses back above its moving average (can be at any number, just as long as the RSI is or was below 40 recently) go long. 4. Give the price at least two or three bars (whatever time frame you are trading on) or more before considering an exit. This gives the price some time to move in your favor.
BINANCE:ETHUSD.PEducation
by yaser_rahmati
Setting Support and resistance levels using the CSC-HARSI 2022Watch the video to get FULL details and listen to some commentary. Always feel free to ask questions below. I love talking with you guys. Here is how we do it: Set your RSI and VWAP as its Moving average in the CSC-HARSI The lower the RSI setting, the more S/R levels you'll find. So don't set your RSI to a low setting on a large timeframe chart. For example: Dont set your RSI to 9 on a 1hr chart. Commonly I trade off of breaks of the 50 period EMA on my chart so i set my RSI to 50 and my chart to 1hr. 1. Setup your RSI to a 50 period length with source as CLOSE 2. RSI MA Settings: Set this to the VWAP (NOTE you can not change the RSI MA length if you set it for VWAP as it is now LOCKED to the RSI length) 3. Look for places on your CSC HARSI where the RSI and VWAP close at exactly the same level. 4. The close must results in a crossover and NOT a bounce. 5. If the Heiken Ashi close was a bullish candle, you mark a horizontal line on your chart ABOVE the candle 5a. If the Heiken Ashi close was a bearish candle, you mark a horizontal line on your chart BELOW the candle.
Education
by CoffeeshopCrypto
1
RSI Overbought & Oversold Strategy What Is the Relative Strength Index (RSI)? 1. The relative strength index (RSI) is a popular momentum oscillator introduced in 1978. 2. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. 3. An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. 4. The RSI line crossing below the overbought line or above the oversold line is often seen by traders as a signal to buy or sell. 5. The RSI works best in trading ranges rather than trending markets.
BINANCE:ETHUSD.PEducation
by yaser_rahmati
Golden Cross GOLDEN CROSS 1. A golden cross occurs when a faster-moving average crosses a slower moving average. 2. Specifically, you need the 50-period and 200-period simple moving averages. 3. Anything other than these two periods and it is not a true golden cross. 4. The golden cross is a powerful trade signal, but this does not mean you should buy every cross of the 50-period moving average and the 200. 5. You will need to bring a higher level of sophistication to the setup, to ensure you are buying into a trade with real opportunity. THE THREE STAGES OF A GOLDEN CROSS 1. As the downtrend in the stock market ends, the short-term 50-day moving average moves below the 200- day moving average. 2. In a crossover, when a stock recovers, the short-term moving average crosses over the long-term moving average. That’s where the term golden cross comes from, when the two average lines cross on a chart. 3. In a crossover, when a stock recovers, the short-term moving average crosses over the long-term moving average. That’s where the term golden cross comes from, when the two average lines cross on a chart. THE THREE STAGES OF A GOLDEN CROSSPROFIT POTENTIAL OF THE GOLDEN CROSS PATTERN A. DEATH CROSS 1. One option is to wait for a cross of the 50 back below the 200 as another selling opportunity. 2. The only issue with this approach is you are likely to give back a sizeable portion of your profits since moving averages are a lagging indicator. B. PRIOR SUPPORT 1. What you can also do is look for areas of resistance overhead which will act as selling opportunities for longs that have been holding the stock for a long period of time. 2. A caveat to this strategy is that the stock may consolidate and push higher. C. TRENDLINE BREAK 1. If the golden cross is real, the signal will likely generate a strong buying opportunity. 2. You can then use the first couple of reactionary lows to create an uptrend line. 3. You then hold the stock until this trendline is broken.
