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Oscillators

Judge the price action momentum - rising wedge pattern and RSIThere are a number of ways to judge the price action momentum. In the previous post, I show you using trend channel as an alternative to up wave or upward thrust to gauge the buying or selling momentum. In this video, I also adopt the same example S&P 500 futures ( CME_MINI:ES1! ) to show you using the popular pattern - rising wedge and RSI indicator to achieve the same objective.  Yet, what I would like to emphasize is to understand the rationale behind the pattern and the indicator, which we can always go back to the first principle to find out, i.e. why a rising wedge is bearish in nature or what bearish divergence in RSI actually means? Once you understand the rationale or the first principle about the price action momentum, you can start trading without memorizing every single pattern or indicator if you prefer.
CME_MINI:ES1!Education
by mingjong
2
4H Support / Resistance with RSI Day Trading StrategyRSI = Blue, EMA of RSI = Red. RSI 14, EMA 45 Long Rules: 1) RSI > EMA RSI = look for long setups 2) Resistance is broken ( a new high ) 3) Price rejects (pulls away) from the previous resistance 4) RSI > EMA RSI >> 50 Short Rules: 1) RSI < EMA RSI = look for short setups 2) Support is broken ( a new low) 3) Price rejects (pulls away) from the previous support 4) RSI < EMA RSI << 50 I typically like to place a stop loss at the top of the closest resistance (if going short) and at the bottom of the closest support (if going long) and TP 1:1. Another method is to go for partial profit at the closest support/resistance and move the stop to breakeven to catch longer trades. 3/4 trade setups in the past month on AUDUSD FLAGS: *the setup on the 20th of March was a working short position, but the strategy is looking long. *the setup on the 31st of March was not validated as the RSI is not > EMA of RSI
Education
by tdyk98
Demark Trendline and Monthly CamarillaHere you can see a perfect setup using Demark trendline breakout. Price broke Monthly CAMS4 (month floor), hit CAMS5 (did not plot that) and reversed towards the floor. With Demark Trendline technique we could catch all the breakout reversal to the pip. One could reenter the longs many times at Demarks Daily Pivots or S1 support. Market is predictable as you see. You just need the right tools. I also demonstrated how target is projected. Demark Trendline works also well with calssic monthly pivots and weekly pivots too. But on 4 hours I would use monthly Camarilla or Monthly Classic Pivots which are very accurate.
Education
by ICFX
Commitment of traders reportWHAT IS IT The Commitment Of Traders (CoT) is a report issued by the Commodity Futures Trading Commission (CFTC) , one of the most important trading insitutionsof the American government. The report has the purpose of transparently showing market dynamics to the all the people involved or interested in the matter. The COT report show all currently open positions (open interest) of the future and options market, where 20 or more traders hold positions for an amount greater or equal to the minimum amount amount established by the CFTC . The report is issued every Friday at 3:30 P.M. (Eastern Standard Time, hence UTC-5). Each report normally contains data until previous Tuesday. CFTC usually receives data on Wednesday morning from the reporting firms (i.e.: Future Commission Merchants, Financial Insititutions, Brokers or International Stock Exchanges). After some verifications, CFTC publish data the following Friday. For each market, data are provided in terms of existing (still open) LONG and SHORT positions. TYPES OF REPORTS There are 4 types of report: 1) Legacy It contains data split by stock exchange. This report has two different variants: "futures only", that contains data related to the futures market only, and "combined", that contains aggregated data for futures and options market. All the reported positions in this report are split in two main market actors categories: Commercials (or Large Speculators) and Non-Commercials 2) Supplemental It includes contracts related to 13 selected agricultural market commodities. This kind of report split positions in 3 market actors categories: Commercials (or Large Speculators), Non-Commercials and Index Traders. Differently from Legacy report, the Supplemental is provided in the "combined" format only, hence contains data for both futures and options market 3) Disaggregated This report contains the same data issued in the Legacy report, but with a more detailed drill