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Positiontrading

Is GBPUSD going to hit its daily target(2) - Stretch principleIn this trade, we are looking at GBPUSD based on the stretch principle. We have put a pending order entry where the low was for today as in the chart image. We are taking the trade according to our smart money framework indicator, our trend alignment with the the higher timeframes and with alignment with the VSA lite indicator. GBPUSD(Short) Pending Order E - 1.2547 SL - 1.2567 T - 1.2531 So far, the trade has taken out the lower stretch line which gives the bigger range from open(BRO) a higher probability to form to the down side. We will be tracking this move and managing it as we go along. Keep a look out for it traders. To understand our ideas and videos better, we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look on our channel profile or at our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com 4.Stretch principle videos Refer to related ideas links as below
Short
by masterthemarkets2010
Is ETHUSD low at 1540 going to hold ?There is a price structural failure on the weekly timeframe for ETHUSD. This makes it a downtrend on the weekly. We are waiting for the daily bottom to confirm before taking continuation trades to the downside. For the weekly to continue going down, there is a 30% probability. So,highly probably, it may confirm its weekly bottom before carrying further south. Let's see if how the trade plans out according to our smart money framework and the VSA methodology. We will be tracking this potential trade and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look on our channel profile or at our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com
COINBASE:ETHUSDShort
by masterthemarkets2010
5
Is US30 low at 34024 going to hold and confirm weekly bottom?(2)We have entered this trade on 4h confirmation bar and it went onto confirm the bottom on the daily timframe. However, the weekly bottom is yet to confirm. Let's see if it continues further upwards and go onto confirm the bottom on the weekly timeframe according to our smart money framework indicator. US30(Long) E - 34607 SL - 34023 T - To be confirmed(TBC) We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look on our channel profile or at our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com Previous reference image
CAPITALCOM:US30Long
by masterthemarkets2010
Is BTCUSD low at 25350 going to hold this time?(2)We had previously entered this trade on 4h confirmation bar and it went onto confirm the bottom on the daily timframe. However, the daily bottom did not hold to go onto confirm as a weekly bottom. We will wait for another potential bottom with volume backing the move before taking a trade. Key price structural level to look out for is 24756 as in the image. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look on our channel profile or at our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com Previous reference image
BITSTAMP:BTCUSDLong
by masterthemarkets2010
Live Trading Session 236: Open Trades on GBP,DJ30 & moreIn this live trading session video,we look at our open positions and the potential trades setting up for the week on GBPUSD,S&P 500,Brent Oil,Bitcoin and many more. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1.Trader Starter Pack 5 day video course Look at the our signature section to access it 2.7 steps to achieve consistent trading performance www.tradingview.com 3.7 steps for strategy construction www.tradingview.com
CAPITALCOM:US30
by masterthemarkets2010
Is US30 low at 34023 going to hold and become a weekly P1?We have entered on 4h confirmation bar and as of this week, the 4h bottom has gone onto confirm the bottom on the daily timframe. Let's see if it continues further upwards and go onto confirm the bottom on the weekly timeframe according to our smart money framework indicator. US30(Long) E - 34607 SL - 34023 T - To be confirmed(TBC) We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1. 7 steps to achieve consistent trading performance www.tradingview.com 2.7 steps for strategy construction www.tradingview.com Previous reference image Volume spike on 4h chart
CAPITALCOM:US30Long
by masterthemarkets2010
Is BTCUSD low at 25350 going to hold this time?We have entered on 4h confirmation bar and as of tuesday this week, the 4h bottom has gone onto confirm on the daily timframe. Let's see if it continues further upwards and go onto confirm the bottom on the weekly timeframe according to our smart money framework indicator. BTCUSD(Long) E - 26626 SL - 25827 T - To be confirmed(TBC) We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1. 7 steps to achieve consistent trading performance www.tradingview.com 2.7 steps for strategy construction www.tradingview.com Previous reference image
BITSTAMP:BTCUSDLong
by masterthemarkets2010
