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Learn To Identify & Trade The Head & Shoulders Pattern Properly.Head & Shoulders Pattern 1. Introduction 2. Definition 3. Qualities 4. Example 5. Conclusion 1. Introduction I realize the Head & Shoulders pattern is a common pattern most traders know. However, I feel that too many traders don't identify them properly nor realize the actual makeup of a H & S. There are two types of Head & Shoulders: Inverse, and regular. According to samuraitradingacademy.com accuracy for the Head & Shoulders Pattern is 83.04% & Inverted Head & Shoulders Pattern is 83.44% . In crypto though it may be lower due to volume volatility. For this educational idea I am using an old example of a H & S and will be only providing examples for a bearish H & S. The same rules apply for a inverse. I am quoting sites here that I will link. 2. Definition A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline. As its name implies, the Head and Shoulders reversal pattern is made up of a left shoulder, a head, a right shoulder, and a neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. We will look at each part individually, and then put them together with a example. 3. Qualities Prior Trend : It is important to establish the existence of a prior uptrend for this to be a reversal pattern. Without a prior uptrend to reverse, there cannot be a Head and Shoulders reversal pattern (or any reversal pattern for that matter). Left Shoulder : While in an uptrend, the left shoulder forms a peak that marks the high point of the current trend. After making this peak, a decline ensues to complete the formation of the shoulder (1). The low of the decline usually remains above the trend line, keeping the uptrend intact. Head : From the low of the left shoulder, an advance begins that exceeds the previous high and marks the top of the head. After peaking, the low of the subsequent decline marks the second point of the neckline (2). The low of the decline usually breaks the uptrend line, putting the uptrend in jeopardy. Right Shoulder : The advance from the low of the head forms the right shoulder. This peak is lower than the head (a lower high) and usually in line with the high of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack. The decline from the peak of the right shoulder should break the neckline. Neckline : The neckline forms by connecting low points 1 and 2. Low point 1 marks the end of the left shoulder and the beginning of the head. Low point 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two low points, the neckline can slope up, slope down or be horizontal. The slope of the neckline will affect the pattern's degree of bearishness—a downward slope is more bearish than an upward slope. Sometimes more than one low point can be used to form the neckline. Volume : As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. This decrease in volume and the new high of the head, together, serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head, then decreases during the advance of the right shoulder. Final confirmation comes when volume further increases during the decline of the right shoulder.
BITSTAMP:BTCUSDEducation
by Nick_Core
27
DASH SPIKE & LEDGE REVERSAL CRYPTO STRATEGYStep #1: Dash cryptocurrency price needs to show a steady rise that suddenly accelerates to the upside. When this reversal pattern is complete, it will resemble a cup with a sharp bottom. This sharp acceleration usually is the last stage of a bull cryptocurrency market, and it’s followed by a sharp reversal if all the trading criteria for a valid Spike and Ledge are met. In technical analysis, professional traders also refer to this last spike as being an exhaustion reversal bar that has a high probability of signaling a reversal in the Dash price. Now, before we can trade successfully, we need to understand that this key climax reversal bar needs to follow specific trading rules. More specifically, this exhaustion reversal bar needs to follow three rules, which we’re going to highlight next. Step #2: The exhaustion reversal bar needs to be bigger than the previous bar Relatively speaking the exhaustion bar, which should be the last bar within the downtrend, needs to be bigger than the previous bars. However, this is not mandatory. Ideally, the bigger the climax bar is in comparison with the other bars within the bullish trend, the more profitable the reversal pattern becomes. Step #3: The climax bar needs to develop at a key sup/res level or after breaking a key swing low/high We can’t stress enough the importance of location in trading. Many times you’ll notice that a chart pattern will fail, but that’s not because that price pattern has stopped working. It’s often the case that you don’t have the patience for these patterns to develop at the right location. In order for the Dash cryptocurrency trading strategy to work we need to wait for the exhaustion bar to show up at the right location. Step #4: The exhaustion bar develops after several bullish impulsive bars We need to make sure that the exhaustion bar occurs after several bullish impulsive bars. These impulsive bullish bars will make the appearance of a bullish trend that will trap many sellers once the tide turns. And that’s how retail traders trade the markets, but to trade profitably, you need to trade against the retail mindset. Step #5: After the upward spike, wait for the market to enter into a short