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Oscillators

Use RSI Like a GoldmanYou might be wondering, do the traders at Goldman Sachs use the Relative Strength Index (RSI)? The answer is, perhaps they do, and perhaps they don’t. However, based on my experience, I can confidently say that even the most seasoned and professional traders rely on RSI from time to time. While it may not be their sole tool for decision-making, it’s often included in their broader strategy due to its effectiveness in identifying overbought or oversold conditions in the market. RSI is one of many technical indicators that can serve as a helpful signal in navigating market trends, and even the best traders find it useful on occasion. When trading with technical indicators like the Relative Strength Index (RSI), having a clear and structured approach is crucial to maximizing its effectiveness. While RSI can be a powerful tool for identifying potential trend reversals, it’s essential to understand the right conditions and context in which to use it. Below are some key principles and guidelines that can help you apply RSI more effectively in your trading strategy. Whether you’re a swing trader or a day trader, these tips can help you avoid common pitfalls and make more informed decisions in the market. ⚙️ Keep Settings Simple Keep the RSI settings minimal to avoid confusion. Stick to the standard 14-period lookback, which is widely used and reliable for most market conditions. 📉📈 Ensure Divergence Occurs Outside of Key Levels Divergence should only be considered when the RSI reaches extreme levels, typically above 70 (overbought) or below 30 (oversold). This helps to identify potential trend reversals. Divergence at neutral levels (like between 40–60) may not be as effective. 🔥 Base Divergence on Candle Closes, Not Wicks Always look for divergence based on the closing price of candles. Divergence created by wick movements is unreliable and can lead to false signals. Stick to the body of the candle to ensure accuracy. ⏳ Watch the Lookback Period The RSI’s default lookback period is 14, and divergence with a gap of more than 14 candles is generally less reliable. Wider gaps often signal weak price momentum and a higher chance of failure, so focus on shorter, more recent divergences for better results. 💧 Liquidity Must Be Taken Before Entering Trades Liquidity is essential when confirming trade setups: The first high or low should take out liquidity from higher time frames (such as range highs and lows). The subsequent highs or lows should take out local liquidity, which can be identified by overbought or oversold RSI conditions. Ensure there’s a clear market structure shift before entering trades. ⏰ Timeframe Considerations for Different Trade Types For swing trades, focus on longer timeframes like the 4-hour chart to capture larger market moves and trends. For day trades, the 15-minute timeframe is ideal for capturing short-term price action and finer market details. 🔄 Use Divergences for Trend Reversals, in Confluence with Other Analysis RSI divergence is best used to identify potential trend reversals. However, it should not be used in isolation. Always look for confluence with other technical analysis methods (such as support/resistance levels, moving averages, or candlestick patterns) to increase the reliability of the signal. Combining multiple tools enhances the accuracy of your trade setups. Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
CME_MINI:ES1!Education
by CandelaCharts
1
Divergence Trading Explained For Beginners -DAX Pullback TradeTrading divergence in the Forex or Stock market can be an important tool. Learn how to identify divergences & practically apply them to your technical analysis to increase your edge & profits in the financial markets. In this video you'll learn What is a bullish and bearish divergence How to use divergence to spot potential reversals in the market How to use volume to identify key levels of reversals How to measure out a "Kill Zone" What are tweezer tops & tweezer bottoms & why they are important How to use the Fibonacci retracement tool How to use the Relative Strength Index (RSI Indicator) Your Trading Coach - Akil
PEPPERSTONE:GER40Education
by Akil_Stokes
10
Understanding RSI In TradingThis article takes a deep dive into the Relative Strength Index (RSI), a powerful tool for traders at any level. We’ll break down how RSI works, how to interpret it, and how to use it effectively in your trading strategies. Plus, we’ll touch on the math behind it. Whether you’re a seasoned pro or just getting started, this guide will give you the insights you need to make RSI a valuable part of your trading toolkit. Understanding Oscillators in Trading An oscillator is a technical indicator that moves between two extremes, usually ranging from 0 to 100. Traders use oscillators to spot overbought and oversold conditions in the market. An overbought signal suggests that excessive buying has driven prices too high and may not be sustainable, while an oversold signal indicates the opposite—excessive selling that could lead to a potential rebound. By tracking these price oscillations, traders can anticipate trend reversals and make more informed decisions. Key Functions of Oscillators: Momentum Analysis: Oscillators gauge the speed and strength of price movements, offering insights into an asset’s momentum. Volatility Detection: They help identify periods of high or low volatility, enabling traders to adjust their strategies accordingly. Trend Confirmation: When combined with other technical indicators, oscillators can validate or reveal emerging trends in the market. Introduction to the RSI Indicator The Relative Strength Index (RSI) is a momentum-based technical indicator used to assess the strength of recent price movements and identify overbought or oversold conditions in an asset. It helps traders spot potential trend reversals by oscillating between 0 and 100. An RSI above 70 suggests the asset may be overbought, while a reading below 30 indicates it may be oversold. By the end of this, you'll be an RSI expert! Interpreting RSI Readings RSI values above 70 suggest that an asset is overbought, meaning it has likely experienced a sharp price increase and may be due for a correction. On the other hand, RSI values below 30 indicate that the asset is oversold, implying a steep price drop and the possibility of a rebound. However, it's important to remember that RSI isn't foolproof and can occasionally give false signals. To increase accuracy, it's best to use RSI in combination with other technical indicators and fundamental analysis. Overbought: An RSI reading above 70 signals that the asset may be overbought and due for a correction. This could present a potential selling opportunity, but traders should be cautious, as false signals can occur. Oversold: An RSI reading below 30 indicates that the asset may be oversold and due for a rebound. This can signal a potential buying opportunity, but again, traders should be cautious of possible false signals. Divergence: Divergence happens when the RSI moves in the opposite direction of the price. For instance, if the price makes new highs while the RSI forms lower highs, this could point to a potential trend reversal. Support and Resistance: The RSI can also help identify support and resistance levels. If the RSI consistently bounces off the 30 level, it may indicate a support level. Conversely, if the RSI repeatedly fails to break through the 70 level, this could signal a resistance level. RSI and Divergence Divergence happens when the RSI moves in the opposite direction of the asset's price, often signaling a potential trend reversal. For example, if the price is hitting new highs but the RSI forms lower highs, it could indicate a bearish divergence, suggesting a possible sell signal. A common example of bearish divergence is when the price of an asset makes higher highs, but the RSI forms lower highs. This suggests weakening buying momentum, even as the price continues to rise. It can be a sign that the uptrend may be losing steam, with a reversal to the downside potentially on the horizon. On the other hand, bullish divergence occurs when the price is making lower lows, but the RSI is making higher lows. This indicates that selling pressure is subsiding, and the asset may be primed for a rebound to the upside. Traders can use this pattern to time their entries for long positions. RSI divergence can help traders identify overbought or oversold conditions, enabling them to make more effective decisions about entry and exit points. However, divergence should always be used alongside other technical and fundamental analysis for confirmation before acting on the signal. Calculating the RSI Indicator Calculating the RSI is straightforward once you break it down. The goal is to determine the average gains and losses over a set period, typically 14 days. This helps assess the strength of price movements and identify overbought or oversold conditions. While the math may sound complex, understanding the formula is key to using the tool effectively. The RSI formula is: RSI = 100 - (100 / (1 + (Average Gains / Average Losses))) This calculation provides valuable insights into the relative strength of an asset’s price movements. Factors Affecting the RSI Calculation The RSI calculation can be influenced by several factors, with the length of the time period being the most significant. A shorter period (e.g., 5 days) results in a more volatile RSI that responds quickly to price changes, while a longer period (e.g., 20 days) creates a smoother RSI, filtering out short-term fluctuations. The ideal time period depends on your trading style and the volatility of the market you're analyzing. Why the RSI Indicator is Powerful Identifies Overbought and Oversold Conditions: The RSI helps traders recognize when an asset is overbought or oversold, allowing them to time their entries and exits more effectively. Detects Divergences: Divergences between the RSI and price can signal potential trend reversals, giving traders an early warning to adjust their positions accordingly. Flexible and Customizable: Traders can adjust the RSI’s period to match their trading style and the specific market conditions, making it a highly versatile tool for technical analysis. Widely Adopted and Well-Understood: The RSI is one of the most popular technical indicators, with a wealth of resources and analysis available to assist traders in interpreting its signals. Practical Application in Real Life Here are a few effective strategies where RSI can be combined with other technical indicators for a more comprehensive analysis: Example 1: RSI + Support/Resistance + Moving Averages Scenario: You are analyzing a stock that has been in an uptrend, with the price currently approaching a key resistance level at $100. The 50-period moving average is also trending upwards, confirming the bullish trend. The RSI is at 75, indicating an overbought condition. As the price nears the resistance level, the RSI starts to flatten, suggesting the upward momentum might be weakening. You wait for the price to fail to break above the $100 resistance level and the RSI to drop below 70, signaling a potential reversal. This provides a clearer sell signal, as both the price and RSI align with the idea that a correction could be coming. Why this works: By using both RSI and moving averages with support and resistance, you have a solid confirmation of the potential reversal, as it combines trend analysis with overbought conditions. Example 2: RSI + SFP (Swing Failure Pattern) + Price Action Scenario: You’re monitoring a currency pair that recently made a new low, breaking through a previous swing low at 1.1500. However, the price quickly reverses and fails to sustain the breakdown, bouncing back above the previous low, forming an SFP. At the same time, the RSI is below 30, but it starts to turn upward, forming a bullish divergence (higher lows on the RSI while the price makes lower lows). This divergence and the SFP setup suggest that the selling pressure is decreasing, and a potential reversal to the upside could be imminent. Why this works: The Swing Failure Pattern highlights the false breakdown, and the RSI divergence confirms that momentum is shifting. This combination increases the likelihood of a successful trade when entering on the potential reversal. Key Takeways The RSI is an essential tool for traders looking to spot overbought or oversold conditions and potential trend reversals. By mastering how to interpret RSI readings and incorporating them into your strategies, you can improve your decision-making and potentially boost your trading results. For a more balanced approach, always use RSI alongside other technical indicators and fundamental analysis.