Is Brent going to hit its daily target - Stretch principleThis trade we are looking at on Brent oil is based on the stretch principle. We have entered on the close of the confirmation bar(the one with the dot) according to our smart money framework indicator and our trend alignment with the the higher timeframes. E - 1.2643 SL - 1.2547 T - To be confirmed(TBC) So far,it is going in our favour as it has taken out the upper stretch line which gives the bigger range from open(BRO) a higher probability to form in that direction. We will be tracking this move and managing it as we go along. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1. 7 steps to achieve consistent trading performance www.tradingview.com 2.7 steps for strategy construction www.tradingview.com 3.Stretch principle videos Refer to related ideas links as below
EASYMARKETS:BRTUSDLong
by masterthemarkets2010
2
Is GBPUSD low at 1.2547 going to hold and become a W bottom(1)We have entered on a 4h bottom confirmation according to our smart money framework indicator and for it to go onto confirm the bottom on daily and then weekly. E - 1.2643 SL - 1.2547 T - To be confirmed(TBC) We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders. To understand our ideas and videos better,we highly recommend watching our following stream videos: 1. 7 steps to achieve consistent trading performance www.tradingview.com 2.7 steps for strategy construction www.tradingview.com
Long
by masterthemarkets2010
2
Is BTCUSD low at 28477 going to hold and become a W bottom(3)This is in reference to our previous ideas of looking at a potential entry on 4h and daily timeframe to capture a weekly Phase 1 turning point. The rationale is based on our smart money framework and indicator. The last weekly potential bottom has not held and price is going further down. Lets wait and see if this week's bottom holds. Our first point of consideration is when the 4h or the daily bottom confirms by the SMI backed by VSA. The critical level to observe is 24756 as in the chart image. if that is broken,trend changes and it will be a downtrend. Refn images and links from our previous ideas are as below.
BITSTAMP:BTCUSDLong
by masterthemarkets2010
Is GBPUSD low at 1.2616 going to hold and become a W bottom(6)This is in reference to our previous idea of us entering on the 4H timeframe bottom confirmation towards a daily bottom and then a weekly bottom to confirm. It was entered based on price and volume spread analysis rationale and the cycle framework methodology by the smart money indicator. Please refer to our reference videos below. As of today, the trailing stop loss based on the daily timeframe got hit. We successfully captured a 4h bottom holding onto to become a daily bottom. However, the daily bottom did not hold to become a weekly confirmed bottom as today's massive seller bar took out the daily low. By understanding the cycle and smart money framework, we are not put off by this loss but see it is as one of many trades for the strategy edge to work out over the the law of numbers. The sequence of trading events are shown by the numbered points on the chart from the time we entered to the time we exited. Here is the reference image of the trade we initially took. All reference ideas and images are as below. If you have any questions or comments, list them below.
Long
by masterthemarkets2010
Is GBPUSD low at 1.2616 going to hold and become a W bottom(4)This is in reference to our previous idea of us entering on the 4H timeframe bottom confirmation towards a daily bottom and then a weekly bottom to confirm. It was entered based on price and volume spread analysis rationale and the cycle framework methodology by the smart money indicator. Please refer to our reference videos below. As of today, the daily bar seems to be going against us. At this moment,most traders will panic and look to bail out of the trade. However, when you know your strategy rules and its edge over the law of numbers, you will stick in the trade. In this trade, till the potential daily bottom (as in the image below) is taken out, trade is still valid. We can look for potential trailing levels looking at the 4h timeframe. Let's wait and see. Patience is virtue. P.S. Remember that the principles from these ideas can be cross transferred to any strategy.
Long
by masterthemarkets2010
US30 weekly top overdue for a UT P2 moveWe are waiting for the the top to confirm on the weekly timeframe on US30. Once top confirms, this will be a weekly P2 move on US30. Then we will be looking at the daily timeframe for bottom confirmations to ride the P1 move on weekly. We are following the smart money framework based on cycles and the volume spread analysis methodology to capture the turning points in the market and to ride the big runners. Please refer to our previous live stream video series on the cycle framework methodology.
CAPITALCOM:US30Long
by masterthemarkets2010
Is BTCUSD low at 28477 going to hold and become a W bottom(2)This is in reference to our previous idea of looking at a potential entry on daily seller bar high to be taken out for price to continue further upwards and go onto confirm the bottom on daily and then weekly according to our smart money framework and indicator. The bottom has not held and price is going further down. The trade is now invalid and the order will now be cancelled. Refn image from our previous idea as below.
