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Pivot Points

Using past consolidation zones to determine key areas of S/RUsing past consolidation zones to determine key areas of support/resistance ("S/R") In this chart, I'm using a script that I've published (called " Bollinger bands + RSI Strategy" ) to determine the key areas of S/R (refer to Note 1 (below) to briefly understand how the script behind works). For the purpose of this analysis, we will ignore the performance of backtested results. We will only rely on past entry/exit price points to plot horizontal lines and treat them as S/R going forward. In the above Illustrated BTCUSD example : Marked up in freehand (lime circles), you will see that the strategy has entered long at positions of prices at approx. 35.8k, 31.8k, 34.2k, and 31k, respectively, in chronological time order. For marketable securities (or crypto in this case) that are frequently traded in high volumes, these areas of S/R tend to get re-tested in the near future. (Maybe, can imagine, it is because humans (whales) tend to see them as having meanings, and may view them as targets). Take 35.8k in the example; it didn't hold at the very beginning, shortly gets re-tested, tanks again, and up to the the point-in-time of now when this idea is being published, "it may possibly" re-test 35.8k again. -- Note1: The strategy in the underlying script simply enters into long position whenever indicators of BOLL + ATR suggest price volatility is decreasing, later exits the position when RSIs show overbought, or in alternative case when price touches the trailing-stop-loss limit. For details, you may read the summary of that strategy. Disclaimer : The idea above is solely based my personal views. This post is not an investment advice. Viewers are suggested to consider the advantages & practical limitations of the idea/strategy on their own. If this post contradicts with other school of thoughts, then viewers will apply their own professional judgment to make the prevailing investment decisions.
Education
by DojiEmoji
How to use Pivot points Indicators to our advantage!Hi every one A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment. The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction A pivot point is an intraday technical indicator to identify trends and reversals commonly used in equities, commodities, and forex markets. Pivot points are calculated to determine levels in which the sentiment of the market could change from bullish to bearish, and vice-versa. Day traders calculate pivot points to determine levels of entry, stops, and profit-taking by trying to determine where the majority of other traders may be doing the same The pivot point indicator can be added to a chart, and the levels will automatically be calculated and shown. Here's how to calculate them yourself, keeping in mind that pivot points are predominantly used by day traders and are based on the high, low, and close from the prior trading day. If it is Wednesday morning, use the high, low, and close from Tuesday to create the pivot point levels for the Wednesday trading day. After the market closes, or before it opens the next day, find the day's high and low, and the close from the most recent previous trading day. Sum the high, low, and close and then divide by three. Mark this price on the chart as P. Once P is known, calculate S1, S2, R1, and R2. The high and low in these calculations are from the prior trading day. What Do Pivot Points Tell You? Pivot points are an intra-day indicator for trading futures, commodities, and stocks. Unlike moving averages or oscillators, they are static and remain at the same prices throughout the day. This means traders can use the levels to help plan out their trading in advance. For example, they know that, if the price falls below the pivot point, they will likely be shorting early in the session. If the price is above the pivot point, they will be buying. S1, S2, R1, and R2 can be used as target prices for such trades, as well as stop-loss levels. We hope that you've learn something with this post . Have a nice day and Good luck.