down in terms of representation. First of all, it presents data split in 5 macro-categories: Agriculture, Petroleum and Products, Natural Gas and Products, Electricity, Metals and Other. Moreover, the report shows open positions/interests of 4 market actors categories: Producer/Merchant/Processor/User, Swap Dealers, Managed Money e Other Reportables. Aggregating data of this report, it is possible to obtain same data of Legacy report, hence this is a detailed view of data contained in the Legacy report. The Disaggregated, as well as the Legacy one, is available as "futures only" and "combined" variants 4) Traders in Financial Futures (TFF) This report includes contracts related to currencies, US Treasury Bonds, Eurodollar deposits, VIX shares and Bloomberg Index only. The reports shows open interests of 4 market actors categories: Dealer/Intermediary, Asset Manager/Institutional, Leveraged Funds e Other Reportables. Last, also this report is available as "futures only" and "combined" variants REPORT FORMATS Legacy and Disaggregated reports are provided in two formats: short (synthetic) and long (extended). Both these formats contain same data, but long format contains also the concentration of open positions in the hands of the major 4 and 8 market investors at the moment of data collection, while short format does not contains any data about concentration. TFF report is available in long format only, while the Supplemental is available in the short format only. Report type Scope Format Futures Combined Long Short Legacy ✓ ✓ ✓ ✓ Disaggregated ✓ ✓ ✓ ✓ TTFF ✓ ✓ ✓ X Supplemental X ✓ X ✓ Legacy report As said above, market actors in Legacy report are divided in 2 categories: Non-Commercials , or Large Speculators : they are market speculators as well as hedge funds. This category normally uses financial leverage to amplify variation of derivative asset and has an aggressive behavior in the market. They use rigid stop loss policies and, when the market falls below certain levels, they reverse positions on the other side. The main purpose of Large Speculators is not the asset they buy or sell, but to obtain a net profit from the buy/sell cycle. They normally have a trend following behavior. Commercials buy futures just because they are interested in the underlying asset and try to hedge their financial exposition related to the commercial activity with the assets they are interested in. These market actors hold more than 50% of open positions in the US futures market and normally they go against the price trend: they sell when the market goes higher and they buy when the market goes lower. Their positions on underlying assets normally anticipate market trend, hence they should be carefully monitored Non-Reportable : are the open position of small investors/traders that normally are on the wrong side of the market. This investors category is usually confused and not disciplined. They do not follow precise rules and are usually dragged by the trend, but they are slow to reverse positions when the market trend reverses. The following example contains data about "futures only" market for BUTTER, coming from Chicago Mercantile Exchange. BUTTER (CASH SETTLED) - CHICAGO MERCANTILE EXCHANGE Code-050642 FUTURES ONLY POSITIONS AS OF 03/17/20 | ----------------------------------------------------------------------------------| NON-REPORTABLE NON-COMMERCIAL | COMMERCIAL | TOTAL | POSITIONS --------------------------------|---------------------|--------------------------|----------------- LONG | SHORT |SPREADS | LONG | SHORT | LONG | SHORT | LONG | SHORT -------------------------------------------------------------------------------- (CONTRACTS OF 20,000 POUNDS) OPEN INTEREST: 11,597 COMMITMENTS 0 2,473 453 10,401 8,149 10,854 11,075 743 522 CHANGES FROM 03/10/20 (CHANGE IN OPEN INTEREST: 753) 0 -127 101 675 796 776 770 -23 -17 PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS 0.0 21.3 3.9 89.7 70.3 93.6 95.5 6.4 4.5 NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 47) 0 12 10 28 22 38 34 It is possible to see as in the report is provided the total amount of LONG and SHORT positions for Non-Commercial, Commercial and Non-Reportable actors. Variations from previous week are moreover reported. In addiction to LONG and SHORT positions, Legacy report contains also the SPREAD amount, that is available for Non-Commercial only, and refers to contracts that are opened LONG and SHORT at the same time. Normally a growing SPREAD value means a high level of uncertainty. If we calculate NET POSITIONS (NP) for the 3 actors categories, as it's easy to check, the