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HOW TO TRADE ELLIOTT for BEGINNEERSStep #1 Wait until you can spot at least a 3 wave Elliott Wave sequence Since we always advocate trading in the direction of the trend, as explained above, we’re only attempting to catch the last wave 5. So, in order to find our Elliott Wave entry points we need to let the market tip his hands off and wait to develop the first 3 waves of a five Elliott Wave pattern We must verify that each wave complies with the Elliott Wave strategy rules in order to confirm the validity of our Elliott Wave count. In the figure above, we’ve spotted a bearish Elliott wave count that complies with the Elliott Wave strategy rules, which means we’re looking for a sell setup. Step #2 Sell between 38.2% and 50% Fibonacci retracement of Wave 3 One of the Elliott wave rules states that, ideally, wave 4 should retrace between 38.2% and 50% Fibonacci retracement of wave 3. Our Elliott Wave entry points are at 38.2% because we never know for sure how far the market will retrace and we don’t want to miss the move. We’re pretty much sure that with experience you can fine tune your Elliott Wave entry points and get even better entries. Now, we can note that wave four retrace a little bit above the 50% retracement. Since the market is never a perfect place where rules are respected to the pip there will always be small variations and the Elliott Wave strategy is no exception from the rule Step #3 Place the Protective Stop Loss few pips above the Wave 1 Ending Point In the section “How to trade Elliott Wave” we highlight the importance of wave 4 never entering into the wave 1 territory. In this regard, it’s smart to place our stop loss exactly where the Elliott Wave pattern will be invalidated. Step #4 Take Profit when Wave 5 is equal to Wave 1 or when we break below wave 3 With the Elliott Wave strategy is all about experimenting new trade ideas and we encourage you to find your own set of rules because once you have a firm understanding how to trade Elliott Wave you can develop many Elliott Wave strategies around it. In this regard, we don’t have a set in stone take profit strategy because the Elliott Wave strategy looks to maximize profits and the only way you can do this is through flexibility because no two Elliott Wave structure is the same Note** The above was an example of a SELL trade… Use the same rules – but in reverse – for a BUY trade. PM me if you want to read the complete strategy.
Short
by Tradingstrategyguides
4
ADAUSD 1h CARDANO STRATEGYStep #1: Cardano ADA price needs to trade BELOW the 200-day moving average The first condition that Cardano requires to satisfy is to trade BELOW the 200-day moving average. When price trades BELOW the 200-day moving average we know we have a strong premise for a bearish trend to be put in place. The more time Cardano price spends below the 200-day moving average and the biggest the distance between the Ada price and the 200-day moving average the stronger the trend is. Step #2: Volume needs to be above average and twice as much volume compared with previous volume bars needs to come in We need to look for instances when the volume bars are above the average volume (the red moving average). But this is not all; we also need the buying volume to be twice as much as previous volume bars. Wait for trading situations where the selling volume is increasing considerably. This really shows institutional buying that has the power to move the Ada coin price. Step #3: After volume has increased, sell at the opening of the next candle When to sell Cardano ADA is quite intuitive if you have followed this cryptocurrency step-by-step guide. The moment we see institutional selling presence we want to be sure we’re not left out. In this regard, after the volume has increased, we sell at the opening of the next candle preceding the big volume candle. Usually, you’ll be selling right after the first bearish candle that often is the starting point of a new trend. Don’t be afraid to sell on the way down as this will pay handsomely in the long run. Step #4: Place protective Stop Loss above the 200-day moving average Hide your protective stop loss above the 200-day moving average. A market that has a strong bearish trend should not drop above the most powerful moving average aka the 200-day moving average. By hiding your stop loss above the 200 moving average, we’re minimizing risk as much as possible. Note* as the trend progresses you can also trail your stop loss below the 200-day MA. Step #5: You decide or Take Profit when we break and close above the 200-day Moving Average The 200-day moving average can serve us as a significant trigger for our exit strategy. When we break above the 200 moving average, that’s the first sign that the trend is about to change the tide. When these happen make sure you take profits. Note** the above was an example of a SELL trade using the Cardano trading strategy. Use the same rules for a BUY trade – but in reverse. PM me if you want to read the complete strategy