Education
by yaser_rahmati
50 Day Moving Average Strategy TRADE ENTRY 1. To enter a 50-day moving average trade, you should wait for a breakout. 2. Whenever the price breaks the 50-day SMA, you should open a trade in the direction of the breakout. 3. In most cases, the price action will continue in the direction of the breakout. STOP LOSS 1. If the price breaks the 50 SMA upwards, we need to go long, placing a stop below a bottom prior to the breakout. The opposite is true for bearish trades. 2. If the price breaks the 50 SMA downwards, we need to short the stock placing a stop below the bottom prior to the breakout. PROFIT TARGETS 1. Hold your trades until the price action breaks your 50-day moving average in the direction opposite to your trade. 2. If you are long, you close the trade when the price breaks the 50-day SMA downwards. 3. If you are short, you close the trade when the price breaks the 50-day SMA upwards. CONCLUSION 1. Stock price above the 50-day moving average is usually considered bullish. 2. Stock price below the 50-day moving average is usually considered bearish. 3. If the price meets the 50 day SMA as support and bounces upwards, consider a long entry. 4. Stock price meets the 50-day SMA as resistance and bounces downwards, consider a short entry. 5. If the price breaks the 50-day SMA downwards, you should switch your opinion to bearish. 6. If the price breaks the 50-day SMA upward, you should switch your opinion to bullish.
BINANCE:ETHUSD.PEducation
by yaser_rahmati
1
An Idiot's Guide to EURUSD: 5 Steps to Success 💲💲💲Synopsis If you trade Forex then you know the weekends are the best time to analyse the market. Everybody likes to talk about how volatile EURUSD is, but what they don't tell you is that the market is ranging a good 80%-90% of the time; good deals do NOT last long. In fact, half of a days price movement can play out in 15-45 minutes, It's that fast. The best entries are usually snatched up in a matter of minutes, meaning that slow momentum oscillators and lagging trend following indicators don't perform well in these conditions. EURUSD in my opinion trades a lot like CL (crude WTI), where trading decisions need to be made while volatility is low to mitigate risk. Translation: if you can't win in a range, you're going to blow your account in this market, trust me. I see so many people on here setting targets 2-3 times the daily atr with the expectation that they'll be paid by the end of the day or the next day. Don't do that, please. It's not a sprint, it's a marathon. Long term gains depend on practical consistent returns, not 10:1 RRs. It's actually a lot more realistic to take ZERO to two 20-40 pip trades per day. Over the course of a week it adds up. The chart: This week we came off of a really strong bullish surge away from parity, and the market then did what it does best, range. And the way that prices are moving right now is just classic EURUSD, I love it...I get so nostalgic, because ranges like these are how I learned to trade; the way that the market recycles over and over makes it so fun to trade, it never gets stale. Since it's the weekend and the markets are closed, I wanted to take this opportunity to share with anyone who might be wondering what it's like to day trade this market. How to trade ranges: Step 1: Find your levels... The easiest way is to map out support and resistance zones. On the chart, I use my own variation of the Williams fractals indicator (I call them Neo fractals 😎) for every prominent swing high or swing low, the indicator draws a horizontal ray from the highest, lowest close and projects it out into the future. You can see the spots where lines start stacking up in a certain price range act as stronger support or resistance than the areas with only one dotted line. It only takes about 5-10 minutes per day to do this by hand though, so an indicator definitely isn't necessary. It's really important to be able to eyeball pivot points yourself anyways. Step 2: Determine market phase... After you've mapped everything out, it becomes a lot clearer what's happening in the market, and if the market is ranging or trending. If the market's ranging, you will see far more s/r lines on your chart especially once you start seeing s/r lines stacking up close to one another. A clear giveaway that the market is ranging is when price makes strong moves in one direction, only to return back from where it came, later in the day. Once you've determined what phase of the market you're even closer to spotting high quality trades. Step 3: The next step is to find areas of value... In general you want to find the areas within the range which provide the most exclusive prices, And steer away from price ranges that hold 80-90% of the activity on the cart. Being 5-10 pips in profit before a big move will completely change the way you feel about a trade when it starts to go against you (plenty winning trades will go against you, especially if you're trading reversals). On the chart you can see that the supply and demand zones only produced 2-4 trades this week, but all of them were for over 50 pips. These aren't the only trades you can take, but they're definitely the highest RR trades, you can get in a ranging market. Step 4: What for confirmation... There are so many ways to confirm a move, but my favorite for this market is a phenomena