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Learn The Most Accurate Price Action Pattern Hey traders, If you are learning price action trading, you definitely must know a double bottom pattern. Double bottom is a reversal pattern. It is applied to spot early market reversal clues and catch the initiation of a new bullish trend . Preconditions for a double bottom: 1️⃣ The market must trade in a bearish trend . 2️⃣ After a formation of the last lower high, the price must set equal low. 3️⃣ The price must return back to the last lower high level. ✅Once these conditions are met the pattern is considered to be completed. The formation of the pattern is considered to be a ⚠️WARNING sign. Even though many traders buy the pattern once it is completed, for me it is not enough. ❗️Remember that the price can easily start to consolidate and form a horizontal channel for example. The trigger that we will look for is the breakout (candle close above) the last lower high level (based on a wick and its highest candle close) - the neckline. Being broken to the upside, the market sets a new higher high. It signifies a violation of a current bearish trend . ⬆️Attempting to catch an initiation of a bullish trend , we will buy the market with a buy limit order on a retest of a broken neckline. ❌Safest stop will lie below the lows of the pattern. 💰Your reward must be at least 1.5 of your risk. Following these simple rules, you will be impressed by how accurate this pattern is! Let me know, traders, what do you want to learn in the next educational post?
TVC:DXYEducation
by VasilyTrader
16
How to use Fibonacci Retracements for Trading and InvestingIntroduction The Fibonacci sequence is a series of numbers that starts with 0 and 1, and each subsequent number is the sum of the two preceding numbers. The sequence goes like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, and so on. The sequence is named after Leonardo of Pisa, an Italian mathematician from the Middle Ages who was also known as Fibonacci. He introduced the sequence to the Western world in his book Liber Abaci, which he wrote in 1202. However, the sequence had already been discovered by Indian mathematicians several centuries earlier. It was used in ancient Indian mathematics to solve problems related to the breeding of rabbits, which is why the sequence is sometimes called the "rabbit sequence". The Fibonacci sequence has since become a widely studied and applied concept in mathematics, science, and finance. It is used to model a wide range of natural phenomena, including the growth patterns of plants, the breeding habits of animals, and the structure of galaxies. In trading and investing, Fibonacci retracements are used to identify potential levels of support and resistance in a market or investment. These levels are based on the percentage of a previous price movement that has been retraced. For example, if a stock price has risen from $50 to $100, and then retraces 50% of that move, the 50% retracement level is considered a potential level of support. Understanding Fibonacci retracements To create Fibonacci retracement levels, traders use the high and low points of a previous price movement. For example, if a stock has recently traded from $50 to $100, the high point is $100 and the low point is $50. Traders then draw horizontal lines at various levels between the high and low points, based on the Fibonacci sequence. The most common retracement levels are 38.2%, 50%, and 61.8%, although some traders also use 23.6% and 78.6%. Calculating Fibonacci retracements is relatively simple. To calculate the 38.2% retracement level, for example, you take the difference between the high and low points and multiply it by 0.382. You then subtract this number from the high point to get the retracement level. For the 50% retracement level, you multiply the difference by 0.5, and for the 61.8% retracement level, you multiply by 0.618. Using Fibonacci retracements for trading Fibonacci retracements can be used to identify potential levels of support and resistance in a market. For example, if a stock price is in an uptrend and begins to pull back, traders may look for potential support levels based on Fibonacci retracements. If the price retraces to the 38.2% level, for example, this may be seen as a potential level of support. If the price continues to fall and reaches the 50% or 61.8% level, these levels may also be seen as potential support levels. Similarly, in a downtrend, traders may use Fibonacci retracements to identify potential resistance levels. If the price is in a downtrend and begins to rally, the 38.2%, 50%, and 61.8% retracement levels may be seen as potential levels of resistance. Fibonacci retracements can also be used in range-bound markets. If a stock price is moving sideways between a support and resistance level, traders may use Fibonacci retracements to identify potential levels within the range where the price may bounce. Another way to use Fibonacci retracements for trading is in range-bound markets. In this type of market, prices may move up and down within a specific range, with no clear trend. In these cases, Fibonacci retracements can be used to identify potential areas of support and resistance within the range. Traders can use Fibonacci retracements to identify buy and sell signals at these levels. It's important to note that Fibonacci retracements should not be used in isolation, as they can produce false signals. To confirm signals generated by Fibonacci retracements, traders often use other technical indicators, such as moving averages, momentum oscillators, or volume indicators. For example, if a trader sees a retracement to a Fibonacci level and the price is also above the 50-day moving average, this could confirm a bullish signal and increase the likelihood of a successful trade. Using Fibonacci retracements for longer-term investments In addition to trading, Fibonacci retracements can also be used for investing. Long-term investors can use Fibonacci retracements to identify potential entry and exit points for their investments. For example, if a stock has experienced a significant upward trend, and then pulls back to a Fibonacci level, this could indicate a potential buying opportunity. Conversely, if a stock has reached a resistance level at a Fibonacci retracement level, this could be a signal to sell. Conclusion ibonacci retracements are a popular technical analysis tool used by traders and investors to identify potential support and resistance levels. By understanding the Fibonacci sequence and how to calculate and plot retracement levels on a chart, traders and investors can use these levels to make more informed trading and investment decisions. However, it's important to remember that Fibonacci retracements should not be used in isolation and should be used in conjunction with other technical indicators and fundamental analysis. With a thorough understanding of how to use Fibonacci retracements, traders and investors can incorporate this tool into their overall strategy to increase the likelihood of successful trades and investments.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
Top10 Mistakes to avoid as a New TraderIntroduction When starting out as a trader or investor, it is important to be aware of the mistakes that can be made. Mistakes are common, and even experienced traders and investors make them from time to time. However, new traders and investors are particularly vulnerable to making mistakes, which can lead to significant losses. In this article, we will discuss the top 10 mistakes to avoid as a new trader or investor, and provide tips on how to avoid them. Mistake 1: Lack of education One of the biggest mistakes that new traders and investors make is not educating themselves about the markets they are investing in. It is important to have a basic understanding of the financial markets, including the stock market, foreign exchange market, and commodity markets. Before making any trades or investments, new traders and investors should spend time learning about the different financial instruments, such as stocks, bonds, and options. They should also understand the basic concepts of fundamental and technical analysis, which can help them identify profitable trades. There are many educational resources available to new traders and investors, including books, online courses, and seminars. Some of the most popular books on investing include "The Intelligent Investor" by Benjamin Graham, "The Little Book of Common Sense Investing" by John Bogle, and "A Random Walk Down Wall Street" by Burton Malkiel. Mistake 2: Failure to set goals Many new traders miss out on setting goals. Having clear and realistic goals is important in trading or investing because it helps traders and investors stay focused and motivated. Some common goals for new traders and investors include building wealth, generating passive income, and achieving financial independence. Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, a SMART goal for a new investor could be to earn a 10% return on their investment within the next 12 months. Mistake 3: Emotion-based decision making Emotions can be a trader's worst enemy. Fear, greed, and hope can all cloud judgement and lead to poor decision-making. New traders and investors are particularly vulnerable to emotional biases, such as the tendency to hold on to losing trades for too long or to sell winning trades too quickly. To avoid emotional biases, new traders and investors should develop a trading plan and stick to it. They should also set stop-loss orders, which are orders to automatically sell a security when it reaches a certain price, to limit their losses. Mistake 4: Not having a plan New traders and investors often make the mistake of trading without a plan. A trading plan is a written set of rules that outlines a trader's entry and exit criteria, risk management strategy, and other important factors. A trading plan should include the trader's goals, risk tolerance, and trading strategy. It should also outline the types of securities the trader will invest in and the timeframe for holding those securities. A trading plan is important because it helps traders avoid impulsive decisions and stick to a consistent strategy. Mistake 5: Lack of diversification Another common mistake that new traders and investors make is failing to diversify their portfolio. Diversification involves spreading your investments across different asset classes and industries, which can help to mitigate risk and protect your portfolio against losses. For example, if you invest all of your money in a single stock or industry, you run the risk of losing everything if that stock or industry experiences a significant downturn. However, by diversifying your portfolio, you can help to reduce your exposure to any one particular investment and increase your chances of long-term success. There are many ways to diversify your portfolio, such as investing in a mix of stocks, bonds, and mutual funds, or investing in companies across different industries and sectors. Mistake 6: Chasing trends Chasing trends is a pitfall that many undisciplined traders make and this also happens to professionals. This can be dangerous and lead to significant losses. Chasing trends involves investing in a stock or asset solely because it has recently experienced a significant increase in price, without considering the underlying fundamentals of the investment. While it may be tempting to jump on board with a hot trend, it's important to remember that these trends are often short-lived and can quickly reverse direction. As a result, investing in a trend without doing your due diligence can result in significant losses. Instead of chasing trends, focus on identifying investments with strong fundamentals, such as a history of consistent earnings growth or a solid balance sheet. By investing in quality companies with a proven track record, you can increase your chances of long-term success. Mistake 7: Overtrading New traders and investors tend to 'overtrade'. Overtrading involves making too many trades or investments, often based on emotional impulses or a desire to make a quick profit. While it may be tempting to try to make as many trades as possible, overtrading can be harmful to your portfolio. Each trade comes with associated fees and commissions, which can add up quickly and eat into your profits. Additionally, making too many trades can increase your exposure to risk and volatility, which can lead to significant losses. Instead of overtrading, focus on making well-informed, strategic trades based on your plan and goals. By being patient and selective