BINANCE:ADAUSDShort
by Tradingstrategyguides
#BTC $BTCUSD 4H Update AnalysisOn chart is shown a partial of circular support and resistance purple-colored lines. Support at 6650 and 6550 Resistance at 6850 and 7200 2 PRs: PR1 trgt = 6605 (reached) (=strong signal) -- further uptrending momentum is likely - failing more than 2 PR failures. PR2 trgt = 7034.51 (Not yet reached) -- needs more time till proven failed (=avg strength signal w/BearishDiv) MAs are Positive on price. RSI wma45 is positive 1 NR: Failed on 4H 1 NR: Still putting negative pressure on 12H frame Entry made @ 6500 - June 18th 50% position sold ~ 6730 June 20th placed stop 1: 6525 placed stop 2: 6300 Re-entry @ breakout of 6800 - 6900 zone with valid volume on 4H frame Odds: 60% Up 40% Dn
BITSTAMP:BTCUSDLong
by tatrader77
USDJPY 15M DONCHIAN CHANNEL STRATEGYStep #1: Attach the Donchian channel indicator to your chart. Preferred setting 20 periods. For the purpose of this example, we’re going to plot the Donchian channel on the 15-minute time frame. The preferred Donchian channel settings is 20-periods, which means that the channel lines will be calculated based on the price action from the last 5 hour candles Note* The Donchian indicator is a free pre-build technical indicator that comes free with most trading platforms. Step #2: Wait until the price crawls along the upper Donchian Channel. The price should not go below the middle band during this stage. It’s quite easy to visualize the Crawling Along pattern. When the price action touches the upper Donchian channel, and it stays glued to the upper line, we create the price effect where the price looks like it’s crawling along the top Donchian line. If you think in terms of supply and demand, when the price is crawling along the upper Donchian channel, without departing too far away it means there are lots of buyers that try to push the price higher. This eventually will lead to seller capitulating once the breakout happens. Another characteristic of the Crawling pattern is that during this stage, the price shouldn’t go below the middle Donchian band. Note* The closer the price action moves along the upper band, the stronger the trend is. If you spot this type of price action, then you know this day trend has a big potential for following through. Step #3: Buy1 when the price pulls back to the middle Donchian band. Buy2 when the price pulls back to the lower Donchian band. The channel width gives us a measurement of the market volatility. When we have high volatility in the market, this will be shown on the chart by wide channel bands, whereas low volatility will be displayed on the chart by a narrow channel. Like with all technical indicators the Donchian channel can be subject to false signals from whipsaws and sizeable market swings. Breakouts are very hard to trade, and that is the reason why we prefer to enter on pullbacks. We recommend splitting your trade into two parts as this will give you a better average entry price. The first buy order is deployed when the price pulls back to the middle Donchian band, while the second buy order is deployed when the price retraces all the way to the lower Donchian band. Our entry strategy will give us the opportunity to implement a proper risk management This entry strategy is a good way of framing a trade. So, you have a very specific entry point By sticking to this entry rules, you will realize this is not a bad trade to take because you trade in the direction of the prevailing trend Step #4: Hide your protective Stop Loss below the lower Donchian band Your stop loss can be placed below the lower Donchian band. The catch is that you need to move to the left side of the chart and find the first part of the lower Donchian band where it is flat. You’ll find that often times the Donchian channel will plot perfectly flat lines. This can provide us with excellent spots to hide our stop loss. Step #5: Take profit at the end of the day or if you want to ride the trend more take profit when The beauty of the Donchian trading strategy is that you can apply multiple exit strategies so you can maximize your profits. Now, that we know that the supply and demand balance is skewed to the upside, we can expect buyers to step in far quicker on retracements than they have before. This can indicate that we’ll have a buy explosion to the upside. The first proposed exit strategy is to liquidate your position at the end of the day. Since we’re trying to take advantage only of the intraday trends we don’t want to have any overnight exposure. Secondly, you can wait until the price breaks below the most recent flat lower Donchian band. Note** the above was an example of a BUY trade using our Donchian Channel Strategy PDF. Use the same rules for a SELL trade – but in reverse.
Long
by Tradingstrategyguides
1
DOGEUSD DAY STRATEGYStep #1: Wait until you can spot a bar that has its daily range smaller than the previous three days The first rule requires you to have the patience until the Nr4 pattern develops on the Dogecoin chart. When we have a daily trading range that is narrowed than the previous trading ranges it means that the price is contracting. Based on our backtesting results we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion. This is the reason why this short-term price pattern is so powerful. Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day. Step #3: How to buy Dogecoin: Buy only if the breakout of the Nr4 high happens during the first 5 trading hours. We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days. Our Dogecoin trade doesn’t have an inside day, but nevertheless we want to buy only after we break above the Nr4 day high. Also, we want to make sure the breakout happens during the first five trading hours of the next day. Trades based on the ORB – Nr4 pattern will show you a profit instantly. Now, if the trade is not showing you a profit right away than your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market. Of course, you can only do that if your stop loss hasn’t been triggered in the meantime. Step #4: Place your protective Stop Loss below the Nr4 day low You can hide your protective stop loss below the Nr4 day low. Alternatively, you can also place your stop loss below the current day low as this will give you a better risk to reward ratio. The ORB – Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined they tend to produce even more powerful trades. Step #5: Take profit at the close of the first 1-hour bearish candle Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel. Even though the ORB pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. So as soon as the first bearish candle shows up we close the trade and enjoy our daytrade profits. Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the cryptocurrency market. Note** the above was an example of a BUY trade using our Dogecoin cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse. PM me if you want to read the complete strategy.
BITTREX:DOGEUSDLong
by Tradingstrategyguides
NEM XEM RSI CRYPTO STRATEGYRate of Change indicator or simply put it the ROC indicator is another momentum indicator and as the name suggests it measures the rate of a crypto’s change in price and predicts future price movements. Our RSI is applied over the ROC. So the RSI line is derived from ROC not the price. Step 1 - Step #1: Wait until the RSI has a value of less than 30 At this stage, we need to use the RSI readings from the daily chart. Just wait until the RSI has a value of less than 30. You’ll have to wait for the daily close to get the RSI reading. Obviously, this means that you’ll always buy XEM the next day. Once you spot an RSI reading less than 30 we switch to a lower time frame which brings us to the second rule of the Nem (XEM) cryptocurrency strategy. Step #2: Switch to the 1-hour chart and wait again until the RSI shows a reading of less than 30. The second rule that needs to be satisfied before pulling our trigger is to wait again for the RSI indicator to show a reading of less than 30 but this time on the 1-hour time frame. Remember, this should be the next day after the RSI posted less than 30 readings on the daily chart. Step #3: How to buy XEM: Buy at the opening of the next candle after the RSI went below 30 levels. The original momentum Pinball pattern uses a different entry method. We have done some backtesting and found that we can achieve superior returns if we follow a different entry strategy. How to buy XEM with our cryptocurrency trading strategy is much more eloquent because it uses the concept of multiple time frame analysis. Buy at the opening of the next candle after the RSI posted a reading of less than 30. Step #4: Place your protective Stop Loss below the previous day low After the buy EOS order is triggered, we need to have a strategy to protect our bottom line. The best Nem XEM price to hide your protective stop loss is below the previous day low. The Nem XEM price should not come to this point. Step #5: Take profit should be 2 or 3 times larger than your stop loss Again, our exit strategy is slightly different than the original momentum Pinball pattern. Be sure to close your Nem trade once the take profit is two or three times larger than your stop loss. Alternatively, you can use the initial exit strategy which requires taking profits when we break above the previous day high. Don’t limit yourself to either of these two strategies, but instead make the best out of them and use the one that suits the most the current trading environment. Note** the above was an example of a BUY trade using our Nem (XEM) cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse. PM me if you want to read the complete strategy.