report show a zero-sum scenario: NP Non-Comm = 0 – 2,473 = - 2,473 NP Comm = 10,401 – 8,149 = 2,252 NP Non-Rept = 743 – 522 = 221 NP Non-Comm + NP Comm + NP Non-Rept = -2,473 + 2,252 + 221 = 0 OPEN INTEREST value is the grand total resulting as the sum of LONG, SHORT and SPREAD positions: Open Interest = 0 + 453 + 10,401 + 743 = 11,597 Supplemental report Even the Supplemental report (called also Commodity Index Traders - CIT) shows data in the same manner of Legacy report, but the market actors are 3: Non-Commercial, Commercial and Index Traders. Non-Commercial and Commercial actors are the same, while Index Traders category has appeared for the first time in January 2007. Before that date, investors that are now reported in this category were scattered in the two existing categories (Non-Commercial and mostly in the Commercial). The creation of Index Traders category has had the purpose to separate that category from Commercials, because Index Traders are not involved in the buy/sell cycle of underlying assets, and are usually managed funds, institutional investors or swap dealers. Index traders are normally interested in passive and longstanding LONG positions, while are not interested in the short-term price fluctuations. It's not unusual that this category start buying when price is falling and technical analysis says that the price falling will be even more deep. Index Traders are hence a counter-part of speculators, who have usually a contrarian habit. Supplemental report is provided for 13 commodities: • WHEAT-SRW - CHICAGO BOARD OF TRADE • WHEAT-HRW - CHICAGO BOARD OF TRADE • CORN - CHICAGO BOARD OF TRADE • SOYBEANS - CHICAGO BOARD OF TRADE • SOYBEAN OIL - CHICAGO BOARD OF TRADE • SOYBEAN MEAL - CHICAGO BOARD OF TRADE • COTTON NO. 2 - ICE FUTURES U.S. • LEAN HOGS - CHICAGO MERCANTILE EXCHANGE • LIVE CATTLE - CHICAGO MERCANTILE EXCHANGE • FEEDER CATTLE - CHICAGO MERCANTILE EXCHANGE • COCOA - ICE FUTURES U.S. • SUGAR NO. 11 - ICE FUTURES U.S. • COFFEE C - ICE FUTURES U.S. Disaggregated report Market actors of Disaggregated report are: Producer/Merchant/Processor/User : they are involved in production, handling, packaging or transport of physical assets that is underlying to the future instrument or option. These actors use futures to cover/hedge risks associated to the activities they are involved in that are strictly related to the production of the assets Swap Dealers : they are subjects that are involved in trading swap contracts related to the commodity and uses futures market to cover/hedge risks associated with swap transactions. The counterpart of a Swap dealer could be a speculative traders, as well as an hedge fund, or a more traditional Commercial subject that is interested in managing risks associated with the commerce activities of the asset Money manager : to this category belong Commodity Trading Advisor (CTA), Commodity Pool Operator (CPO) or an unregistered fund identified by the CFTC. These subjects are delegated from their clients to do financial operations in their behalf Other Reportable : all speculative traders that are not belonging in the three previous category are included in this category Even in this case, the report shows LONG, SHORT and SPREAD positions. Comparing this kind of report with Legacy, we can see that: COMMERCIAL = PRODUCER/MERCHANT/PROCESSOR/USER + SWAP DEALERS NON-COMMERCIAL = MONEY MANAGER + OTHER REPORTABLE This explains why the report is called "disaggregated". It shows the same data but with a more level of detail especially regarding the actors that hold open positions. If we take the Disaggregated report about BUTTER for the "futures only" market coming from Chicago Mercantile Exchange (equivalent to the previous example that is showed under the Legacy report section, we see: :------------------------------------------------------------------------------------------------------------------------------------------------------ : : Producer/Merchant : : : : : Processor/User : Swap Dealers : Managed Money : Other Reportables : : Long : Short : Long : Short : Spreading : Long : Short : Spreading : Long : Short : Spreading : -------------------------------------------------------------------------------------------------------------------------------------------------------- BUTTER (CASH SETTLED) - CHICAGO MERCANTILE EXCHANGE (CONTRACTS OF 20,000 POUNDS) : CFTC Code #050642 Open Interest is 11,597 : : Positions : : 8,893 6,326 1,048 1,363 460 0 301 180 0 2,172 273 : : : : Changes from: March 10, 2020 : : 244 648 324 41 107 0 -12 -8 0 -115 109 : : : : Percent of Open Interest Represented by Each Category of Trader : : 76.7 54.5 9.0 11.8 4.0 0.0 2.6 1.6 0.0 18.7 2.4 : : : : Number of Traders in Each Category Total Traders: 47 : : 24 18 . . 