with your trades, you can increase your chances of long-term success. Mistake 8: Ignoring risk management One of the most common mistakes new traders and investors make is ignoring risk management. Risk management is the process of identifying, analyzing, and controlling potential risks associated with an investment or trade. This includes setting stop-loss orders, diversifying your portfolio, and understanding the potential risks associated with each investment. Many new traders and investors focus on potential profits and forget to consider the risks involved. This can lead to significant losses and can quickly wipe out an entire investment account. There are several ways to manage risk, including setting stop-loss orders, diversifying your portfolio, and conducting thorough research on each investment opportunity. Stop-loss orders are an effective tool to limit potential losses on any given trade. Diversification is also an effective way to manage risk by spreading your investments across different asset classes, such as stocks, bonds, and commodities. By ignoring risk management, new traders and investors increase the likelihood of experiencing significant losses. It is important to be proactive in managing risk and to always be mindful of the potential downside of any investment. Mistake 9: Focusing too much on short-term gains New traders and investors are focusing too much on short-term gains. While it is natural to want to see immediate returns on your investments, it is important to keep a long-term perspective in mind. Focusing too much on short-term gains can lead to impulsive decision-making and can cause investors to overlook the potential long-term value of an investment. Short-term gains are often associated with higher risk, and it is important to remember that high risk can lead to high losses. By focusing solely on short-term gains, new traders and investors may overlook quality investments that have the potential for long-term growth and stability. It is important to balance short-term gains with a long-term perspective. This means taking the time to research potential investments, identifying investments that align with your overall investment goals, and being patient with the investment process. Mistake 10: Lack of patience Finally, one of the biggest mistakes new traders and investors make is a lack of patience. Patience is critical in trading and investing, as it takes time to see returns on your investments. It is important to remember that investing is a marathon, not a sprint. Many new traders and investors are eager to see quick returns on their investments, and they often become impatient when they don't see immediate results. This can lead to impulsive decision-making and can cause investors to sell their investments prematurely, often at a loss. It is important to remember that successful investing takes time and patience. By taking the time to research potential investments, setting realistic expectations, and being patient with the investment process, new traders and investors can avoid making hasty decisions that can lead to significant losses. Conclusion In summary, trading and investing can be a rewarding and lucrative endeavor, but it is important to avoid common mistakes that can lead to significant losses. By educating yourself, setting goals, managing your emotions, having a plan, diversifying your portfolio, avoiding trend chasing, avoiding overtrading, managing risk, focusing on the long-term, and being patient, you can increase your chances of success as a new trader or investor. Remember, the key to success is to approach trading and investing with a long-term perspective and to be mindful of the potential risks and rewards associated with each investment opportunity. By avoiding these common mistakes and staying disciplined in your approach, you can achieve your financial goals and enjoy a successful trading and investing career.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
6 Character Traits to Develop or Refine Your Day Trading Career It may seem as if developing a career in forex day trading is about finding a strategy, practicing it regularly, and making bundles of money. Yes, it is about that. But, where are our characteristics on that list? To become a successful day trader, you need to develop specific features to implement an effective strategy that delivers results in all market conditions. We may not be entirely aware, but we do use them daily, and maybe, at times, we notice that we should work more on developing these. These characteristics are innately a part of us. It is essential to work on developing these characteristics that guide you towards building a thriving day trading career. It is good to know that not all successful day traders inherently have the ability to succeed without hard work. For most, it takes weeks, months, and years. By continuing to read, you will realize why you should develop the skills sooner rather than later. 1. Discipline Discipline requires boundaries and mental acceptance. It’s one of the many characteristics used to achieve in day trading. Even though some beg to differ – they say that a well-developed trading plan was their way to success. But how disciplined are they to follow it? Being disciplined is vital when deciding which products to trade. Thousands of products are traded throughout the day, and It is very overwhelming with infinite opportunities thrown to you at once. Devise a schedule that revolves around the best times for you to trade. Select a product to trade and stick to both the product and your plan. 2. Patience If you haven’t started trading yet, you will soon realize that it is a “waiting game” with loads of patience needed – but with fantastic profit too. It can be challenging for beginner traders who don’t have enough patience and find it challenging to wait or watch the markets. If you enter the market at a time when nothing is happening, you may blame your luck and try to jump in or out of the tradestoo early. You may land up building resentment, and it will not suffice. 3. Adaptability Change is a characteristic that is either always welcomed or never welcomed at all. When becoming a trader, you will accept that day trading as a career is ever-changing. To be a successful trader, you will have to work through some discomfort to adapt to fluctuations quickly. It is extremely rare to have two trading days that are the same or similar to one another, which means you must adjust to different scenarios in the market. 4. Mental Strength Day trading is about gaining the mental strength that can withstand the losses that the market throws at you. Some days there can be no losses thrown at you, yet on other days, this is all you will see, and it can be soul-destroying. More positively, there will be times when you are on a losing streak, and it’s at this stage when the pro traders are looking for opportunities to bounce back. Do not be disheartened if you are disappointed after losing a trade or if your strategy isn’t delivering the results you expect. 5. Let Go Preparations for your losses don’t mean that you should continue grinding it out on the market and continue to lose your capital. If your mental strength gives you the courage to walk away from the suffering of your continuous losses – do that! Walk away! 6. Independence At the beginning of your trading career, it is a good idea to reach out to fellow traders and mentors to help you with the building blocks. These contacts will recommend trading videos, podcasts, books, forums, and articles to build your skills and confidence. However, if you want your trading career to take off smoothly, then learn some of the critical skills by yourself. Develop a sense of independence, where you do not rely on others. Having to rely on help or opinions all the time is tiresome. Once you have developed a trading strategy that works, you should not listen to every opinion from others. Be focused on doing what works for you. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post
OANDA:XAUUSDEducation
by TopTradingSignals
18
Scalper, Day Trader & Swing Trader | Choose Your Path There are thousands of different ways to trade the market. During the last 100 years, various trading strategies and techniques were invented. One of the ways to categorize them is to split them by types of traders. Such a category type will lean on 2 main elements: trading frequency and time frame selection. 1️⃣ - Scalper I guess 99% of newbie traders start from scalping. Trying to catch quick market moves and become rich quick, newbies are practicing different scalping strategies. What is funny about scalping is the fact that such a trading style is considered to be the easiest by the majority while remaining one of the hardest in the view of pros. The main obstacle with scalping is a constant focus and rapid decision-making. Scalpers usually open dozens of trading positions during the trading session, most of the time being in front of the screen constantly. Paying huge commissions to the broker and dealing with complete chaos on lower time frames, the majority simply can't survive the pressure and drop, leaving the pie to true gurus. 2️⃣ - Day Trader Day trading or intraday trading is the most appealing to me. Staying relatively active, the market gives some time for the trader for reflection & thinking. Opening and managing on average 1-2 trades per trading session, the intraday trader is granted a certain degree of freedom. However, with declining volatility , quite ofter intraday traders get a relatively low risk/reward ratio for their trades, 3️⃣ - Swing Trader Swing trading is the best choice for traders having a full-time job. Primarily being focused on daily/weekly time frames, swing trading is not demanding for a daily routine and aims at catching mid-term/long-term market moves. With an average holding period being around 2 weeks and opening 1-2 trading positions per week, swing trading is considered to be the least emotional and involves low risk. The main problem with swing trading is patience. Correctly identifying the market trend and opening a trading position, the majority tends to close their positions preliminary not being patient enough to let the price reach their target. Which trading type do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
5
The fastest area of wealth accumulation in the world-the forexAn investment field where one opportunity is enough to change one's destiny! A market that works miracles every day! Entering the new century, foreign exchange, an investment tool with infinite charm, is attracting the attention of more and more people. This market full of opportunities and challenges is changing our destiny all the time, so much so that it is loved by more and more people. Advantages of the foreign exchange market: 1.Low threshold for investment amount; 2.The investment period can be long or short, buy and sell as you go, and the liquidity is extremely high. 3.The highest return on investment, you can get more than several times the amount of investment funds. 4.The transaction procedures are quick and easy. You only need to enter the transaction procedures, which can be completed in a very short time. 5.Trading flexibility is high, and there are many profit opportunities in the dual-track of buying long and selling short. 6.The impact environment is relatively fair, the information channels are smooth, and it will not be operated by large companies. The principles of fairness, impartiality, and openness are guaranteed. There are many factors that affect it, and the relationship between supply and demand has a great impact. 7.The degree of risk is relatively high, but foreign exchange trading operations are flexible, mobile, rapid, and risks can be controlled and prevented. How to quickly accumulate wealth with small funds: 1. Survival first, development second. 2. Only do short-term intraday trading. 3. Operate no more than 5 times a day, and try not to place orders after the daily profit exceeds US 1,000. 4. Only 2-3 varieties are made every day. In the trading process, at the same time, establish that opportunities are available every day, and you need to maintain the concept of waiting patiently for opportunities, and overcome the impatience of eager to win; at the same time, make rational use of stop losses, establish the concept of safety in the bag, and turn floating profits into real profits in a timely manner.After trading, find the time period when you make the most profit every day, try to give full play to your advantages in this time period, and summarize your experience every day to continuously improve your tactics.
