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Buy low sell fast strategyThe main idea of ​​the strategy is that in the event of a sharp unexpected drop, coins usually grow back quite quickly. We simply draw a short SMA, and when the price deviates significantly from it, we buy, and when it returns, we sell. We cannot buy every drop; it must be quite strong and sharp. If you buy early, you can buy at the beginning of a downtrend and sit in the position for a long time. Trying to buy very low will result in few trades. However, you can trade several coins at the same time, and if you choose the parameters, you can get a stable profit.
Long
by Althim
Exploring Auction Market Theory in Forex TradingAuction Market Theory (AMT) is a conceptual framework used to understand the dynamics of financial markets, viewing them as auctions where buyers and sellers interact to determine prices. Although the AMT was initially developed to understand & analyse price action movements in the stock market, some of its core concepts can also be applied to any market, including forex. Within the forex market, currency pairs are traded 24/5, with price driven by a multitude of factors such as economic data releases, geopolitical events, and market sentiment. Despite this complexity, AMT provides a framework for understanding market dynamics through the concepts of value, balance, and imbalances . Value represents the equilibrium price at which buyers and sellers agree on the fair value of an asset. Market balance occurs when supply and demand are roughly equal, resulting in stable price ranges, while imbalances arise from deviations from this equilibrium due to shifts in market sentiment or unexpected events. These imbalances can create trading opportunities for astute traders who can identify them and act accordingly. Lets now take a look into how this can be visually identified on a line chart using only price action. Example 1 On the left, we can see an area of market balance. This is usually evident when the market is range bound as we can see in this case. The midpoint of the range is the point of equilibrium. Value can be interpreted as the equilibrium price at which buyers and sellers agree on the fair value of a currency pair. This equilibrium is constantly shifting as new information becomes available and market participants reassess their expectations. When these expectations shift as a result of either economic data releases, geopolitical events, and/or market sentiment, price shifts away from the balanced price range and creates an imbalance within the market. Identifying value areas are important because these can act as an area of future support/resistance for price. Notice how in this example, after price displaces from the balanced range, it later came back and found support near the fair value within that range. Practical Application One practical application of AMT in forex trading is through the analysis of price action and market profile. By observing how price behaves at different levels and how volume interacts with price movements, you can gain insights into market sentiment and potential areas of support and resistance. For example, if a currency pair consistently fails to break above a certain resistance level despite multiple attempts, it may indicate strong selling pressure at that level, presenting an opportunity for short trades. Conversely, if a currency pair finds strong support at a particular price level, traders may look for buying opportunities as the market reverts to equilibrium. To conclude, Auction Market Theory offers a valuable framework for understanding the dynamics of the forex market. By analysing price action, volume, and market profile through the lens of AMT, you can gain a deeper understanding of market sentiment and identify potential trading opportunities. While no theory can guarantee success in trading, incorporating Auction Market Theory into your analysis can help you make more informed trading decisions. Please leave a comment if you've found this post helpful or if you have any questions. Happy Trading
Editors' picks
FXOPEN:XAUUSDEducation
by Pips4Breakfastx
6
DCA - is for those who do not like to be nervousIn the fast-paced and often volatile world of cryptocurrency, finding best investment strategy can be a daunting task. While many traders seek quick gains through active trading, a more prudent and less stressful approach exists: Dollar-Cost Averaging (DCA). What is DCA? DCA is an investment strategy that involves investing a fixed amount of money into a particular asset at regular intervals, regardless of the asset's price. This approach aims to reduce the impact of market volatility on investment returns by averaging out the purchase price over time. Why is DCA the Sleep-Well Strategy? DCA offers several advantages that make it an ideal strategy for investors seeking long-term growth and peace of mind: Emotional Discipline: DCA eliminates the emotional decision-making that often plagues traders. By investing consistently, regardless of price fluctuations, you avoid the urge to buy high and sell low. Reduced Risk: DCA averages out the purchase price, reducing the overall impact of market volatility. You may buy some coins at higher prices, but you'll also benefit from lower prices, evening out