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Stochasticdivergence

BTCUSD 1D 6 STEP LONG STRATEGYHow to Trade Using the Stairs Trading Strategy If you don’t want to trade on pure randomness, you need a trade trigger before opening an order. When the price reaches your level of interest, you need some type of confirmation. This is where our entry technique can be applied across all types of trading strategies. Step #1: Identify a strong trading market that has a clear bullish trend. The first step is to identify a strong trading market that has a clear bullish trend. The Stepping Stones strategy seeks to take advantage of the market trend, and it can be considered as another pullback trading strategy. Our team at Trading Strategy Guides has discovered that you can benefit more by using the stochastic indicator to trade pullbacks rather than trying to pick a falling knife or to jump in front of a train. Now let’s see how the professional Forex traders make use of the stochastic indicator. Step #2: The Stochastic indicator needs to develop a double bottom pattern. The second bottom has to be higher than the first bottom. It’s critical to make the difference between the double bottom price pattern and the fact that we’re looking at the stochastic indicator to develop a double bottom. The other condition is that we need the second stochastic swing low to be higher than the first bottom. Once these two conditions are satisfied, we still need one more caveat to be fulfilled which brings us to the next rule of how to trade stair strategy. Step #3: Both stochastic swing lows need to be in oversold territory below the 20 level A stochastic reading below the 20 level suggests that the market is oversold and there is a high chance of reversal. Many times a market can remain in oversold or overbought territory longer than you can remain solvent. This is why we have put other trading rules in place so we can avoid this situation. Now it’s time to switch our focus to the actual price and see the relationship between the stochastic indicator and the price action that needs to be satisfied. Step #4: Look for a divergence to develop between the stochastic indicator and the market price. Before we go any further than this, we need to clarify one thing. The way people trade divergence is by using a variety of momentum-based indicators and measure or compare when the momentum indicator and the price diverge. In other words, when the price makes a lower low but the momentum indicator fails to make a lower low and instead makes a higher low, then we have a situation where we have divergence. So, what type of divergence we want to see? In plain English, we look for the price not to drop that much compared with the stochastic indicator. Look for how the stochastic indicator is falling very fast into oversold territory, but the BTCUSD exchange rate is dropping at a much slower pace. Note* the stronger the divergence between the stochastic indicator and the price the better the buy signal can be. The next step will highlight the trigger for our entry order. Step #5: Buy after the second bottom develops a stochastic crossover The trigger for our entry is quite simple. Once the second bottom produces a stochastic crossover, we jump straight into the market and start buying so we won’t miss a great entry opportunity. In this scenario, our entry is as close as possible to the endpoint of the retracement. You really can use any type of exit strategy as you wish. Now, of course, this is just an entry technique but, we want to go one step forward and outline some strategies to protect your capital and at the same time to maximize your profits. Step #6: Place the protective stop loss below the last swing low. You determine EXIT or Take Profit when the slow stochastic moving average enters in overbought territory above 80 levels. Place your protective stop loss 10 pips below the last swing low. We’re adding a buffer of 10 pips to protect ourselves in case of any false breakouts. Usually, our stop will be very close to our entry price which is the reason why this swing trading strategy is such a great entry technique to keep your losses small. Where to take profit is also quite intuitive using the stair-step chart pattern. Once the stochastic slow moving averages enter overbought territory or when it touches the 80 level, we want to cash out. Alternatively, if you’re going to try to stay longer in the trend you can try our 10-day breakout strategy. Note** the above was an example of a BUY trade using the stepping stones strategy. Use the same rules for a SELL trade – but in reverse.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
1
USDCHF - Some Reasons for Why to sell the Market?Hi Traders! The market is in an shortterm Uptrend. In the H4-Timeframe the price is in a downtrend. As you can see, we here have some reasons on why to sell the market USDCHF: Reversal Zone The first reason is the reaching of the Reversal Zone (orange Box). This area is a barrier for the market, because there are lots of Resistance Levels in it. Bearish Stochastic Divergence The second reason is the bearish Divergence. As you can see the Stochastice is making lower highs while the price is making higher lows. Higher Timeframe Trend As mentioned before, the "big" Trend we're looking for we can find in the H4-Timeframe. There it is in a Downtrend. Higher Timeframe Structure If you go to the H4-Timeframe, you can also see a Trendline which is acting as a Resistance. This role could push the price lower. Entry Trigger In the chart you can see a Trendline. If the market breaks and closes below this trendline, we are looking to sell. We recommend to wait for a Confirmation! Thanks and successful Trading :)!