4 0 . . 0 10 9 : --------------------------------------------------------------------------------------------------------------------------------------------------------- If we take the categories Producer/Merchant/Processor/User and Swap Dealers and we sum all LONG positions and then subtract all SHORT positions, we obtain an overall NET positions like this: NP = (8,893 +1,048 + 0 + 0) - (6,326 + 1,363) = 2,252 Now, if we do the same calculation for Commercial category of the correspondent Legacy report (see above) we obtain: NP = 10,401 - 8,149 = 2,252 This is the confirmation that Disaggregated report contains the split of data reported in the Legacy report, where Commercial category is divided in Producer/Merchant/Processor/User and Swap Dealers. Same calculation would demonstrate that Non-Commercial category in the Legacy report is spitted here in Managed Money and Other Reportable categories. If we now consider the Disaggregated report and we sum all LONG positions and then we subtract all SHORT positions for each actors category, we obtain: (8,893 + 1,048 + 0 + 0) – (6,326 + 1,363 + 301 + 2,172) = 9941 - 10162 = -221 Given that the grand total should represent a zero-sum scenario, e can deduce from Disaggregated report that net position of Non-Reportable subjects should be +221, hence a net LONG of 221 contracts, and that is correct, in fact it is possible to obtain the same result from correspondent Legacy report (see above) by subtracting net SHORT position for Non-Reportable actors to the amount of net LONG positions for the same actors. Hence Disaggregated report allow us to calculato also net position of Non-Reportable, even if the data do not explicitly report the value. Traders in financial futures report This report is a further view on the market and split market actors in two sides (SELL and BUY) and 4 categories: SELL SIDE Dealer/Intermediary : are financial intermediaries who earn by the commissions related to the sell of financial products. Big banks and other financial entities are involved in this activities BUY SIDE Asset Manager/Institutional : they are insitutional investors, including pension funds, insurance companies and investment portfolio managers whose clients are mainly institutional entities Leveraged funds : these are typically speculative funds (hedge funds) and various types of money managers, including the Commodity Trading Advisors (CTA) and the Commodity Pool Operators (CPO) not necessarily registered by CFTC. These subjects can be involved in hedging strategies and arbitrages on their own capital, or even third parties capital Other reportable : these are all the traders that are not included in previous categories Differently from Disaggregated report, the TFF report the positions of the mentioned actors categories are not an exact disaggregation of Commercial and Non-Commercial positions reported in the Legacy report. Here each actor belonging to one of the categories mentioned above could belong to the Commercial or the Non-Commercial category in the Legacy report, basing on the decision that CFTC takes during the report creation, that can be different time after time (i.e.: a subject that has already been considered a Commercial one in the beginning, can be shifted to Non-Commercial after a while, depending on the specific activities he is involved during the time, that can change as well). The TFF report is moreover available only in the LONG format REPORT ANALYSIS If we properly analyze data in the Commitment of Traders legacy report, we can determine the expectations of each market actor category regarding the market future. The possibility to know the net positions of Commercial subjects (institutional investors) is the basis to understand the market sentiment. Their influence is, in fact, between 50% and 75% of the entire futures market of S&P500 and from 40% and 60% of Nasdaq100. It is useful to point out that Commercial subjects, as well as the Non-Commercial, can take arbitrage or hedging positions, or, alternatively, put in place an active management of their portfolios by buying or selling futures on foreign (not US) markets, or, again, have open position on the futures' underlying assets and protect themselves from risks of price variations by taking opposite positions on the futures market. Hence the Commitment of Traders Report is an important thermometer to measure US stock exchange sentiment, but it isn't a tool that, alone, can allow