16/11/2020 XAUUSD Leaning bearI started on my plan around 3 hours ago when price was near my 1900 resistance but now it had come back down to my bias zone. I wanted to say that gold looks over-extended but in the lack of any bearish setup, we look to be going higher. But now it is back to neutral and I am leaning bearish.
Wait to see reaction.Go long only on bullish setup, targeting 1899.26-1900.96, 1909.38, 1921.2. In the event 1935.4 trade today, I think it will present a low risk sell level.
If 1886.6 breaks, look shorts to target 1876.5, 1863.84, 1853.8. 1848.00 was last week low's and if we reach here, should see a bounce.
Tradingstrategy
Does Trading Really Work?I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades.
Does Trading Really Work?
What I want to talk about today is, does trading really work?
Because sometimes it feels that you’re going one step forward and then two steps back, doesn’t it?
Yesterday, Rosemarie shared in one of my private Facebook groups. She asked:
“How is everybody doing? I got out last Friday losing most of my gains, and yesterday I got stopped out of a loss during the same day and today I put on three trades, two long and one short, and they’re all in the red. Is everybody in the same boat or staying out of the market?”
What is going on here? Does what Rosemarie shared sound familiar? This is where sometimes it really feels that you’re not moving.
And let me show you what’s even worse.
Traders will often look at some charts for big percentage movers and say, “Oh my gosh!” and will get in too late.
Usually it’s penny stocks for companies like CARV . Very recently this stock went from $2 to $22.
Another example of a stock that did this was COHN which was trading at $4 and then skyrocketed.
These two stocks were up 300% & 137%.
When you see this, you’re wondering, “Why can’t I do this,” right?
They see a price spike, and buy a stock with no strategy in mind.
You see, doing something like this with penny stocks it’s like winning the lottery.
Have you ever heard of CARV before? They may have shot up, but then they came right back down.
This is what usually happens. What goes up must come down, especially when it has these parabolic moves.
2 Things Needed To Trade Successfully
So I want to share a little bit of what I have experienced in all my years of trading. You see, in order to trade and to trade successfully, you must have two things.
1. A Solid Trading Strategy
The first thing that you need is a solid trading strategy. I’ve talked about this before. What exactly do you need in a trading strategy?
What to trade
Well, first of all, a trading strategy needs to first tell you what to trade, right?
I mean, what stock, what option, what binary option, or what future market, it doesn’t really matter.
When to enter
It also has to show you when exactly to enter a trade.
When to exit
Then we need to know when to exit a trade.
When it comes to exiting you can either exit with a profit, I mean, this is why we are trading, or you’re exiting with a loss, right?
Both ways are possible here, and this is what a solid trading strategy does for you, it gives you this information.
Now, as you know, I personally like to use the PowerX Strategy.
This is the strategy that I like to trade here, and this is exactly what strategy Rosemarie is trading.
2. You Must Have Confidence In Your Strategy
Now, the second thing that you need, based on my experience, is you need to have confidence in your strategy.
We talked about this before, if you don’t have the confidence, you start chasing shiny objects, you jump from one strategy to another, from one newsletter to another, or you buy more & more tools.
At least this is what happened to me in the beginning when I was lacking confidence. So confidence is absolutely important.
Now the key question here is, “How?”
People ask me all the time:
“How do you have so much confidence in your plan?”
Well here’s my answer: I know my numbers and I know what to expect.
How to know what to expect
You see, for example, how do I know what to expect?
As I mentioned, I’m using the PoweX Strategy and I am using the PowerX Optimizer to find the best stocks and options to trade.
That is the software that I use every day I’m actually using it at night to find the best trades, and then I confirm them the next morning.
This only takes me, what, 15-35 minutes a day.
When I run the software, I look for certain stocks and I look for stocks that give me at least a 60% return on my investment, per year.
This means I’m expecting 5% per month.
Now, I’m always happy when I’m surprised in a positive way, but these are my minimum requirements.
I’m also expecting a 40% winning percentage.
These are my requirements and yours might be different, but this is what exactly I’m expecting.
A 40% winning percentage means 6 out of 10 trades are losing trades.
I also expect a profit factor of at least 3. Now, what does a profit factor of three mean?
It means that for every dollar that I lose, I expect to make at least $3 in return.
So this is my ratio, and again, yours might be completely different, but this is what I’m looking for.
So these are my expectations when trading the PowerX Strategy.
Real Results From My Trading Account
So let me show you some real results. As some of you may know, I opened a small account with tastyworks.
I put $20,000 into the account because I wanted to see how quickly can I grow this account.
I have been trading with my trading plan, on this account, and I want to explain to you exactly what happened.
These were my statistics. These results are from June 17th, and went back almost a month prior to May 19th.