Short
by swissmoneymakers
3
JPFA : Possible upside1 hour chart shows a possible buy setup. Based on elliott wave principle. Wave 2 is ended with W-X-Y structure and nicely touch the 0.786 fibonacci retracement level. The price need to break peak of X wave to validate the counting. Plan Buy if break 1050 stop loss at 760. This idea is also supported with bullish divergence on RSI and stochastic. Cheers & god bless. Bahasa Indonesia Chart 1 jam memberikan kesempatan untuk buy dengan alasan perhitungan wave elliott untuk wave (2) bisa jadi sudah selesai dan lanjut naik ke atas (lanjut wave (3))apabila harga tembus puncak X dan keluar dr channel sideway. Pertimbangan wave (2) mungkin sudah selesai adalah dari angka fibo 0.768 yg disentuh ujung Y lalu terpantul ke atas. Plan nya adalah buy saat break 1050 dan stop loss di 760. Analysis diperkuat juga oleh indikator RSI dan stochastic yang menunjukkan bullish divergence. Semoga analysis ini bermanfaat, god bless.
IDX:JPFA
by danuto17
AION bullish trade brewing for a monthMassive increase in volume for a month. Bullish divergence on RSI, Stoch, MACD. I was in around 700 satoshis, but posting this trade here around 710 satoshis. Entry: .00000710 (now) Target 1: .00000805 Target 2: .00000955 Stop: .00000619 I am putting my stop way down at the what would be the all time low on the chart...giving freedom for further divergence with another low...but i really do not think it will go that low. I think this is a higher probability trade. hope it helps UIOGD - JMJ
ALong
by Procinctu
1
THE FALL OF THE POUND... ARE YOU ON THE RIGHT SIDE? THIS IS A CONTINUATION OF THE SETUPS STARTED THIS WEEK..... CAN'T TYPE LONG AS MARKETS ARE MOVING.... WHATS TO KNOW.... -BULLS WHO HELD TOO LONG ARE TRAPPED WITH THAT BIG CURRENT WICK ON THE 4HR - IM LOOKING FOR A CLOSE BELOW THE CRITICAL AREA... (MIGHT USE THE HOURLY FOR ENTRY BECAUSE OF THE SPEED OF MARKET) - BUT ANY TRADES FROM HERE DOWN WITH STOPS ABOUT THE HIGHS AIMING AT THE LOWS 1.19 COULD BE MORE ILL KEEP UPDATING ... GOOD CONFIRMATIONS -STOCH DIVERGENCE AND COMING OFF THE TOP - MACD CROSS OBSTACLES -21 EMA (RED) WHERE BULLS MAY TRY AND JUMP BACK IN.... I HOPE THEY DO PROVIDE ANOTHER ENTRY AND RETRACE -WILD NEWS IF YOU ARE STILL A BULL.... THANK YOU FOR YOUR HELP WE COULDN'T HAVE TRAPPED WITHOUT YOU.... HAPPY HUNTIN' HAPPY TRAPPIN' BOOBII
Short
by rickyboobii
TRX/BTC: A Gamble with Huge RewardIts not one hundred percent, but this really does look like a continuation inverse head and shoulder pattern, everything matches in terms of volume and shape of the graph. The price objective if the inverse head and shoulders were to break upwards would be 1249 satoshis which can be seen in the purple arrow. In addition there is major support around 300 satochis, the risk/reward on this would be insane, so if one were to invest close to 300 satoshis, there would be extraordinary lower risk for the possible reward. Bitcoin has been a tank lately, powering through everything, so its highly probable that Bitcoin will just steam roll through Tronix despite everything. Continuation Inverse Head And shoulder: 1.) The general shape and volume match those of an inverse head and shoulder, it can be seen that volume is decreasing throughout the movement and there is a lot less volatility on the right shoulder suggesting possible accumulation. 2.) Using the Moving average convergence divergence (MACD), it can be seen that during the head portion of the last move, as the weekly moving averages converged and had a bullish cross, there was huge upside potential in tronix. 3.) Also, using the stochastic, there were two bullish crosses that occurred in this move, the second one was a significant divergence. (It could be argued that since the divergence isn't as large on the right shoulder when compared to the head, there will not be as much upside potential as well) However, for something like this to occur, bitcoin would either need to be stagnant while tronix pushes up, maintains its price while BTC drops in price, or increases faster than bitcoin. This is possible, but I don't think it is highly likely, thus, I do believe this is a gamble.
by CuddlyCuddles
forexTrdr EURJPY - SHORT THEN LONG ON DIVERGENCE BREAKOUT COMINGMorning traders, Looking at Euro versus Japanese Yen and stochastic divergence forming to suggest we are looking at a move lower withing the channel then a break out higher over the coming trading sessions. As per our trading view chart we have higher highs forming on stochastic with lower highs on pricing. When this occurs it tends to point to a breakout higher in pricing over medium term but with a pull back first. We are going to play the short down here within the range then look to get long to catch the breakout. We can play this with a tight stop loss should price break out earlier than the pattern would suggest and look to switch directions should that happen. Comments and feedback are always appreciated from anyone in the trading community Good luck trading from the Team at forexTrdr find us on instagram, twitter and Alexa flash briefings
Short
by forexTrdr
STEPPING STONE STOCHASTIC STRATEGYStep #1: Identify a strong trading market that has a clear bullish trend The first step is to identify a strong trading market that has a clear bullish trend. Our team at Trading Strategy Guides has discovered that you can benefit more by using the stochastic indicator to trade pullbacks rather than trying to pick a falling knife or to jump in front of a train. Consequently, you want to find a strong trading market' Step #2: The Stochastic indicator needs to develop a double bottom pattern. The second bottom has to be higher than the first bottom. It’s critical to make the difference between the double bottom price pattern and the fact that we’re looking at the stochastic indicator to develop a double bottom. The other condition is that we need the second stochastic swing low to be higher than the first bottom. Step #3: Both stochastic swing lows need to be in oversold territory below the 20 level A stochastic reading below the 20 level suggests that the market is oversold and there is a high chance of reversal. Many times a market can remain in oversold or overbought territory longer than you can remain solvent which is the reason why we have put in place the other trading rules so we can avoid this situation. Step #4: Look for divergence to develop between the stochastic indicator and the market price Before we go any further than this, we need to clarify one thing. The way people trade divergence is by using a variety of momentum based indicators and measure or compare when the momentum indicator and the price diverge. In other words, when the price makes a lower low but the momentum indicator fail to make a lower low and instead makes a higher low then we have a situation where we have divergence. So, what type of divergence we want to see? In plain English, we look for the price not to drop that much compared with the stochastic indicator. Notice how the stochastic indicator is falling very fast into oversold territory, but the EUR/USD exchange rate is dropping at a much slower pace. Note* the stronger the divergence between the stochastic indicator and the price the better the buy signal can be. Step #5: How to trade stair strategy: Buy after the second bottom develops a stochastic crossover The trigger for our entry is quite simple. Once the second bottom produces a stochastic crossover, we jump straight into the market and start buying so we won’t miss a great entry opportunity. In this scenario, our entry is as close as possible to the end point of the retracement. Step #6: Place the protective stop loss below the last swing low. Take Profit when the slow stochastic moving average enters in overbought territory above 80 levels. Place your protective stop loss 10 pips below the last swing low. We’re adding a buffer of 10 pips to protect ourselves in case of any false breakouts. Usually, our stop will be very close to our entry price which is the reason why this swing trading strategy is such a great entry technique to keep your losses small. You really can use any type of exit strategy as you wish Where to take profit is also quite intuitive using the stair step chart pattern. Once the stochastic slow moving averages enter overbought territory or when it touches the 80 level, we want to cash out. Alternatively, if you’re going to try to stay longer in the trend you can try our 10-day breakout strategy. Note** the above was an example of a BUY trade using the stepping stones strategy. Use the same rules for a SELL trade – but in reverse. PM me if you want to read the complete strategy.
BITFINEX:ETHUSDLong
by Tradingstrategyguides