COINBASE:BTCUSDEducation
by CobraVanguard
7
SPOTTING EARLY TREND REVERSAL | EURUSD Hey traders, As you know, I am very bearish biased on EURUSD. On a daily, the price respected a major key level and also broke a rising wedge pattern to the downside. On intraday time frames, with classic price action rules, we can easily spot a trend reversal : The price was trading in a bullish trend . The uptrend was confirmed by a sequence of higher highs and higher lows . 1.2267 is a local structure high . After a retracement to a new higher low the price set a lower high (a very important bearish clue). Then the price violates a previous higher low level to the downside setting a new lower low . With a sequence of two lower lows and lower high, we can confirm a bullish trend violation and initiation of a new bearish trend on 8H chart. Now we are waiting for the completion of a retracement leg in a zone between current spot prices and the level of a previous lower high and a consequent bearish continuation. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
11
SPOTTING EARLY TREND REVERSAL | EURUSD Hey traders, As you know, I am very bearish biased on 🔻EURUSD. On a daily, the price respected a major key level and also broke a rising wedge pattern to the downside. On intraday time frames, with classic price action rules, we can easily spot a trend reversal: 1️⃣ The price was trading in a bullish trend. 2️⃣ The uptrend was confirmed by a sequence of higher highs and higher lows. 1.2267 is a local structure high. 3️⃣ After a retracement to a new higher low the price set a lower high (a very important bearish clue). Then the price violates a previous higher low level to the downside setting a new lower low. ❗️With a sequence of two lower lows and lower high, we can confirm a bullish trend violation and initiation of a new bearish trend on 8H chart. Now we are waiting for the completion of a retracement leg in a zone between current spot prices and the level of a previous lower high and a consequent bearish continuation. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
4
How To Trade Cradle PatternThe Cradle Pattern Normally it should be a signal of reversal of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The Pattern starts with a long and black Candle, during a downtrend (Due to the Traders that are selling because they are worried by the downtrend). – Then there is a phase of indecision in the Prices (There are Doji Candles, Spinning Tops, Hammer, Inverted Hammer), so the Prices remain in a precarious balance. – At the end of the Pattern, starts a rise in the Prices with a long and white Candle (That shows the strength of the rise).
Education
by Anbat
How To Trade Bullish Engulfing CandleA bullish engulfing candle occurs after a significant downtrend. Note that the engulfing candle must encompass the real body of the previous candle, but need not surround the shadow. In order for the Bullish Engulfing signal to be valid, the following conditions must exist: • The Forex pair must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. • The second candle on hourly, 4 hour or daily candle of the signal should be a green (blue on my example) candle opening below the Close of the previous day and closing above the Open of the previous day’s black candle. I just place enter order at start of next candle after engulfing candle concludes, with a stop loss at below of this candle or on example hourly chart of EURCAD related to ADR, place stop loss at 20 pips for day trade- exit when price action or target hits 40 pips. 1:2 risk reward setup.
Education
by Anbat
How To Trade Daily Doji CandlesticksA doji represents an equilibrium between supply and demand, a tug of war that neither the bulls nor bears are winning. In the case of an uptrend, the bulls have by definition won previous battles because prices have moved higher. Now, the outcome of the latest skirmish is in doubt. After a long downtrend, the opposite is true. The bears have been victorious in previous battles, forcing prices down. Now the bulls have found courage to buy, and the tide may be ready to turn. How I trade daily doji's (rules): 1) Place a news buy (long) or sell (short) order next session or daily candle. 2) Place buy order 1 pip above highest price action of daily doji candle 3) Place sell order 1 pip below lowest price action of daily doji candle 4) Which ever one is hit by the next sessions price action- the other order is turned into a stop loss order. 5) Examples of three buy orders and one sell order on daily EURUSD example chart- with possible pip profits of 30 pips to 130 pips. These dojis occur on every time charts, but I tend to put more weight into using these on 1 hour, 4 hour or higher charts.
Education
by Anbat
How To Trade "W" Pattern5 Tips to trade W reversal patterns: 1) Only trade W’s off the lows 2)Only trade W formations London & NY Session 3)Wait for the second leg stop hunt to the high/low of the day to confirm entry 4) Asian consolidation range should be very well defined 5) Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking Each day there is a new high and low that is created.Trade the “W” formation reversal pattern at the lows. This is a universal guide to trading W formations on any pair in Forex. This works on all time frames under the daily time frame. We recommend back testing everything we have highlighted in this post for greater clarity of the power you are tapping into! The concept of trading M and W patterns The retail trader masses may be dumb, but they are not that dumb. They will always continue to look for confirmation in order to validate their trades. So, we must understand the reverse psychology behind why the M and W pattern is such an effective reversal strategy. The confirmation the masses use to determine a trend is the creation of higher highs and higher lows in the case of an uptrend.