us to predict how financial markets will move. It should be used (as usual) together with other indicators, tools, analysis and perspectives to have a better understanding of what is happening and a good approximation of what is going to happen (most likely). Commercial subjects are active actors in the futures' underlying asset market and generally sell when the market (price) grows and buy when the price is more convenient (low), hence their activities are contrarian to the logic of speculators. For this reason the Commercial actors are often responsible of market moves and trends. They drag prices and the market with their activities, hence they anticipate and determine the market trends. Non-Commercial subjects, viceversa, have opposite interests. They want to make money by price variations, hence they buy when the market shows growing prices and sell in the opposite conditions. This behavior is what we call "trend following" approach. Here are some typical scenarios that we can find by analyzing the Commitment of Traders report: 1) If Non-Reportable actors (small/retail traders) are LONG and Commercial are SHORT, the Non-Reportable actors are most likely going to loose money because the price will go to to the side where Commercial are pushing it (down) 2) On the maximum levels of an asset price (i.e. near significant RESITANCE levels), Non-Reportable are likely pushed to SELL their positions. Then stop loss levels are likely hit and only after the price starts his falling stage 3) If Non-Commercial are LONG and Non-Reportable are SHORT, we are likely in the middle of an UPTREND and there is more space for the price to gro further 4) If Non-Commercial are LONG and also Non-Reportable are LONG, we are likely in the "euphoric" phase of the trend, hence the trend is going to finish soon 5) If Non-Commercial are SHORT, Non-Reportable are upgrading their SHORT positions and Comemrcial slow down their LONG positions, e re likely in the terminal phase of a downtrend If we accept the hypothesis that Commercial traders hold better information on the market than the others just because they are active actors of the futures' underlying assets (it's their own business!), it is very important to monitor their behaviour in order to understand how they are evaluating the situation related to the specific commodity that is at the center of our interest. Commitment of Traders Index An interesting approach to have effective insights from the Commitment of Traders report can be obtained by calculating an index using the report data. Normally Comemrcial net positions are used to calculate the index as follows: NP (Net Position) = Long Positions – Short Positions Usually, an interval of 26 periods (weeks) is selected and the calculation to determine the index value is: COT Index = * 100 The index, expressed as a pecentage value from 0 to 100, reflects net position of Commercials on the basis of last 26 periods. It can be used as an indicator of overbought and oversold zones and can be a good tool to understand where investors are moving. The index can be also calculated for Non-Commercial or Non-Reportable positions. Last, but not least, remember that Commitment Of Traders report is released every Friday evening, but contains data up until previous Tuesday, hence a "lagging" effect should be seriously considered in all the analysis that involves it. The content of this article has solely education purposes and should be not considered trading or investement advise.
Education
by Marco_it972
Demark trendlines + Demark pivotsThis is more or less how Demark Trendlines work. Connect two more recent lows (shadows) from right to left, called DM points N. Condition - each N has to have 3-6-9-12...20 candles (you decide the number) above the low on both sides. The bigger number the more serious is the low. Usually they use like 3-10 candles on both sides. Both lows have to have similar amount of candles. The same applies to the downtrends - you connect 2 most recent descending highs, from right to left. The ideal would be when the swing to the upside (before the breakdown) would be bigger (overextension, overbuying, auction final). You measure target by the length of the inner bow and project it from breakout. I noticed it works well with Demark Daily Pivot boxes. Breakout of R1 or S1 usually coincides with Demark trendline breakout. Daily Demark S1 or Demark R1 hold trends on hourly incredible well (better that Ichimoku or any MA). Those are great for stops. Breakout of daily Demark S1 or Demark R1 is the first sign of trend change. I am still learning this so...