Long
by Tradingstrategyguides
GBPUSD 1H STRIKE TRADER ELITE PULSE INDICATOR SIGNALSStrike Trader Elite Pulse Indicator is a Macd based signal indicator Green vertical line indicates Macd signal Entry is based on a delayed amount of pips before a Buy Stop order Yellow line is painted on chart Buy Stop Loss Red line is painted on chart from a pre-determined amount of pips from entry Buy Take Profit Green line is painted on chart from a pre-determined amount of pips from entry PM me if you are interested in reading about this indicator
Long
by Tradingstrategyguides
XPloRR S&P500 Stock Market Crash Alert GeneratorXPloRR S&P500 Stock Market Crash Alert Generator Long-Term Trailing-Stop study detecting S&P500 Stock Market Crashes/Corrections and showing Volatility as warning signal for upcoming crashes Detecting or avoiding stock market crashes seems to be the 'Holy Grail' of strategies/studies. This study detects all major S&P500 stock market crashes and corrections since 1980 depending on the Trailing Stop Smoothness parameter. The 5 crashes/corrections of 1987, 1990, 2001, 2008 and 2010 were successfully detected with the default parameters. With the default parameters this study generates 5954% profit, with 6 closed trades, 100% profitable, while the Buy&Hold strategy only generates 2427% profit, so this strategy beats the Buy&Hold strategy by 2.45 times! The script shows a lot of graphical information: the green area shows a trading period (between buy and sell) the close value is shown in light-green. When the close value is temporarily lower than the buy value, the close value is shown in light-red. This way it is possible to evaluate the virtual losses during the trade. the trailing stop value is shown in dark-green. the EMA and SMA values for both buy and sell signals are shown as colored curves the Volatility is show below in green and red. The alert threshold (red) is default set to 200 (see Volatility Warning Threshold parameter below) Trailing Stop Smoothness value: Adjust the Trailing Stop Smoothness parameter to hide/show smaller corrections/crashes: 96: 6 trades, 100% profit, 5954% profit, detected crashes: 1987, 1990, 2001, 2008, 2010 90: 8 trades, 100% profit, 5347% profit, detected crashes: 1984, 1987, 1990, 2001, 2008, 2010, 2011 74: 9 trades, 100% profit, 4964% profit, detected crashes: 1984, 1987, 1990, 2001, 2008, 2010, 2011, 2015 41: 10 trades, 100% profit, 4886% profit, detected crashes: 1984, 1987, 1990, 1998, 2001, 2008, 2010, 2011, 2015 How to use this alert generator? Add to your alerts to get an automatic warning (via e-mail) of an upcoming stock market crash Optimize parameters using the strategy settings icon, you can increase/decrease the parameters More trades don't necessarily generate more overall profit. It is important to detect only the major crashes and avoid closing trades on the smaller corrections. Bearing the smaller corrections generates a higher profit. Watch out for the volatility alerts generated at the bottom (red). Threshold can by changed by the Volatility Warning Threshold parameter (default 2% ATR). In almost all crashes/corrections there is an alert ahead of the crash. Although the signal doesn't predict the exact timing of the crash/correction, it is a clear warning signal that bearish times are ahead! The current correction in march 2018 is not yet a major crash but there was already a red volatility warning alert. If the volatility alert repeats the next weeks/months, chances are higher that a bigger crash or correction is near. As can be seen in the graphic, the deeper the crash is, the higher and wider the red volatility signal goes. So keep an eye on the red flag! Information about the parameters: see below If you are interested in buying this S&P500 Stock Market Crash Alert Generator, please drop me a message to receive the code (Price 99$).
SP:SPXShort
by XPl0RR
1
EOS DAY CRYPTO STRATEGYStep #1: EOS coin price must make a new 20-bars low You have to wait until cryptocurrency EOS makes a new 20-bars low. This is essential because we want to make sure that the prevailing trend is “well established.” The only reason why we trade against the original 20-bar rule is because we know that the original Turtle system has a very low win rate. So, you can make a failed pattern work for you if you do the exact opposite thing of what the initial pattern was supposed to do. Step #2: The previous low must have occurred at least 4 bars earlier than the current 20-bar low The second rule that needs to be satisfied before pulling our trigger is that the previous low must happen at least 4 bars earlier than the current 20-bar low. Basically, this trading rule is trying to point out that we need the EOS price to have a sharp move when it does the 20-day low. Why do we need the EOS price to have an abrupt move? If you’re an avid reader of our TSG blog, you probably know through our teachings that the more reliable reversal happens after a trend ends with a sharp move. The Turtle Soup reversal pattern satisfies all trading conditions outlined above which mean that we can move forward and describe how to buy EOS coin. Step #3: How to buy EOS: After the market drops below the 20-bar low, place a buy order above the prior 20-bar high Now, the original Turtle Soup pattern uses a slightly different entry method. Instead of buying at the prior 20-bar low we buy at the previous 20-bar high. This entry strategy ensures that we’re getting into the market while the market has stopped falling and it’s starting to get traction on the upside. This is one way we’re going to capture the potential trend reversal. Important note* If the buy EOS order is not triggered during the same day you must cancel the order Secondly, when trading EOS tokens with our strategy, your entry will be not too far from the low, which means that you’ll be able to use a very tight stop loss. Step #4: Place your protective Stop Loss below the current swing low After the buy EOS order is triggered, you have to place your initial stop loss below the current swing low. If the EOS price makes a new low, then we want to get out of our trade because the Turtle Soup pattern got invalidated. This cryptocurrency strategy allows us to maintain a very low risk profile on all of our trades. Professional traders and hedge fund managers always look first to protect their capital and this trading strategy enable you to accomplish that for yourself. Step #5: Take profit when you can count 20 bars from the 20-bar low or use your own exit strategy Again, our exit strategy is slightly different than the original Turtle Soup system. We take profits after the market has advanced at least 20 bars from the 20-bar low. Alternatively, you can use the initial exit strategy which requires for you to trail your stop loss. Due to the volatility of this reversal pattern your trade will last on average between 4 hours and a few days, so trade with caution. Note** the above was an example of a BUY trade using our EOS cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse. PM me if you would like to read the complete strategy.