OANDA:XAUUSDEducation
by Short-term-king
The three most worthwhile potential coins to invest in in 2023Today, I will reveal what I think is the best cryptocurrency portfolio in 2023.I think this portfolio will be the best altcoin in 2023. 1.Arweave (AR) Arweave is a Blockchain-based decentralized platform that provides a permanent and tamper-proof data storage solution.It was launched in 2017 by a group of developers led by Sam Williams.The platform aims to solve the problem of data persistence by providing a cost-effective permanent data storage solution that is accessible to everyone. A key feature of Arweave is that it uses a new consensus mechanism called proof of access (PoA).This mechanism is designed to be more energy-efficient than traditional proof-of-work (PoW) or proof-of-stake (PoS) mechanisms, and also allows faster transaction times.The working principle of PoA is to require nodes to prove that they have stored a certain amount of data on the Arweave network in order to participate in the consensus process. Arweave also has a unique economic model designed to motivate data storage on the network.The platform uses a local cryptocurrency called AR to pay for storage.AR is also used to reward nodes that participate in the consensus process, which helps ensure the security and reliability of the network.As of March 2023, AR has a market capitalization of more than 1.5 billion US dollars. A significant use case of Arweave is the creation of a decentralized social media platform.Since the data stored on Arweave is permanent and immutable, it provides a feasible alternative to traditional centralized social media platforms that are vulnerable to censorship and data leakage. In short, Arweave is a blockchain-based platform that provides a cost-effective permanent data storage solution.Its unique consensus mechanism and economic model have helped it gain attention in the blockchain community, and have the potential to revolutionize the way we store and access data in the future. 2.Chainlink (LINK) Chainlink (LINK) is a decentralized oracle network designed to connect smart contracts to real-world data so that they can interact with the outside world in a safe and reliable way.Launched in 2017, Chainlink has quickly become one of the most popular blockchain projects, with a market capitalization of more than US10 billion as of March 2023. The idea behind Chainlink is to solve the trust problem in smart contracts.A smart contract is a self-executing program that runs on the blockchain and is designed to be executed automatically when certain conditions are met.However, these conditions are usually based on data outside the blockchain, such as stock prices or weather data.In order to ensure the accuracy and immutability of this data, smart contracts need to rely on oracles. The oracle is a third-party service that can provide the data required for the execution of smart contracts.However, these oracles can be centralized, which means they are vulnerable to manipulation or attack.Chainlink tries to solve this problem by creating a decentralized oracle network that can provide reliable and secure data for smart contracts. Chainlink works by connecting smart contracts to multiple nodes in its network.These nodes are operated by independent operators, who are motivated to provide accurate data by earning LINK tokens (the native cryptocurrency of the Chainlink network).When a smart contract needs data, it sends requests to multiple nodes in the network.The node then provides its own data, which is aggregated and verified by the Chainlink protocol to ensure accuracy and consistency. One of the key features of Chainlink is its ability to provide data from off-chain sources (such as APIs and Web services).This means that smart contracts can be connected to a wide range of data sources, including traditional financial markets, weather services, and social media platforms. Chainlink is also very popular in the field of decentralized finance (DeFi), it is used to provide reliable and secure price information for various DeFi protocols.This price information is essential to determine the value of various assets and execute transactions in the DeFi ecosystem. In addition to technical features, Chainlink also has a strong and active community of developers and supporters.The project is led by Sergey Nazarov and Steve Ellis, who have a long history in the field of blockchain and smart contracts.Chainlink has also established partnerships with many large companies, including Google, Oracle, and SWIFT, which has helped increase its visibility and adoption. In general, Chainlink is a promising project that aims to solve an important problem in the blockchain field.Its decentralized oracle network has the potential to revolutionize the way smart contracts interact with the outside world, and its growing ecosystem of developers and supporters shows that it will continue to be a major player in the blockchain industry in the coming years. 3.Uniswap(UNI) Uniswap is one of the most popular decentralized exchanges in the cryptocurrency market.Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain, allowing users to trade Ethereum-based tokens without the need for intermediaries or central institutions.It was created by Hayden Adams in November 2018 and has since become one of the most widely used DEX in the cryptocurrency space. The core of Uniswap is the use of an automatic market maker (AMM) system, which means it relies on a set of algorithms to determine the price of a given asset.This is in stark contrast to traditional centralized exchanges, which usually use order books to match buyers and sellers and determine asset prices. The Uniswap agreement has two main components: the liquidity pool and the Uniswap token (UNI).The liquidity pool is a place where users can deposit their tokens to provide liquidity to the exchange. In return, they can get a portion of the transaction fees generated by the platform.On the other hand, Uniswap tokens are used for governance and allow holders to vote on important decisions related to the agreement. As of March 2023, Uniswap has been rated as one of the top decentralized exchanges, and the market capitalization of UNI tokens exceeds US 10 billion, making it one of the top 25 cryptocurrencies by market capitalization. One of the main advantages of using Uniswap is its decentralized nature, which means that it will not be subject to the same risks as centralized exchanges, such as hacking or government intervention.In addition, since Uniswap is built on the Ethereum blockchain, it benefits from the security and reliability of the Ethereum network. Having said that, there are also some risks in using Uniswap.For example, the value of tokens held in the liquidity pool may fluctuate significantly depending on market conditions, which may cause liquidity providers to suffer losses.In addition, since Uniswap is a decentralized platform, there is no central authority to supervise the platform, which means that users need to be careful to avoid fraud. Overall, Uniswap is a powerful and popular decentralized exchange that provides a series of benefits for cryptocurrency traders and investors.However, as with any investment in the cryptocurrency space, it is important to conduct your own research and carefully consider the risks before investing. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
BITSTAMP:BTCUSDEducation
by Short-term-king
Top 10 Technical Indicators for Successful TradingTop 10 technical indicators for successful trading Introduction: Technical indicators are essential tools for traders to analyze market trends, identify potential trading opportunities, and manage risk. These indicators are mathematical calculations based on past price and volume data that can help traders make informed decisions about buying or selling assets. In this article, we'll discuss the top technical indicators that traders can use to enhance their trading strategies. Moving Average: A moving average is a widely used technical indicator that helps traders identify market trends. A moving average is calculated by averaging the price of an asset over a specific period, such as 10 days or 50 days. This indicator smooths out the price data and makes it easier for traders to identify the direction of the trend. When the price is above the moving average, it's considered a bullish trend, and when the price is below the moving average, it's considered a bearish trend. Relative Strength Index (RSI): The Relative Strength Index (RSI) is a momentum oscillator that measures the strength of a price trend. The RSI is calculated by comparing the average gains and losses over a specific period, typically 14 days. The RSI value ranges from 0 to 100, with values above 70 indicating an overbought market, and values below 30 indicating an oversold market. Traders can use the RSI to identify potential trend reversals and overbought or oversold conditions in the market. Bollinger Bands: Bollinger Bands are another widely used technical indicator that helps traders identify potential trend reversals and price volatility. Bollinger Bands consist of three lines: a moving average in the center, and two outer bands that represent the standard deviation of the price data. When the price is within the bands, it's considered normal market volatility. However, when the price reaches the outer bands, it's considered an overbought or oversold condition, and a potential reversal may be imminent. MACD (Moving Average Convergence Divergence): The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that helps traders identify changes in momentum and trend reversals. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A signal line, which is a 9-day EMA of the MACD, is also plotted on the chart. Traders can use the MACD to identify potential buy and sell signals, as well as divergences between the MACD and the price of the asset. Fibonacci Retracements: Fibonacci Retracements are a popular technical indicator that helps traders identify potential support and resistance levels. Fibonacci Retracements are based on the idea that prices tend to retrace a predictable portion of a move, after which they may continue in the original direction. Traders can use Fibonacci retracements to identify potential entry and exit points, as well as stop-loss levels. Stochastic Oscillator: The Stochastic Oscillator is another momentum oscillator that helps traders identify overbought and oversold conditions in the market. The Stochastic Oscillator is calculated by comparing the closing price of an asset to its price range over a specific period. The Stochastic Oscillator value ranges from 0 to 100, with values above 80 indicating an overbought market, and values below 20 indicating an oversold market. Traders can use the Stochastic Oscillator to identify potential trend reversals and overbought or oversold conditions in the market. Average True Range (ATR): Average True Range (ATR) is a technical indicator that measures the volatility of a stock or currency. Developed by J. Welles Wilder Jr., ATR calculates the average range of price movements over a specific period, taking into account gaps in price movements. ATR is typically calculated over a period of 14 days, but traders can adjust this period to fit their specific trading strategy. To calculate ATR, traders first calculate the true range (TR), which is the greatest of the following: Current high minus the current low Absolute value of the current high minus the previous close Absolute value of the current low minus the previous close Once the true range is calculated, traders can calculate the ATR by taking an average of the true range over a specific period. ATR can be used to measure volatility in the market, helping traders to identify potential trading opportunities. When ATR is high, it indicates that there is a lot of volatility in the market, which can present opportunities for traders to profit. Conversely, when ATR is low, it indicates that the market is relatively stable, and traders may want to avoid entering trades at that time. Ichimoku Cloud: The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a technical indicator that provides a comprehensive view of potential support and resistance levels, trend direction, and momentum. The indicator was developed by Japanese journalist Goichi Hosoda in the late 1930s and has gained popularity among traders in recent years. The Ichimoku Cloud consists of five lines, each providing a different view of the market: Tenkan-Sen: This line represents the average of the highest high and the lowest low over the past nine periods. Kijun-Sen: This line represents the average of the highest high and the lowest low over the past 26 periods. Chikou Span: This line represents the current closing price shifted back 26 periods. Senkou Span A: This line represents the average of the Tenkan-Sen and Kijun-Sen, shifted forward 26 periods. Senkou Span B: This line represents the average of the highest high and the lowest low over the past 52 periods, shifted forward 26 periods. The area between Senkou Span A and Senkou Span B is referred to as the "cloud" and is used to identify potential support and resistance levels. When the price is above the cloud, it indicates a bullish trend, and when the price is below the cloud, it indicates a bearish trend. Traders can also use the Tenkan-Sen and Kijun-Sen lines to identify potential entry and exit points, with a bullish crossover of the Tenkan-Sen above the Kijun-Sen indicating a potential buying opportunity, and a bearish crossover of the Tenkan-Sen below the Kijun-Sen indicating a potential selling opportunity. Conclusion: In conclusion, technical indicators are valuable tools for traders in the financial markets. The Average True Range (ATR) can be used to measure volatility in the market, while the Ichimoku Cloud provides a comprehensive view of potential support and resistance levels, trend direction, and momentum. By using these indicators in combination with other technical analysis tools and market knowledge, traders can make informed trading decisions and improve their chances of success. It's important for traders to experiment with different indicators and find the ones that work best for their trading strategy.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
Learn What is Confirmation Bias | Trading Psychology 🧠 In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from 50.000 level, expecting the exponential growth. Instead of growing, however, the market starts falling rapidly. Rather than closing your position in loss, you decide to do a new research and execute the analysis, you start looking for the proof of your pre-existing beliefs. You completely neglect the voices of Bitcoin sceptics and ignore bearish clues on the price chart. You consider only the facts that support a bullish outlook, not letting you accept the other point of view. You become a victim of a confirmation bias. Unfortunately, such a psychological trap frequently prevents a closing of a trading position in time, leading to substantial losses. Confirmation bias is a common psychological error that makes a subject overvalue the information that upholds his existing beliefs and undervalue the opposing one. Here are the most common symptoms of that trap: 1️⃣One is neglecting the objective facts. 2️⃣One is interpreting information in a way to support the existing beliefs. 3️⃣One is considering only the facts that conform with his point of view. 4️⃣One is completely ignoring the information that challenges his beliefs. The only way to beat a confirmation bias in trading, is to learn to analyze the market from sellers' and from buyers' perspective. Your task is to compare the view of the 2 sides, and pick the one that is stronger, holding in mind the fact that everything can change. You should always remember of the changing nature of financial markets and be ready to always reassess your views. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
13
The Role of ChatGPT in Algorithmic TradingThe Role of ChatGPT in Algorithmic Trading 1. Introduction In recent years, algorithmic trading has become an increasingly important aspect of the financial markets. Algorithmic trading involves using computer programs to execute trades based on predetermined rules and algorithms, with the goal of maximizing returns and minimizing risk. The use of algorithms allows traders to make rapid, data-driven decisions and respond to market conditions faster than traditional human traders. Natural language processing (NLP) is a field of computer science that focuses on the interactions between computers and human language. In the context of algorithmic trading, NLP techniques are used to analyze vast amounts of financial news, social media, and other sources of information to identify potential trading opportunities. By analyzing this data, traders can make informed decisions and gain a competitive edge in the market. One of the key tools used in NLP for algorithmic trading is ChatGPT, a large language model trained by OpenAI. ChatGPT is a powerful tool that can analyze vast amounts of text data and generate human-like responses. Its capabilities include natural language understanding, machine translation, text summarization, and text completion. With its ability to analyze and understand large amounts of text data, ChatGPT is an essential tool for traders looking to gain a competitive edge in the market. For example, ChatGPT can be used to analyze financial news articles and social media posts to identify companies that are likely to experience a significant change in their stock price. By analyzing the sentiment of these articles and posts, ChatGPT can determine whether there is a positive or negative outlook for a particular company, which can be used to inform trading decisions. In addition to sentiment analysis, ChatGPT can also be used to generate summaries of news articles, which can save traders valuable time and allow them to quickly digest important information. ChatGPT can also be used to generate text responses to customer inquiries, freeing up traders to focus on more important tasks. Overall, the use of NLP and ChatGPT in algorithmic trading is becoming increasingly important. As the amount of data available to traders continues to grow, the ability to quickly and accurately analyze that data will become essential for achieving success in the market. With its powerful NLP capabilities, ChatGPT is poised to play a significant role in the future of algorithmic trading. 2. NLP Techniques for Algorithmic Trading Natural language processing (NLP) is an essential tool for algorithmic trading, enabling traders to quickly and accurately analyze large volumes of text data. In this section, we'll explore some of the key NLP techniques used in algorithmic trading, including analysis of financial news and social media, sentiment analysis, and identification of potential trading opportunities. One of the most powerful applications of NLP in algorithmic trading is the analysis of financial news and social media. By analyzing news articles and social media posts, traders can gain insight into the market sentiment and identify emerging trends or potential trading opportunities. For example, if a large number of news articles and social media posts are discussing a particular company, it may be an indication that the company is about to experience a significant change in its stock price. Sentiment analysis is another important NLP technique in algorithmic trading. Sentiment analysis involves using NLP algorithms to determine the emotional tone of a particular piece of text. By analyzing the sentiment of news articles, social media posts, and other sources of information, traders can gain insight into the market sentiment towards a particular company or industry. This information can then be used to inform trading decisions. Identification of potential trading opportunities using NLP is another key application of this technology. By analyzing large volumes of data, including news articles, social media posts, and other sources of information, traders can identify emerging trends or potential trading opportunities. For example, by analyzing news articles and social media posts, traders may identify a new technology that is rapidly gaining popularity, indicating a potential investment opportunity. Overall, the use of NLP techniques in algorithmic trading is becoming increasingly important. With the amount of data available to traders continuing to grow, the ability to quickly and accurately analyze that data will be essential for achieving success in the market. NLP techniques, including the analysis of financial news and social media, sentiment analysis, and identification of potential trading opportunities, are powerful tools that can help traders gain a competitive edge and achieve success in the market. 