Education
by ICFX
2
Support/Resistance Long StrategyChart TF: 4H Indicators: 14 EMA, 40 EMA, Vortex Indicator 30, RSI 22, TRIX 10 I have been tweaking this simple, yet profitable, system for a few weeks and wanted to share it with the public to receive feedback/opinions. This post will go over the long entry conditions, look at my profile for the short conditions (they are simply flipped). Long Conditions: 1) 14 EMA > 40 EMA. 2) A bullish candle must break above a resistance level. 3) The price must be above both EMAs. 4) VI(+) > VI(-) by at least .15 5) RSI > 50 6) TRIX > 0 If all conditions are met, enter long. Stop Loss: 1) Set SL to the closest support. Take Profit: 1) Set TP 1:1 R/R with the stop loss. In this recent 21 day stretch, 02/26/20 - 03/18/20, this strategy gave 6 successful long entries and over 500 pips on EURGBP.
Education
by tdyk98
Support/Resistance Short StrategyChart TF: 4H Indicators: 14 EMA, 40 EMA, Vortex Indicator 30, RSI 22, TRIX 10 I have been tweaking this simple, yet profitable, system for a few weeks and wanted to share it with the public to receive feedback/opinions. Short Entry Conditions: 1) 40 EMA > 14 EMA. 2) A bearish candle must break below a support level. 3) The price must be under both EMAs. 4) VI(-) > VI(+) by at least .15 5) RSI < 50 6) TRIX < 0 If all conditions are met, enter short. Stop Loss: 1) Set SL to the closest resistance. Take Profit: 1) Set TP 1:1 R/R with the stop loss. In this recent 28 day stretch, 02/19/20 - 03/18/20, this strategy gave 5 successful short entries and over 300 pips on NZDCHF.
Education
by tdyk98
EURJPY 1 Hr MACD histogram positive divergence key ingredientIn this example there I have pointed out 2 MACD histogram positive divs. Can you spot a key difference? If using divergences, it is not a bad idea to utilize your volume. Notice the increase in demand, into new low ground, with the accommodating MACD positive divergence (example to the right). Although there is a positive divergence (to the left of the chart) notice how the increase in demand is not as high. A counter trend situation did occur, but was rapidly met with enough supply to cancel the mark-up attempt (upthrust on high volume). MACD histogram may be another useful confirmation tool. Not only for divergences, but it can also help one to identify accumulation and distribution areas above or below zero line ( for another time). Hope this helps. Practice*
Education
by dee718
S&P 500 😷 Coronavirus Panic Selling, but should you worry? 😱🚨PANIC SELLING of stocks due to Coronavirus...😷 in fear that earnings for top companies will drop as productivity comes to a halt. 😩 ⚠️ Historically, the SARS outbreak did not cause the stock market to dump farther as we were in the tail end of the Recession. Coronavirus appears to be coincidentally at the top of a market rally and is just a social trigger to inspire fear, uncertainty, and doubt. FUD 😱 This will allow institutional players to take your money and buy back at cheaper prices. 👿 (The 200 Week Moving Average.) Ask yourself this... 🤔 because of Coronavirus will you stop logging onto Facebook, will you discard your Apple Macbook, will you stop buying goods from Amazon, will you stop watching Netflix, will your office stop using Microsoft Office? If the answer is no... DO NOT PANIC SELL your retirement account, please. 🙅‍♀️ Since 1977, which direction is the stock market moving? Answer: Up. ☝️☝️☝️ RSI Bearish Divergence playing out: (Indicator below the chart with squiggly blue lines) Price makes higher tops, while magnitude of price (RSI) makes lower tops. Warren Buffet and Jeff Bezos already sold their stocks for cash. No one cares until now... Who do you think will buy the stocks you are panic selling?