CME_MINI:ES1!Education
by CandelaCharts
what is the most effective indicator?There isn’t a single "most effective" trading indicator that works for everyone, as effectiveness depends on your trading style, strategy, and the market conditions. However, some indicators are considered more versatile or reliable when used correctly. Here's a breakdown to help you choose: Most Effective for Trends: Moving Averages (EMA or SMA): Simple and effective for identifying trends. Works well in trending markets but less reliable in sideways or choppy markets. Pro Tip: Combine short-term and long-term moving averages for crossovers. Ichimoku Cloud: A comprehensive indicator that provides trend direction, support/resistance, and momentum. Effective but requires practice to interpret correctly. Most Effective for Overbought/Oversold Levels: Relative Strength Index (RSI): One of the most popular and effective indicators for spotting overbought or oversold conditions. Works well in both trending and range-bound markets when combined with other tools. Stochastic Oscillator: Similar to RSI but includes %K and %D lines for crossovers. Effective for momentum confirmation. Most Effective for Volatility: Bollinger Bands: Great for identifying periods of high or low volatility and potential breakout zones. Useful for sideways (range-bound) markets and trend reversals. Average True Range (ATR): Excellent for setting stop-loss levels and identifying market volatility trends. Works well in conjunction with trend indicators. Most Effective for Momentum: Moving Average Convergence Divergence (MACD): Ideal for spotting trend reversals and momentum shifts. Effective when used with a confirmation indicator like RSI. Parabolic SAR: Simple for identifying trend direction and potential exit points. Works best in trending markets. Combination for Higher Effectiveness: Trend + Momentum: Combine EMA with MACD to identify trends and entry/exit points. Overbought/Oversold + Volume: Use RSI with Volume Indicators (e.g., OBV) to confirm breakouts or reversals. Volatility + Trend: Use Bollinger Bands with Ichimoku Cloud to spot breakout opportunities with clear trend guidance.
Education
by CobraVanguard
Example of explanation of chart analysis and trading strategy Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- There was an inquiry asking for detailed information on how to analyze charts and create trading strategies accordingly, so I will take the time to explain it. Before reading this article, you need a basic understanding of charts. That is, you need to understand candles and price moving averages. If you study this first and then read this content, I think you will have some understanding of trading. --------------------------------------- Whether you are trading spot or futures, marking support and resistance points according to the arrangement of candles on the 1M, 1W, and 1D charts is the first task you need to do before trading. To do this, you need to understand the arrangement of candles. Therefore, before using my indicator, it is better to study candles first and understand the arrangement of candles. When studying candles, it is better not to try to memorize the names or shapes of various patterns. This is because the overall understanding of candles is important, not the various patterns of candles. If you study with a book or video, you will be able to understand candles after reading or watching them at least 3 times. We study charts to trade, not to analyze charts and teach them to others, so we need to study efficiently and save time. - If you study candles, you will naturally understand the price moving average. The indicator corresponding to the price moving average is the MS-Signal indicator. This MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator, and the main indicator is the M-Signal indicator. Therefore, we added the M-Signal indicator of the 1W chart and the M-Signal indicator of the 1M chart to the 1D chart so that we can see the overall trend. - You can see the arrangement of the MS-Signal (M-Signal of 1M, 1W, 1D charts) indicators in the example chart. Currently, since the M-Signal of the 1M chart > the M-Signal of the 1W chart, we can see that it is a reverse array. If you understand the price moving average, you will understand that we should not trade when it is a reverse array, but when it is a regular array. Therefore, since the current state of the example chart is a reverse array, it is not suitable for trading. However, the reason we brought this chart in this state is because the M-Signal indicators of the 1M and 1W charts are converging. As convergence progresses, it will eventually diverge. Therefore, since the possibility of price volatility increases, the possibility of capturing the timing for trading increases depending on whether there is support at the support and resistance points. - The indicators included in the example chart are drawn as horizontal lines to indicate support and resistance points. This work performs the same role as the support and resistance points drawn on the 1M, 1W, and 1D charts according to the arrangement of the candles mentioned above. Therefore, on the 1M, 1W, and 1D charts, horizontal lines are drawn on the indicators to indicate support and resistance points. You can draw horizontal lines on indicators that are horizontal for at least 3 candles, and if possible, 5 candles. - Among the HA-MS indicators, the important indicators are the HA-Low and HA-High indicators. The HA-Low and HA-High indicators are indicators created for trading on the Heikin-Ashi chart. Therefore, it is the next most important indicator after the MS-Signal (M-Signal on 1M, 1W, 1D charts) indicator that can tell the trend. You can create a trading strategy depending on whether there is support near the HA-Low, HA-High indicators. - The next most important indicator is the BW(0), BW(100) indicator. When this indicator is created or touched, it is time to respond in detail. That is, when you are trading with a trading strategy created from the HA-Low, HA-High indicators, when the BW(0), BW(100) indicators are created or touched, you can choose whether to proceed with a split transaction. In addition, you can understand the OBV, +100, -100 indicators as response points for split transactions. Therefore, you do not need to indicate support and resistance points for the OBV, +100, -100 indicators. However, it is recommended to mark support and resistance points for the HA-Low, HA-High, BW(0), BW(100) indicators. - If you look at the price position in the example chart, you can see that it is located in the 0.03347-0.03485 range. And, the M-Signal indicator of the 1W chart is passing through this range, and the HA-High indicator of the 1W chart is acting as support and resistance. Therefore, whether there is support near 0.03485 is an important key point. If support is confirmed near 0.03485, it is a time to buy. However, since the MS-Signal (M-Signal on the 1D chart) indicator is passing between 0.03485-0.03814, the point to watch is whether the MS-Signal (M-Signal on the 1D chart) indicator can break through upward. As I mentioned earlier, if the MS-Signal indicator passes, a trend change will occur, so it is significant. Therefore, in order to turn into a short-term uptrend, it is likely to be supported around 0.03814-0.03982. Therefore, the first split selling section will be around 0.03814-0.03982. At this time, whether to sell or hold depends on your investment style and investment period. - Since the M-Signal indicator on the 1M chart is passing around 0.04341, it is likely to start when the price is maintained above the M-Signal indicator on the 1M chart in order to turn into a long-term uptrend. Therefore, the second split selling period will be around the M-Signal indicator on the 1M chart. This is also something you can choose. - An important volume profile section is formed around 0.03038. Therefore, the 0.03038 point corresponds to a strong support section. - (30m chart) When the time frame chart you are trading is below the 1D chart, it is recommended to activate the 5EMA indicator on the 1D chart. (I just used the 30m chart as an example. The same principle applies to any time frame chart you usually use.) This is because there is a high possibility of volatility when the 5EMA of the 1D chart and the M-Signal