BITSTAMP:BTCUSDLong
by masterthemarkets2010
Is GBPUSD low at 1.2616 going to hold and become a W bottom(3)This is in reference to our previous idea of us entering on the 4H timeframe bottom confirmation towards a daily bottom and then a weekly bottom to confirm. It was entered based on price and volume spread analysis rationale. As of today,the daily bar seems to be going in our favour for the 4th day in a row. Let us see if the bottom confirms on the daily today according to the Smart Money framework and indicator. If it does, we would have got the 1st part right of the 4h bottom confirming to become the daily bottom and then the last part which we need to see if it goes to confirm the weekly bottom. Refn Images as below.
Long
by masterthemarkets2010
Top 4 Strategies for Position TradingPosition trading is a time-tested approach to the financial markets, allowing traders to profit from long-term trends. In this article, we’ll explore the top four strategies for positional trading, discuss the features of successful position traders, and briefly examine three essential indicators that can help with your position trading journey. What Is Position Trading? Position trading is a type of trading where a trader holds onto their positions for an extended period, typically ranging from weeks to months or even years. In contrast to day traders, who attempt to profit from intraday price fluctuations, or swing traders, who hold their positions for days or weeks, position traders adopt a more patient approach, allowing their trades to develop over a longer period. This can lead to potentially greater profits, as well as reduced transaction costs and stress associated with constant monitoring of the markets. The main goal of position trading is to capitalise on long-term trends in a given market, such as stocks, forex, or commodities. Position traders typically rely on a combination of fundamental analysis, technical analysis, and market sentiment to make their trading decisions. They use this analysis to identify and participate in trends on the daily, weekly, and monthly timeframes. Features of a Position Trader Successful position traders often exhibit unique characteristics that set them apart from other types of traders. Some of the key features are: - Patience: Position trading demands patience as traders wait for opportunities to arise and positions to develop over weeks, months, or years. Remaining calm and focused during market uncertainty is essential. - Discipline: Position traders must maintain discipline in their approach. This includes sticking to their trading plan, managing their risk effectively, and resisting the urge to exit their positions prematurely. - Long-Term Focus: Successful position traders concentrate on overall market direction, not short-term price movements, enabling them to identify opportunities that short-term traders might overlook. - Strong Fundamental Analysis Skills: Since fundamental factors often drive long-term trends, exceptional fundamental analysis skills are crucial for gauging where the market may be headed next. Positional Trading Strategies Now that we have an overview of position trading let’s examine four effective positional trading strategies. Support and Resistance Trading At the heart of many positional trading strategies are support and resistance. Support refers to a price level where buying interest is strong enough to overcome selling pressure, leading to a pause or reversal in a downward movement. Resistance is the opposite: a price level where sellers overtake buyers, prompting a stall or reversal in an upward trend. Support and resistance can be identified through various methods, including: - Examining historical turning points in the market - Identifying broken support/resistance, which may now act as resistance/support, respectively - Using trendlines - Using technical indicators, like Fibonacci retracements or moving averages. Position traders will usually highlight areas of support/resistance on the daily, weekly, or monthly charts in the direction of the broader trend, then enter a position when the price reaches the area. They may take profits at an opposing significant support/resistance level and set their stop losses beyond the area they entered at. Breakout Trading Breakout trading, as the name suggests, involves taking positions once these key areas of support or resistance are broken through. This approach can be particularly effective since it allows traders to potentially catch the start of a substantial move. Position traders will wait for a higher timeframe support/resistance level to break. To confirm breakouts, position traders often look for an increase in volume, which may indicate a surge in market interest and momentum. It’s also best to wait for the candle to close before entering the position, as this helps to confirm the breakout. Stop losses are usually set beyond a nearby swing point, while profits can be taken at a significant opposing level. As breakouts are generally part of a larger trend continuation, some traders may prefer to trail their stop losses at swing points to maximise profits. Pullback Trading Pullback trading is effectively an extension of breakout trading. However, instead of entering when the level is broken, traders wait for a retracement, allowing them to optimise their entry points and risk/reward ratio. A pullback occurs when the price temporarily moves counter to its broader trend before resuming its original direction. Position traders commonly