Education
by Anbat
How To Trade "M" pattern (part 1)5 Tips to trade M reversal patterns: 1) Only trade M’s off the highs or overbought/supply areas. 2) Only trade M & W formations London & NY Session 3) Wait for the second leg stop hunt to the high/low of the day to confirm entry 4) Asian consolidation range should be very well defined 5. Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking. These patterns occur on all scales and on all time frames. The time frame above is on the 4 hr, here we can clearly see the structure of the different sessions that occur on a daily basis. The best sessions to trade are London Session and New York Session. These sessions will present the best reversal setups. Asian session should be avoided as there is very little movement.
Education
by Anbat
Fibonacci 101Fibonacci retracements follow a mathematical principle set forth by Leonardo Fibonacci. To put it simply - each level is a ratio between two other numbers, and there are countless examples of them being respected in the stock market, forex, crypto, commodities - you name it. For this reason, it's an essential tool in the technical trader's toolbox. There are many uses for this tool: Finding regions of support or resistance Helping with stop loss placement Establishing targets to take profit - especially during price discovery (no existing S/R levels) Rules of Thumb While placement of your anchor points is somewhat subjective - a rule of thumb is to stick with glaringly obvious swing points . Simple is best with this tool - one of the reasons that it works is that other traders (or trading algorithms) are watching the same regions of price as you are. No need to overcomplicate it! For a bullish retracement (+ targets) - begin your Fibonacci at a swing low, and end it at a swing high. For a bearish retracement (+ targets) - begin your Fibonacci at a swing high, and end it at a swing low. Personalizing Your Settings The way I have my Fibonacci retracement tool configured, it includes some trend-based Fibonacci extensions in the calculations as well. This can be done by opening your Fibonacci settings and adjusting the inputs. The levels I have as inputs are as follows: 0 - This is your starting point 0.236 - The shallowest retracement 0.382 - Shallow retracement 0.5 - While not a Fibonacci number, this is the midpoint of your swing 0.618 - Commonly referred to as the "Golden Pocket" - this is generally a very important region of support/resistance. 0.705 - While not a Fibonacci number, this is the midpoint between the 0.618 and 0.786 - a level that tends to see lots of activity, and is thus included in my settings. 0.786 - This is the deepest retracement before a full retrace. 1 - This is your ending point -0.27 - While not a Fibonacci number, a very commonly used extension target during price discovery - Target #1. -0.414 - While not a Fibonacci number, a very commonly used extension target during price discovery - Target #2. -0.618 - This is your golden ratio - Target #3 during price discovery. -1 - This is a 100% extension of the distance between your starting & ending point. etc, etc - you can extend as far as you like! Where Fibonacci extensions really shine is during price discovery - areas where there are no previous levels of support or resistance (new ATH's). You can see on this $SPY chart - using our Fib tool on the COVID crash gave us some very accurate upside targets for the subsequent rally into new ATH's. I hope this introduction to the Fibonacci Retracement tool on TradingView helped you develop a basic understanding of it's applications - make sure to like if you learned something and follow us for more! Will, OptionsSwing Analyst
AMEX:SPYEducation
by optionsswing
70
Our Favorite Way To Set Take Profit Orders/Levels Typically, most traders have no idea how or where to set their take profit orders on any given trade. Most inexperienced traders will choose a risk/reward ratio and set their take profit based on a specific ratio. For example. The trader defines where their stop loss order will be, then drags their take profit up until it says "Risk/Reward = 3". Determining your take profit order/level based on this provides the trader with no increase in profitability/edge, and we call this gambling. ‌ Generally, the first thing the trader should be doing is setting their stop loss prior to determining the take profit. The stop loss is one of the most important factors to consider that can have a dramatic affect on how profitable your strategy will be. After the stop loss has been determined, assuming we want to go long, the first thing to identify that will aid in determining the take profit price/order is, identifying where key levels of resistance are as well as pivots. ‌ We have found that in the markets, one should never assume the market will break past a specific resistance/pivot. Although it may happen, your take profit should never be at the mercy of the pivot blocking price. With that being said, the trader should ensure their take profit is not beyond the nearest pivot/resistance to increase profitability. For example, if price just broke resistance and is retracing back down for a retest as support, to get the highest profitability/success rate, we recommend to ensure your take profit is slightly below the pivot just above the support, which the price is retracing from. A trader could attempt to take the trade further beyond the first initial pivot/resistance, to increase net profit for the given trade, however, the trader needs to understand that doing this requires close monitoring of the trade to identify rejections at the pivot. Based on our research/back-testing, it is a viable option for traders to try to extend the take profit beyond the first pivot/resistance as long as the trader is monitoring the trade closely. Some of the things that the trader should be looking out for is, a bearish rejection off the first pivot, signifying that price may return to the support/entry price. Based on our research, roughly 39+% of the time, the trader can expect the first pivot/resistance to breakout with high volume and a large candle, which can then be used to extend the take profit if managed properly. ‌ Ensuring that both your take profit and stop loss are placed/managed methodically will greatly increase profitability based on statistics.