indicator of the 1M, 1W, and 1D charts are touched. In other words, you can understand that it plays a certain role of support and resistance. If it touches the HA-High, BW(100) indicator and falls and falls below the MS-Signal indicator, it will basically touch the HA-Low or BW(0) indicator. On the other hand, if it touches the HA-Low, BW(0) indicator and rises and rises above the MS-Signal indicator, it will basically touch the HA-High or BW(100) indicator. However, since it may not do so and may rise or fall in the middle, it is necessary for the support and resistance points drawn on the 1M, 1W, and 1D charts as mentioned earlier. The support and resistance points drawn on the 1D chart are currently indicated at the 0.03347 point. Therefore, even if it falls below the MS-Signal indicator, you can understand that there is a possibility of rising again around 0.03347. Since the 5EMA of the 1D chart and the M-Signal indicator of the 1W chart are passing around 0.03485, we can see that the area around 0.03485 is an important support and resistance zone. - Since the StochRSI indicator is currently above 50, we should focus on finding a time to sell. Since it has fallen below the BW(100) and HA-High indicators, it has fallen too much to start trading with a sell (SHORT) position. However, if you can respond quickly, you can enter a sell (SHORT) position when it falls from the 0.03411 point where the MS-Signal indicator is passing. When the StochRSI indicator falls below 50, we should focus on finding a time to buy. At this time, you can trade based on whether there is support or resistance at the support and resistance points drawn on the 1M, 1W, and 1D charts or around the MS-Signal (M-Signal on the 1M, 1W, and 1D charts), 5EMA, HA-Low, HA-High, BW(0), and BW(100) indicators on the 1D chart. As mentioned earlier, you should not forget that trading strategies can be created based on whether there is support at the HA-Low and HA-High indicators. Therefore, if possible, it is recommended to trade based on whether there is support near the HA-High indicator point of 0.03443. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
9
I need objective information to help me interpret the chart Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- With this decline, the BW(100) indicator was created at 104556.23. Accordingly, the high boundary section is the 101947.24-104556.23 section. Unfortunately, since it fell below 101947.24, the key is whether it can receive support near the MS-Signal (M-Signal on the 1D chart) indicator, i.e., around 98892.0, and rise. If it falls below the MS-Signal (M-Signal on the 1D chart) indicator and shows resistance, it is highly likely to turn into a short-term downtrend. - The settings for the StochRSI indicator I use are 14, 7, 3, 3 (RSI, Stoch, K, D). The source value is ohlc4. If you set it as above, it will show a movement similar to the StochRSI indicator on my chart. When the StochRSI indicator - falls in the overbought zone, - is located near the 50 point, - rises in the oversold zone, volatility is likely to occur. However, you should check whether there is support near the support and resistance points drawn on the 1M, 1W, and 1D charts and think of a corresponding response plan. Therefore, by checking the relationship between the movement of the StochRSI indicator and the support and resistance points drawn on the 1M, 1W, and 1D charts, you can choose the point where you can make a trade. If you can calculate these selection points, I think it is highly likely that you will be able to create a trading strategy that suits your investment style. It is good to predict future movements with trends or waves, but if you can calculate the point where you can actually make a trade, I think you can create a better trading strategy. - I wrote a long article, but 1. Will the StochRSI indicator fall in the overbought zone? 2. Will it receive support near the MS-Signal (M-Signal on the 1D chart) indicator? 3. Will it rise to the high boundary section? You should focus on the three things above. --------------------------------- The method of drawing support and resistance points is drawn according to the arrangement of candles. This method can actually include subjective thoughts, so it requires skill. Therefore, if possible, I recommend that you sign up as a paid member of TradingView and share my charts with me, and use the HA-High, HA-Low, BW(100), BW(0), OBV, +100, -100 indicators that appear on 1M, 1W, and 1D charts by the HA-MS_BW+v2 indicator as horizontal lines and use them as support and resistance points. Then, even if others look at the charts, they will be easier to understand, and it will be easier to share opinions on trading strategies according to each other's investment styles. By utilizing indicators that anyone can use in this way, you will be able to view the charts objectively. If you trade based on what others tell you, you will likely not be able to respond quickly when sudden volatility occurs. Therefore, when creating a trading strategy, you should roughly think about how to respond to all cases, both when it goes up and when it goes down. That's why it's best to draw support and resistance points or other reference materials on your chart if possible and prepare countermeasures accordingly. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
combined guide for both the **Regime Classifier** and **kNN Here’s the combined guide for both the **Regime Classifier** and **kNN (k-Nearest Neighbors)** indicators with emojis, tailored for your TradingView chart description: --- ### **🔑 Individual Lesson Steps** #### **Lesson 1: What is a Regime Classifier?** 👽 **Defining Market Regimes** - A **market regime** refers to distinct market conditions based on price behavior and volatility. - **Types of Market Regimes:** - 🚀 **Advance** (Uptrend) - 📉 **Decline** (Downtrend) - 🔄 **Accumulation** (Consolidation) - ⬆️⬇️ **Distribution** (Topping/Bottoming Patterns) 👾 **Why it Matters:** - Identifying market regimes helps traders tailor their strategies, manage risk, and make more accurate decisions. --- #### **Lesson 2: Anatomy of the Regime Classifier Indicator** 👽 **Core Components** - **Median Filtering:** Smooths out price data to capture significant trends. - **Clustering Model:** Classifies price trends and volatility into distinct regimes. - **Volatility Analysis:** Analyzes price volatility with rolling windows to detect high and low volatility phases. 👾 **Advanced Features:** - **Dynamic Cycle Oscillator (DCO):** Tracks price momentum and cyclic behavior. - **Regime Visualization:** Color-coded display of market conditions to make trends and patterns clearer. --- #### **Lesson 3: Configuring the Regime Classifier Indicator** 👽 **Customization Settings** - **Filter Window Size:** Adjusts sensitivity for detecting trends. - **ATR Lookback Period:** Determines how far back the volatility is calculated. - **Clustering Window & Refit Interval:** Fine-tunes how the indicator adapts to new market conditions. - **Dynamic Cycle Oscillator Settings:** Tailors lookback periods and smoothing factors. 👾 **Why It’s Useful:** - Customizing these settings helps traders optimize the indicator for different trading styles (e.g., scalping, swing trading, long-term investing). --- #### **Lesson 4: Using the Indicator for Regime-Based Trading Strategies** 👽 **Adapt Strategies Based on Regimes** - **Advance Regime:** Focus on long positions and trend-following strategies. - **Decline Regime:** Prioritize short positions or hedging strategies. - **Accumulation Regime:** Watch for breakout opportunities. - **Distribution Regime:** Look for trend reversals or fading trends. 👾 **Using the Dynamic Cycle Oscillator for Confirmation:** - 🌡️ **Overbought/Oversold Conditions:** Identify potential reversals. - 🔄 **Trend Momentum:** Confirm if the trend is gaining or losing strength. --- #### **Lesson 5: Combining Volatility and Price Trends for High-Confidence Trades** 👽 **Interpreting Volatility Clusters** - 🔥 **High Volatility:** Indicates caution, risk management, or hedging opportunities. - 🌿 **Low Volatility:** Suggests consolidation or trend continuation. 