look for a retracement to a previous area of support in a downtrend (expected to act as resistance) or resistance in an uptrend (expected to act as support). Alternatively, they may use the Fibonacci retracement tool. For confirmation that the area will hold, traders will often look for reversal candlestick patterns like hammers or shooting stars. For instance, position traders wait for a support/resistance level to be broken. However, they then observe the price action until a retracement occurs, watching for a reversal candlestick pattern. Once the pattern forms, they enter at the close of the candle. Profits can be taken at the high or low that originated the pullback or at a significant support/resistance level. Conversely, traders may prefer to trail their stop loss as the trend progresses. Triple Moving Averages Moving averages (MAs) are technical indicators that smooth out price data to reveal underlying trends. By combining multiple MAs, position traders can better understand where the price may be headed next. In this position trader’s strategy, we use the exponential moving average (EMA), which is slightly more responsive to recent price action. Simple moving averages (SMAs) are a good alternative. Want to see the difference for yourself? Hop over to FXOpen’s free TickTrader platform to find EMAs, SMAs, and a whole host of versatile trading tools. There are three components: a short-term EMA (20 periods), an intermediate-term EMA (50 periods), and a long-term EMA (200 periods). Combining the three allows us to account for both recent price changes and long-term trends. They are coloured blue, orange, and red, respectively, on the chart above. Trades can be taken when the short-term EMA crosses the long-term, but it’s best to wait for both the short-term and intermediate-term EMAs to break through the long-term in the same direction. In doing so, we have confirmation that trend momentum is picking up. Traders open a long position when the short and intermediate-term EMAs cross above the long-term one and open a short position when they cross below the long-term one. Stop losses can be placed just beyond the long-term EMA. The theory states that a profit can be taken when MAs cross over again. Position Trading Indicators Alongside the strategies listed, position traders use a variety of technical indicators to help identify and improve entries. Some of the most popular indicators employed by positional traders include: - Relative Strength Index (RSI): RSI is a momentum oscillator that shows overbought and oversold areas, helping traders spot potential reversals. - Bollinger Bands: Bollinger Bands are a volatility-based indicator that plots standard deviations of price. They can be used to identify impending trend reversals and periods of increased volatility. - On Balance Volume (OBV): OBV is a volume-based indicator that measures buying and selling pressure, allowing traders to confirm potential breakouts and trend reversals by analysing changes in volume. Final Thoughts In summary, position trading is a unique approach that removes much of the stress of intraday styles. If you’re ready to find the best positional trading strategy for you, consider opening an FXOpen account. You’ll be able to put these strategies to the test in over 600 markets, safe in the knowledge that you’re partnering with Traders Union’s Most Innovative Broker of 2022. Good luck! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Editors' picks
Education
by FXOpen
8
POSITION TRADING: SHORT AUDUSD. TARGET 0.64000TRADE TYPE: INSTANT ENTRY TRADE DIRECTION: SHORT TIMEFRAME: WEEKLY ENTRY PRICE: 0.67000 STOP LOSS: 0.69000 TAKE PROFIT: 0.64000 RISK TO REWARD: >1:1 ANALYSIS: Price broke the demand zone and is likely looking to aim for upcoming demand zone. stop loss ideally placed above swing high Follow this thread for any future updates regarding this specific trade. CAUTION: Trading outcome is Probability Based and could wipe out your account if risk management and strategy is not followed properly. Cheers
Short
by FX618Analysis
1
What Is Position Trading? Definition and ExamplesIf you’re interested in trading but don’t have the time to day trade, position trading might be for you. In this guide, we’ll dive into the topic, answering the question, “what is position trading?” and providing some examples so you can develop your own strategy. Position Trading Definition To start, we need to define position trading. Position trading involves holding a trade for weeks, months, or even years to profit from a long-term price trend. Unlike day trading, which involves opening and closing positions within the same trading day, position trading requires a broader perspective and a more patient approach. There are similarities between swing trading and position trading, but it’s important to be aware of a few key distinctions. Swing traders also stay in positions for weeks or sometimes months, but they’re more concerned with capturing a move from one key technical area to another. As such, you may find swing traders that open and close a position over several days. In contrast, position traders are effectively trend-followers and look to capitalise on long-term trends until they reverse. Many trends in forex pairs, stocks, commodities, and other markets are driven by fundamental factors. Consequently, position traders emphasise macroeconomic and fundamental analysis more than short-term traders. Components of a Position Trader’s Strategy While position trading strategies are often unique