TVC:SPXEducation
by ChartCinema
Introduction to the BEST All-In-One Oscillators with divergencesHello traders, A unique indicator displaying many oscillators with a multi-timeframes and regular/hidden divergences options for all oscillators below 1. MACD 2. MACD ZERO LAG 3. RSI 4. DMI/ADX 5. ATR 6. STOCHASTIC RSI 7. TRUE STRENGTH INDEX 8. CANDLE MOMENTUM OSCILLATOR 9. VORTEX INDICATOR 10. COMMODITY CHANNEL INDEX 11. RATE OF CHANGE ☔ Safe crossing mode for RSI/STOCH RSI/CMO: Choose to get alerted whenever the oscillator enters or exits the Overbought/Oversold zone. Wishing you all the BEST for your trading using it. Dave
Education
by Daveatt
8
Bitcoin : Bullish momentum is diminishingHello All, here I show you the details about bitcoin. Let's get started! We have seen a huge push to the upside for the price and it's now entering the huge area of resistance too. In this chart work, I will give a highlight especially on the oscillator indicator that usually has a very important roles on my trading strategy. Based on the RSI, we've seen a sign of bearish divergence as an indication for reversal pattern. The RSI has entered the overbought region and it has a significantly lower high on RSI but higher high on the price action. And on the MACD, I see a potential of death cross on the MA line as the histogram is starting losing some strength with ticking down comparing the previous histogram. And if we see deeper to compare with the previous top of the histogram cycle, the histogram is having a lower high too. The alignment between MACD and the RSI makes me believe that bitcoin will have a correction in near future. That's why I'm targeting the blue region below as a support for possible touch if this bias hold true. And although my bias is the correction is imminent, I haven't shorted the market yet. It simply because I've seen a very thick sell order around $9900 on the bitfinex. And considering there is potentially very volatile movement when the price touches that area, I'll wait for the consolidation pattern to be formed in lower time frame such as 1 hour and 2 hours time frame to enter short position.
BITFINEX:BTCUSDEducation
by julio24albert
Bitcoin : RSI concern, Bull trap of trend line and MACDHello fellas, welcome back to the analysis about bitcoin. Once again it's very important that we can see the price of bitcoin can touch the $9000 region as a strong resistance based on daily view. But, here I want to look at all possibility that can occur in the market, especially to look at the bigger time frame where we can find out about the major trend which is happening right now. From the perspective of the weekly chart, we have seen a lower low comparing the ATH in 2017 and the top of 2019. That's why I draw the gray resistance trend line. It's like a zone or range simply because I want to anticipate the bull trap region. And from this perspective, we can see that the price is coming closer to the resistance trend line which has the alignment with the 38.2 fib retracement level. From the RSI perspective, we can see pink region here, this pink region is the area of shifting from bullish to bearish or bearish to bullish. Every time the RSI breaks out to the upside of this range, it gets bullish and every time the RSI breaks to the lower line, it gets bearish. This time, it tries to break out of the upper line as resistance. The MACD however still moves in the negative side, although we can see that the histogram is ticking up comparing to the previous weeks. This means the bulls is starting to gain momentum although in overall the bears is taking control. Histogram ticks up to the positive side will be bullish but if Histogram forms a lower low, Bearish. So far, I'll see what's going on on the daily candle closure to make sure about the next bias. Stay tune.
BITFINEX:BTCUSDEducation
by julio24albert
Daily perspective : trend continuationHello fellas, here I give you another perspective of bitcoin in the daily time frame. In the last few days, the price of the bitcoin is moving so slow and we see decrease in volatility unfortunately. So, I hope after the weekly candle closes in the next few hours, we will see the volatility coming back again. First of all, I want to give you the explanation of the divergence between the price and the oscillator indicator. There are 2 basic types of divergence if we compare the price with the oscillator indicator. The first divergence is the regular divergence which will indicate the reversal opportunity. And the second one is the hidden divergence which will indicates the trend continuation. And in this analysis, I will give a highlight on the 2nd type of divergence. From the chart, we can notice a very important price action behavior if we compare it with the oscillator indicator. And the oscillator indicator that I'm using is RSI. we can see that since the August 6th, the price has showed us a lower high structure although at current rate, I'm not so sure if the price has already topped yet. And on the RSI, we can see that it forms a higher high structure since the August 6th, 2019. However, with this current structure, there is a possibility of bearish trend to continue if we get a confirmation of lower high comparing with the top of October 26th. This hidden divergence perspective will be invalidated if we see the price breaks out of the white resistance zone.