your investment cost. Long-Term Focus: DCA encourages a long-term investment mindset, discouraging impulsive decisions based on short-term price movements. It's about building wealth gradually and consistently over time. DCA vs. Trading: DCA stands in stark contrast to active trading, which involves buying and selling assets frequently to capitalize on short-term price movements. While active trading may appeal to experienced traders with high-risk tolerance, it often leads to emotional decision-making and can be time-consuming and stressful. DCA: A Proven Strategy with Remarkable Returns To illustrate the effectiveness of DCA, let's examine the returns of some prominent cryptocurrencies over the past few years, assuming a monthly DCA investment of $100: Bitcoin (BTC): Investing $100 monthly in BTC since January 2019 would have yielded a staggering 112% return, with a total investment of $12,000 growing to $25,440. Ethereum (ETH): A DCA approach for ETH since January 2019 would have resulted in an impressive 770% return. Solana (SOL): DCA into SOL since January 2021 would have generated a remarkable 304% return Fetch.ai (FET): Investing $100 monthly in FET since January 2019 would have yielded an exceptional 776% return Understanding the Coins: Technology and Applications Bitcoin (BTC): The world's first and most popular cryptocurrency, Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without intermediaries. Ethereum (ETH): A decentralized blockchain platform, Ethereum supports a wide range of applications, including smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs). Solana (SOL): A high-performance blockchain known for its scalability and speed, Solana aims to provide a faster and more efficient alternative to Ethereum. Fetch.ai (FET): An AI-powered decentralized platform, Fetch.ai facilitates the development of autonomous agents for various applications, including open marketplaces and data monetization. Conclusion: DCA is a powerful investment strategy that allows individuals to build wealth in cryptocurrency while minimizing risk and emotional stress. By consistently investing fixed amounts, regardless of market fluctuations, DCA investors can reap significant rewards over the long term. Embrace DCA, sleep well, and let your investments grow steadily towards a brighter financial future.
Education
by Yaroslav_Krasko
Polkadot Tealeaf AugurSwing trade This is a loose plan, trend following with some target levels . I now believe it's almost impossible to predict exact movements like I used to try to in some of my older calls based on classical patterns, waves, Wyckoff etc. The mind kind of sees what it wants to. If it works great, but I've had my biases really distort what's actually on the chart too many times now. I am biased on the long side because of the sector's bullishness overall. There's also an upcoming Polkadot 2.0 upgrade early 2024 that should move prices. Polkadot has somewhat underperformed compared to other alts and that gives us a better risk reward ratio and more room for growth. The pattern playing out looks very similar to what Theta/USDT did recently so this trade could be over rather quickly. I've been accumulating since Oct Nov under $6 without a trading plan, got blindsided by the retracement that started after Christmas and now moved my stop loss to breakeven. Here's how I'm trading this going forward: Strategy / Trading Plan Looking for entries using the 4 hour, look for a pull back to baseline or below using half of your position and using an oscillator to time on a lower time frame. If the direction proves correct start pyramid into pullbacks around the baseline of the Keltner Channel 2,1 ratio or skyscraper in for a more aggressive approach. Risk Management The stop loss is just below the recent double bottom (~7.22), adjust to your risk tolerance, some other places to consider are just below either 7.78 or 8.34. Move stop to break even as soon as it makes sense and adjust a trailing stop loss to taste as the price moves in your favor. Goodluck and happy trading. -Hexxi
by Hexxi
3
Gold Surges as US Jobs Data Sparks Fed Rate Cut SpeculationThe price of gold witnessed a reversal in trend during Monday's Asian session, halting a two-day losing streak. Weaker-than-expected US employment reports bolstered the likelihood of a September rate cut by the Federal Reserve. Consequently, the US dollar declined while dollar-denominated gold rose. Upon reviewing the daily chart, I observed sellers rejecting upward moves for two consecutive days around the 23.6% Fibonacci retracement level. Technical indicators remain negative, signaling a downside risk. Throughout the week, I noticed a struggle in the financial market to find a clear direction, partly due to uncertainty stemming from Federal Reserve policies. Despite the Fed announcing a reduction in the pace of its securities holdings decline, interest rates remained unchanged. Chairman Powell expressed both hawkish and dovish stances, emphasizing the importance of employment data in shaping future policy moves. Furthermore, I examined recent US employment data, including private sector job additions and the unemployment rate. The labor market appears tight, with indications of increasing wage pressures. Wishing everyone successful trading and a great week ahead.