period of consolidation or channeling. Usually, after the Dash cryptocurrency price had that last spike up the market will take a pause to digest the recent move, and it will start moving into a short period of consolidation or channeling. Simply, draw two parallel lines to contain this price range. Now, this is what we refer to as being the “Ledge.” The Spike and Ledge reversal pattern satisfies all trading conditions outlined above which mean that we can move forward and describe how to sell Dash coin. Step #6: Sell Dash coin when we break below the Ledge A short trade is entered on the breakout of the Ledge. This is an easy entry method, but in order to avoid the short-term noise and the usual false breakouts, we need also to wait for the breakout candle to close below the Ledge. Step #7: Place your protective Stop Loss above the Exhaustion bar The initial protective stop loss is placed on the other side of the reversal pattern. You hide your stop loss above the exhaustion bar. Step #8: Your Take Profit needs to be two or three times bigger than your risk aka your stop loss. As a general rule, you do want your take profit to be bigger than your stop loss. This is very important to your long-term survival in this business. However, you can achieve your profit target goals by using your preferred strategy when it comes to exit the market. We encourage you to experiment different exit strategies and see which one yields better results. Note** the above was an example of a SELL trade using our favorite Dash strategy. Use the same rules for a BUY trade – but in reverse. PM me if you want to read the complete strategy
POLONIEX:DASHUSDShort
by Tradingstrategyguides
10
USDCAD 4H HEIKEN ASHI REVERSAL STRATEGYIn Japanese, Heiken Ashi means “Average Bar” and it represents the average-pace of prices. The Heiken Ashi candlestick chart can help you to spot both trading periods and ranging periods that you should avoid. There are two primary trade signals that we can identify through the Heiken Ashi candlestick: 1- Bullish candlesticks with no wicks or very small wicks indicate a strong uptrend and excellent buying opportunities. 2- Small candlestick characterized by a small body and big upper and lower wicks signal a potential reversal. Use strategy on all markets and time frames. Step #1: Identify a strong move to the upside. One of the simple ways that we can use the Heiken Ashi candlesticks is to trade reversal when the candles changed color. So, the first thing we’re going to look for a bullish trend or a strong move to the upside. Note* The Heiken Ashi chart tends to give much more extended and smoother runs of bullish and bearish price candles which is because of how the calculation is used to average out the range of the bar. Step #2: Wait for the Heiken Ashi bar to change color from bullish (green) to bearish (red) The first sign that the price is about to turn lower is when we see a red Heiken Ashi candle. In order for the Heiken Ashi bars to change color, there must to be a strong shift in the order flow and this typically translates into a much more reliable signal than we get when typical price candle change color on a normal price chart. The way we look to use this feature is simply to implement traditional technical analysis to locate potential reversal zones with the Heiken Ashi chart. We use the price action reading skills as a filter to identify a potential trade and then we use the Heiken Ashi chart as the confirmation to go ahead and execute the trade. Step #3: The first bearish Heiken Ashi candle needs to have a bigger than average lower wick Long lower wicks can provide an incredible trading signal, especially when using the Heiken Ashi price chart. You can also wait until you see a bearish Heiken Ashi candle with no upper wick. However, this second approach will cost you some profits left on the table. The Heiken Ashi trading strategy satisfies all the trading conditions, which mean that we can move forward and outline what the trigger condition for our entry strategy. Step #4: Sell at the market at the opening of the next Heiken Ashi candle Our entry method is very simple. This is a bullish reversal setup, so we’re looking for buying opportunities once everything is in the right place. Now we can anticipate that a reversal is put in place, and we can go ahead and buy EUR/USD at the opening of the next Heiken Ashi candle. Step #5: Hide your protective Stop Loss above the first bearish candle high. One of the really fantastic things about Heiken Ashi candles and what makes them so great for trading is how we can use them to place our protective stop loss. Because of the tendency of the candles to display continuation, we can go ahead and be really tight with our stops. We can simply place our stop loss above the signal candle high. Step #6: Take profit after we get a close above a previous bearish candle. A good Heiken Ashi trade setup will tend to run for much longer than a usual price action setup. So, when we’re trading with Heiken Ashi candles, we really want to exploit this and keep our trades open for longer than we usually would. Because we’re using such a tight stop loss, we’re only going to need a small price movement to make a good profit on this trade. Note** the above was an example of a SELL trade using our Heiken Ashi trading system PDF. Use the same rules for a BUY trade – but in reverse. PM me if you want to read the complete strategy.
Short
by Tradingstrategyguides
ETHEREUM CLASSIC CRYPTO REVERSAL STRATEGYStep #1: Identify a clear trading range zone followed by a breakout above the resistance level. The principal idea behind the Fakeout – Shakeout reversal pattern is that we’re looking for an area of consolidation or range trading followed by a false breakout that is QUICKLY sold by the institutional money. A trading range is defined by price moving back and forth between clear support and resistance levels. A valid Fakeout only needs enough bullish momentum so we can break above the trading range. Step #2: Identify the starting point of the Fakeout movement. What we’re looking to do next is to just wait for the buy off to fail. The way we’re going to know that this is a false breakout is if the market starts recovering and breaking below the starting point of the buy-off. Simply, mark on the Ethereum Classic chart the bullish candle that started the buy off. It doesn’t necessarily have to be the first bullish candle. What we look for is for the most prominent bullish candle within the upward movement. The critical thing to watch is for the Ethereum Classic price to recover fast and not spend too much time on the upside. Note* The stronger and faster the recovery happens, the stronger the reversal pattern becomes. A legitimate breakout should not retrace so deep. If it does, according to our amazing reversal pattern, it signals that this was a false breakout and a bull trap. The Fakeout – Shakeout reversal pattern satisfies both of our trading conditions which mean that we can move forward and outline what the trigger condition for our Ethereum classic cryptocurrency strategy. Step #3: Place a sell stop order below the candle’s high identified at Step #2 The best entry technique to use when purchasing Ethereum Classic is to closely monitor the charts right when the expected reversal is occurring. You must focus first on identifying the starting point of the fakeout movement. The fakeout movement is designed to fool traders into believing the market will go up when the real intention of the smart money is to really move the market down. This type of fakeouts happens all the time in any market and on all time frames. This entry strategy has only a very small window of opportunity, so you want to make sure you’re ready to pull the trigger when the trade signals show up. We refer to this recovery as the Shakeout phase. The buyers who got caught on the wrong foot and got tricked are about to be taken out, which in turn will fuel more the downside. Step #4: Place your protective Stop Loss above the “Fakeout high” You also need to concentrate on seeing the logical places where to hide your protective stop loss. Trading without a stop loss is a receipt for disaster, so always use an SL. The initial stop loss is placed at the swing high developed during the Fakeout – Shakeout phase. Step #5: Take Profits when the bearish momentum fades away The easiest way to take profits is to wait until the rally starts losing the bearish momentum. The simplest way to gauge when the bearish momentum fades away, is when the price either starts to consolidate again or when big bold bullish candle start to develop on the Ethereum Classic chart. Alternatively, you can trail your stop loss and enjoy the opportunity to potentially make bigger cryptocurrency profits. You have to monitor new swing high points as they are formed and then just trail your protective stop loss above these swing points. Note** the above was an example of a SELL trade using the Ethereum Classic beginner’s guide. Use the same rules for a BUY trade – but in reverse. PM me if you want to read the complete strategy.
BITFINEX:ETCUSD
by Tradingstrategyguides
Lesson 5: Stop-Loss Strategy | A must needed for tradersHello Traders, I am back with yet another helpful lesson for y'all. This one is a must needed for any trader, and it is extremely important to get this right. A lot of people face a situation when they buy a coin at a higher price, and it just starts going down, and you just hold it in the hopes that it will go up soon. But instead, it just keeps going down more and more. Believe it or not there are many people out there who are still holding that coin because of just one mistake. They did not had a stop-loss order opened after they bought a coin. If they had a stop-loss order opened up, they would have been out at a minimal loss rather than waiting few months for the coin to come back up. If they had set up a stop-loss order, they could've bought the coin at its lowest, and then earned all those profits in lesser time. Don't you worry. I will go over this in a simple way so you can understand this topic really well. Keep in mind this is extremely important to cut your losses especially when we are not sure about the direction that BTC is heading in. Below are the topics we will go over today: What is a Stop-Loss Order? Strategize your Stop-Loss order price Advantages of Stop-Loss Disadvantages of Stop-Loss Note: For the above topic, please refer to the BTC chart above. Lets go over the topics now. What is a Stop-Loss order? A Stop-Loss order is an order set by a trader which will sell the coin if its price reaches below a set price (Stop Price) in this case. Basically if we buy a coin at $10, and you set a stop price at $8. Now, if the coin goes below $8, and if you have a Stop-Loss order up, it will open a Limit Order at the limit price you gave once the price reaches below your set Stop-Loss price. In simple terms, lets look at an example below: i0.wp.com Coin Buy price: 23000 Coin Stop: 20000 Coin Limit: 19000 Refer to the link above to see a image of how stop-loss looks like on Binance. Now lets say you buy a coin at 23000, and after you buy it, you set a stop-limit sell order with a Stop price of 20000, and sell (limit) price of 19000. So now once your coin goes below 20000, the system will automatically open a sell order at your set limit price which in this case is 19000. The benefit of this is that it cuts your losses if the coin keeps going down from that level. I know what you might be thinking right now. What if the coin doesn't keep going down from that level. This would go against you then. You are correct, but it is extremely important at what price you set your stop loss order at. We will discuss that strategy in the next topic below. I hope it is clear to you so far. That was just the intro on what Stop-Loss actually is. Now we can look at what sort of strategy we can use around it. Continue reading below....
COINBASE:BTCUSDEducation
by MoneyChartz
3
History has a way to repeat itselfLet's imagine that we can place a mirror in time. And if we imagine that we are dealing with a mirror, then we will see a reflection. Similarly, we draw a dividing line between the two vertices on the daily chart. And if we look at the chart to the left of the line and then to the right - we can find analogies. Now, with respect to our "mirror", with a slight curvature, the graph exactly repeats its movement. Guided by these observations, we can assume that soon there will be a strong downward movement. And since we conducted analysis on the daily chart, the SL must be located at a safe distance. Have a good day and take profits!
Short
by SuperForex
2
RDD Coin looks bullish, hitting its lows! Here is my thought process on Redd Coin. The coin is available to trade on Bittrex . My opinion on RDD/BTC is bullish as it has volume accumulation and RSI near 30 suggesting the coin has been over sold. The price movement for RDD for the past month has seen dramatic price (30% or more) increases at various time frames and I think it will make another jump in price of atleast 30%. That being said, the stop losses are set tight and the buy & sell prices are also set but these are only my opinion. I hope it helps. Good luck!
Short
by arjanp100
2
Stop Loss AnalysisStop is going just below the 127,000 sat support level. However, I have a suspicion that 128,625 sats is maybe a tighter level to stop out on as the buyers are getting squeezed atm, but it may be too tight and I have not back checked this specifically. The altcoin market is quite bullish right now so a continued breakout would be expected. However, a stop loss is required incase the market changes. I am expecting a decision from BTC in the next week or two which I suspect will affect the market.
by bitzini
How 2 Maximize the Profit & Minimize the Loss Using ElliotwavesThis is based on the Bitcoin Market Cycle 2017 - 2018. Please note that this for Uptrend Market and it's totally Opposite for Downtrend Market if you are able to Short. Also note that you can apply the same for any Market not just for Bitcoin. - In a Uptrend We have 5 Waves followed by 3 Corrective Waves - In that 5 Waves 1,3 & 5 are Impulsive Waves Going up and 2 & 4 Corrective Waves going down. - We only buy in the beginning of the above waves 1,3 & 5 and sell in the top of those waves - Wave (1) (2) (3) (4) (5) are Intermediate Waves - Wave 1 2 3 4 5 are Minor Waves which is Sub waves of each (1) (2) (3) (4) (5) - Wave (1) price movement can take upto ~2months or more - Wave (3) price movement can take upto ~4months or more - Wave (5) price movement can take upto ~3months or more - Use Daily Chart see the big picture and 4hr to check and confirm the Waves (1) (2) (3) (4) (5) Now lets assume that you are going to invest 1000$ You can adjust this to match your investment amount Start of the Uptrend is Point 0 and End of Uptrend is Point T To find the Entry Point or Point 0 we need to find a new market cycle by doing the following in Daily Chart & 4hr Chart to confirm the trend change -Using Wave 5 channelling technique of the previous market cycle -Reversal chart patterns (wedges, double/triple bottoms, broken trendlines etc) stockcharts.com -8,13,21, and 34 day Fibanacci Ema filter investorji.in After finding the Entry Point 0 then its time to find the Targets for Buy, Sell and Stop Loss Entry Points (Buying Targets)- Wave (1): Buy 300$ @ Wave 1 of Wave (1) Retrace 50% to Wave 2 Wave (3): Entry 1: Buy 500$ @ Wave (1) Retrace 50% to Wave (2) Entry 2: Buy 400$ @ Wave 2 of Wave (3) pass Wave 1 level going up. Wave (5): Buy 200$ @ Wave (4) Retrace 38.6% of Wave (3) See the highlighted boxes for the 4 Entry Points Stop Loss (Protecting Investment)- Wave (1): Sell all if the Price goes below Point 0. You can reverse and go Short if your exchange allow to do so. Wave (3): Stoploss 1: Sell all if the Price moves below Point 0. Stoploss 2: Sell all if the Price moves below Intermediate Wave (2) Wave (5): Stoploss 1: Sell all if the Price moves below Intermediate Wave (4) Stoploss 2: Sell all if the Minor Wave 4 moves below Minor Wave 1 of Intermediate Wave (5) See the highlighted boxes for the 5 Stop loss Points Exit Points (Selling Targets)- Wave (1): Sell 200$ @ End of Wave (1). Do 2.618 Fibonacci Extension of Wave 1 of Wave (1) to find end of Wave (1) Project Wave (3) with 3.618 - 4.618 of Wave (1) Wave (3): Sell 700$ @ End of Wave (3). Do 3.618 - 4.618 Fibonacci Extension of Wave 1 of Wave (3) to find end of Wave (3) If Wave (3) is extended then End of Wave (3) is closer to 4.618 Wave (5): Sell 500$ @ End of Wave (5). Do 1.618 - 2.618 Fibonacci Extension of Wave 1 of Wave (5) to find end of Wave (5) If Wave (3) is extended then End of Wave (5) is closer to 1.618 See the highlighted boxes for the 3 Exit Points Ideas & Comments are welcome to make this Idea much better. Thanks RISK DISCLOSURE: Please note that this is purely Educational purposes only and not as Individual Investment Advice. If you choose to follow the above techniques you do so at your own risk after giving thorough and reasonable thought and consideration to your actions and their potential consequences
BITSTAMP:BTCUSDEducation
by surangadesilva
3
BEST ICHIMOKU STRATEGY for QUICK PROFITS Step #1 Wait for the Price to Break and close above the Ichimoku Cloud Ichimoku cloud trading requires for the price to trade above the Cloud because that’s a bullish signal and potentially the beginning of a new up-trend. The cloud is built to highlight support and resistance levels and it’s supposed to highlight several layers deep because support and resistance are not a single line drawn in the sand, but several layers deep. So, when we break above or below the Ichimoku Cloud that signals a deep shift in the market sentiment. Step #2 Wait for the Crossover: The Conversion Line needs to break above the Base Line. The price breakout above the Cloud needs to be followed by the crossover of the Conversion Line above the Base Line. Once these two conditions are fulfilled only then we can look to enter a trade. As you can notice the Ichimoku Cloud indicator is a very complex technical indicator that can be used even as a moving average crossover strategy. Now, we’re going to lay down a very simple entry technique for the Ichimoku Kinko Hyo trading system. Step #3 Buy after the crossover at the opening of the next candle Ideally, any long trades taken using the Ichimoku strategy are taken when the price is trading above the Cloud. Our team at TGS website has adopted a more conservative approach and added an extra factor of confluence before pulling the trigger on a trade. So, after the crossover we buy at the opening of the next candle. Step #4 Place protective stop loss below the breakout candle The ideal location to hide our protective stop loss is below the low of the breakout candle. This trading technique accomplishes two major things. Firstly, it’s minimizing significantly the risk of losing big money and secondly, it helps us trade with the market order flow. Since this is a swing trading strategy we’re looking to capture as much as possible from this presumably new trend and we’ll be looking to trail our stop loss level below the Cloud or exit the position once a new crossover happens in the opposite direction. Step #5 Take Profit when the Conversion Line crosses below the Base Line We only need one simple condition to be satisfied for our take profit strategy. When the conversion line crosses below the base line we want to take profits and exit our trade. Alternatively, you can wait until the price breaks below the Cloud but this means risking to lose some parts of your profits. In order to gain more sometimes you have to be willing to lose some. Note** the above was an example of a BUY trade using the advanced Ichimoku trading strategies. Use the same rules for a SELL trade – but in reverse. In the figure below, you can see an actual SELL trade example.