Education
by VitalAlgo
8
Pivot Points (95 % Win Rate)What is Pivot point trading? Pivot point trading is a technique widely used among traders, that allows to determine important support/resistance levels for the day which derived from the previous day's trading range. Pivot points — the key levels or certain price values for a current day — are points around which traders base their entries and exits. There are 5 major and several additional pivot levels, we are going to learn about them later. In simple words, it is similar to knowing where the price is going to stop and reverse and how far it will go next time: The knowledge of such support/resistance levels is priceless as it allows to get in / out of the trade, set stop and profit orders with maximum advantage to traders. In fact, if you have troubles seeing where the market is going, Pivot points can give you a clue! It is like having a map on your charts! How to use Pivot points in trading? The strategy. Going to show you the way to trade using Pivot points.Calculate Pivot points on daily basis using daily charts and then use those Pivot levels on 15 minute charts — our main charts — where we will look for entries, stops and exits. Use 15 minute time frame because it allows catching best entry and exit opportunities. With hourly charts, for example, when the signal is there it is quite often already too late to react / enter. Pivot Trick — when main Pivot Point (Red Line) is passed / crossed, price will in 95% of cases hit first Support level 1 (White Line) or Resistance level 1 (White Line), what does it mean? Sure fire profits. NOTE: On example bullish trade chart price went from PP to R 1 under TWO hours- for 50 pip profit!!! If you choose to take your profits at R 1 or S 1 level you will be winning it day after day! On the other hand, you may often see that during some other days you were exiting too early as the price moved further in your direction after you exited. It's up to you: opting for predictable profits or going for bigger dreams. . Yes, you can either exit trade at either R 1 or S 2, or let trade run with tight stop. * YES, always use risk management and back test this 95% win rate pivot point strategy on 15 mn charts with GBP, EUR or high ADR pairs (90+).
Education
by Anbat
Pivot Points (How To Day Trading Using)How to Day Trade Using Pivot Points? Description: When it comes to intraday trading, Pivot Points are an indispensable tool. Developed by Floor traders at a time when Pit trading ruled the roost, the system has stood the test of time and is still being used by many electronic traders throughout the world. Pivot Points help us in mapping the markets. They pave the pathway for the price to follow. It only takes our good judgment to gauge the situation and pull the trigger. Here we will take a look at how to day trade using Pivot Points. The very fact that Pivot Points are widely used makes them work! Opening above Pivot (P): If PA opens above Pivot Point (P) (or the Typical Price), it shows inherent strength in the instrument; look for buying opportunities. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P holds, go ahead and buy the pair with a target set at Resistance 1 (R1). Opening below Pivot (P): If PA opens below Pivot Point (P) (or the Typical Price), it shows inherent weakness in the instrument; look for selling opportunites. Wait for the prices to retrace to P. Look for candlestick reversal patterns. If P hold, go ahead and sell the pair with a target set at Support 1 (S1). This has a high win rate, related to only day trading price action from Pivot Point to either S1 or R1. This can be a winning strategy with proper lot size and risk management in your plan. In example 15 minute chart, a possible up to 70 pips noted on this sell trade, from PP to S1. You can use Williams alligator and session indicator to make this day trading a lot better. Good Luck. As with all strategies: back testing will help you in the confidence in utilizing during your trading.