that I like to call a spike. (There's probably an actual name for it, but I'm self taught so I just make stuff up as I go 😅) Find a hammer or star candle on a higher chart like the daily or 4hr and it look at that time period again on a lower timeframe, what you'll see is that the hammer or star is actually just a large price movement in one direction followed by an equally large movement in the other direction. What might appear as a spike on a lower timeframe will appear as a hammer or star on a higher time frame, and the larger and longer the chart pattern takes to complete, the larger and longer the move will be in the opposite direction. These are the Rolls Royce of signals. When you realize that a head and shoulders pattern is really just a series of spikes, it will completely change the way that you trade. In my experience, trading price spikes alone out performs every other chart pattern there is, because most candlestick and chart patterns are made up of a series of spikes anyways. Most consolidation periods end in a large spike followed by a 1-200 pip surge in the opposite direction. They appear most often on higher timeframes as hammers and stars, or large engulfment. but on the lower time frames you can watch these things play out over 5 ,10 or even 100 periods sometimes. The key is to have very strict rules for what you consider a spike to be, how many pips? What kind of ratio are you looking for? is it happening in an area of value? etc. Step 5: The range leads to the trend... The reason that trend following strategies under perform in this market is because strong trends don't last long on EU AND getting good value is insanely competitive. The key is to spot these trends early, you have to be looking when nobody else is looking. That means waking up earlier than everyone else and having a plan in place before the move happens...Not seeing a big candle and just hopping in. I try to have a daily strategy in place before the Asian session ends, that way, I''m ready for London and NY. I live in the US, so that means I'm waking up everyday around midnight to 1 in the morning. But most of the time, if my trade starts well, I go back to bed and check back in around 7. If you want to trade EURUSD, that's what it takes though. There might have to be lifestyle changes that you have to make (especially for North and South American traders) in order to really commit yourself to this market and give your trading it the attention that it needs.
Education
by NeoDaNomad
What is a moving average and do they work?Moving average is an average of price closes over a certain amount of time, so at a base level they rise when price rises and fall when price falls, so why are they important? Because they give you a sense of the average direction of price over a certain amount of time, if you take the chart at face value you are not even witnessing one price close at that specific moment in time! unless you are then well done you lol, so the moving average is giving us data of maybe 89 or 50 or 200 ect, this overall analysis of the trend can defiantly aid your decision making, for example if you use two moving averages like the ma8 and ma89, what we can look at is the moving average MA8 reverting back to test the baseline which is the MA89 in this example, so price is now attempting to some extent to change trend, if it breaks lower than the baseline the line will start falling! MA89 will start declining as negative closes come in and alter the formula, that is why these areas can offer great buying opportunities or selling depending which side of the baseline you are, Price will test the baseline and bounce in strong trends before price will eventually break the baseline down the line. I will follow this post up with a post on moving averages being used on indicators now we have the first bit out the way.
Education
by ZenFlo
6
How to use EMA8 and EMA89 in your trading.Here I have shown how the EMA8 and EMA89 can lead to good results by using the EMA89 as a baseline and applying the rule, buys above the average and sells below. To find entries look for pullbacks to the average of breakdown and breakout of order blocks, things like inside bar to find momentum should also find results, you could experiment with oscillators in order to find these pullbacks easier. However most of the entries will usually give some good price action and this is important to keep an eye when using this strategy, you want likely reversals so use candles to enter that typically have a higher % chance of changing direction, things like engulfing candles and pinbars, not only will this keep the risk low, it will enable better rewards and consistency. Hope someone out there can find some use of this post :)
Education
by ZenFlo
Moving Average | Not Always a Profitable Ways to Use 📊I have seen multiple post including some educational ones focusing or showing how to use the Moving Average (MA) as a sell or buy signal. Here, we have one of the many examples of why it can be dangerous to use a single tool as a "buy" or "sell" signal, especially when that tool is a technical analysis tool. I'm sure there are plenty of example of consistent trading opportunities using just a MA, but the reality is that if you want to be a decent trader, a single tool is not a good indicator of buy/sell signals. Open to hearing everyone's opinion.