to the individual trader, there are some commonalities between most positional traders. Fundamental Analysis As mentioned, position traders use fundamental analysis to guide their decision-making. This may involve analysing a company’s financial statements, examining interest rate differentials between two economies, and assessing the overall economic picture to determine the potential for an asset’s long-term growth or decline. Technical Analysis Technical analysis still plays a crucial role in a positional trader’s strategy. Technical analysis tools, like moving averages or oscillators, can help gauge the strength of a trend or provide insight into when a trend is reaching its peak. Other forms of technical analysis, like Fibonacci retracements and chart patterns, can help a position trader identify optimal entries. High Timeframe Charts As position traders hold trades for an extended period, they tend to look to the daily, weekly, and monthly charts to guide their trades. They may pay attention to lower timeframes, especially if looking for an entry, but their priority will be the higher timeframe charts. At FXOpen, we understand that you need the flexibility to assess the markets across many timeframes. That's why we offer charts ranging from 1-minute to monthly in our free TickTrader terminal, making it an ideal platform for position trading and more. Risk Management Risk management is an essential aspect of position trading. As a natural consequence of taking a long-term view of the market, position traders often use stop losses far wider than a day or swing trader to account for more significant price fluctuations. Some position traders also hedge their trades to mitigate their risk exposure further. Patience Lastly, position trading requires the patience and discipline to hold a trade through short-term market volatility and avoid impulsive decision-making. Usually, a position trader will create a clear plan of how and when they want to exit to keep themselves accountable. Advantages of Position Trading - Time Commitment: Positional trading is less active than other strategies, making it a suitable option for traders with other time commitments. - Reduced Market Noise: By taking a long-term approach and focusing on fundamentals, position traders can avoid the volatility and unpredictability of short-term trading styles. - Lower Costs: Position trading also has reduced transaction costs, as traders make fewer trades in a given year. This can result in lower commissions, fees, and taxes. Disadvantages of Position Trading - Opportunity Cost: Position traders hold trades for a long time, so they may miss out on short-term trading opportunities that can result in quick profits. - Higher Capital Requirements: Position trading often requires more capital investment than short-term trading styles to make the trade worthwhile, given that the stop losses are usually wider. - Emotional Control: Position traders need strong emotional control and discipline to avoid making impulsive decisions based on short-term market movements or emotions. This can be challenging for some traders, leading to losses or missed opportunities. Position Trading Examples Let’s look at two position trading examples in the forex and indices markets. USD/JPY Following runaway inflation in the US, the Federal Reserve began hiking interest rates in March 2022, pushing them to 0.5% after the constant 0.25% rate since March 2020. Meanwhile, Japan had relatively low inflation, and the Bank of Japan committed to its dovish interest rate stance. As a result, demand for the US dollar picked up and simultaneously dropped for the Japanese yen. While USD/JPY had been in an uptrend since the start of 2021, the Federal Reserve’s interest rate decision in March and the following hikes kickstarted a strong bullish trend in the pair. Position traders could have used this interest rate differential to identify that USD/JPY would likely continue trending upwards and enter a long position to profit from the appreciating dollar and weakening yen. They could have used a simple trailing stop below key swing points, exiting when the trend reversed. Nasdaq 100 Similarly, the hawkish stance of the Fed led to a tumble across many US-based indices, but it particularly hurt the tech-focused Nasdaq 100. Tech companies are growth-focused and rely heavily on financing to achieve their goals. When interest rates rise, the cost of borrowing increases, resulting in restricted growth and reduced valuations. High inflation preceding the first interest rate hike had already prompted expectations of higher interest rates, leading to a fall in the Nasdaq 100 prior to the first hike. However, subsequent hikes led the index to around -30% from the end of March 2022 to November 2022. Anticipating that interest rates would continue to climb higher, a position trader might have used this expectation to their advantage, taking a short position as the market pulled back after the first decision. As with the USD/JPY example, a trailing stop here would have worked excellently. Embark on Your Position Trading Journey With FXOpen Now that you have a solid overview of what position trading is and how it works, you can put your knowledge into practice. After backtesting a few position trading setups, you may want to open an FXOpen account. With dozens of markets to pick from and the powerful TickTrader platform, you can start your position trading journey with confidence. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen