CARDANO CRYTO STRATEGY - 5 ENTRIESStep #1: Cardano ADA price needs to trade above the 200-day moving average
The first condition that Cardano requires to satisfy is to trade above the 200-day moving average.
When price trades above the 200-day moving average we know we have a strong premise for a bullish trend to be put in place.
The more time Cardano price spends above 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.
In our Cardano chart we can note five instances where the volume was not just above average, but it was also double as the previous volume bars. In this case, we’re dealing with five possible buying levels.
Wait for trading situations where the buying 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, buy at the opening of the next candle
When to buy Cardano ADA is quite intuitive if you have followed this cryptocurrency step-by-step guide.
The moment we see institutional buying presence we want to be sure we’re not left out. In this regard, after the volume has increased, we buy at the opening of the next candle preceding the big volume candle.
Usually, you’ll be buying right after the first bullish candle that often is the starting point of a new trend. Don’t be afraid to buy on the way up as this will pay handsomely in the long run.
Step #4: Place protective Stop Loss below the 200-day moving average
Hide your protective stop loss below the 200-day moving average.
A market that has a strong bullish trend should not drop below the most powerful moving average aka the 200-day moving average. By hiding your stop loss below 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: Take Profit when we break and close below the 200-day Moving Average
The 200-day moving average can serve us as a significant trigger for our exit strategy.
When we break below 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 BUY trade using the Cardano trading strategy. Use the same rules for a SELL trade – but in reverse.
Stoploss
Bulls are returningAfter completing of the correction in the markets, we can observe the inverted figure "Head and shoulders" on the 4-hour chart.
Since it has not come to the end, we can locally enter long positions. The MACD and Stochastic indicators confirm the upward movement.
So Take Profit will be placed at the level of 1.2360 and the Stop Loss will be set below the level of 1.23. Also today the producer price index for March will be published. It is better not to enter the market during publication.
LITECOIN 30M CRYPTO CLAW PATTERN STRATEGYStep #1 Wait for Bitcoin Signal indicator to issue an Up-green arrow – Buy signal or Down-red arrow - Sell signal.
Our proprietary indicator can issue clean and accurate buy/sell signals that can immediately make you a PRO cryptocurrency trader.
This indicator helps you analyze the market on any time frame in a matter of seconds.
We have a feature that will allow for pop up alert signals whenever a buy/sell signal is found so you won’t miss any Crypto trading opportunity.
Step #2 Place Protective stop loss above/below the Bitcoin Claw Pattern
The initial protective stop loss is always placed above/below the red box drawn by our Crypto Signal indicator.
You also have the option to trail your stop loss, a brand new feature we added to the Crypto Signal Indicator.
The way it works is that when you turn this feature on in the settings the indicator will continue to show you where to place your trailing stop loss. So that if your trade never reached your target, and it ended up turning against you, you will at least protect some of the trade since you locked in the profits.
Step #3 Take Profit when we break below Bitcoin signal channel
Our take profit strategy is straightforward!
Take profits and close your long Bitcoin trade once the Bitcoin signal channel is broken to the downside. If you use the built-in trailing SL function you can automate the whole TP process. Basically, you can accomplish the same results if you use the trailing SL option.
Note* The Crypto Signal Indicator has many more customizable settings that can make your life easier.
If you have any question PM me and I will be happy to help.
4H LITECOIN OBV TRADING STRATEGYThe only indicators you need are the following:
On Balance Volume or the OBV – The OBV indicator is based on the idea that both the volume and the price activity are equally important. In this regard, the OBV combines both price and volume to show you the total amount of money going in and out of the Litecoin.
The main idea behind the On Balance Volume indicator is that the Litecoin price will follow where the volume flow is going, volume precedes price!
So, if Litecoin price is moving up, we want to see the OBV indicator rising signaling an inflow of money. Conversely, if the Litecoin price is moving down, we want to see the OBV indicator falling indicating an outflow of funds.
We’ll also plot a 20-day moving average which it will be used to differentiate between what is normal volume activity and what it’s abnormal trading activity.
The use of the 20-day moving average can also signal how severe the change in Litecoin price trend may be.
Step #1: Wait for the OBV indicator to enter into a prolonged period of consolidation at the bottom of the window. In other words, what we look for is for the OBV indicator to spend some time in “oversold” territory. Technically the OBV doesn’t show overbought and oversold conditions in the market but, we only use these terms to describe the OBV location on the chart.