NASDAQ:TSLAEducation
by theicetree
4
Moving Average | Two Profitable Ways to Use 📊 Hey traders, In this post, we will discuss two efficient ways to apply the moving average(s) indicator in your trading. Please, note that the settings for a moving average depend on many factors and can not be universal. Time frame, your style of trading and many other factors should be taken into consideration when you define the settings. 1️⃣The first very efficient way to apply moving average is to consider that to be a strong support/resistance. Such a method is appropriate for trend-following traders. A very important condition to note applying MA as the structure is that the market should be trending: it should trade in a bullish or bearish trend, not in sideways. 📍In a bullish trend, a moving average will provide you a relatively safe point for buying the market after a pullback. Quite often after a test of MA, the price tends to bounce all the way up to a current high and even go higher to the next highs. 📍In a bearish trend, a moving average will serve as a strong resistance and quite often will indicate a completion point of a retracement leg after a strong bearish impulse. 2️⃣The second way to apply moving average is to apply a combination of 2 MAs with different settings (one with a bigger and one with a smaller length). Such a method is usually applied by counter-trend traders. And again, a very important condition to note, is that if you want to apply this method efficiently, remember that the market must be trending, it should be bullish or bearish. Your task will be to track an intersection of two MAs. 📍In a bullish trend, a crossing of two moving averages with a high probability will indicate a trend violation and initiation of a new bearish trend. Such a signal usually serves as a trigger to open a short position. 📍In a bearish trend, a crossing of two moving averages will signify a violation of a bearish trend and the start of a new bullish trend. The intersection by itself will be a signal to open a long position. Your task as a trader is to find the most accurate inputs for MAs. With backtesting and experience, you will find the settings applicable to your trading style. What indicator do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
95
1977 Interactive Double Zigzag Elliott Wave TheoryS&P 500 Index (SPX) Trying to dive into some Elliott wave theory and I have a more "interactive" chart to present based off of historical data. I chose this sequence and timeframe because it seems easiest to understand with confirmed examples from some of my own reading materials. This was notated by previously known EWT masters to be a "Double Zigzag" corrective wave, in a bull market. I have taken the time to attempt to notate the subdivisions more clearly. This may not be perfect, but it is the best I can provide of a learning resource at this moment from my current understanding of EWT. The wave degrees may be slightly wrong but I think the wave count is technically correct as long as the first wave C of the first move down is actually some sort of diagonal. I also speculated that it could be a triple-three but I think a diagonal impulse makes more sense in that phase of wave C. Thanks for checking it out! Follow for more EWT ideas! My Elliott wave analyses could be wrong at any moment , this is practice solely for educational purposes. Please do your own research as always! Thanks for tuning in :) Disclaimer, anyone in the trade needs to do their own due diligence and decide what is right for YOU. My charts can be wrong at any time and it's very important that you have your own strategies and plans in place. I run this channel for my own educational purposes of learning to trade, and I will never be 100% right, so please do not let me confirm any bias for you! (Dangerous to do so, stay safe and remember the basics & rules of risk assessment.) Expect the unexpected and happy trading!
TVC:SPXEducation
by Hambooger
Trading SetupHi traders in this post would like to share a trade setup i use for a while. first - supertrand indicator second - 20-50-200 sma indicator for supertrand - click on indicators and search for supertrend - choose the 3rd 1 from the list u see. change settings to - atr period - 5 source - hlcc4 - and atr multiplier - 1 now u have a system which will print out buy / sell signals. combined with 20-50-200 sma - i take a position when price cross the 20 sma. look @ the examples - sell signal + cross the 20ma test it @ home :) ##this is not investing advise## hope you find it usufull ... good luck
NYSE:ZIMEducation
by DaxiDriver
3