Education
by Anbat
Optimized strategy is here + Midweek outlook! part 1 Hello, in this video I go over the optimized strategy and explain my thought process when entering a trade with this smooth like butter method of trading haha. If you're planning on trading with my strategy, feel free to ask for help and listen closely. There are key details in this video, take notes if you have to, I note in the video what is important and what is minor knowledge! thank you for watching.. please refer to part 2!
TVC:DXYEducation
by offgridtradess
fibonacci extensions / retracements - how to and where to applyFibonacci tools are in general a method of technical analysis for determining probable support and resistance levels calculated using ratios (23.6%, 38.2%, 61.8%, and 78.6%) that are derived from Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13, 21, …). Fibonacci levels are presented in variety of forums, such as horizontal lines, vertical lines, trend channels , fans , arcs, circles, even a spiral. Fibonacci levels also arise in other ways within technical analysis, for example, one of the best known and widely used Elliott Wave theory In this article we will have a closer look to Fibonacci Extensions and Fibonacci Retracements Fibonacci Retracement and Fibonacci Extension levels are in the form of horizontal lines and are calculated in almost similar manner with slight difference. Even tough they look like similar to each other they are quite different and serve for different purpose.   👉 Fibonacci retracement levels indicate how deep a retracement could be, that is, aims to measure the pullbacks within a trend   👉 Fibonacci extension levels indicate how far the next price wave could move following a pullback, that is, aims to measure the impulse waves in the direction of the trend How to apply Fibonacci Retracement and Fibonacci Extension These levels should not be relied on exclusively,Reversals can be confirmed with candlesticks, momentum indicators, volume or chart patterns. Here are the links of educational posts and indicator versions of the Fibonacci Tools that I made, you are kindly invited to check Auto Fib Channels, besides Auto Fib Channels this study include Auto Fib Retracement, Auto Fib Extension and Auto ZigZag indicator Auto Pitchfork, is advised due to its similarities with Auto Fib Channels and also it includes Auto Fib Retracement and Auto ZigZag indicator Auto Fib Speed and Resistance Fans, is an important tool to identify probable support and resistance and especially a powerful tool to identify reversals and retracement levels. The study presents an alternative approach of drawing the fans which enables a visualization quite similar to Gann Box. Auto Fib Retracement and Auto ZigZag indicator is also available Related educational posts that presents a quick guide of the drawing tools as well as introductions for their automatic indicator versions how to apply pitchfork and auto pitchfork study : how to apply fibonacci fans and auto FibFans study : how to apply fib channels and auto fib channels study :
Education
by dgtrd
80
how to apply fib channels and auto fib channels studyThe Fibonacci Channel is a technical analysis tool that is used to estimate support and resistance levels based on the Fibonacci numbers. It is a variation of the Fibonacci retracement tool, except with the channel the lines run diagonally rather than horizontally. The tool is used to aid in identifying where support and resistance may develop in the future. If the uptrend is expected to continue, the 100%, 161.8%, and other higher levels are potential price targets. The same concept applies to downtrends if a downtrend is expected to continue In an uptrend, the zero-line is like a normal trendline, helping to assess the overall trend direction. If the price falls below it, it may need to be adjusted based on more recent price action, or it could signal that the uptrend is over and that the price is breaking lower. Similarly in a downtrend, the zero-line also acts like a trendline. When the price is below it, it helps confirm the downtrend. If the price moves above it, the indicator may need to be redrawn or the price is moving higher out of its downtrend Difference Between Fibonacci Channels and Andrew's Pitchfork Both these indicators attempt to predict future support and resistance levels based on price levels from the past. Fibonacci channels attempt to do this with percentages of a selected price move. Those percentages are then projected out into the future. Andrew's Pitchfork is simpler in some ways as the angled lines are based on three price levels selected the trader and then extended out into the future. Step By Step Applying Fibonacci Channels Auto Fib Channels ʙʏ DGT ☼☾ LINK to Auto Fib Channels ʙʏ DGT ☼☾