👾 **How Volatility Clusters Interact with Price Trends:** - Combine trend direction with volatility analysis to refine trade entries and exits for more precise decisions. --- #### **Lesson 6: Backtesting and Live Application** 👽 **Validate Using Historical Data** - Guide traders on **backtesting** strategies using historical data to see how the indicator would have performed. 👾 **Real-Time Application:** - Implement the Regime Classifier in **live markets** to monitor ongoing price conditions and gain actionable insights. --- ### **🔑 kNN (k-Nearest Neighbors) Indicator Lesson Steps** #### **Lesson 1: What is kNN?** 👽 **Defining kNN** - **k-Nearest Neighbors** is a machine learning algorithm that makes predictions based on the proximity of data points. - It identifies the nearest neighbors of a data point and classifies it according to the majority class of those neighbors. 👾 **Why it Matters:** - **kNN** helps traders forecast price movement, trends, and potential reversals by analyzing historical data. --- #### **Lesson 2: Anatomy of the kNN Indicator** 👽 **Core Components** - **Training Data:** Historical price data used to identify the neighbors of a point. - **Distance Metric:** Determines the closeness of data points (e.g., Euclidean distance). - **k Parameter:** The number of nearest neighbors to consider for predictions. 👾 **Advanced Features:** - **Distance Calculation:** Helps assess how similar current price movement is to historical patterns. - **Prediction:** The majority of the nearest neighbors determines the expected price movement (up or down). --- #### **Lesson 3: Configuring the kNN Indicator** 👽 **Customization Settings** - **k (Number of Neighbors):** Adjust to control how many historical data points influence predictions. - **Distance Metric:** Choose from Euclidean, Manhattan, or other metrics based on data characteristics. - **Window Size:** Defines how many data points (e.g., time periods) are used for analysis. 👾 **Why It’s Useful:** - Tuning these settings allows traders to adjust the sensitivity and precision of predictions, optimizing for various trading styles. --- #### **Lesson 4: Using the kNN Indicator for Predictive Trading Strategies** 👽 **Predicting Price Movements** - Use **kNN** to identify trend directions and price reversals based on historical proximity. - **Uptrend Prediction:** Identify moments where the nearest neighbors suggest a continuation of the trend. - **Downtrend Prediction:** Signal when the majority of neighbors point toward price decline. 👾 **Using Predictions to Enhance Trade Entries:** - Use **kNN** signals in conjunction with **Regime Classifier** regimes to validate and enhance entry and exit points. --- #### **Lesson 5: Combining kNN Predictions with Regime Classifier for Precision** 👽 **Refining Trade Confidence** - Cross-reference **kNN predictions** (uptrend/downtrend) with **Regime Classifier’s** regime identification for higher precision trades. - **Example:** If **kNN** predicts an uptrend and the **Regime Classifier** signals an **Advance** regime, you can confidently go long. --- #### **Lesson 6: Backtesting and Live Application** 👽 **Validate Predictions with Historical Data** - Backtest using **kNN** on past price data to measure accuracy in predicting trends and reversals. - **Real-Time Application:** Implement **kNN** in live markets alongside **Regime Classifier** for comprehensive decision-making. --- ### **🔄 Combined Lessons for Advanced Mastery** #### **Combo 1: Regime Identification and kNN Predictions for Strategy Optimization** 💡 **Objective:** Combine market regime identification with kNN predictions to refine trading strategies. - Merge **Lesson 1 (Understanding Regimes)** and **Lesson 1 (What is kNN?)**. - **Practical Exercise:** Use both indicators to identify regimes and predict price trends in live charts. --- #### **Combo 2: Customization, Practical Usage, and Enhanced Predictions** 💡 **Objective:** Equip traders to fine-tune both indicators for their unique strategies. - Merge **Lesson 3 (Settings Configuration for Regime Classifier)** and **Lesson 3 (kNN Indicator Configuration)**. - Walkthrough: Customize settings and combine both indicators to predict price trends and adjust strategies accordingly. --- #### **Combo 3: Comprehensive Trading Strategy with Regime Classifier and kNN** 💡 **Objective:** Build a full-fledged trading system using both indicators for market regime analysis and predictive signals. - Combine **all lessons** for a complete, systematic trading approach: - 🔍 **Identify market regimes** - 🔄 **Use kNN predictions** to assess potential price movements - 📈 **Combine with Dynamic Cycle Oscillator** for entry/exit timing - 💥 **Execute trades** with a comprehensive strategy --- These lessons and combos provide traders with the essential tools to master both the **Regime Classifier** and **k-Nearest Neighbors** indicators, from understanding the fundamentals to implementing advanced strategies and refining predictions for more accurate market analysis.
Education
by bencryptoknight
Moving Average Convergence Divergence MACD A Comprehensive GuideMastering the Moving Average Convergence Divergence (MACD): A Comprehensive Guide Understanding the Moving Average Convergence Divergence (MACD): A Beginner’s Guide The Moving Average Convergence Divergence (MACD) is a popular and powerful momentum and trend-following indicator used by traders across various markets. Developed by Gerald Appel in the late 1970s, MACD helps traders identify potential trend reversals, momentum strength, and buy or sell signals. What is MACD? MACD is based on the relationship between two moving averages of an asset’s price. It consists of three main components: MACD Line: Calculated as the difference between the 12-period Exponential Moving Average (EMA) and the 26-period EMA. Signal Line: A 9-period EMA of the MACD Line. Serves as a trigger for buy or sell signals. Histogram: The difference between the MACD Line and the Signal Line. Visual representation of momentum changes. How to Interpret MACD Crossovers: Bullish Crossover: When the MACD Line crosses above the Signal Line, it signals upward momentum and is often interpreted as a buy signal. Bearish Crossover: When the MACD Line crosses below the Signal Line, it indicates downward momentum and is often seen as a sell signal. Centerline Crossovers: When the MACD Line crosses above the zero line, it indicates bullish momentum. When the MACD Line crosses below the zero line, it signals bearish momentum. Divergence: Bullish Divergence: Occurs when the price makes lower lows, but the MACD makes higher lows. This can indicate a potential upward reversal. Bearish Divergence: Occurs when the price makes higher highs, but the MACD makes lower highs. This can suggest a potential downward reversal. Strengths of MACD Versatile: Combines trend-following and momentum analysis. Easy to Use: Simple to interpret for traders of all skill levels. Effective in Trending Markets: Provides clear signals during strong trends. Limitations of MACD Lagging Indicator: Since it relies on moving averages, MACD may provide signals after a trend has already started. False Signals: In sideways or choppy markets, MACD can produce misleading crossovers. Best Practices for Using MACD Combine with Other Indicators: Use MACD with support and resistance levels, RSI, or Bollinger Bands for confirmation of signals. Combine it with volume analysis to validate momentum strength. Adjust Periods for Your Strategy: Shorten the EMA periods (e.g., 8, 18, and 6) for more responsive signals in fast-moving markets. Lengthen the periods (e.g., 21, 50, and 9) for smoother signals in slower markets. Understand Market Context: Avoid relying solely on MACD in range-bound markets where false signals are more common. Example of MACD in Action Imagine a stock is in an uptrend, and the MACD Line crosses above the Signal Line while the histogram turns positive. This is a bullish signal suggesting that the upward momentum is strengthening. Conversely, if the MACD Line crosses below the Signal Line during a downtrend, it signals that bearish momentum may continue. Conclusion The MACD is a robust indicator that helps traders identify trends, momentum shifts, and potential buy/sell opportunities. While it’s easy to use, its effectiveness improves when combined with other technical tools and a solid understanding of market dynamics. As always, backtest your strategies and practice using the MACD on historical data before applying it to live trades.