3. Predictive Models with ChatGPT Predictive models are an essential tool for algorithmic trading, enabling traders to identify patterns and predict future market trends. In this section, we'll explore how ChatGPT can be used to develop predictive models and the advantages of using this technology. At its core, predictive modeling involves using historical data to identify patterns and predict future trends. This process involves analyzing large volumes of data to identify patterns and trends that can be used to inform trading decisions. With the increasing amount of data available to traders, the ability to quickly and accurately analyze that data is becoming essential for achieving success in the market. ChatGPT is a powerful tool that can be used to analyze large datasets and identify patterns that may be missed by other analytical tools. With its ability to understand natural language, ChatGPT can analyze vast amounts of financial news, social media, and other sources of information to identify patterns and trends. This information can then be used to develop predictive models that can be used to inform trading decisions. One of the key advantages of using ChatGPT in developing predictive models is its ability to understand the context of the data it is analyzing. Unlike other analytical tools, which may only be able to identify patterns based on simple statistical analysis, ChatGPT can analyze text data to understand the context and nuances of the information being analyzed. This allows traders to identify patterns and trends that may not be immediately apparent using other analytical tools. Another advantage of using ChatGPT in developing predictive models is its ability to learn from new data. As more data becomes available, ChatGPT can be trained to recognize new patterns and trends, improving the accuracy of its predictions over time. 4. Machine Learning with ChatGPT Machine learning is a critical component of algorithmic trading, allowing traders to develop sophisticated models that can identify patterns and make real-time trading decisions. In this section, we'll explore how ChatGPT can be used in machine learning models for algorithmic trading, the advantages of using this technology, and some examples of its use. Machine learning involves using algorithms to analyze large amounts of data, identify patterns, and make predictions. This process involves training the algorithm on historical data to recognize patterns that can be used to inform trading decisions. With the increasing amount of data available to traders, the ability to quickly and accurately analyze that data is becoming essential for achieving success in the market. ChatGPT can be used in machine learning models to analyze text data and make real-time trading decisions based on that data. For example, ChatGPT can be used to analyze financial news and social media to identify patterns that may not be immediately apparent to other analytical tools. This information can then be used to inform machine learning models that make real-time trading decisions. One of the key advantages of using ChatGPT in machine learning models for algorithmic trading is its ability to understand natural language. Unlike other analytical tools, which may only be able to analyze structured data, ChatGPT can analyze unstructured data such as news articles and social media posts. This ability to understand the context of the data being analyzed is essential for developing accurate machine learning models. Another advantage of using ChatGPT in machine learning models is its ability to learn from new data in real-time. As more data becomes available, ChatGPT can be trained to recognize new patterns and trends, improving the accuracy of its predictions over time. This ability to adapt to changing market conditions is essential for achieving success in the algorithmic trading market. There are several examples of machine learning models that use ChatGPT in algorithmic trading. For example, ChatGPT can be used to analyze financial news to identify patterns and inform machine learning models that make real-time trading decisions. ChatGPT can also be used to analyze social media sentiment to inform trading decisions based on public perception of a particular stock or market. 5. Limitations and Future Directions While ChatGPT and NLP techniques have a lot of potential in algorithmic trading, there are also limitations to their use. In this section, we'll discuss some of the challenges associated with using ChatGPT and NLP in algorithmic trading, as well as potential future directions for these technologies. One of the main limitations of using ChatGPT and NLP in algorithmic trading is the potential for bias in the data being analyzed. NLP techniques rely on training data to identify patterns and make predictions, but if that data is biased in some way, it can lead to inaccurate predictions. For example, if a machine learning model is trained on historical data that reflects biased trading practices, it may perpetuate those biases in future trading decisions. Another limitation of using ChatGPT and NLP in algorithmic trading is the potential for the model to be fooled by fake or misleading information. As we've seen in recent years, social media platforms can be manipulated by bad actors to spread false information or manipulate public sentiment. If ChatGPT is trained on this misleading information, it can lead to inaccurate predictions and trading decisions. Despite these limitations, there are several potential future directions for ChatGPT and NLP in algorithmic trading. One of these is the development of more sophisticated machine learning models that can better handle unstructured data. While ChatGPT has shown promise in this area, there is still much work to be done to improve the accuracy of these models. Another potential future direction for ChatGPT and NLP in algorithmic trading is the use of natural language generation (NLG) to create more sophisticated trading strategies. NLG involves using machine learning to generate human-like language that can be used to describe trading strategies and other complex financial concepts. This can help traders better understand the decisions being made by their machine learning models and make more informed decisions. In conclusion, while ChatGPT and NLP techniques have a lot of potential in algorithmic trading, there are also limitations to their use. By addressing these limitations and exploring new directions for these technologies, we can continue to improve the accuracy and effectiveness of algorithmic trading models. As the amount of data available to traders continues to grow, the importance of these technologies in the trading industry will only continue to increase. 6. Conclusion In conclusion, ChatGPT and natural language processing techniques have become increasingly important in algorithmic trading. By analyzing large amounts of unstructured data from sources such as financial news and social media, ChatGPT can help identify potential trading opportunities and provide valuable insights to traders. One of the key advantages of using ChatGPT in algorithmic trading is its ability to analyze and understand human language. By analyzing sentiment and other linguistic patterns, ChatGPT can provide valuable insights into public opinion and market trends, which can be used to inform trading decisions. Another advantage of ChatGPT in algorithmic trading is its ability to analyze large datasets and identify patterns that may not be immediately apparent to human traders. By using machine learning models to analyze historical data, ChatGPT can identify trends and make predictions that can help traders make more informed decisions. Looking to the future, it's likely that ChatGPT and other NLP techniques will continue to play a significant role in algorithmic trading. As the amount of data available to traders continues to grow, the importance of these technologies in the trading industry will only continue to increase. However, there are also potential challenges and limitations associated with using ChatGPT and NLP in algorithmic trading. It's important to be aware of these limitations and to work to address them in order to ensure that these technologies are used in a responsible and effective way. Overall, the use of ChatGPT in algorithmic trading represents an exciting development in the field of finance. By using machine learning and natural language processing techniques to analyze large amounts of data, traders can gain new insights and make more informed decisions. With continued research and development, the potential applications of ChatGPT and other NLP techniques in algorithmic trading are sure to grow and evolve in the years to come.
Editors' picks
BITSTAMP:BTCUSDEducation
by JS_TechTrading
85
📖STOIC TRADING📖Stoic trading. I bet stoics didn't trade, but they knew a lot about life in general. I suggest to cultivate stoic mindset in regards to trading, and negative expectation and negative visualization in particular. You can talk about it with ChatGPT and explore yourself, but here let me explain a bit. So, instead of doing exactly what everyone else does - that is to expect your next trade to deliver big time, or to dream about a big runner, or huge profits in a day or a week, or to trade back all your recent losses with one overrisked entry - try to do something that's completely different. And by the way, that's a great overall approach to trading: find what doesn't work, and do the opposite (that's one of the main principles discussed widely by great Tom Dante). To do this, when you come to the market, visualize and expect nothing🙀. Literally tell yourself this: 1️⃣..I showed up to the charts just to observe and analyze them (by the way, did you know that speculation, from latin "specio", means observation, with no judgement) 2️⃣..I expect my setup to NOT show up today, and so today I'm not expecting any trades to have In case you'll find your setup, continue to keep the following negative mindset: 3️⃣..I followed my rules and entered a good setup, and I will follow my management rules, but right now I expect this trade to just end up as a loser If you were able to protect at breakeven later, expect it to hit your breakeven and not your take profit. For beginners, this all can sound stupid, even somewhat like a paradox🙄, but that's only because they don't understand how trading works. And trading really works in a way, that having LESS trades brings you MORE profit. Even if you're trading 1 sec. chart, and I'm not joking here. This mindset practice I described above allows you to protect your emotional capital and also enter setups with a better quality. I will talk more about this and also why so called "overtrading" is actually pure gambling, and how it destroys people's accounts in the next post. Have a good day everyone, and keep the grind, even if there's no one to appreciate or believe in you! P.S. I appreciate you and believe you will eventually do it and become consistent and profitable trader. 🙌
BITSTAMP:BTCUSDEducation
by Yelli_trades
11
How to achieve quick profits through short-term trading?Many friends enjoy short-term trading, mostly due to the short holding time, quick results, and the thrill of the process. However, short-term trading is the most challenging among all trading methods and requires careful consideration. Today, I will share my early experience of short-term trading with you. Specific methods and strategies will be provided in the later part of this article, which are closely related to practical applications and, I believe, will be helpful for you. The article is quite lengthy. If you find it helpful, please give it a thumbs-up at the end of the article. Thank you. Advantages and disadvantages of short-term trading Short-term trading does not have a strict definition standard. When the market moves quickly, positions can be closed within a day, but if the market moves slowly, it may take two or three days to close the position, all of which belong to short-term trading. On charts, I usually consider trades at the 5-minute, 15-minute, and even 1-hour level as short-term trades. The advantages of short-term trading are: (1) Short holding time and quick results. People are naturally curious about the unknown and want to know the results quickly. Short-term trading fits human nature, making it easier to control emotions. (2) High trading frequency, providing a thrilling experience. Many traders are restless and want to trade multiple times a day, short-term trading meets this human need. (3) The decay cycle of the short-term trading system is short, and the distribution of trading results is more evenly distributed, making it easier to execute. Sometimes, even with a losing streak of 5 times, the long-term trading strategy may take over a month to recover, while the short-term trading strategy may only take two or three days. Thus, short-term trading is less torturous to human psychology during a losing streak. Disadvantages of short-term trading: (1) High trading frequency requires more time and energy and is not suitable for part-time traders. (2) Frequent trading generates high trading costs. Therefore, short-term traders need to pay attention to their commission fees. I have seen many futures traders who have had their accounts charged two or three times, or even ten times, the commission fees. How can they make a profit like this? (3) Requires higher professionalism and attention to trading details. Short-term trading is more sensitive to changes in the market. Sometimes, when the market changes, you don't have much time to think and must act decisively. People with more procrastinating personalities are not suitable for short-term trading. Additionally, the margin of error for short-term trading is relatively low. Long-term trades do not require very precise entry points, and being off by 5 or 10 points does not have a significant impact on the overall trade. However, in short-term trading, being off by 5 or 10 points can be the difference between profit and loss. Therefore, short-term trading is a delicate operation, and all trading details must be clear and easy to execute. Short-term traders also need to possess qualities such as attention to detail, boldness, calmness, and decisiveness. So, how can you quickly profit from short-term trading? Next, I will share two strategies. 2.Plan One: Choosing Volatile Markets with Large Amplitude for Short-term Trading As a short-term trader, we only need to capture a small segment of market volatility, and it doesn't have to be the overall trend, as long as the market volatility is fast and the amplitude is large. The faster the market volatility and the larger the amplitude, the easier it is to make profits. For the same 100-point profit, it may take only one day to achieve it when the volatility is fast and the amplitude is large, while it may take several days to achieve it when the volatility is slow and the amplitude is small, resulting in a much lower trading efficiency and different challenges to our mentality. Therefore, the amplitude of the product is the key to making profits in short-term trading. We need to selectively engage in short-term trading and not try to swallow all profits. There are two specific strategies to consider. Strategy One: Directly select high amplitude products for short-term trading. Different products have their own characteristics when operating in the market. Some products have fast volatility and large amplitude, while others have slow volatility and small amplitude. Before engaging in short-term trading, we must select the most suitable products. For example, in the same breakout trading opportunity, products with high volatility and larger amplitude can achieve greater profits more quickly. As traders, we all understand that the faster we can lock in profits, the more confident we feel. Therefore, selecting the right products makes short-term trading easier. Moreover, if you choose a slow-moving product, your holding time will be longer, and your position may be occupied, which will reduce the utilization rate of your funds and affect the final profit. Short-term trading is about paying attention to details and maintaining a strong mindset, as even the smallest details can determine your success or failure. Therefore, do not be careless. FXOPEN:XAUUSD FOREXCOM:EURUSD
Editors' picks
Education
by Ice_and_Fire1
5
howto set stoploss correctly and do a goodjob of risk managementStop loss is a necessary means to control risk, and using a good stop loss point is the only way for investors to win. There are two types of methods for setting the stop loss point: the first type is a regular stop loss, that is, when the reasons and conditions for buying or holding disappear due to changes in market conditions, the position must be closed or stopped immediately. The second category is auxiliary stop loss. In practice, the maximum loss method, retracement stop loss, sideways stop loss, expected R multiplier stop loss, key psychological price stop loss, tangent support level stop loss, moving average stop loss, cost moving average stop loss, Bollinger band stop loss, volatility stop loss, K-line combination stop loss, chip intensive area stop loss, CDP (contrarian operation) stop loss, etc.Investors should judge based on their own risk tolerance and choose a stop loss method that suits them. The market has been fluctuating all the time, and there are opportunities at all times, but before we make a transaction, when we look at a certain position, we also need to refer to whether the stop loss position is well set, how much profit margin can be grasped, and whether it has played a role in using small capital to fight for high returns. The size of the stop loss: It can be set according to the resistance support in the seeking stop loss point above. The size of the stop loss we are talking about here should be set more based on the profit margin. This is the high return of small capital. When our profit margin can only be seen at 5-8 points, the stop loss can be controlled at about 3 points; The stop loss point for medium- and long-term trading can be appropriately enlarged, and when the profit point is above 30 points, the stop loss can be set to more than 8-10 points.Of course, the size of the stop loss is more of a reference factor in resistance and support. Spread in stop loss: We all know that the cost of trading is composed of spread and commission. When we place an order, we try to find the best entry point and calculate the spread. Then the same is true when setting the stop loss. The above talked about finding the stop loss point and the size of the stop loss, then in the gold investment market, it is often a decimal point that can change the profit or loss, so we need to calculate the spread when setting the stop loss. Several principles for setting a stop loss point: 1. Once the stop loss point is set, it is not recommended to change frequently if it is not necessary. It should be implemented decisively. Stop loss is actually a prerequisite and guarantee for profit. 2. The stop loss point should be set before each lot is traded. 3. The stop loss point can be flexibly changed, but it must not be changed day and night. 4. Before setting the stop loss point, it must be based on the current overall trend In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
FX:USOILEducation
by Blessed_V
What is the golden stop-loss rule? For trades such as stocks, futures, or forex, stop loss is a part of the trade, and it only works for investors if there is a stop loss in each transaction and it is adhered to. Today, I bring you a 3:1 gold stop loss rule, hoping to help with your investments. Stop loss is a way to minimize losses in current market trades and is frequently mentioned. However, the essence of stop loss is not just setting a stop loss price. In particular, in markets such as forex and futures where long and short positions can be taken, too many stop losses will undoubtedly cause significant loss of capital. Market leaders use people's fear to cause repeated shocks, even unilateral rises or falls to trigger short-term traders' stop loss prices, and then quickly retract. The normal daily volatility of the stock market is also around 5%, so if your stop loss is set at 5%, won't it often be hit? This requires attention to two issues: first, judging the trend of the market, whether it is a volatile market or a clear trend market; second, setting a reasonable stop loss position. First of all, it's important to understand that the most notable characteristic of the trading market is volatility, and most of the time it's in a volatile trend, regardless of whether it's in a larger time frame or a shorter time frame. Therefore, the investment strategy for a volatile market should be the preferred strategy for short-term traders. Secondly, identifying the range of volatility is crucial. Find the highest and lowest prices in recent price fluctuations. After a sharp rise or fall in the market, a corrective wave will form between these highest and lowest prices, sometimes lasting a long time. For example, commonly seen patterns such as triangle consolidation or box consolidation require a longer period of time before forming a new breakthrough. As for what prices to choose as the range, it depends on your trading period, whether it's daily, weekly, 60-minute, or even minute-by-minute. By using price analysis to determine the operational cycle, you will find a clear pattern of fluctuation range. The stop-loss price for such fluctuations should be set outside the highest or lowest points, and smaller stop-loss or trailing stop-loss should not be used. When the price breaks through the highest point, it is necessary to observe its sustainability. In most cases, it will return to the range-bound area again. However, if the sustainability is strong, it continuously sets new highs, and trading volume continues to increase, a new trend can be determined, and the stop-loss can be changed to a trailing stop. Its price should be set at a price that falls more than one time period beyond the highest or lowest price, and there is no new high or low in three consecutive time periods. At this time, it can be judged that the trend has stopped and entered a range-bound market. For example, if the time period is a 5-minute candlestick chart, then the trailing stop should be set at a price formed by a relatively large 5-minute candlestick chart. But generally, it should not exceed two candlestick chart prices, because beyond this price, the profit left is often very small. The 3:1 golden stop-loss rule in trading skills means that the profit of the take-profit point is three times the loss of the stop-loss point. For example, if you buy a stock and it falls by 7% or 8%, you should close your position in a timely manner. When your stock rises by 20% to 25%, you should consider selling some of it, and not be greedy and wait for it to rise further. Of course, the percentage values here can be changed according to the market situation, but the ratio should always be maintained at 3:1. Some investors may have doubts, what if I set a stop loss at 8% and then the stock rises significantly, even by more than 50%, after I sell it? It seems like a big mistake to sell it, and many investors may no longer believe in the 3:1 rule. Actually, the reason why we set a stop loss at 8% is to prevent it from falling by 10%, 20%, 25%, 40% or even more. You can think of it as a small insurance premium to ensure that an 8% loss doesn't turn into a 60% loss. Isn't it easier to handle that way? For most investors, an 8% loss is manageable, but a 60% loss is a burden that many cannot afford. In the market, human weaknesses will be reflected. When you hold a stock that falls, you will lose some capital, and you will fear that it will continue to fall, rather than hoping it will rebound to make up for previous losses. As a defensive measure, trading systems should still follow the 3:1 rule for stop losses. Finally, I wish everyone a happy investment journey.