How to trade by using EMA Ribbon ?Hello traders 🐺 . this is an educational idea and it's about the EMA Ribbon . In this idea I want to talk about how to using EMA Ribbon in trading so make sure to read this idea until to the end if you are one of the Moving averages fans . I like to start with an example of trading by using the EMA Ribbon , then I explain more about the EMA Ribbon and how it's work : in the chart above we have 3 different examples of trading by using the EMA Ribbon ; as you can see in the chart above , we have 3 different pattern and the last one which is the symmetrical triangle is actually the current pattern of the BTC and I want to ask you about your prediction for it so leaves your comments below this idea and share your view about the BTC , after learning of how we can trade or in the other words how we can use the EMA Ribbon in our trading . let's start with the ( first example ) : my first example is rising wedge pattern , I try to cover all 3 types of the market conditions in this idea , because it's important to learn to trade in the any direction ; the first example is a bearish pattern : As you can see in the chart above , BTC price after creating the rising wedge pattern started a very long down trend , by how we can trade it ? if you look at the chart you will notify that the every line of the EMA Ribbon acts as a support or a resistance and the more deeps price can penetrate to the Ribbon , the chance of the reversal is higher . For example , look at the rising wedge , during the pattern when the EMA Ribbon was in the bullish mode or in the other word , when short term EMA is above the long term EMA , when price finally success to penetrate to the last line of the EMAs which is the long term EMA ; price was faced to the more stronger support and this is shows us that if price can break below the all of the EMAs , there is strong chance for the changing the trend . but finally when price break below the Ribbon , BTC was started a very long term bear trend , if you are a trader you must know that this bearish pattern after the very long bullish trend could indicate the bear market signs , and if you want to use EMA Ribbon for trading this is good chance , so let's see how we can use it ? first of all when price break below the EMA Ribbon you must wait for the confirmation signs , this is means that you must wait for the EMA Ribbon to flip from bullish to the bearish mode which means that the short term EMAs goes below the long term EMAs , and after the retest of the Ribbon you can say that , thing are looking bearish from the EMA Ribbon sight ; and you can set your short trade based on your trading strategy . but what's the problem of the EMA Ribbon ? let's talk about the EMA Ribbons problem after checking all of the examples , until that please think about it and imagine how we can fix this problem if you find out the problem , if you can't , wait for the end of this idea and also don't forgot to support me with your likes and comments . let's combine the example 2 and 3 together for better understanding : as you might know , the moving averages are trend chaser indicator which means that they are work perfectly when market have a specific trend , for example in the chart above when BTC created a falling wedge pattern and break above the EMA Ribbon and retest it as a new support start a bullish trend , and as you can see when market started to retracement , BTC created a bull flag pattern and after the break out BTC continue the bullish trend . in the bull flag , you can see that price break below the EMA Ribbon and also retest it as a resistance , but price can't continue the bearish trend ; so why this happen ? did you remember that in the example one , I asked you about the EMA Ribbon , could you find the problem yet or not ? if you can't find it wait for the end 🙄🤷‍♀️ . now we arrive to the last example which is the symmetrical triangle , but I gonna talk about it in the next idea because this is an educational idea and not for the analysis purpose , so make sure to follow me to find out what gonna happen for the BTC in the next coming weeks . now it's time to show you the EMA Ribbons advantages and problem in one clear picture : Did you remember that in the example 3 (bull flag) I said that the EMA Ribbon flipped to the bearish and also the price retest it as a resistance but price didn't break below again and after that BTC was breaked to the upside , this is what I mention the reason in the problem number 3 : 3_Moving average ribbons are best used in conjunction with other forms of analysis, such as price action, other technical indicators, and fundamental analysis for longer-term traders. you must know that it's better to use EMA Ribbon in conjunction with other indicators for example , personally like to use it in conjunction by the RSI and TSI and also the price actions . in the example number 3 , the overall trend is still bullish and price is above the support structure and also it's on the bullish pattern , so there is strong chance for goes above the Ribbon again . now it's seems to we reach to the end of the idea and I must appreciate you my friends to read my idea , don't forgot to leaves your idea about this symmetrical triangle and help me with your likes and comments ; thank you for reading my idea .