Education
by CobraVanguard
2
Example of Interpretation of USDT, USDC, BTC.D, USDT.D Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. Trading Strategy ------------------------------------- (USDT 1D chart) USDT is a stable coin that has a great influence on the coin market. Therefore, the gap decline of USDT is likely to have a negative impact on the coin market. Since the gap decline means that funds have flowed out of the coin market, it can be interpreted that funds have currently flowed out through USDT. (USDC 1D chart) USDC cannot help but have a lower influence on the coin market than USDT. The reason is that USDC markets are not operated in all exchanges around the world. In other words, USDC can be seen as having limitations compared to USDT as an American investment capital. Therefore, the gap increase of USDT is likely to have a short-term impact on the coin market. ---------------------------------- (BTC.D 1D chart) You can refer to BTC dominance to choose which side (BTC, Alts) to trade in the coin market. Since the rise in BTC dominance means that funds are concentrated on BTC, it can be interpreted that Alts are likely to gradually move sideways or show a downward trend. For this interpretation to be meaningful, USDT dominance must show a downward trend. (USDT.D 1D chart) Because the decline in USDT dominance is likely to result in a rise in the coin market. Therefore, if USDT dominance rises, it may be a good idea to pause all trading and take a look at the situation. - You can roughly figure out whether funds are flowing into or out of the coin market with USDT and USDC. You can roughly figure out which direction the funds in the actual coin market are moving with BTC dominance and USDT dominance. As I am writing this, BTC dominance is rising and USDT dominance is falling, so it is better to trade BTC rather than Alts. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
CRYPTOCAP:BTC.DEducation
by readCrypto
1
Example of how to trade without chart analysis Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- Since the coin market can be traded 24 hours a day, 365 days a year, gaps do not occur as often as in the stock market. (However, gaps may occur frequently in exchanges with low trading volume.) In any case, I think that these movements provide considerable usefulness in conducting transactions. Sometimes I told you to buy when the price drops by -10% or more. Today, I will tell you why. -------------------------------------- In order to trade, you must have basic knowledge of charts. Otherwise, you are likely to conduct transactions incorrectly due to volatility. However, such cases are less common in the coin market than in the stock market. One of the reasons is that the current coins (tokens) are not being used for actual business purposes. So, I think there are quite a few issues that cause volatility other than charts like stocks. - If the price falls one day and falls by about -10% from the high before a new candle is created, I buy. The next day, if it falls by about -10% from the high again, I buy again. When it falls by about -10% like this, I continue to buy in installments. That's why I need to adjust my investment ratio. - If I buy like that, there will come a point where my price rises more than the average unit price. In that case, when I'm making a profit, I sell the amount corresponding to the purchase principal in installments and leave the number of coins (tokens) corresponding to the profit. If you want cash profit, you can sell a certain portion in installments. Also, on the contrary, when it rises by about +10%, we proceed with a split sale. - As shown in the example chart, you can see that there are not many cases where it rises by -10% or +10%. However, since it occurs more often in the case of altcoins than in BTC or ETH, you should pay special attention to adjusting your investment ratio when trading altcoins. That is why you must check the price fluctuation range 1-3 hours before a new candle is created on the 1D chart. This method is a method that can be traded even if you lack knowledge about charts. If you let go of your greed a little and have the ability to split sell when you are making a profit, you will be able to meet the moment when a crisis becomes an opportunity. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
The Relative Strength Index (RSI): A Beginner’s GuideThe Relative Strength Index (RSI) is one of the most widely used technical indicators in trading. Developed by J. Welles Wilder in 1978, it helps traders evaluate the momentum of a market and identify overbought or oversold conditions. What is RSI? RSI is an oscillator that measures the speed and magnitude of price changes over a specific period, typically 14 periods. It provides a value between 0 and 100, which helps traders gauge whether an asset is overbought or oversold. Overbought: RSI above 70 suggests the asset might be overbought and due for a correction. Oversold: RSI below 30 indicates the asset might be oversold and due for a rebound. The RSI Formula The RSI is calculated as: Where: RS= Average Gain of Up Periods (over the lookback period) / Average Loss of Down Periods (over the lookback period) How to Interpret RSI 1. Overbought and Oversold Levels: - When RSI crosses above 70, it may signal that the asset is overbought and could experience a price decline. - When RSI drops below 30, it may indicate that the asset is oversold and could see a price increase. 2. Divergence: - Bullish Divergence: When the price makes lower lows, but RSI makes higher lows, it suggests a potential upward reversal. - Bearish Divergence: When the price makes higher highs, but RSI makes lower highs, it indicates a potential downward reversal. 3. Centerline Crossover: - RSI crossing above 50 is often viewed as a bullish signal, indicating upward momentum. - RSI crossing below 50 suggests bearish momentum. Strengths of RSI - Versatility: Works well in a variety of markets (stocks, forex, crypto, etc.) and timeframes. - Simplicity: Easy to interpret for beginners. - Divergences: Offers insight into potential trend reversals. Limitations of RSI - False Signals**: RSI can provide false overbought/oversold signals in strong trending markets. - Lagging Indicator: Like most indicators, RSI relies on historical data, which may delay signals. Best Practices for Using RSI 1. Combine with Other Indicators: - Use RSI with trend-following indicators like Moving Averages or MACD to filter out false signals. - Pair it with support and resistance levels to validate potential reversals. 2. Adjust the Period: - Shorten the period (e.g., 7 or 9) for more sensitive signals. - Lengthen the period (e.g., 20 or 30) for smoother, less frequent signals. 3. Context Matters: - In a trending market, RSI may remain overbought or oversold for extended periods. Use it cautiously in such conditions. Example of RSI in Action Imagine a cryptocurrency like Bitcoin has been rallying for several days, and the RSI rises above 70. This suggests that Bitcoin might be overbought, and a pullback could occur soon. However, if the market trend is strong, Bitcoin’s RSI could stay above 70 for an extended period. Combining RSI with trend analysis or support/resistance levels can provide better insights. Conclusion The RSI is a powerful tool for traders seeking to understand market momentum and potential reversal points. While it’s simple to use, its effectiveness increases when combined with other indicators and market context. As always, practice using RSI on historical data before applying it to live trades, and remember that no single indicator guarantees success
Education
by CobraVanguard
4
Mastering RSI: The Complete and CORRECT Way to Trade ItThe Relative Strength Index (RSI) is one of the most popular and widely used indicators in trading. Despite its prevalence, many traders misuse it or are unaware of its full potential. RSI isn't just about identifying overbought and oversold conditions; when applied correctly, it becomes a robust tool for trend confirmation, reversals, momentum acceleration, and much more. This guide explores how to unlock the full power of RSI and avoid common pitfalls. What Is RSI? Developed by J. Welles Wilder Jr., RSI measures the speed and magnitude of price changes over a specified period. It oscillates between 0 and 100, with the following traditional zones: Above 70: Indicates overbought conditions, where the price may reverse or consolidate. Below 30: Indicates oversold conditions, where the price may rebound or reverse upward. However, it’s important to note that RSI above 70 or below 30 can sometimes indicate trend acceleration rather than an immediate reversal—especially in strong trending markets, discussed in #6 The real reversal signal comes after RSI crosses back below 70 (for overbought) or back above 30 (for oversold). Understanding this distinction is critical to using RSI effectively. 1. Overbought and Oversold Conditions The classic use of RSI involves identifying overbought and oversold levels: Overbought: RSI rises above 70 and then drops back below it, signaling potential selling pressure. Oversold: RSI falls below 30 and then moves back above it, indicating potential buying interest. These signals are more effective when combined with tools like support/resistance levels or trendlines. 2. Centerline Crossover The 50-level on RSI is a reliable trend indicator: Above 50: Bullish momentum dominates. Below 50: Bearish momentum dominates. Use these crossovers to confirm trends: Enter long trades when RSI is above 50. Enter short trades when RSI is below 50. 3. Divergences Divergences between RSI and price can signal potential trend reversals: Bullish Divergence: Price makes lower lows, but RSI forms higher lows. Bearish Divergence: Price makes higher highs, but RSI forms lower highs. These divergences highlight weakening momentum and often precede reversals. 4. RSI Patterns RSI can form recognizable chart patterns, such as triangles, head-and-shoulders, or double tops/bottoms. These patterns often precede price moves: Triangles: A breakout on RSI often signals a strong price move. Double Tops : A topping pattern on RSI warns of potential price declines. 