Editors' picks
TVC:GOLDEducation
by Ice_and_Fire1
3
How to resolve being trapped in gold position. Given that no matter what market conditions may be, there will always be friends who find themselves trapped in a position, here are several methods for unlocking these positions: Long-term unlocking: If an investor has a clear view of the big trend (such as a bullish market), and their position is trapped in a small trend (a dip in the market), they can first stop the loss and close out the position. Then, they can enter the market again at a lower price to earn the price difference and obtain the profit from the big trend while reducing the risk of being liquidated by the small trend. Short-term unlocking: If the investor's judgment of the market is completely wrong, they should close out the position promptly to avoid suffering greater losses from the continuing one-sided trend. The longer a short-term investor holds a position in a one-sided market, the greater the loss. Light position unlocking (also suitable for large fund investors): It means adding more long positions as the market falls, using idle funds to lower the average cost, and waiting for the price to rebound. The advantage is that as long as the operation is correct, unlocking is possible as soon as there is a rebound, regardless of how deeply the position is trapped. Swing unlocking: This method is suitable for being trapped in various market stages, especially in volatile markets. It relies on the fluctuation of stock prices to unlock the position by using the price difference between high and low prices. The idea is to buy low and sell high, gradually reduce the cost, and minimize losses. The advantage is that the operation techniques are diverse and flexible, and can be adapted to different situations. If operated correctly, the unlocking speed is fast. The disadvantage is that it requires a high demand for personal time, energy, and skills, and frequent operations have a certain cost pressure. It requires professional guidance from those who have time, energy, and technical knowledge. Tips for trading gold: 1.Entry point: The entry point is crucial. Although gold and crude oil trading involve two modes, long and short, there are actually four modes: low long, low short, high long, and high short. In a one-sided trend, all four modes are feasible. However, in a volatile market, it is essential to avoid low short and high long positions. These positions are akin to chasing rising and falling markets, which often leads to losses. 2.Stop loss: Before placing a trade, determine the stop loss price and ensure it is reasonable. Immediately input the stop loss price after placing the order. The purpose of stop loss is to limit losses. Only by limiting small losses can you preserve your capital. Sometimes you need to let go to gain something. Do not assume that if you lose this time, you cannot earn it back. Manage investment risks carefully. 3.Position sizing: How you allocate your funds affects your ability to tolerate risks. Oversized positions or full positions can lead to increased losses and psychological pressure. Often, you cannot analyze market trends carefully, which can result in mistakes. 4.Take profit: Many traders struggle to take profit, causing profitable trades to turn into losses. In a one-sided trend, the push stop-loss method can be used to increase profit margins. Taking profit requires personal consideration of exit points. Not every trade needs to yield thousands or millions of dollars. Sometimes, in a volatile market, a profit of a few hundred dollars can accumulate over time. 5.Mindset: This is the most critical point and one that every investor must master. When you enter the market, it is undeniable that everyone is here to make money. However, your mindset determines how far you will go on the investment journey. The goal is to prefer small gains over losses, not to think about making more or less profit. Opportunities require us to seek them out ourselves. The moment you read this article, you have already been given an opportunity. Everyone in life experiences setbacks and failures, but the difference lies in our mindset when faced with adversity. Some people always regard setbacks as failures, which can undermine the courage to succeed. In investing, the key is to be on the right path and have the right direction. "A calm sea never made a skilled sailor," and there is no stable market environment. The purpose of investing is to make money! A clear mind is more important than a clever mind in this market. A good habit is more practical than a skilled technique. Perseverance is long-lasting, and authenticity is eternal. This is true of anything we do. I hope my article can bring you benefits and smooth sailing on your investment journey. May my investment experience benefit investors, and with you and me, an ordinary person plus an ordinary person, may we have an extraordinary investment experience and insights. Be meticulous in life and ordinary in your work. May your investment journey be smooth sailing. If my article is helpful to you, please remember to like it. If you have other questions during your operations, you can follow my homepage↓↓↓ to conveniently get the information in the first time. FXOPEN:XAUUSD TVC:GOLD COMEX:GC1!
FXOPEN:XAUUSDEducation
by Ice_and_Fire1
1
judgment of technical indicators and application skills1. Simple judgment of support and resistance: Support and resistance levels are the points in the chart that are subjected to continuous upward or downward pressure.The support level is usually the lowest point in all chart patterns (hourly, weekly, or annual), while the resistance level is the highest point (peak)in the chart.When these points show a downward trend, they are recognized as support and resistance.The best time to buy/sell is near the support/resistance level that is not easy to break.Once these levels are broken, they tend to become reverse obstacles.Therefore, in an uptrend market, the broken resistance level may become support for the upward trend; however, in a downtrend market, once the support level is broken, it will turn into resistance. 2. Understanding of lines and channels: Trend lines are a simple and practical tool in identifying the direction of market trends.The upward straight line is formed by at least two consecutive low points connected.Naturally, the second point must be higher than the first point.The extension of a straight line helps determine the path along which the market will move.Upward trend is a specific method used to identify support lines/levels.On the contrary, the downward line is drawn by connecting two or more points.The variability of trading lines is to some extent related to the number of connection points.However, it is worth mentioning that each point does not have to be too close.A channel is defined as an upward trend line parallel to the corresponding downward trend line.Two lines can represent price upward, downward, or horizontal corridors.The common attribute of a channel that supports the connection point of a trend line should be between the two connection points of its reverse line. 3. Understanding and understanding of the average line: If you believe in the creed of "trend is your friend" in technical analysis, then the moving average will benefit you a lot.The moving average shows the average price at a specific time in a specific period.They are called "moves" because they are measured at the same time and reflect the latest average. One of the shortcomings of moving averages is that they lag behind the market, so they are not necessarily a sign of a trend shift.To solve this problem, using a shorter period moving average of 5 or 10 days will better reflect recent price movements than a 40 or 200-day moving average.Alternatively, the moving average can also be used by combining two average lines of different time spans.Regardless of the use of 5 and 10-day moving averages, or 40- and 200-day moving averages, buy signals are usually detected when the shorter-term average crosses the longer-term average upward.In contrast, a sell signal will be prompted when the shorter-term average crosses the longer-term average downwards. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
FX:XAUUSDEducation
by Blessed_V
Ways to achieve greater profits It's not necessary to use heavy positions or hold onto trades in order to achieve greater profits. I want to emphasize the dangers of these two approaches again. Heavy positions - the most direct manifestation of this in the market is that even if you are in a relatively good position, once you are stopped out, the heavy position can lead to significant losses. Of course, it must be acknowledged that if you can correctly predict the direction, it can also bring significant returns. However, when weighing the two approaches, preserving capital should always be the first principle. Holding onto trades is even riskier. Once you encounter a one-way market, if you keep adding to your position, the result will be huge losses or even blowing up your account. Therefore, both approaches are not advisable. The correct approach is twofold. First, operate in markets with larger formations, using staged profit-taking and setting trailing stops to take advantage of greater market space with zero risk. By holding for the long term, you can maximize profits. Second, as the market continues to move, add to your position appropriately in situations where you already have profits, and then set stop-loss orders to protect your capital. For example, if you sell at the upper bound and the market later falls below the lower bound, the entire formation will turn downward. We understand that there is still a lot of room for the market to run, so if you have profits from your sell order at the upper bound and the formation begins to turn downward, you can use additional orders and stop-loss orders to hold onto the position with zero risk, thereby maximizing profits. Follow me for more interesting ideas that will greatly help your trading.