BITSTAMP:BTCUSDEducation
by Kiu_Coin
2
A Deep Dive Into The MACD1. Introduction The Moving Average Convergence Divergence (MACD) indicator created by Gerald Appel in 1979 (1) is part of the pantheon of technical indicators, being one of the most used and influential ever created. The popularity of the MACD allowed further studies and more varied applications of the indicator, from signal processing in neuroscience (2), prediction of hospitalizations (3)...etc. In this post, we will highlight extensive details, calculations, and usages of this legendary indicator. If you wanted to go beyond what you learned about the MACD, then this post is for you. Note that some contents of this post can be complex and might not suit certain readers, feel free to skip the sections of your choice. 2. Details This oscillator returns 3 time-series, the MACD, obtained from the difference between two exponential moving averages of different periods, a signal line, obtained from the exponential moving average of the MACD, and a histogram obtained from the difference between the MACD and the signal line. Each MACD component allows evaluating the current market trend direction, momentum, and acceleration. Many traders believe the amount of information the MACD can return is sufficient to be used as a standalone for both trend-following and contrarian trading. In terms of digital signal processing, the MACD can be classified as an infinite impulse response (IIR) bandpass filter, filtering out both lower and higher frequency components of a signal, thus having the ability to both detrend and smooth. The MACD filter satisfies the conditions for being a discreet time linear time-invariant (DLTI) system, it is linear and time-invariant: macd_(a + b) = macd_(a) + macd_(b) -> Additivity K × macd_(x) = macd_(K × x) -> Homogeneity macd_(x ) = macd_(x) -> Time Invariance 3. Calculation The MACD oscillator is obtained from the difference of two exponential moving averages (ExpMA), one using a faster period (often 12) and one using a slower period (often 26). MACD_ = ExpMA(price,fast) - ExpMA(price,slow) We can also obtain the MACD from the following difference equation: y = (price - price ) × g + ((1 - a1) + (1 - a2)) × y - (1 - a1) × (1 - a2) × y where a1 is the smoothing constant of the fast ExpMA, a2 the smoothing constant of the slow ExpMA, and g is the gain constant obtained from the difference between the smoothing constant of the two ExpMA's: g = a1 - a2 = 2/(fast+1) - 2/(slow+1) 4. Impulse Response The impulse response of the MACD is the result obtained by applying the MACD to a unit impulse signal, given by the Kronecker delta function d . d = 1 if t = 0, else 0 The impulse response fully describes the properties of the MACD and can be obtained from the difference between the impulse response of two ema's with periods fast and slow . The impulse response of an exponential moving average h(ExpMA) over time t with smoothing constant a is given by: h(ExpMA) = a × (1 - a)^t As such for the impulse response of the MACD h(MACD) over time t we obtain: h(MACD_) = a1 × (1 - a1)^t - a2 × (1 - a2)^t Like with an exponential moving average, the impulse response of the MACD does not become steady, instead continuing indefinitely, hence why it is classified as an infinite impulse response filter. 5. Frequency Response The frequency response of filters allows us to determine how they affect the frequency content of a signal. The frequency response can be directly obtained from the discrete-time Fourier transform (DTFT) of the impulse response, which for the MACD returns: H(e^iw) = SUM h × e^-iwn, for n = 0 to ∞ = SUM (a1 × (1 - a1)^n - a2 × (1 - a2)^n) × e^-iwn with w = 2 × pi × f . The infinite sum makes its direct computation infeasible. It is generally more common to evaluate the filter transfer function H(e^iw) obtained from the Z transform given by: A(iw) = b + b × z^-iw + ... + b × z^-iwP ------------------------------------------------- B(iw) = a + a × z^-iw + ... + a × z^-iwQ With feed-forward coefficient b and feedback coefficients a . This transfer function assumes a filter of the form: y = SUM b × x - SUM a × y , for p = 0 to P & for q = 1 to Q This is the reverse ordering used by the MACD difference equation previously described, as such the MACD transfer function is given by: g + -g × z^-iw ---------------------------------------------------------- 1 + × z^-iw + × z^-iw2 The frequency response is then obtained by evaluating the above transfer function for z = e . 5.1 Magnitude Response The magnitude response describes how a filter attenuates the amplitude of the frequencies composing a signal. It is obtained from the absolute value of the transfer function |H(e^iw)| , that is: |H(e^iw)| = sqrt(Real ^2 + Imag ^2) For the MACD we obtain the closed-form solution: sqrt(g^2 × sin(2 × pi × f)^2 + (g - g × cos(2 × pi × f))^2) |H(f)| = ---------------------------------------------------------------------------------------------------------- sqrt( ^2 + ^2) with A1 = (a1 - 1) + (a2 - 1) and A2 = (a1 - 1) × (a2 - 1) . In the previous figure we can see the magnitude response of the MACD using fast = 12 and slow = 26 . This magnitude response is asymmetric, we can see attenuation of lower frequency components, and a poor attenuation of high-frequency components. The above figure shows various MACD magnitude responses for various configurations of the fast and slow settings. We can see on the left that a fast period closer to the slow period return magnitude responses with fatter tails as well as a decreasing resonant frequency (frequency where the filter returns the least attenuation), on the right, we can see how increasing the slow period returns a lower attenuation of the peak frequency. 