5. Failure Swings Failure swings occur when RSI enters an extreme zone (above 70 or below 30) but fails to sustain momentum and reverses. This is a strong reversal signal and can precede significant price moves: Bullish Failure Swing: RSI dips below 30. It rises but dips again, staying above 30. RSI breaks its previous high, signaling a bullish reversal. Bearish Failure Swing: RSI rises above 70. It falls but rises again, staying below 70. RSI breaks its previous low, signaling a bearish reversal. How to trade it: For a bullish failure swing, enter long when RSI confirms the higher low and breaks above the previous swing high. For a bearish failure swing, enter short when RSI confirms the lower high and breaks below the previous swing low. 6. Momentum Acceleration Strategy While RSI is traditionally used for spotting overbought and oversold conditions, it can also identify momentum acceleration during strong trends: Above 70: In strong uptrends, when RSI rises above 70 and stays there, it signals upward acceleration, indicating buyers are in control. Below 30: In strong downtrends, when RSI dips below 30 and stays there, it signals downward acceleration, with sellers driving the market lower. How to trade it: In uptrends, treat RSI staying above 70 as a sign of strength and look for pullbacks to enter long positions. In downtrends, use brief rebounds as opportunities to short while RSI remains below 30. 7. Multi-Timeframe Strategy Analyzing RSI across multiple timeframes enhances accuracy: Use the higher timeframe (e.g., daily) to identify the overall trend. Use the lower timeframe (e.g., 1-hour) to time trade entries. Example: If RSI on the daily chart is above 50 (bullish trend), look for hourly RSI dips below 30 to enter long trades. If RSI on the daily chart is below 50 (bearish trend), wait for hourly RSI to reach overbought levels above 70 to short. Tips for Advanced RSI Use: Adjust RSI Settings: Shorter periods (e.g., 7) make RSI more sensitive, while longer periods (e.g., 21) smooth out signals for longer-term trends. Combine RSI with Other Tools: Use RSI alongside moving averages, Fibonacci retracements, or Candlesticks. Risk Management: Always pair RSI signals with a stop-loss strategy to manage risk effectively. PRO TIP: As I like to say "Trade the price, not the indicator." Use RSI as a confirmation tool, not the main signal. For example, a price reversal from resistance or a bullish engulfing candle becomes far more reliable when backed by RSI signals. Conclusion RSI is far more versatile than many traders realize. While it’s traditionally used for identifying overbought and oversold levels, strategies like momentum acceleration and failure swings add depth to its utility. By combining RSI with centerline crossovers, divergences, multi-timeframe analysis, and chart patterns, traders can pinpoint entries, reversals, and momentum shifts with more precision and trade more confidently. Key Takeaways: - RSI staying above 70 or below 30 in trends signals momentum acceleration. - Failure swings offer reliable reversal signals when RSI breaks key levels. - Combining RSI strategies with other tools and proper risk management leads to more confidence
FX:XAUUSDEducation
by Mihai_Iacob
23
Example of how to select a volatility period Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- The date that I am talking about as a volatility period refers to a period in which there may be a movement that may change the trend. In other words, it means that there is a high possibility of creating a new wave as the volatility period passes. Basically, the volatility period is expressed as an issue regarding the coin (token) or a global issue, but the volatility period that I am talking about is expressed by the support and resistance points and trend lines drawn on the chart. - The support and resistance points refer to the points drawn on the 1M, 1W, and 1D charts. In other words, they refer to the points of the HA-Low, HA-High, BW(0), BW(100), and OBV indicators displayed on each chart. When indicating support and resistance points, indicators connected to the current price candle are unconditionally drawn. Also, indicators that are not expressed up to the current price candle are drawn starting from the one with the longest horizontal line. Among indicators that are not expressed up to the current candle, horizontal lines expressed less than 5 candles are not drawn if possible. If there are support and resistance lines that are expressed too closely, the support and resistance lines that are closest to the current candle are used. - The StochRSI indicator is used to draw a trend line. When the StochRSI indicator enters the oversold or overbought zone and reverses, that is, when a peak is created, those points are connected and expressed. Therefore, the peak created in the 20~80 range of the StochRSI indicator is ignored. Therefore, the trend line is created by connecting the high and low points of the StochRSI indicator. However, the high point connection line connects the opening price of the falling candle. If there is no bearish candle at the peak of the StochRSI indicator, move to the right and use the first bearish candle. When drawing the trendline for the first time, it is better to draw it from the vicinity where the current wave started. If the StochRSI indicator has two peaks in the overbought or oversold area, use both when it leaves the overbought or oversold area and then re-enters it. Otherwise, use only one peak at a time. - Draw support and resistance points and trendlines on each chart. - Find and mark points where trend lines or support and resistance points intersect at least two times. The importance is determined in the order of trend lines drawn on the 1M chart > trend lines drawn on the 1W chart > trend lines drawn on the 1D chart. Therefore, in order to express a period of volatility with a trend line drawn on the 1D chart, there must be at least two intersecting points. In other words, there must be at least two intersecting points when indicating a period of volatility, such as when trend lines intersect each other or when trend lines intersect support and resistance points. In addition, support and resistance points are also important in the order of 1M > 1W > 1D charts, so when they intersect with support and resistance points, they are selected according to this importance. - Then, if you hide the trend line, you will complete the chart showing the period of volatility. - When drawing for the first time, 1. When indicating support and resistance points, if you do not understand the arrangement of candles, it may be difficult to select. 2. It may be difficult to select the peak and candle of the StochRSI indicator. 3. It may be difficult to select which intersection point to select when indicating the volatility period. Since you cannot get used to everything at once, it is recommended to draw and observe one by one and try to solve the difficulty of the next step once you get used to it. - The StochRSI indicator on this chart is an indicator whose formula has been changed from the basic StochRSI indicator. Therefore, if possible, it is recommended to use the StochRSI indicator on my chart. If you use your own StochRSI indicator, Settings: 14, 7, 3, 3 (RSI, Stoch, K, D) Source value: ohlc4 If you change the values ​​above, it will be expressed similarly. - Thank you for reading to the end. I wish you successful trading. --------------------------------------------------
Education
by readCrypto
Raw VS Percentage Volatility FormatA Quantitative Comparison of "Buying & Selling Pressure" and "Average Bullish & Bearish Percentage Change" In market analysis, the choice of averaging method can profoundly influence the insights derived. The "Buying & Selling Pressure " and "Average Bullish & Bearish Percentage Change" indicators demonstrate the unique strengths of fixed-period and candle-count-based averaging approaches. Key Differences Between Fixed-Period and Candle-Count Averaging Fixed-Period Averaging in BSP: ➡︎ In "Buying & Selling Pressure", candle metrics are averaged over a defined period (e.g., 14 bars). ➡︎ This provides rapid insights into market sentiment changes, making it ideal for tracking incentive shifts and volatility in real time. ➡︎ However, because this method includes all candles in the averaging window, it may reflect short-term fluctuations, offering less stability compared to candle-count-based methods. Candle-Count Averaging in ABBPC: ➡︎ "Average Bullish & Bearish Percentage Change"uses a predefined count of bullish or bearish candles for averaging percentage changes. ➡︎ This produces stable and reliable values, which are less sensitive to noise and better suited for risk and reward assessment. ➡︎ The focus on specific candle states ensures that only relevant market behaviors contribute to the averages. Using Percentage Change for Risk Definition One of the greatest strengths of the "Average Bullish & Bearish Percentage Change" indicator is its ability to assist in risk and reward calculations with much more market related figures instead of raw values of volatility: Defining Risk The average percentage change of bearish candles can serve as a dynamic stop-loss level. For example, if the average bearish percentage change over the last 10 candles is 2%, a trader can set a stop-loss at 2% below their entry to account for typical market behavior. Quantifying Reward: The average bullish percentage change helps identify realistic profit targets. If the average bullish percentage change over the last 10 candles is 3%, a trader can set a target at 3% above their entry to maintain a favorable risk-to-reward ratio. Dynamic Adjustments: As the market evolves, these average percentage changes update, allowing traders to adjust their risk and reward levels in real time for better precision. Quantitative Advantages of Percentage Change Averaging Normalization Across Price Levels: Percentage changes enable consistent comparison across assets with vastly different price ranges. Enhanced Stability for Risk Assessment: Candle-count averaging smooths out noise, offering a reliable basis for setting risk parameters like stop-losses and profit targets. Improved Predictability: By isolating specific candle behaviors, percentage-based metrics provide clearer signals for trend-following or mean-reversion strategies. Advantages of BSP’s Fixed-Period Averaging Despite being less stable, "Buying & Selling Pressure " excels in areas requiring speed and adaptability: Fast Incentive Tracking: Period-based averaging adapts quickly to changing market conditions, providing timely insights into shifts in buying or selling pressure. Broad Volatility Capture: BSP includes all candles in the defined period, capturing overall market dynamics, including sudden spikes or reversals. Real-Time Decision Making: Its responsiveness makes it highly suitable for momentum or breakout trading strategies. Bottomline: Use "Average Bullish & Bearish Percentage Change" for stable, consistent data ideal for risk assessment, particularly when defining dynamic stop-loss levels or profit targets based on average percentage changes. Use "Buying & Selling Pressure " for its speed and adaptability in tracking real-time shifts in market incentives and capturing volatility.
PEducation
by fract
1
Treasury yields at a crossroads? The implications for marketsThe long end of the US Treasury curve has been influential for FX markets recently. The rolling 10-day correlation between US 10-year yields with the DXY, EUR/USD, GBP/USD, and USD/JPY is either strongly positive or negative. Even gold shows a notable -0.73 correlation, highlighting the influence of long bonds on broader markets. Given the inverse relationship between bond yields and prices, it’s no surprise that the correlation between 10-year yields and 10-year Treasury futures (shown in orange, left-hand pane) has been nearly perfectly negative over the past two weeks. In terms of directional risks for yields moving forward, the right-hand pane showing US 10-year Treasury note futures is instructive. The price remains in a downtrend, repeatedly rejected since being established October. If this trend persists, it signals lower prices and higher yields. That said, with the bullish hammer candle from the lows last week, coupled with RSI (14) and MACD which are providing bullish signals on momentum, you get the sense we may be in the early stages of a turning point. If we were to see the price break the downtrend, resistance may be encountered at 113’00, a level that’s been tested from both sides in recent weeks. If that were to give way, it points to an environment of a softer US dollar and kinder conditions for longer duration assets and commodities. Good luck! DS
CBOT:TN1!Education
by FOREXcom
1
TOP 10 BEST TRADINGVIEW INDICATORS FOR 2025In this video, I show you all how I use some of my favorite TradingView indicators for my trading & investing strategies & explain how these can be the most powerful tools in your arsenal if you are a trader or investor! My Top 10 TradingView Indicators are also Below: 1. CM_Ultimate RSI Multi Time Frame by ChrisMoody 2. Death Cross - 200 MA / 50 Cross Checker by MexPayne 3. Gaps 4. Indicator: WaveTrend Oscillator by LazyBear 5. Moving Average Convergence Divergence (MACD) 6. Pi Cycle Bottom Indicator by Doncic 7. RCI3lines by gero 8. Stochastic RSI 9. TDI - Traders Dynamic Index by JuanManuelOrtiz 10. True Strength Index
BITSTAMP:BTCUSDEducation
by Jonalius
14
US dollar rally faces hurdle as rates unwind stalls at key levelWhether it reflects US economic exceptionalism reducing the need for large-scale rate cuts from the Federal Reserve or improved prospects for Donald Trump winning the US Presidential election, or a combination of both, it’s obvious the US interest rate outlook is dictating direction across FX markets. Higher US yields are sucking capital from other parts of the world, helping to fuel US dollar strength. With short-dated Treasury futures teetering above a key technical level, what happens next could be highly influential in determining the path for currencies and global borrowing costs as we move towards year-end.
TVC:DXYEducation
by FOREXcom
3
Example of creating a trading strategy chart Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- To interpret the chart from a trend perspective, you can use the MS-Signal indicator. The MS-Signal indicator consists of the M-Signal indicator and the S-Signal indicator. Therefore, you can analyze the chart by checking the arrangement of the M-Signal indicator and the movement around it. The most important thing in chart analysis is support and resistance points. Therefore, if you do not indicate support and resistance points, it can be said that the chart analysis cannot be used for trading. - So, Fibonacci retracement and trend-based Fibonacci extension are widely used in chart analysis. I used the Trend-Based Fib Extension tool. I selected and displayed the low and high points pointed by the fingers. The selection of the candles pointed by the fingers corresponds to the inflection points of the StochRSI indicator. - If you connect these, you get a trend line. The important thing when drawing a trend line is to connect the high points of the StochRSI indicator by connecting the opening prices of the falling candles. When connecting the low points, you can connect the low points regardless of whether it is a falling candle or an rising candle. This is because I think it best expresses the trend and volatility period based on my experience using it. When drawing the Fibonacci ratio and when drawing the trend line, the selection points are different, so you should draw it with this in mind. - If it is drawn as above, you can see that the chart is ready to be analyzed. Since the channeling most commonly used in chart analysis has been formed, I think chart analysis will not be difficult. However, the above method is a drawing for chart analysis, so it is not suitable for trading. This is an important point. If you are good at chart analysis, but wonder why you lose money when trading, you should change the drawing of support and resistance points. Do not trade with Fibonacci ratios, but mark support and resistance points according to the candle arrangement on the 1M, 1W, and 1D charts and create a trading strategy according to their importance. - The chart above shows the support and resistance points drawn on the 1M, 1W, and 1D charts. To display this, we used the HA-High, HA-Low, OBV 0, OBV Up, OBV Down, BW (100), Mid (50), BW (0) indicators. To display the exact volatility period, we also need to draw a trend line on the 1M, 1W chart. The indicators that are important for support and resistance points are HA-Low, HA-High, BW (100), BW (0). Therefore, the point where the trend line intersects this point is likely to correspond to the volatility period. It is not accurate because it is displayed only with the trend line that was created right away, but I think it explains well how to display the volatility period. - If you display the volatility period like this and hide all indicators, you will have a complete chart that can be used for trading. - Have a good time. Thank you. --------------------------------------------------
Education
by readCrypto
4
The Coin Market is Different from the Stock Market Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- The coin market discloses a lot of information compared to the stock market. Among them, it discloses the flow of funds. Most of the funds in the coin market are flowing in through USDT, and it can be said that it currently manages the largest amount of funds. Therefore, unlike the stock market, individual investors can also roughly know the flow of funds. Therefore, you can see that it is more transparent than other investment markets. - USDT continues to update its ATH. You can see that funds are continuously flowing into the coin market through USDT. USDC has been falling since July 22 and has not yet recovered. The important support and resistance level of USDC is 26.525B. Therefore, if it is maintained above 26.525B, I think there is a high possibility that funds will flow in. If you look at the fund size of USDT and USDC, you can see that USDT is more than twice as high. Therefore, it can be said that USDT is the fund that has a big influence on the coin market. USDC is likely to be composed of US funds. Therefore, if more funds flow in through USDC, I think the coin market is likely to develop into a clearer investment market. But it is not all good. This is because the more the coin market develops into a clearer investment market, the more likely it is to be affected by the existing investment market, that is, the watch market. This is because large investment companies are working to link the coin market with the coin market in order to make the coin market an investment product that they can operate. In order for the coin market to be swayed by the coin-related investment product launched in the stock market, more funds must flow into the coin market through USDC. Otherwise, it is highly likely that it will eventually be swayed by the flow of USDT funds. Therefore, USDC is likely to have a short-term influence on the coin market at present. - As mentioned above, the most important thing in the investment market is the flow of funds. The flow of funds in the coin market can be seen as maintaining an upward trend. Therefore, there are more and more people who say that there are signs of a major bear market these days, but their position seems to be judging the situation from a global perspective and political perspective. As mentioned above, the funds that still dominate the coin market are USDT funds, which are an unspecified number of funds. Therefore, I think that the coin market should not be predicted based on global perspectives and political situations. The start of the major bear market in the coin market is when USDT starts to show a gap downtrend. Until then, I dare say that the coin market is likely to maintain its current uptrend. ------------------------------------ (BTCUSDT 1D chart) The StochRSI indicator is approaching its highest point (100), and the uptrend is reaching its peak. Accordingly, the pressure to decline will increase over time. - (1W chart) The StochRSI indicator is also in the overbought zone on the 1W chart. - (1M chart) On the 1M chart, the StochRSI indicator is showing signs of entering the overbought zone, but it is not expected to enter the oversold zone due to the current rise. The movement of the 1M chart should be checked again when a new candle is created. - You can see that the StochRSI indicator on the 1M chart is the most unusual among the three charts above. In the finger area on the 1M chart, the StochRSI indicator was in the overbought zone, but it is currently showing signs of entering the oversold zone. Therefore, you can see that the current movement is different from the past movement. Therefore, I think it is not right to predict the current flow by substituting past dates. ------------------------------------------ I wrote down my thoughts on the recent comments from famous people who say that the coin market will enter a major bear market along with the stock market. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that the real uptrend will start after rising above 29K. The section expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to be encountered in the future. We need to see if we can break through these points. We need to see the movement when we touch this section because I think we can create a new trend in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start by creating a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
CRYPTOCAP:USDTEducation
by readCrypto
Chart with trend(MACD), momentum(DMI), and market strength(OBV) Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- BW+ indicator is an indicator that comprehensively evaluates MACD, DMI, and OBV indicators. Therefore, knowledge of MACD, DMI, and OBV indicators is required. I added the existing HA-Low and HA-High indicators to express the section to start trading more clearly. - The indicators have changed and been supplemented a lot over the past 6 years of using TradingView. It was not easy to express my trading method as an indicator. Because of this, I think there are people who unintentionally interpret my writing differently from what I think. So, to narrow this gap, I am explaining the indicators used in my article. Since these indicators are automatically generated by a formula, no one can change them. Therefore, I think anyone can look at the chart and interpret it from the same perspective. However, there may be differences in interpretation depending on one's investment style or average purchase price. However, since everyone talks about the same point, there will be no confusion. - When talking to each other in the community, if you talk with the chart tool you drew, you may talk differently and there may be room for misunderstanding. So, I think the conversation often goes in a strange direction because the conversation ends up talking about whether it is LONG or SHORT right now. I think that charts drawn with chart tools are not very meaningful because they only show a part of the person's thoughts through chart analysis. This is because they do not tell you the selection point using the chart tool, so interpretation or understanding is lacking. Therefore, you cannot apply such content to your own chart. So, since it can't be used as a trading strategy, I can't help but just say, "Oh, that could be possible." However, if there is a chart that everyone can see and no one can change, I think it would be easier to talk and reflect each other's thoughts on my trading strategy. I think that because of that, I can find out what I lacked and supplement it. Not everyone sees the same thing and thinks the same, but if the basic point of the thought is the same, I think it can help me make other people's thoughts my own. - Anyway, I hope that this chart change will help you create a clearer analysis or trading strategy. - The MACD indicator added to the chart is an indicator with a modified formula from the existing MACD indicator, but the interpretation method is the same. That is, - If MACD > Signal, it is interpreted as an upward trend, - If MACD < Signal, it is interpreted as a downward trend. - The DMI indicator added to the chart simplifies the interpretation of the existing D+, D- indicators by expressing them as lines on the ADX line. That is, - The section expressed in Aqua color means a downward section, - The section expressed in Orange means an upward section. - When ADX is above 25, it means that the strength of the upward or downward movement is strong, - When it is below 25, it means that there is a high possibility of forming a box section or sideways section. - The OBV indicator added to the chart means an upward trend when each line is broken upward, and a downward trend when it is broken downward. - The indicator that expresses the contents explained above is the BW v1.0 indicator. In order to see this more intuitively, the BW (100), BW (0), and Mid (50) indicators were added so that they can be expressed in the price candle section. In addition, there are also High (80 Down), Low (20 Up) indicators. - It is never easy to interpret each indicator and evaluate it comprehensively. It is especially difficult when trading in real time. - When interpreting the BW v1.0 indicator, it is basically divided into rising and falling based on the 50 point. Therefore, passing the 50 point increases the possibility of a significant change in the trend. Therefore, it seems that trading can be done based on whether there is support near the Mid (50) line generated when the BW indicator passes the 50 point, but this is not the case. The reason is that volatility is likely to occur when a change in trend occurs. When volatility occurs, your trading point will go up and down, so psychological pressure will increase and you may proceed with an inappropriate trade. Therefore, a good point to start trading is the BW (0), BW (100) or HA-Low, HA-High point. Since these indicators are generated at the boundary of the low or high point range, if you start trading based on whether there is support, you are more likely to get good results. - In any case, you should think in line with your average purchase price. Otherwise, if you trade incorrectly due to psychological pressure when you get close to the average purchase price, you may end up with little profit or even a loss. This means that when you start a new trade, it is better to start near the BW (0), BW (100), HA-Low, and HA-High indicators as mentioned above. - Have a good time. Thank you. --------------------------------------------------
Education
by readCrypto
How to Use Trading Zones in CryptoHello, Skyrexians! Last two articles were the deep dive into the Awesome Oscillator and Acceleration Deceleration indicators by Bill Williams. In conjunction with the fractals and the alligator these indicators are the powerful concept in cryptocurrency trading. It can significantly boost your cryptocurrency trading strategy, crypto trading algorithm or you can implement it into trading bot. Today we will expand this concept with the trading zones - the periods on the market with the bullish or bearish superiority. Trading zones is not the popular concept in comparison to Awesome Oscillator, that's why using it can give you a huge advantage in crypto trading because even top crypto traders don't use it in their trading routine. Let's go through its concept. Before start observing the trading zones concept we have to understand what are the Awesome Oscillator and Acceleration/Deceleration. Awesome oscillator is the approximation of the market's driving force. Usually it starts moving before the price if this is an impulsive wave. During corrections it can flash the false signals. Before the driving force starts moving the acceleration changes its direction. That's why combination of these indicators is so important. What is the trading zone? As you know from AO and AC descriptions they can have 2 conditions: increasing (greed bars) and decreasing (red bars). According to this we can define 3 marker conditions: Green zone. Both AO and AC have the increasing columns. This is the strong bullish phase. Only long trades are allowed. Red zone. Both AO and AC have the decreasing columns. This is the strong bearish phase. Only short trades are allowed. Gray zone. AO and AC have the different directions. No signals can be generated by this trading zone
Education
by Skyrexio
How to REALLY Trade Divergences (One of My Favorite Entries)This tutorial might be short, but it is packed with potent information on how to REALLY trade divergences. Divergences are one of the BEST ways to catch market reversals. However, from what I have seen, most people do not have a real process for determining when a divergence is actually confirmed/triggered, and then how to determine targets based on the divergence setup. In other words, most people don't have a plan for trading divergence. This video will give you a full plan (Setup/Trigger/Follow Through) for trading divergences. I give full credit to Jake Bernstein, as this is a concept that I learned from him. He is one of the all time greats, and very worth your time to check out. I hope you found this video insightful. Have a great week.
CME_MINI:NQ1!Education
by Tradius_Trades
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