Education
by dgtrd
178
how to apply fibonacci fans and auto FibFans studyFibonacci Speed and Resistance Fan is an analytical drawing tool used to indicate the support and resistance levels of an existing trend and the price level at which possible changes in the trend may occur. A Fibonacci Speed Resistance Fan consists of a trend line drawn between two extreme points - a trough and opposing peak or a peak and opposing trough - on which a set of sequential speed resistance lines are drawn above (which represents time) and below (which represents price). These lines are drawn based on time/price percentages of the distance between the beginning and the end of the trend line. Speed resistance lines not only help to measure trend corrections but also measure the speed of a trend (the rate at which a trendline ascends or descends) Traders can use the lines of the Fibonacci Speed and Resistance Fan to predict key points of resistance or support, at which they might expect price trends to reverse. Once a trader identifies patterns within a chart, they can use those patterns to predict future price movements and future levels of support and resistance. Traders use the predictions to time their trades Nobody appears to know whether Fibonacci tools work because markets exhibit some form of natural pattern or because many investors use Fibonacci ratios to predict price movements, making them a self-fulfilling prophecy. In any event, key support and resistance levels tend to occur frequently at the 61.8-percent level (0.618) on both uptrends and downtrends Fibonacci Speed and Resistance Fans vs. Gann Fans Gann fans are another form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of trend lines called Gann angles. Instead of relying on Fibonacci's golden ratio of 1.618, Gann believed the 45-degree angle (geometric angles of time versus price) to be most important. The Gann fan subsequently draws additional angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. These angles are superimposed over a price chart to show potential support and resistance levels Step By Step Applying Fibonacci Speed and Resistance Fan Some interpretation examples: Example of how to identify if the move is Reversal or Retracement All the above are now available with the Auto Fibonacci Speed and Resistance Fans Study ʙʏ DGT ☼☾, LINK to Auto Fibonacci Speed and Resistance Fans Study
Education
by dgtrd
40
how to apply pitchfork and auto pitchfork studyPitchfork , is a technical indicator for a quick and easy way for traders to identify possible levels of support and resistance of an asset's price. It is presents and based on the idea that the market is geometric and cyclical in nature   * Developed by Alan Andrews, so sometimes called Andrews’ Pitchfork   * It is created by placing three points at the end of previous trends   * Schiff and Modified Pitchfork is a technical analysis tool derived from Andrews' Pitchfork In general, traders will purchase the asset when the price falls near the support of either the center trendline or the lowest trendline. Conversely, they'll sell the asset when it approaches the resistance of either the center line or the highest trendline. █  Usage Tips :   * Andrews' Pitchfork (Original) best fit in a Strong Trending Market   * Schiff and Modified Pitchfork better with Correcting or Sideways Market. Modified Pitchfork is almost identical to a Parallel Chanel Step By Step Applying Pitchfork Auto Pitchfork Study ʙʏ DGT ☼☾ Besides Auto Pitchfork Pivot, Support and Resistance plotting, study also includes Auto Fibonacci Retracement Levels and Zig Zag indicator Link to the Auto Pitchfork ʙʏ DGT ☼☾ :
Education
by dgtrd
194
LTC / BTC Positional trading in the channel. Working on a coinI made an addition to the previous trading idea of ​​working / learning on this instrument as the price broke through the support of the inner channel and the downtrend developed. Entry # 2 into a short position after breaking the support of the inner channel was confirmed. Trading with the trend. I have shown potential reversal areas in an existing trend on the chart. The ideal long entry point would be a breakout or pullback after a downtrend line breakout. Please note that there is 1 month on the chart. The reversal will be more clearly visible on the weekly timeframe. I have shown a monthly chart so that it contains the entire trading history and shows the essence of the work. ______________________________ I chose the LTC / BTC pair as an example for positional trading. This coin works perfectly technically. To Bitcoin , the coin is held in a horizontal channel from