FXOPEN:XAUUSDEducation
by EagleEyeStrategy
Two methods to ensure no loss of principal There are only two ways to avoid losing capital: one is to have a small stop-loss space (reflected in the entry position), and the other is not to bet too much at once. For example, buying one lot with $10,000 can earn $1,000, and buying ten lots with $100,000 can earn $10,000. Although the probability is the same, the more you do, the more you earn, and the less you do, the less you earn. However, controlling losses should be the top priority. As discussed earlier, if you buy too many lots this time and get stopped out, it will result in a big loss, which violates the principle of capital preservation. Some traders become increasingly greedy after making profits and then add more positions. A typical behavior is adding positions. For example, if you bought 10 lots at first and then made a profit in the expected direction, the trader would blame himself for not buying more at the beginning. Then, he would begin to imagine that the market would continue to move in the expected direction and invest most of his capital in this product, let alone any correct practices such as taking profits in batches. After you add more positions, it means that the cost has changed. Once the market reverses slightly, you will go from being profitable to losing money. At this point, you panic, lose your ability to think, and greed slowly turns into hope. You hope that this is only temporary, but the losses increase every moment. Perhaps you will have some luck a few times, but it won't be long before there is a risk of a big loss or liquidation. It is important to understand that becoming rich cannot be achieved by just one market movement, so don't be obsessed with this one time. Greed makes people forget about risk, and don't always imagine that the market will move in the expected direction, ignoring the risk of the opposite trend. This is the key to keeping your capital out of danger. Follow me, and I will share more interesting ideas that will greatly help your trading.
FXOPEN:XAUUSDEducation
by EagleEyeStrategy
What is the ultimate level of stop-loss in trading? For trading in stocks, futures, or forex, stop loss is a part of the trade. It only works effectively for investors if it is included and adhered to in every transaction. As we all know, stock investment requires three basic skills: stock selection, stop loss techniques, and profit-taking strategies. However, many investors do not pay enough attention to stop loss and profit-taking techniques, and ultimately regret not setting stop loss and profit-taking points. Today, we will introduce the highest level of stop loss techniques. First, the comprehensive stop loss method is the highest level of stop loss for stock investment. Therefore, when setting the stop loss point, the overall situation must be taken into account. There is no stop loss method that exists separately from the investor's overall operation. If the stock market develops beyond the investor's ability, it means that the stop loss measures must be implemented. Second, the highest level of stop loss is in the heart of the investor. When selling stocks, investors should not only rely on their eyes but also observe and analyze with their hearts. Many stock investors only believe in what they see when selling stocks. As a result, they often miss the selling opportunity when they finally realize the situation. Third, the stop loss method based on consolidation time. If an investor buys a stock with a heavy position, but the stock price does not rise much after buying, and it starts to move sideways after a period of time, it is important to note that if the consolidation time is too long, it means that the main force cannot use funds to boost the stock price. Fourth, stop loss based on real-time trends. If the main force of a stock has been washing the stock for some time and still has not controlled the stock when it is time to do so, it means that the main force has no intention of raising the stock price, and the future outlook is pessimistic. At this time, investors should take timely stop loss measures, otherwise, they will end up suffering losses. Fifth, stop loss based on trading volume. If an investor encounters a stock that is severely oversold, and many investors are trapped at a higher price, it is time to sell the stock. However, sometimes, observing the daily k-line chart, it is found that there has been a huge increase in trading volume in recent days. Note that this is a trap set by the main force to lure retail investors. In summary, the above is the relevant knowledge about stop loss techniques that we introduce to stock investors, hoping to help our friends in the investment field. FXOPEN:XAUUSD MCX:CRUDEOIL1! FX:EURUSD
TVC:GOLDEducation
by Ice_and_Fire1
5 Tips For Managing Losing Trades (It Happens To Everyone)Losing trades happen. They are apart of the journey. There is simply no such thing as a trader or investor who wins all the time. All the famous investors or traders you know have LOST many times in their career. It is perfectly normal. Did you know the famed hedge fund manager Ray Dalio lost everything in his 30s? He went broke. He had to start over from scratch. This post will address what losing trades really mean and how to deal with it. Before we begin, let us state the obvious: - Be careful of people who claim they don't lose. - Avoid people who flaunt win rates or success rates that are simply not possible. - Losing trades happen to everyone! You are not alone. Now, let's talk about what bad trades mean and 5 tips for managing them: Number 1: A losing trade is different from a bad trade The most experienced traders are well aware of their risk before they ever place a trade. Each losing trade is a small component of a bigger process that relates to a system, plan or strategy that has been thoroughly tested and studied. A losing trade is a calculated event for experienced traders. They defined their risk, position size, stop loss, and profit target. 🎯 A bad trade is very different. A bad trade implies someone risked their hard earned money with no plan or process. A bad trade is reckless and indiscriminate trading. This often happens to new investors or traders who do not yet understand the time, studying, and research that goes into making a rock solid plan. Be sure to remember the difference between a calculated losing trade and a bad trade with no plan or process. TradingView Tip: there are several ways to get started with a plan, system or process. Paper trading, backtesting and/or working with proficient traders who give valuable feedback are all ways to get started. Don't risk your money without first doing research. Number 2: Every losing trade provides data to get better As we've mentioned several times now, losing trades happen to everyone. But remember, losing trades are also filled with insightful information and data. You can learn a lot from analyzing losing trades. 🔍 At the end of each trading day, week or month, experienced traders will analyze their losing trades in detail. What patterns are appearing? What do they share in common? Why did they happen? With this information, a trader or investor can adjust their strategy based on what they've uncovered. Number 3: Do not let losing trades impact your health Your mental and physical health are just as important as your financial health. Do not let losing trades impact either of those. If your system is breaking down or several losing trades are starting to impact your emotions, step away from the computer or phone. Turn everything off and walk away. The markets have been open for hundreds of years and are not going away. When you're ready to come back, they'll be there. Get up, get some fresh air, and get back in the arena when you're ready. Number 4: Share your experiences with others Traders and investors across the globe want to learn from your stories and losing trades. These are invaluable experiences that we all share in common. Social networks allow you to chat, share, and meet people who are going through similar things. We can all learn from each other. Sure, the temptation to share your winners or act like the best trader who ever existed is tempting 😜 - but it's clear we learn together and get better when we share lessons from the loses. This is where the deepest insights are found, and together, it's where we can grow as a community of traders all trying to outperform the market. Share and ask for constructive feedback! Number 5: Keep Going Markets are a game of learning, relearning, and progressing forward. New themes, trends, and stories appear and disappear daily. The journey is long and it never stops. When implementing your trading plan or investing plan, it's important to do it with the long-term in mind. One or two losing trades in a single day or week is a small fraction of what's to come many months and years down the road. 🌎 Keep going. Keep building. Keep refining your plan. Study the data. We hope you enjoyed this post! We hope you learned something new or informative! Please leave any comments below and our team will read them. - TradingView ❤️
Editors' picks
NASDAQ:MSFTEducation
by TradingView
150
How to achieve stable and sustained profits. How to grasp the trend in this market? It is to follow the trend. When the trend comes, the invisible force is pushing you forward. To gain profit and income in the gold and foreign exchange markets, this is particularly important. What is the secret to making profits? The answer is simple and also the most overlooked and precious thing that is free, just like the air we breathe and the sunshine. What is the secret to making money? In fact, it is simple. Throw away all the news and fundamentals, return to rationality, and independently analyze and follow the trend. Trading is a trial-and-error process! In the continuous occurrence of errors, the main problem faced is the shrinking of funds and psychological torment. A trader must reduce the probability of making mistakes because your profit comes from other people's losses. That is to say, when someone makes a mistake, there will be profits for others to earn in the market. However, you cannot calculate or predict how many people will make mistakes in the next step, how big the mistakes will be, nor can you guarantee that you will always be on the correct side. Therefore, in trading, the only thing you can do is to try to make the time of your mistakes as short as possible. The rest is to wait for others to make mistakes, let's work hard together! In trading, we may have short-term profit goals, but long-term goals are based on short-term profits. Without short-term profits, long-term goals are meaningless. Therefore, we need to balance short-term and long-term goals to achieve stable and sustained profits. Pay attention to me and make trading simpler.
TVC:GOLDEducation
by Ice_and_Fire1