OANDA:XAUUSDShort
by Forex48_TradingAcademy
1
EUR/USD Finds Stability Amidst Inconclusive Dollar MovementEUR/USD witnessed a significant rebound on Thursday, returning to the upper end of recent consolidation above the 1.0700 level as market sentiment stabilized ahead of another US Nonfarm Payrolls Friday. The pair faces initial resistance at the weekly high of 1.0750, followed by key levels such as the 200-day SMA at 1.0798 and the April peak of 1.0880. On the downside, a break of the 2024 low of 1.060 could indicate a return to the November 2023 low of 1.0510. The uncertain price action of the US dollar led to mixed movements in EUR/USD around the 1.0700 level on Thursday, influenced by investors' reactions to the recent Federal Reserve decision to maintain interest rates stable. The Fed reiterated its stance on the Fed Funds target range and expressed intentions for potential interest rate cuts amid concerns about inflation and economic balance disruptions. Comments from Chairman Jerome Powell also weighed on the dollar, suggesting reluctance towards rate hikes in future monetary policy adjustments. Despite short-term weakness, expectations of a delayed interest rate cut by the Fed could limit the prolonged weakness of the US dollar. Additionally, US yields decreased while the divergence in monetary policies between the Fed and other G10 central banks, particularly the ECB, persisted. The subdued economic fundamentals of the eurozone contrast with the resilience of the US economy, supporting expectations of a stronger dollar in the medium term, especially with the possibility of the ECB cutting rates before the Fed. Consequently, EUR/USD is expected to undergo a more significant decline in the medium term.
Short
by Forex48_TradingAcademy
2
GBP/USD expected to move lower!The GBP/USD exchange rate shows a lack of direction, hovering below 1.2500 early on Wednesday, amidst US Dollar strength and cautious sentiment ahead of key US employment data and Federal Reserve policy communications. The exchange rate experienced a sharp decline on Tuesday, erasing previous gains amid subdued trading activity due to the closure of European markets for the May Day holiday. US Dollar strength, fueled by better-than-expected Employment Cost Index data, hindered GBP/USD recovery momentum. Market sentiment remains cautious awaiting the release of ADP Employment Change and ISM Manufacturing PMI data for April, with investors awaiting the Fed's monetary policy decision. The Fed is expected to maintain rates at the current level, but any changes in the statement language or hints from Chairman Jerome Powell could influence market sentiment. Currently, markets anticipate a 94% probability of no rate change in June, with a probability of a rate cut in September just below 50%. Powell's comments on inflation and future rate adjustments will be closely monitored, potentially impacting the performance of the US Dollar against the British Pound and other currencies. A dovish stance from Powell could weigh on the US Dollar and support a rebound in GBP/USD, while a hawkish tone could further strengthen the US Dollar and maintain pressure on the exchange rate.
Short
by Forex48_TradingAcademy
GOLD MACD StrategyRules for engagement: - Price must be below the 200SMA - MACD must cross above the 0 line (higher the better) - Price must then cross over short term SMAs (5&8) - Stops at previous high - Take Profits at the target low Here we saw price break down to create a new lower low and sweeping previous support. Price on the daily has broken below the 21 moving average and price is close to crossing the 200 moving average on the 4hr chart. Using the FIB we can set an expected target entry zone between the 382 and 618 zones which also aligns with previous support which could turn to resistance. We see price stall here and we look for entries short. two entries identified using the above rules with a 130SL and a 400+TP.
OANDA:XAUUSDEducation
by Youza
CHK Chesapeake Energy Corporation Options Ahead of EarningsIf you haven`t bought CHK before the previous earnings: Then analyzing the options chain and the chart patterns of CHK Chesapeake Energy Corporation prior to the earnings report this week, I would consider purchasing the 92.50usd strike price Calls with an expiration date of 2024-5-17, for a premium of approximately $0.95. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
CLong
by TopgOptions
How I Shorted the NY top on EUR/GBP **Educational** 4/26/24First thing I did was identify the trend. The market is clearly locally in a downtrend, so I was looking for a short today. The next step was to wait for New York's Initial Balance (NY IB) to form. (The NY IB is the high and low of the first hour of NYs open.) Once the IB is formed we wait to see how price interacts with it in order to make an educated decision. In this case price broke above the IB and failed to find enough buyers to push higher, so price simply re-entered the IB, and formed a failed auction. The Next thing I look for is confluence to support my idea. You can see just above the IB high, we had the Fib golden pocket and the VWAP. (The golden pocket is the 0.618 to 0.66 fib retracement, and the VWAP is the Volume Weighted Avg Price) One of the final things I look at is Volume and footprint. You can see here when I zoom in there is alot of buying into the resistance level. And that buying is followed by even heavy selling that is causing price to reject from the resistance. You can even see the delta is heavily negative as price moves away. It is obvious bears are in control here Now that everything is aligned, and I have a plan, the last part is to enter the trade. This is simple, price gets acceptance back inside of the IB, and I entered on the backtest of the IB. Stoploss above the high and I look to take profit at the IB low.
