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Riskrewardratio

TSLA: Reading the volume might be a life-saver sometimes!Hello traders and investors! As we expected, Tesla did an upwards breakout from its Triangle pattern ! Now it is just heading to our target! There are several reasons why I though we were about to see an upwards breakout, even considering that Triangles are continuation patterns, and this means that it should’ve done a downwards breakout to the $ 538 . If you missed my previous analysis about it, the link to it is below this analysis, if you are curious. First, let’s see the 1h chart. It did defeat the $ 635, indicating a reversal pattern in the short-term. I told you that while Tesla was trapped inside this congestion, nothing interesting would happen. The daily chart offer us more clues. One of the things that made me more bullish than bearish was the volume . In the past 15 days, the bullish candlesticks had a higher volume than the bearish days. This is a sign of buy force, which increases the odds of an upwards breakout. Second, Tesla was already near its support at $ 538 (green line), making the R/R ratio not attractive for the sellers at all . Also, the 21 ema was flat for too long, and although this is just a detail, it is another thing that was indicating that the bears were exhausted. Now I see some targets. The last one that I see is the gap around $ 733, but we have the $ 714 and the $ 689, which was already hit today ! The volume is increasing, and I see no pullback/reversal signs around. Now, the 21 ema and the $ 635 are supposed to work as supports, if we see a bearish pattern around. If you liked this analysis, remember to follow me to keep in touch with my updates on TSLA and other stocks! Thank you very much!
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
8
A trading idea on DASH! 🧐Ok guys, let’s talk about DASH today. I find this stock interesting, and it can give us a good trade. The stock is starting a bull trend in the 30min, but it is pretty far from the 20ma. If it corrects, it’ll give us another chance to buy. But I do like the 4h chart: DASH hit the support at 135 and it is now going to the 155. If it breaks the 135 again, then we should take a step back, but the chart looks good for now. The problem is the gap at 115, but aside from that, I think the R/R ratio is worth. If DASH breaks the 145.20 tomorrow, it’ll be great. If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉. See you soon, Melissa.
D
by UnknownUnicorn21312077
2
GBPCHF good buy opportunity!Based on the on the chart, price has broken a major support area and a pullback on this area has completed. Also we can clearly see that the strength of sellers decreased on this support area(which previously act as resistance) while we can see good rejection which can be a proof of buyers power at this zone. So based on this this scenario and with considering risk reward standards, I opened a buy position with a good risk reward ratio about 1:3. Note: As always please take risk management rules into consideration before opening any position on the market. Good Luck!
Long
by Brian_Philips
SNDL awesome risk/reward ratio __________________________________________________________________________________ Please like and follow us on Tradingview and Twitter , to stay up to date our latest analysis. Check out our Website as well, for trading tools for part and full time traders. (Check Twitter feed for currently 30% coupon for all products) __________________________________________________________________________________ SNDL could make another north step. I recommend others often to look for a good risk/reward ration, because you will be never 100% right. This ratio looks awesome and is worth a try!
NASDAQ:SNDLLong
by TradeandGrow
Possible Long On GoldHi trading family. I have decided to start posting ideas too, thanks for all the love and support. On this pair, we spot several confirmations on possible long for Gold with a risk-reward ratio of 1:2 The fibs offer key patterns in the market as they magically get respected in most cases. The 3 circles you see form a head and shoulder pattern which gave us a short whose take profit has been reached. If the triangle is not broken at the bottom, we will form a level for a new trend line which will give us the trailing levels for our trade. Good luck with your trading.