BITFINEX:BTCUSDLong
by Tradingstrategyguides
8
ZCASH ZECBTC 1H DOUBLE PITCHFORK STRATEGYStep #1: Draw the double Pitchfork channel The first thing that we need to pay close attention is how we select our swing points. We only want to choose significant swings on the Zcash chart. Once you locate the four swings, merely use the Pitchfork indicator to draw the double Pitchfork channel. There is a simple reason why we use two Pitchfork channels. Our team at TSG has discovered that the Pitchfork indicator has limited power in forecasting future price movements. However, by using this simple trading trick to combine two Pitchfork indicators together, we eliminate a lot of the drawbacks that come with this unique technical indicator. Step #2: Wait for Zcash price break above the 1st Pitchfork channel At this stage, if the two pitchfork channels overlap don’t get confused about it. The 2nd pitchfork is darker color. Wait for the Zcash price to break above the 1st pitchfork channel. We want to see a big bold breakout candle that closes above the 1st Pitchfork channel. Step #3: The Zcash price needs to trade below the median line (2nd pitchfork channel) on a closing basis. The median line of the second pitchfork channel needs to hold the upside and provide us with strong resistance. As a general rule, as long as we trade NEAR the median line, we’re good to go even if for a brief period of time we still break above the resistance line. Most of the time, the Zcash price will gravitate towards the median line back and forth, so we need to take that into consideration if we want to trade cryptocurrency strategies successfully. Step #4: Buy at the market or stop order as soon as we break below the 2nd Pitchfork Channel bottom support line. How to buy/sell Zcash is simple. With our entry technique, we sell at the market or stop order when we break below the 2nd Pitchfork Channel bottom support line. The advantage of this cryptocurrency entry strategy is that we sell when the momentum is in our favor. Step #5: Place protective Stop Loss above the 2nd Pitchfork Channel median line One of the most important things in trading is risk management. So, don’t forget to place your protective stop loss in order to minimize the potential losses. After you sold Zcash ZEC, make sure you add your stop loss order above the 2nd Pitchfork channel median line. Step #6: Take Profit when we touch the median line of the 1st Pitchfork Channel or according to your trading plan Our take profit strategy for successful cryptocurrency trading is easy to implement. We don’t want to take premature profits, but we also don’t want to give back our hard earned profits either. In this regard, we take profits when Zcash price reaches again the median line of the 1st Pitchfork channel or according to your trading plan. Note** the above was an example of a SELL trade using the Zcash cryptocurrency trading strategy. Use the same rules for a BUY trade – but in reverse.
Short
by Tradingstrategyguides
1
USDCAD 4H RANGE TRADESPair has been in a consolidation pattern above the 50 sma. Buy stop @ 1.2918 if prices pushed for a higher high in the up trending pattern Long Take Profit @ 1.2995 Sell Stop @ 1.2795 if price drops below the 50 sma Sell Take Profit @ 1.2730 I will follow the Macd for a stop loss either direction. If Macd crosses either the Red Signal Line or the Zero level line against open trade Or a hard stop of 26 pips above/below the candle that opens your trade
by Tradingstrategyguides
Continuation of Gann Fan Propulsion Strategy Steps 3-4-5Step #3: Apply again the Gann Fan Indicator on the Swing low Prior to the Breakout above 2/1Gann Fan Angle How to use the Gann fan indicator? Simply follow the instruction presented in the above sections. At this point, you can also get rid of the previous Gann fan angles drawn from the swing high. This will make sure your chart will not get cluttered and the price is still visible. One of the reasons why this is the best Gann fan strategy is because we use the Gann fan indicator to track every swing in the market. At this point, your trade is opened, but we still need to determine where to place our protective stop loss and take profit orders, which brings us to the next step of best Gann fan trading strategy Step #4: Place Your Protective Stop Loss below the Most Recent Swing Low Which should align with the point from where you draw the second set of Gann Fan Angles. The best Gann fan strategy has a very clear level where we should place our protective stop loss order which is right below the swing low located prior to the 2/1 Gann angle breakout. Step #5: Take Profit once we Break and Close Below the 2/1 line. We want to ride the new trend for as long as possible and with the help of the Gann fan indicator, we can pinpoint the ideal time to take profits. We take profit at the earliest symptom of market weakness which is a break below the 2/1 line that signals a possible start of a bearish move.