The On Balance Volume indicator as the name suggests shows the volume activity, and when we see the OBV consolidating, usually this means the market is in accumulation process.
But what is accumulation?
Very simple, accumulation is the buying up of cryptocurrencies by the professionals. The buying it’s usually done in a manner that doesn’t attract attention on the price chart which is the reason why we use the OBV indicator to spot when the institutional buying happens.
Step #2: Wait for a breakout above the OBV consolidation zone.
When the professionals accumulate a cryptocurrency, it will usually trade sideways. The OBV indicator is the best indicator to outline when Litecoin is being accumulated.
These ranges are deliberately created by the smart money to use fear and panic to shake out weak holders so they can grab as much of the available cryptocurrency at the lowest price.
When all the available supply of a cryptocurrency is exhausted, then the smart money will mark up the Litecoin price or any other cryptocurrency. This process can be best visualized on the OBV indicator when we have a breakout above the consolidation zone created.
The OBV indicator performs better if it’s used in conjunction with other indicators as well as your own judgment and common sense which brings us to the next step of our Litecoin strategy.
Step #3: Buy Litecoin when we close above the 20-day Moving Average.
We’re going to use the 20-day moving average indicator to confirm the OBV readings further.
After the OBV indicator breaks above its consolidation and right away the Litecoin price breaks and closes above the 20-day moving average, we initiate a buy order.
Step #4: Hide the Protective Stop Loss below the most important support level .
Knowing where to place your protective stop loss is as important as knowing when to enter the market. That’s the way you manage risk!
The best strategy to apply in this case is to place your protective stop loss below the most recent support level . If the smart money were really behind this move than the support level should hold. Otherwise, a break below will invalidate our market view, and we better be out of the market than fighting a losing trade.
Step #5: Take Profit when Litecoin price closes below the 20-day Moving Average or according to your trade plan.
We take profits at the first sign that the market is about to reverse. When the litecoin price breaks and closes below the 20-day Moving average, that’s the most appropriate moment we want to take profits or according to your trade plan rules.
Volatility itself could kill the marketsThe VIX is called the 'Fear Index'. That's for a good reason. In times of high volatility what do you do? People in general stay out i.e. they sell off and keep their powder dry, or look for safe havens. They fear for their money, even if they don't admit it.
As a trader you're told 'volatility is good for traders'. But really - is it? It depends on how extreme the volatility is. How many of you have stayed out of the markets simply because you cannot withstand the volatility and risk? I think there are many who do so - and they are right. No point jumping in and getting fried if you cannot take the loss (in your stop losses). The average true range on many charts are pretty high in recent times. And if your stop loss is sensibly going to two times average true range (at least), many will know that they cannot take the loss.
It's this simple, do you throw your money into a volatile market, like stocks at this time - and have any degree of confidence that tomorrow morning or two months later, your assets are gonna be worth more? I think not. So logically most people will not venture much into stocks at this time.
Forex markets too are becoming more volatile in the last 2 months and more so in the last week. Can you jump in and with what level of stop-losses? Most people are gonna stay away. This is about mathematics. Most people have smaller accounts and cannot withstand the volatility, so would sensibly stay out.
The whole thing is connected up. The Yen and USD to Wall Street (the US30); the EURUSD to Ger30. They've got you cornered! :))
If a majority - even 51% of people - stay out, it means they've gotta liquidate, which means selling off. If this idea is right then it means there is more downside to lots of indices and possibly increased volatility on forex markets.
Trade what you see, not what you hear.In this video I look over a few indices and the VIX.
There is a problem i.e. the news is saying one thing, but the charts are showing something rather different. I look at some trendlines, channels and patterns. After many years in trading I'm no longer obsessed with the names of various patterns. The overall pattern is what interests me more.
The news is about short term reporting. Rarely do popular news reports analyse trends in a robust way. Today I looked at some overview video report on the indices, from a reputable brokerage site. Not surprisingly the commentator was going on about MACD, RSI, Stochastics and support lines. There were other things considered like non-farm payrolls and jobs reports in the US. But even when going over the charts, he missed the obvious channels and other features heading south. This is the danger of listening to these broadcasts. You are at the mercy of the reporter who only has a limited time to assess the markets. Additionally all reporters hold their individual unconscious biases and blind spots.
' Am I biased in this video? ', I'm asking myself. I probably am. But all I know is that I'm seeing certain patterns that everybody else can see. The patterns are relevant to obvious trends, as they present themselves at this time. Note I said 'at this time' because the picture can always change.
This post and video is predictive of nothing. I don't do predictions and likewise I set no targets. I simply follow trends and exploit patterns where I see them. When I enter a trade, the stop-loss truly means that I've lost that money. Although I don't gamble, by analogy when one goes to a casino and puts the chips on the table one knows that is the loss. So that's how I approach the loss in my stop-losses.
As 'the man' once said, " Trade what you see ". I'll also add, "Don't trade what you hear ." (namely the news, blogs and gurus aplenty).
The examples shown in the video is not a recommendation or encouragement to trade. Your losses are your own if you enter a trade based on any position shown.
Blow off tops and why you should utilize stop lossesI posted about Seed a few weeks ago. I purchased on the double bottom (80 Cents) and rode it to about 1.35, when my stop loss got triggered.
Its important to incrementally increase your stop loss trigger as a stock like this takes off or goes parabolic. The correction is brutal and you will give back all your gains if not. (As the stock increased, I had a trailing stop loss about 5-15% below the market price.
I wanted seed to go to 2-5 dollars but still was able to make a good 55% ish gain over the course of a month, also be able to identify what a blowoff top looks like. That nastly candle at the top is when you get out.
XPloRR S&P500 Stock Market Crash Detection StrategyXPloRR S&P500 Stock Market Crash Detection Strategy
Long-Term Trailing-Stop strategy 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.
Since none of the strategies that I tested can beat the long term Buy&Hold strategy, the purpose was to detect a stock market crash on the S&P500 and step out in time to minimize losses and beat the Buy&Hold strategy.
So beat Buy&Hold strategy with less then 10 trades. 100% capitalize sold trade into new trade.
With the default parameters the strategy 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!
Also the strategy detects all major S&P500 stock market crashes and corrections since 1980 depending on the Trailing Stop Smoothness parameter, and steps out in time to cut losses and steps in again after the bottom has been reached. The 5 crashes/corrections of 1987, 1990, 2001, 2008 and 2010 were successfully detected with the default parameters.
The script shows a lot of graphical information:
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. When the sell value is lower than the buy value, the last color of the trade will be red (best viewed when zoomed)
the EMA and SMA values for both buy and sell signals are shown as colored curves
the buy and sell(close) signals are labeled in blue
the Volatility is show below in green and red. The alert treshold (red) is default set to 200 (see Volatility Warning Treshold 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 Strategy ?
Look in the strategy tester overview to optimize the values Percent Profitable and Net Profit (using the strategy settings icon, you can increase/decrease the parameters), then keep using these parameters for future buy/sell signals on the S&P500.
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 200 = 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!
To use this strategy for future trades, set the end date past today and set the Sell On End Date value to false
Information about the parameters: see below
Head and shoulder USDJPYLooking to long USDJPY as i see a possible head and shoulders forming.
I also see a zone that has previously been respected suggesting that it will also respect that zone.
I have placed my stop loss below the left shoulder low giving me a tight but secure stop loss.
Lets see how this plays out
SPX Short Term BuySPX appears to be setting up to move higher in the short term. I remain intermediate term bearish, but several important supports were held this week even with consecutive down days in the market. Volume was robust, and recent market leaders showed strength, especially in to the close.We broke above falling trend line resistance at the beginning of the week and remained above it as we consolidated, and also remaining above upward sloping trend line support. We tested intraday and held above both the 20dsma and 50dsma, the latter of which is coinciding with the 61.8% retracement of the swing from all time highs to the February lows. It's worth noting that the 20dsma is currently below the 50dsma, causing concern further out. However, the 50dsma remains firmly above the 100dsma, a level that acted as rough support during the selloff. (While not depicted on this chart, the 5/13dema that I use is in a buy setup.) Over the next week or two, I expect markets to retest highs or get close, at least retesting the 78.6% retracement at 2800, as March (and Q1) come to a close, but sideways action may prevail if bulls and bears are in equilibrium. A break below the trend lines, moving averages, and 61.8% retracement would invalidate this bullish short term view. A break below would also warrant shorting, as accelerating selling will likely occur. I remain bearish looking a few months out, so shorting at the highs (or 2800, the 78.6% retracement) will be the next setup. Remain cautious and quick to exit any short term long positions, as declines will likely be swift and volatile.
[BTC-USD] BITCOIN 6% CORRECTION-MUST WATCH! -STOP LOSS FAILED!The purpose of this video is not only to provide a TA on what happened March 13th, but also to describe how dangerous using a Stop Loss limit order can be! My stop loss did trigger but it did not have a chance to insert my order on the books and sell it off. Never insert your stop loss and limit price too tight! If the market has a flash crash or a volatile spike like it did for me last night you will be holding the bags for a while and possibly get screwed it the price does not rebound back to your price area where you bought.
Learn from my mistakes! I will never use Stop loss limit orders from GDAX or any other exchange as long as I live. I will only use limit orders to buy and sell or maybe market orders for quick entry and exit. But with market orders becareful since you can have some slippage as well. Thats why to me Limit orders are the safest. If would have had a limit order i would only have lost 15.00 bucks. Im down about $500 as of this video making. For my sake, I hope BTC does not take any further and I hope the American can lift this market back up today before midnight.
If you enjoyed this video, give me a like and please be careful. This was a life learning lesson for me!
CryptoBuzzAnalyst
XAUUSD stoplossHello traders,
I want to share my experience..
Today, I was in a long trade on gold. I put my stoploss at 1314,88 as you see, there is a line. The price broke down, hit my sl out and than immediately broke up.
You have to learn from my fault. If you tradig gold, don't put the stoploss close to the chart.
Have a beautiful day to everyone:)
Benjamin
BEAR FLAG CHART PATTERN STRATEGYBTCUSD 1H - Bear flag pattern trading strategy is one of the most reliable continuation patterns.
One of the first experiences most traders learn when they start trading is price action trading and one of the most popular price action pattern that you probably have heard is the bear flag pattern.
The bearish flag is a very simple continuation pattern that develops after a strong bearish trend.
It doesn’t really matter if your preferred time frame is the 5-minute chart or if you prefer long-term chart because the bear flag pattern shows up with the same frequency on all time frames.
A continuation pattern, like the bearish flag, brings some good news because it tells you that after the market has gone down it will continue to go down more.
In addition to that if you missed the initial sell off and the market has gone without you, if you spot the bear flag pattern on that chart, then this is a sign and a safe place to sell so you can enjoy the rest of the bearish trend.
What is a Bear Flag Pattern?
A bear flag pattern is constructed by a descending trend or bearish trend followed by a pause in the trend or consolidation zone. The strong down move is also called the flagpole while the consolidation is also known as the flag.
The bear flag pattern will always come after a strong move downwards and the stronger the move the bigger the profit potential can be.
The bear flag pattern highlights a trading environment where the supply and demand balance has shifted badly in one direction of the market (supply > demand). This in turn will produce very little upside retracement which allows the flag structure to take shape.
After the initial sell off, people who missed the train will panic and begin selling and more people selling it during the flagpole stage.
During the pause or the narrow consolidation people will now wait to get higher price so they can sell but since the supply demand equation is so imbalanced this won’t happen and we get another smash that will make many people to chase again the move to the downside.
Step #1: Look for evidences of a prior bearish trend. For a valid bearish flag you need to see a sharp decline.
Just because you can spot the bear flag pattern it doesn’t mean you have to jump straight into the market and trade it.
Remember, we need the right context and the right price structure needs to line up for a tradable bearish flag.
A valid bearish flag first needs a sharp decline which is a strong evidence of a bearish trend and the fact that the supply and demand are out of balance.
Note* The sharp move is also the Flagpole – the first element of the bearish flag structure.
Step #2: Identify the Flag price formation. The price action needs to move in a narrow range between two parallel lines.
The flag price formation is the second element of the bear flag pattern.
Basically, all you need to do is to spot one support and one resistance level that must contain the price action in a very narrow range.
The narrow range is key for the bear flag pattern success rate.
Step #3: Sell at the closing candle that generates the Flag Breakout.
There are two basic approaches to enter the market with the bear flag pattern. Aggressive traders will enter at the top of the bearish flag as this will secure a little bit of bigger profits.
If you’re a conservative trader you can wait for confirmation provided by the flag breakout.
Step #4: Place the protective stop loss slightly above the Flag.
We’re accomplishing two things with our tight stop loss: Small losses.
Higher risk to reward ratio.
With such a tight stop loss you’ll have the comfort of losing many trades in a row because with the amazing RR the bearish flag can potentially wipe out all your losses in a single trade and still come profitable.
Step #5: Take Profit target equals the same price distance of the Flag pole measured down from the top of the bearish flag.
The text book profit target is the height of the flag pole measured down from the top of the flag.