6. Usage The MACD has known a wide variety of usages amongst traders, extending from trend-following to contrarian methodologies. The most basic usage of the MACD is given by evaluating the sign of the MACD, with a positive sign (fast ExpMa > slow ExpMA) indicating an uptrend and a negative sign (fast ExpMa < slow ExpMA) indicating a downtrend. We can see that this usage does not differ from the one given by a simple MA cross strategy. The user might also suffer from the excessive lag produced by this simplistic approach. The strength of the indicator can come from the usage of the MACD with the signal line and histogram. A timelier approach would identify an uptrend when the MACD is above its signal line (histogram above 0) and a downtrend when the MACD is under the signal line (histogram under 0). This approach makes better use of the leading characteristic of the MACD oscillator, thus offering more predictive insights. However, an increment in timing does not come at no cost, with the more recurrent of whipsaw trades. Notice in the image above how the usage of the MACD with the signal line allows for a faster trend detection compared to using the MACD alone. We can also see how this usage of the indicator is more sensitive to shorter-term price variations, inducing potential whipsaw trades. This is caused by the common tendencies that oscillators have to increase the presence of noise in an input series. It is also possible to use a combination of both usages in order to avoid their disadvantages, for example opening trades based on the sign of the MACD while exiting trades when the MACD crosses the signal line. However, the main disadvantage of using the histogram can appear when the user must optimize indicator settings, with a usage based only on the MACD meaning that two settings would need to be optimized, while usage based on the histogram would mean optimizing three settings, which is computationally more expensive. 6.1 Divergences Divergences are commonly used with oscillators. A divergence occurs when the price tops/bottoms and MACD tops/bottoms are negatively correlated. This can indicate a trend impulse of lower amplitude, which could highlight a potential reversal. 6.2 Fast > Slow Period MACD The MACD already possesses some leading characteristics, allowing to anticipate turning points. However, the ability of the MACD to provide signals anticipating future trends mostly depends on the current market conditions, with certain price variations complicating the leading ability of the MACD. The predictive abilities of the MACD can be improved using a fast period higher than the slow period. Assuming the user uses the histogram of the MACD, cyclical variations within a price trend will generally prove to be problematic if the signal length excessively delays the MACD. Inverting the fast and slow period can help signal early reversal, instead of suffering from the excessive delay introduced by the histogram. The practice of inverting MACD fast and slow period was proposed by Ehlers (4), we can also see that optimizing MACD settings in mean reverting markets can tend to return fast periods higher than slow periods. We can see that such an approach is directed toward contrarian traders. 7. MACD Using Different Type of Moving Averages The MACD uses exponential for the calculation of the fast, slow, and signal moving averages by default, however different types of moving averages can be used. The MACD would directly inherit the characteristics of the type of moving average used, thus improving characteristics such as reactivity and smoothness. For example, certain users prefer using the simple moving average, returning slightly lower reactive MACD with a slightly higher degree of filtering. Using low lag moving averages would return a very reactive MACD, with a histogram able to anticipate MACD turning points due to the ability of low lag moving averages to over/undershoot the input signal. Notice in the above chart how the MACD based on the Hull moving average (bottom) is more reactive than a regular MACD (top) with equal settings. Also, notice how the signal line is able to exceed the MACD before the occurrence of its turning point. However, it can be more interesting to use more than one kind of moving averages for the MACD calculation, using a type of moving average that is suitable for each MACD component. As such it would be more interesting to have a low lag moving average as fast-moving average, and a more classical one as slow and signal moving average. References (1) Appel, Gerald. "Technical Analysis Power Tools for Active Investors." Financial Times Prentice Hall. p. 166 (2005) (2) Durantin, Gautier, et al. "Moving Average Convergence Divergence filter preprocessing for real-time event-related peak activity onset detection: Application to fNIRS signals." 2014 36th Annual International Conference of the IEEE Engineering in Medicine and Biology Society. IEEE, 2014. (3) Zhang, Jufen, et al. "Predicting hospitalization due to worsening heart failure using daily weight measurement: analysis of the Trans‐European Network‐Home‐Care Management System (TEN‐HMS) study." European journal of heart failure 11.4 (2009): 420-427. (4) Ehlers, John F. "The MACD Indicator Revisited." (1991).
COINBASE:ETHUSDEducation
by LuxAlgo
19