BITFINEX:BTCUSDEducation
by julio24albert
3
An Ongoing Study of Entries/ExitsIf you wish, you may consider following this Trading Idea. Here, I will attempt to focus on doing entry/exit analyses using specific trading strategies/methodologies. This Trading Idea will contain both focused and current chart analyses. My intent is to keep the content as clean, concise, and educational as possible. Please feel welcome to ask questions or contribute suggestions. Historical Study : Steve Nison: - Candlestick analysis - COP (Change of Polarity) breakout strategy - Fibonacci Retracements Tom DeMark: - TD Sequential analysis Arrows = Entries/Exits
BITSTAMP:BTCUSDEducation
by zerocashcool
HOW TO FIND CHEAP ENTRY SIGNAL FOR RISKRETURN LIKE 1:10 AND MOREHI BIG PLAYERS, in this tutorial I want educate you my experience, how to find really cheap entry for trading. In this example it was possible to take part on a 1:10 trade. It means for 1 USD investment you could take 10 USD return (Risk-Return-Ratio => RRR). ///////////////////////////////////////////////////// E X A M P L E F O R A B U L L I S H T R E N D ///////////////////////////////////////////////////// At the beginning we are looking for an oscillator, that shows us an oversold area and in the same time a bullish trend with higher and faster EMA than a slower EMA on the chart. This is possible with a slow EMA(close, 200) and a fast EMA(close, 50) and a RSI(close, 14).... => this is for example my way to find it on the Forex Screener from TradingView at fast as possible. I developed a similar structure with more quality signals with my candle oscillator indicator. Named: CO 'I. This indicator allows to see the candle between a range und works at well like the RSI oscillator with 30% and 70% oversold and overbought area. The most positive on this indicator, you don't only see the closing relating price - you see almost more: open, high and low. Furthermore, I found out that if the body of a candle goes into the range between 30-70% and this is the same trenddirection in the chart, then it was to 90% the lowest/highest bar or 3+ bars nearby them. So back to my education: My main view starts on 4H Chart. In this example I found on EUR/JPY a bullish trendfilter with the EMA's and a oversold area on my OC 'I (the wick of the candle was touching the 30% line) - it's only necessary that a touching of the candle is true. NEXT STEP: After this bullish signal it is necessary to zoom in the lower timeframe. Here I choosed the 1H Chart and had to wait till the body of the OC 'I also touched the 30% line and of course wait till the candle is finished. It don't depend how much the body touch the 30% line - but it's necessary that the body is touching. In addition, a bullish divergence was built (looking to blue lines). After the first touching I go into a lower timeframe again. The 15H-Chart was choosed for this example. Hereby the same game: waiting till the body is touching the 30% line. NOTE: furthermore, if I going into the lower timeframe and the body is already touching - then you don't need to wait for the relase into the range and back to touching again the 30% line. The 15MIN Chart is the last timeframe. Now we wait till the body goes up and don't touch any line. This is my signal to buy. My exit depends always how the market flow are: in this case it was a big uptrend and a adapting correction wave (this is mostly the time for divergence and this why I set a takeprofit on this high). With this approuch it was possible to catch a 1:10 trade. Kind regards NXT2017
Education
by NXT2017
DivergenceRSI PIVOT (RSIP) HOW IT WORKS? This script draws a line when rsi cross over or under the oversold and overbought line. Supprisingly these pivots sometimes good indicator for positive and negative divergence or continuation. For example: + if the price goes above the previos rsi overbought area (red line), it means positive sign and price will contiue to climb like number 1 examples. + if the price goes above the previous oversold area (green line). It means positive divergence start like number 2 examples. + this script can also say us to up move ended. Because the price can't go above the price like number 3 examples. + There are a lots of signals in it ;) you can find them with little effort. What about 4? Actually it is not a bullish sign but a little pump might come. Dont be hesitate to use "RSI Pivot" and press like button ;) Cheers :)
BITSTAMP:BTCUSDEducation
by OnurSelcuk