OANDA:XAUUSDLong
by DevLucem
7
XAUXAG - Gold/Silver Ratio! XAUXAG - Gold/Silver Ratio! Question I get asked: Why do you look at the XAU/XAG? Simple answer: Measuring the strength. Which metal has a greater R/R potential and that's been silver. Now personally I am much more bullish Silver since last yr march, given analysing the market of both gold and silver, which I stated this in my year ahead video outlook for 2021. (Message privately if you'd like access) I favour Silver for buying opportunities due to adding confluence analysis the XAU/XAG ratio I do this with currencies (E.g EURGBP), cryptocurrencies (E.g ETCBTC) and many other assets. Key Tip: The trend is your friend, until it's broken. Have a great day ahead. Trade Journal (For educational purposes, not investment advice)
OANDA:XAUXAG
by Trade_Journal
AMC: 2 key points and 2 strategies you can use!Hello traders and investors! Let’s talk about AMC again! Since it hit our target, about two weeks ago, it has been moving sideways, and movements like this are frustrating, yes, but we have some very nice key points to keep in mind. First, in the 1h chart, we still have a key point at the green line, around $ 11.52, which is the same key point we mentioned in our last study ( link to my previous analysis below). And we have the red line at $ 8.95. Probably AMC will keep trading sideways for some time, but we have two scenarios to work with if we see a breakout from these lines: Since we have a congestion , it can break in any direction. But we have some targets to work with in whatever direction it breaks. By defeating the green line, the next stop will be the blue line at $ 14.54 , then the last target would be the $ 20.36. We have a Bullish Engulfing , that almost reversed the trend, but I wasn’t convinced by it, and the reasons are in our last AMC analysis. All I can say right now is if it loses this pattern’s low, meaning, the $ 8.95, then the $ 5.22 is the next target for the stock. The volume is too low, but if AMC reacts near the support at $ 8.95 it could trigger another buy sign, as the R/R ratio would be very good. Either way, let’s be prepared, and if you liked this post, remember to follow me to keep in touch with my daily studies, and please, support this idea with your like! Thank you very much!
NYSE:AMC
by Nathan_The_Finance_Hydra
2
AMC: What if it reverses? Some scenarios to work with!Hello traders and investors! Let’s study AMC again! Since our last analysis, AMC hit our target at $ 9.93, and it almost triggered the Harami pattern we discussed, which could’ve worked as a great reversal pattern. I do weekly public analyses about AMC, and the link to my last analysis is below this post, as always. Let’s see how it is doing now. Ok, it didn’t give us a buy in our last analysis, but AMC did a nice buy sign when it did the Bullish Engulfing evidenced in the chart. Good candlestick pattern, with nice volume, but it still not enough to impress me. Now it seems it found a support level at the black line again. If MC loses this black line, probably it’ll retest the Bullish Engulfing’s low again, and if it loses it, then it’ll seek lower supports, seen only in the daily chart . But before we talk about the daily chart, it is important to notice that AMC has a pivot point at the red line ($11.52), and if AMC breaks it, the $ 14.50 is the first target to work with, and probably the Breakaway Gap will help the price to hit there. Remember: Gaps work as magnets. Now, the daily chart: AMC did another Bullish Engulfing in the daily chart as well, closing above the 21 ema, but this pattern appeared in the middle of nowhere. If this pattern appeared near a support level, I would be much happier. The problem is, if AMC loses the engulfing’s low (both, 1h and 1d charts are the same), the next target will be the $ 5.22 . But if it triggers the pivot in the 1h chart, the $ 14.50 is the first target, but AMC could seek the $ 20.36 as well, depending on the strength of the movement. Although AMC didn’t trigger any buy for us (not one that I find good enough, at least), I agree that the R/R ratio is good, and AMC could fly again. But it is too soon to buy it. And we’ll keep AMC on our radar! If you liked this idea, remember to follow me to keep in touch with my free analysis, and if it helped you, remember to support it with your like! Thank you vey much!