the very beginning of trading. I think you understand that this is not an accident. In the crypto market of several thousand scam coins there are several such technical highly liquid reliable coins. Litecoin is one of them. It is the impressive profit for those who work in large sums. The ideal ratio of profit and risk. Clear trade. It is easy to predict further price movements. Positional trading is suitable for those who have already traded an impressive depot and are already tired of staring at the monitor and burning their time, spoiling their eyesight. For those who no longer get high from the excitement of management and so on. Because a large depot can in most cases be dispersed only by such methods. A person must have iron patience and an understanding of the market cycles. Because profits need to wait a long time. As you can see from the graph, for example, only one trend can last up to a year. Positional trading is the work on the trend on a long-term basis, on charts covering a large time scale. For its implementation, fundamental and technical analysis is often used. Position trading is suitable for all types of markets: cryptocurrencies, stocks, goods, Forex. In other words, position trading refers to a relatively long-term holding of a position in the direction of a global trend. Thus, position trading is an independent style, significantly different from others. Market participants can use this approach to hold short-term and long-term positions. Maintaining a position in the trend, and not work on small weekly fluctuations. This is the main difference from swing, which involves working on the basis of market cycles of several days. In positional trading, you can hold a trade for months or even a year or more (Dow Jones index), it all depends on the trend. Coins for positional trading are selected very carefully, they must be reliable, be closer to TOP or be this top as an example of Litecoin. There should be a real development of the project in the long term, with a strong team that really does something, and not only has a promise legend. It is very important that the coin you choose for positional trading be highly liquid. You can work (or rather need) as in long and short. In any direction the price you earn. If you are not working in short, then most of the position is HOLD on a WALLET! In such a trade where transactions are conducted 1-2 times a year, it makes no sense to risk a huge amount and keep coins on the exchange. Even if you are doing risk diversification through several liquid exchanges. Only the large time frame is important, we do not pay attention to small price fluctuations. The purchase / sale of an asset is made only upon confirmation of a change in trend. No hai and loy! Minimum prices and maximums will be left for hamsters. ______________________________ Position Trading Rules: 1) A signal to enter a position is the beginning of a trend on a large timeframe (with a timeframe of 1 day or 1 week). 2) Exit from the transaction is carried out only if there are sufficient grounds for the end of the trend (trend change). 3) No lows and highs of the price when trading! Let's leave this occupation to stupid hamsters! ______________________________ The advantages of positional trading. 1) Does not take into account small price changes, that is, does not require constant monitoring of the situation. 2) There is no need to be near the computer all the time. In positional strategy, the most important thing is a deep and thorough analysis, on the basis of which a further decision is made. 3) An open position simply needs to be monitored if there is a situation that can change the position or price. Positional trading strategy is an analysis of daily, weekly and monthly timeframes; holding an open position for at least a few days to several months. In simple terms, positional trading is a meaningful and balanced entry into a transaction based on holding a position in a trend. _______________________________ The disadvantages of positional trading. 1) a long expectation of results that can actually be measured only after months or years; 2) high responsibility for each forecast and analysis, since it can take many days and weeks to hold the wrong position; 3) slow progress in trading (holding positions is good if the trader already has experience, but you won’t be able to gain it quickly by opening deals once a year); 4) the need for significant investment (you can get a tangible income from position trading only if you have a decent amount of money in the account). As a result, holding a position in certain cases is a significant advantage for an experienced trader, but fatal for beginner speculators.