BITFINEX:ETHUSDLong
by Tradingstrategyguides
STELLAR CRYPTOCURRENCY STRATEGYSTELLAR/DOLLAR 4H DOUBLE BAR LOW HIGHER CLOSE PATTERN (DBLHC) What is Stellar Lumens? Stellar is a platform that it’s trying to do very fast payments with very low fees. The key advantage of Stellar is that it has between 3 and 5 seconds confirmation time and it supports thousands of transactions per second. Stellar Lumens price is below the $1 and trading at only a few cents, which makes XLM a top cryptocurrency under $1. Stellar Cryptocurrency Strategy All we need for swing trading cryptocurrency is the Double Bar Low Higher Close pattern also known as the DBLHC pattern. All you need is to look for two bars that have equal lows or near the same price level. The second condition that needs to be satisfied for a valid DBLHC is that the second candle needs to close a lot higher than the first candle (see chart above). Usually, the bar tails are tiny, but the candlestick body is large. Step #1: Find a bullish trend or wait until the market develops a swing low The double bar low higher close can be found at the end of a bearish trend and the start of a new bullish trend acting as a reversal bullish pattern. However, at the same time, the DBLHC is also a continuation pattern that can develop at any stage during a bullish trend. Having a prior trend already established increases the probabilities of the DBLHC pattern to work. The DBLHC can produce the same kind of results even when the market is only in the process of establishing a market swing low. If a DBLHC develops right after a swing low is created that’s the confirmation we need that the institutional money is buying low. Step #2: Wait until the DBLHC chart pattern develops on the Stellar XLM Chart Now that you’re familiarized with the DBLHC pattern, it should come easily to spot this powerful chart pattern on the Stellar chart. The DBLHC pattern has two identical lows and the second candle close is way higher than the high of the first candle. In most of the cases the first candle will be bearish followed by a second bullish candle, but as we can see the Stellar price action is developing a DBLHC were the first candle is also bullish. This doesn’t invalidate the DBLHC chart pattern as in our books; it’s still a very tradeable chart pattern. Step #3: Buy at the market at the opening of the next candle after the DBLHC pattern When to buy Stellar is quite easy. As per the DBLHC pattern rules, we need to enter immediately at the market when the DBLHC has formed. Alternatively, we can place a buy limit order above the high of the second candle. Buying Stellar with our cryptocurrency buy strategy will offer you a high risk to reward ratio. The second advantage you have is that you’re buying Stellar right when the bullish momentum is starting to build up. Technically, this means that the price should never look back, which means that the drawdown should be minimal. Step #4: Place protective Stop Loss below the DBLHC low The DBLHC chart pattern also provides us with a great spot to hide your protective stop loss. Trading without a stop loss is the number one mistake that traders make. Make sure you always trade with a stop loss to protect your account balance. After you bought XLM coin, the protective stop loss can be placed below the DBLHC low. Step #5: Take Profit when we break below the up-sloping trend line that connects the swing low points The first thing we need to do when trading Stellar and you want to cash out some of your profits is to draw an up-sloping trend line starting from the swing low you identified in Step #1 and connect all the swing low points that are part of this new uptrend. As soon as Stellar XLM price breaks and closes below the upward trend line you take profits. This take profit strategy will maximize your trading profits and it will keep you as long as the bullish momentum is strong. Note** the above was an example of a BUY trade using the Stellar cryptocurrency trading strategy. Use the same rules for a SELL trade – but in reverse.
SLong
by Tradingstrategyguides
4