NYSE:AMC
by Nathan_The_Finance_Hydra
10
BABA FINALLY presents a good long entryHi everyone, here is my chart analysis of the weekly chart of BABA. I've been patiently waiting for months and it's finally come down to a good price level for going long. I prefer using a tighter stop here (stop loss just above $200) with our profit exit in the lower green box around 270. That means we would risk about $20 per share to make roughly $40 per share, meaning our risk to reward ratio is roughly 1 to 2. If we want a wider stop loss (something like at $185), we can then target the final zone near $300. That would be a risk of $40 down and a profit exit of roughly $80 up, which is a similar risk to reward ratio. I've taken a break from posting on trading view, but have still been blogging 1-2 times per week on my blog. You can find all of my past trades since I started, and my analysis and thoughts on my active trades. I've been very profitable (risk-adjusted returns) for the 4 years that I've traded. Blog url: bigfryfinancialmarkets.com If you have any questions or want a chart reviewed, please ask in the comments below! Thanks, and I hope you enjoyed my analysis. -Nathan
NYSE:BABALong
by bigfry
10
BINANCE COIN! A defined Setup with Huge Risk:Reward!BINANCE:BNBBTC 🚨PLEASE LIKE AND SHARE IF YOU FIND IT USEFULL🚨 Some of you liked the way I explained my procedure for enteering a trade and calculating position size in my EOS/USD swing trade, so today I'll try to replicate it with this new BNB/BTC setup that I found. ** This analysis is ment for educational purposes, not financial advice. Trade at your own risk ** 🟠 ¿WHY AM I ENTERING THIS BNB/BTC TRADE? The first thing to consider is that there is clear evidence that the 2019 highest weekly close is acting as support after breakout. The previous two candles have long wicks down that immediately show rejection and return above 0.00456. Context is also important and should be considered, especially since cryptocurrencies show the highest correlation of any market. In the lower right graph we see Bitcoin in the daily time frame, which is currently breaking out from it's all time high of $57,500. As explained with red lines, a continuation after a daily close happens above is pretty likely. Keep in mind that the only reason you want to buy an Altocin instead on Bitcoin in this case, is if you expect it to go higher percentage wise. Assuming that BTC continues to rise after this breakout, altcoins will rise in a similar way, unless they have a particular setup as is this case. In the upper right graph we see Binance Coin against the US dollar, which is currently in an area with a confluence of two types of support: 1. Horizontal Support at $255 derived from the highest daily close of the first of March. 2. Trendline support from extending the broken triangle formation. With this in mind and considering the three relevant graphs, I believe that Binance Coin will rise against Bitcoin in a way similar to the last Leg Up of more than 200%. Not only that, but I also believe that Bitcoin wil rise as well, compounding the efect of your gains against the US Dollar. I believe that it will also happen in a more predictable way, allowing traders to use much larger positions without risking a larger amount by having a stop so defined and so close to the entry. 🟠 ENTRY (0.00457) For this swing trade it does not matter much if we place the entry right in the highest weekly close of 2019. Price is currently just where we want it to be, so in my case I will enter with a market order at the current 0.00457 price. 🟠 STOP LOSS ( 0.003975) As explained on my previous idea, the distance between your entry and your stop loss is what should define your position size, not random numbers or a percentage of your account balance. However, you shouldnt try to place your stop randomly close to your entry either, but at a place where you feel like the price reaching it invalidates the whole setup. In this case I will use 0.003975 as a stop loss, because I think it is far enough apart to withstand a flash crash if it happens, but not so far that it affects my position size too much. Aditionally, any weekly close below the level of support, would also be an early sign for exiting the trade, even if the stop loss hasnt been reached. 🟠 TAKE PROFIT Defining take profits in an all time high is one of the most challenging things in formulating this type of setup, mainly because there are no areas of horizontal resistance that you can plot forward. That is why in my opinion, as long as you know that your probable take profit is at a reasonable distance that meets your R:R tolerance, you can eventually decide based on analyzing market conditions as a whole. Knowing your take profit isnt necessary to calculate position size, which is also why I think it is less important than the price of entry or your stop loss definition. 🟠POSITION SIZE Looking back to that EOS / USD trade, you can see that Position Size is calculated by dividing the risk ammount (What you are willing to loose if this doesn't work) by the distance in percentage from the entry to stop loss. In this case I buy at 0.00457 and my stop loss is 0.003975, which is -13.3% below. Let's do an example with $100 risk ammount. POSITION SIZE = (RISK AMMOUNT) / (DISTANCE TO STOP LOSS) POSITION SIZE = ($100) / (0.133) = $751 This means that with a -13.3% distance to stop loss and a risk ammount of $100, my position size will end up being $751.00. If the ammount you get is bigger than the value of your portafolio, use leverage. :) Thank you very much for your time and for sharing. I'll continue to update this idea as it develops, so feel free to follow me to get notifications on any news. Feel free to post your comments or questions in the comment section. All positive feedback is well recieved.