Education
by SpartaBTC
6
Tezos (XTZ)/USDT Market Cycles Pivot points (zones) PsychologyI have combined the idea of learning by cycles and pivot points (zones) with an actual trading idea for positional work using the example of the Tezos (XTZ) coin paired with USDT (USD). According to Dow theory, there are 3 types of trends: 1) main (long-term). 2) minor. 3) insignificant (small). 3) Phases of trends. In turn, each trend has the following phases: 1) phase of accumulation (set of position). 2) the phase of public participation (trend development) 3) panic phase (reset position). 4) the phase of price reduction (dump). 1. The phase of accumulation. (position set). This stage occurs after the market has finished the downtrend and the dump is stopped. The price has formed a "bottom", in slang they say "bottom". It is at this stage that traders and investors enter the market, which can rightfully be called professional. They have the greatest amount of information (often internal - insiders) about the current state of the market and are the first to start active actions. The rest of the market participants do not realize at this time the state and direction of the market. Of course, the accumulation phase is not easy to detect. It often follows a downtrend. And it can be, in turn, just a minor trend in the general downtrend. As a result, instead of a new trend, only a temporary pullback is obtained. From a technical point of view, the beginning of a new trend is always accompanied by a period of consolidation. This is when the market goes sideways and then starts to show an uptrend. 2. Phase of public participation (trend development). Participation Phase Advanced investors and traders enter the market in the accumulation phase. When the trend really reverses, the public participation phase begins. Here the crowd enters the market. As this stage progresses, more traders jump into the current move as fear of loss is suppressed by greed and fear of missing out on an opportunity. This phase is the longest of all and is also characterized by the most active movement. Highs are constantly being updated - exactly what investors have been waiting for. The trend is developing. When this stage begins to end, the "last majority" jumps into the market and trading volumes begin to increase significantly. At this point, the theory of great stupidity prevails. The price rises significantly beyond historical levels, and logic and reason give way to greed. While the majority enter the market, professional traders cut or close their trading positions. But as prices begin to level off or the rally slows down, those latecomers who stay out of the game see it as a buying opportunity and enter the market. Prices make the last parabolic move, known in technical analysis as a buying climax, when the greatest profits are often made in a short period. 3. Panic phase (reset position, distribution) This is the phase where experienced traders and investors exit the market, and less experienced ones, on the contrary, enter the market. As a result, these investors and traders are excited about buying at the peak of the trend, shortly before its spectacular fall. The same phase is also a reversal one - professional investors and traders understand that the market has exhausted itself and begin to close their positions opened in the first phase. To identify this phase, it is necessary to carefully study the signs that the market rally is complete. Moreover, the more active the market growth, the stronger the subsequent fall will be. In the third stage of the market cycle, sellers begin to dominate. This part of the cycle is identified by a period in which the bullish sentiment of the previous stage is replaced by mixed sentiment. When this stage is over, the market direction changes. Classic chart patterns such as "double and triple top" or "head and shoulder" are examples of such movements that occur during the distribution stage. The distribution stage is a very emotional period for the markets as investors are gripped by periods of complete fear, interspersed with hope and even greed, as at times the market may seem to be rising again. Panic phase in a downtrend. A similar story is when the main trend is bearish and goes down. The situation repeats itself in a mirror image, and at the implementation stage, a real panic is often formed, when many inexperienced investors and traders dump their assets and the price receives the last downward impulse before growth. 4. The phase of decline. (Dow did not separately identify this phase in his writings. In Dow's theory, this is the final stage of the distribution phase). The fourth and final stage in the cycle is the most painful for those who still believed in the price increase. Many are holding them because their assets have fallen below their original amount. It is only when the market is down 50% or more that many of those who bought during the distribution stage or early in the decline give up. "Faith is being killed!" For more experienced traders, on the contrary, it serves as a buy signal and is a sign that the formation of a bottom is inevitable. _____________________________ 4) Choice of cycle time. An intraday trader who trades relatively small amounts and uses 5-minute candles can see many full cycles per day, while, for example, a positional trader using a weekly or monthly timeframe charts can see several cycles per year (average liquid instruments) or an extended cycle for several years (highly liquid instruments). But he also works in relatively large amounts that are not comparable to a scalper trader. Your task is to learn how to correctly recognize market cycles on your working timeframe and use it in your trading. ___________________________________ 5) Points (zones) of price reversal. It is necessary to immediately clarify the point (zone) of the price reversal always remains a potential point (zone), because it can act as a continuation of the trend. It is just that in certain zones there is a greater likelihood of a change in price movement than in others. This is very important to understand. Work like a trader, not like a "successful" wang hamster with which the Internet is clogged. No one knows the exact future. You can identify potential more or less likely price movements and use this in your trading. It is also worth noting that it is not possible to predict everything. It is important that a large number of your forecasts for price movements, thanks to your experience and knowledge, are correctly determined. Theory without practice is zero! Only your knowledge, modernized to the reality of the market, can give results in practice.
Education
by SpartaBTC
8