BITFINEX:EOSUSDLong
by Tradingstrategyguides
2
GBPAUD DAY ZIG ZAG STRATEGYStep #1: Set the ZigZag indicator settings at 20 for the Depth and 5% Deviation Firstly, we want to make sure the ZigZag tool will only show the more significant swing high and swing low points in the market. For this, we have to use at least 20 periods for the Depth and 5% deviation to accurately display the market swings. Step #2: Plot the Fibonacci Extension line once the first two swing waves are established. In order to plot the Fibonacci Extension line, we need three points of reference. As soon as the first two waves of the Zig Zag pattern are developed, we’re offered with three swing levels that we’re going to use to draw the Fibonacci extension levels. The reason why we use the Fib extension levels is to try to anticipate where the last swing wave of the Zig Zag pattern will be formed. The zig zag indicator will only mark the swing low as being formed too late for us to rely and base our trades alone on this indicator. This is the main reason we employ different trade tactics to anticipate where it’s more likely for the zig zag pattern to end. Step #3: Wait for the third wave to terminate between 0.618 – 0.786 or between 1.0 – 1.272 The reality is that market symmetry doesn’t happen that often. The AB=CD pattern requires a lot of precision in order to have all the conditions for this pattern to be valid. Throughout our backtesting software, we have found out that the third wave of the zigzag pattern ends either between 0.618 – 0.786 or between 1.0 – 1.272. Since we can’t know for sure where the third wave will end, we’re going to employ one of our favorite trade techniques to spot a swing point in the market. Step #4: Wait until you have a candle with a higher low on the right and the left. The bar from the right needs to break above the bar on the left. The three bar pattern to spot a market swing point is quite easy. All you need to do is to wait until you have a candle that has a higher low on both the left and the right side of it. In order for this three bar pattern to be confirmed we also need the bar from the right to break above the high of the bar from the left. Step #5: Zigzag Trading Strategy: Buy at the close of the three bar pattern After the three bar pattern is completed, we don’t want to lose any more time, and we go buy at the market. Note* We use the three bar pattern to anticipate swing market points with all of our trading strategies. Step #6: Hide your protective Stop Loss below the three bar pattern. The stop loss is going to go below the three bar pattern. Your stop loss may be a little bit bigger depending on the time frame you’re trading. You want to make sure that the three bar pattern where your stop loss goes maintains at least a 2% risk. You don’t want to risk more than 2% of your account in any given trade. Step #7: Take profit equal 2 or 3 times more the Stop Loss. Now, where’s our profit target going? The classical ABCD pattern essentially keeps you at a 1:1 risk reward ratio. Also, a lot of the times with the ABCD pattern, you’ll see it pretty frequently that those targets areas are front runned. However, when you trade with the Zig Zag indicator, you’re able to capture two or even three times more the risk taken. Note** the above was an example of a BUY trade using our Zig Zag trading system. Use the same rules for a SELL trade – but in reverse. PM me if you would like to read the complete strategy.
Short
by Tradingstrategyguides
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