by peytonfin2
CRYPTOHOPPER WEBHOOK PEPEUSDT 45MIN RSI WITH CONDITIONS STRATEGYRSI Strategy with EMA and VWMA Conditions Objective This trading strategy leverages the Relative Strength Index (RSI) in combination with the Exponential Moving Average (EMA) and the Volume Weighted Moving Average (VWMA) to identify potential buy and sell signals for trading cryptocurrencies on the Cryptohopper platform. How it works: Buy Signal: A buy signal is generated when the RSI crosses above the user-defined lower threshold and the EMA (9) is above the VWMA (20). Sell Signal: A sell signal is generated when the RSI crosses below the user-defined upper threshold. Indicators Used: RSI: A momentum oscillator that measures the speed and change of price movements. EMA (9 period): A moving average that places a greater weight and significance on the most recent data points. VWMA (20 period): An average that also accounts for volume, giving more weight to periods with higher volume. How to Set Up Alerts for Webhooks: To create alerts that can be sent as webhooks to Cryptohopper, follow these steps: Apply the script to your TradingView chart. Click on the 'Alerts' icon on the right-hand side toolbar. Choose the script from the dropdown in the 'Condition' field. You will see two options: "Buy Alert for Webhooks" and "Sell Alert for Webhooks". Select the desired alert condition. In the 'Options' section, set the alert action to 'Webhook URL'. Enter your Cryptohopper webhook URL into the 'Webhook URL' field. Configure the alert message according to the format required by Cryptohopper. Save the alert. How Alerts Are Generated: The script will continuously monitor the chart based on the conditions you've set. When a condition for either a buy or sell signal is met, TradingView will trigger the alert. If set up for a webhook, TradingView will send an HTTP request to the specified webhook URL with the message payload. Disclaimer: This script is for educational purposes and should not be taken as financial advice. Trading cryptocurrencies carries a high level of risk, and you should do your own research or consult a financial advisor before making any investment decisions.
Long
by PPonBIN
GBPUSD Long 4.25.24 *Educational*First step: Identify trend. Price is obviously in an uptrend locally. This can be seen by price making higher highs and higher lows every day. Step 2: Wait for the New York initial balance to form in order to make an educated discission. You can see the IB form, which is the A and B blocks. After the IB is formed CDE bocks formed a failed auction below the IB. A failed auction indicates trapped traders below the IB low, that were trying to short the breakdown. Step 3: Look for confluence to support your trade idea. You can see just below the IB we have the daily POC + VAL and a local golden pocket. So along with the failed auction of the low, we also tapped into 3 other support levels. Step 4: Enter your trade. Unfortunately, I can't show any time frame lower than 15mins bc of Tradingview's rules. But you can still see how I entered. It is simple, I wait for a 15min close back inside of the IB. Then I go on the 1min chart and look to see if the 1min trend is shifting in my favor. Id both of those criteria are met then I will enter my trade on the backtest of the IB.
by peytonfin2
2
USD/JPY Intervention Risks: Caution PrevailsThe USD/JPY has recently surged to a multi-decade high of 154.88, reflecting a steady climb. However, uncertainty looms over the pair, with traders refraining from placing new bets due to the threat of Japanese currency market interventions. Widespread weakness in the US dollar is also curbing bullish potential. Despite reaching a new high for April and the past 34 years, the possibility of interventions by Japanese authorities has tempered bullish enthusiasm. Japanese Finance Minister has warned of direct intervention to support the yen, if necessary. Nevertheless, the USD/JPY remains above the historical intervention zone, ranging from 150.00 to 152.00. Investor focus is on US durable goods orders data, with the USD/JPY poised to react based on the outcomes. The upcoming Bank of Japan meeting on Friday could further impact the pair, with the central bank's accommodating stance potentially changing if inflation nears 2%. However, a rate hike by the BoJ during the meeting is unlikely. Additionally, US economic data performance could influence USD/JPY volatility, with GDP and personal consumption index among the anticipated releases. Technical analysis suggests that the USD/JPY needs to consolidate before its next upswing, with potential support between 154.55 and 154.45. In conclusion, while the USD/JPY maintains strength, traders exercise caution amidst intervention risks and US dollar weakness.
Short
by Forex48_TradingAcademy
1
WAL Western Alliance Bancorporation Options Ahead of EarningsIf you haven`t bought WAL before the previous earnings: Then analyzing the options chain and the chart patterns of WAL Western Alliance Bancorporation prior to the earnings report this week, I would consider purchasing the 52.50usd strike price in the money Calls with an expiration date of 2024-6-21, for a premium of approximately $6.35. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:WALLong
by TopgOptions