Long
by JRuiz000
3
Nice Trade Setup on AFG - 3:1 Risk RewardSetup pretty much speaks for itself but the trade idea is from a technical standing- price has come back into an area of value (Trendline Support) and we have an entry signal from today's daily close printing a bullish engulfing candle, for me this is a valid place to go long at the next session open. This setup provides us with a 3:1 risk reward ratio which makes it an attractive place to go long in my opinion. My trade plan for this one will be to go long on the next candle open, with a take partial profit at 2.80 (into minor resistance) at which point I will then move my stop loss to breakeven and aim for the next take profit level at 3.10. Not meant to be financial advice, do your own research, just my opinion of a good trade setup.
ALong
by Ravi2409
PLTR: Light in the end of the tunnel?Hello traders and investors! Let’s talk about PLTR today! Let’s begin with the daily chart, then we talk about the weekly chart. First, the problem with PLTR is that it is losing its support level at $ 22.50. This would be dangerous, as PLTR has no other clear support levels below this point (maybe the $ 17, but I’m not sure). On the other hand, now would be the perfect time for a reaction. If we see a bullish sign on Monday, or a strong reaction today, the market may see a false breakout from this support level, and this could be a buy opportunity. Movements like this are buy opportunities because the Risk/Reward ratio is very attractive, and investors like good R/R ratio. But we must see a good reaction quickly, otherwise, the bear trend will persist. Now, the weekly chart: PLTR is not only near a support level in the daily chart. In the weekly chart, the stock just dropped to hit its 21 ema (it is a brand-new 21 ema, yes, because PLTR is a quite new stock as well, but we can’t deny we have one 21 ema now). We have 2 support levels in different time frames, and this is why I see this moment as a good opportunity for a reaction. It is not a buy, but it is not a sell either. We must patiently wait for more signs on PLTR. Given the high volume during the recent sell-off, we can assume that PLTR will not react and fly again. Scenarios like this are very unlikely after a sell-off with high volume. The volume must decrease first, and the stock must do some accumulation patterns before it can fly again, in my opinion. Let’s follow PLTR closely from now on, and if you want to keep in touch with my daily studies, remember to follow me . And if you’ve made this far, it means you found this analysis good in some way. If that’s the case, please, support it! Thank you very much, have a nice weekend.
NYSE:PLTR
by Nathan_The_Finance_Hydra
13
The ABCs of risk management. How to calculate risk and stop-lossHello, Traders Today we are going to explore risk management. First of all, risk management is what keeps traders alive! 1. First of all - it’s very risky to get into a single trade with more than 20% of your trading deposit. 2. To begin with, you need to calculate the percentage of risk you plan for each trade. To simplify, it’s an amount of money you’re willing to lose if something goes wrong - and if the losses are equal to that amount, you get out of the trade automatically. The stop-loss needs to be calculated with consideration of your tolerated risk. Let’s say your trading deposit is 20000$. The risk for one trade is 1% of your deposit, in our case it’s 200$. If you make a trade for 10% of your deposit (20 000$), then the position size should be 2000$. The tolerated risk, in this case, is 200$ (10% of your trade amount). Therefore your stop loss for the trade should be 10%, after which the position will be closed. If your position is equal to 20% of your deposit (20000$), then the position size should be 4000$. The loss you’re willing to tolerate here is 200$ (5% of 4000$). That’s your maximum stop-loss. 3. It's very important to understand that you have to make trades with a good risk/return ratio. The recommended minimum is 2 to 1, but 3 to 1 is better. You have to calculate that in order to remain profitable, otherwise, you can end up having losses executing lots of trades. For example, if the R/R ratio is 1 to 2, and you succeed in 4 of 10 trades with an estimated 20% profits and close 6 of your positions with a stop-loss of 10%, you’ll have 4*20% (80% profit) minus 6*10% (60% loss) and that’s still 20% profit. So you get 20% profit even if only 40% of your trades are profitable. Good luck and watch out for the market!
Education
by UnknownUnicorn10064030
9