I got 192 signals from the PowerX Optimizer Software in total.
I then ruled out a few stocks according to my trading plan.
I had 41 triggered and 31 filled. So this means over the past four weeks I’ve taken 31 trades.
Now out of these 31 trades, 9 trades were still open, and I closed 22 trades.
Now out of these 22 trades, I closed 6 with a profit and 16 with a loss.
Now, I’ve just covered with you what I expect, and 6 out of 22 trades is 27%.
So right now, my winning percentage is 27%.
I expect a 40% winning percentage, right? So here, the strategy was underperforming.
This is very important to understand because when you are trading a strategy, and you’re expecting a winning percentage of 40%,
it means that in the long run, based on my experience, a good number of trades to look at is 40 trades.
This is what you want to see after 40 trades.
However, I only closed 22 trades, and it’s absolutely normal for every trading strategy to have times when they’re underperforming, or when they’re overperforming.
You see, when trading, you don’t have this straight line that goes up from the lower left to the upper right, it doesn’t work this way.
There will be dips, here & there, and you will see that sometimes it’s just going sideways, maybe even down, and then it takes off.
So at this time my account was definitely underperforming, but over the next few weeks, I expected it to overperform.
At this time, the account was underperforming, because the markets were nervous about what was going on with the virus.
During these trades, markets were definitely nervous due to uncertainty with the rising number of new cases of Covid-19.
I mean, we had a spike in cases in Florida, Texas, Arizona, but then overall, it seemed that our economy was rebounding, so these were definitely tricky times to trade.
So this is why my account was underperforming, but there is more to it than that because again, the winning percentage is only one of the important factors.
What I also expect is that I have a profit factor of 3 to 1.
I was not quite there yet because my average losing trade was $200.
This is very important to note here that I was keeping my losses small here.
Think about it, this was a $20,000 account. So $200 per losing trade is 1% and the average winning trade is $433.
So my loss after four weeks of trading was only $600.
I told you I’d give it to you straight, and even though I’m really good at trading, I wish I could tell you that I’m always winning, but after four weeks of trading here, I had a loss of $600 in a $20,000 account.
This loss however is only about 3%. That’s nothing, especially if that my average winning trade was $433.
This means that one winning trade will get me close to break even, and a few more winning trades, and I’d be back up.
I want to share something else with you.
In my company, Rockwell Trading, we have a team here, and some of the team members are trading.
One of the team members who is trading is Alex, who is responsible for all the tech support for the website, and all the backend stuff.
We had a conversation through Skype about the trades he was taking at this time.
Alex said:
“I’m trading right now and I’m not doing well.”
And I said:
“Well, I’m not doing well either. Look at this. Check the stats, 22 losing trades, only 6 winning trades.”
Exactly how I explained it here in this article, to which Alex replied:
“Yes, I’m surprised you’re only down $600.”
I asked him:
“Why are you surprised? I’m keeping my losses small. This is the secret here one winning trade will bring me back to break even.”
Alex had a realization and said:
“I’m surprised that I’m only down $155 a month, and two more winning trades, and I’ll have a decent profit.”
So you see, this I believe is the key. You have to keep your losses small.
Is It Possible To Make Money Trading?
I’ve been trading for a long time. I can’t remember exactly how long, but more than 20 years. I can give you my answer.
YES, it is absolutely possible to make money with trading, and there are a few things that you need to consider.
1. Trading Is A Marathon, Not A Sprint
Number one, trading is a marathon, not a sprint.
When you see these crazy claims about “how you can turn a thousand dollars into a million dollars,” or “never have a losing trade again,” or “make 1,000%,” run away!
I mean, here, I’m as real as it gets. I’m sharing my real results with you, from one of my actual accounts.
This is one of my smaller accounts, and I have a total of 8 accounts.
The results of this account are pretty typical of all the other accounts I’m trading on.
2. Stay Focused
Number two, is it possible to make money with trading?
Yes. Stay focused. Don’t jump from one trading strategy to another one.
That is one of the big mistakes that I made in the beginning of my trading career.
I mean, this is where I started trading a strategy and then when it underperformed, as this one did, I jumped to the next trading strategy, and then I jumped to the next trading strategy.
3. Stay Disciplined
The third thing I believe is absolutely important is to stay disciplined.
Let me tell you a story really quick.
So my kids are sailing, and so we go to regattas all over the country.
A few years ago, we went to a regatta in New Orleans.
In the evening after the first day, one of the dads, Tony said:
“Hey, you know, what? Do you want to go to a casino and play, gamble a little bit?”
And I said:
“Well, not much of a gambler, but sure, why not?”
Tony and I went to a casino and we decided to play blackjack. I think we had about $500 each and, here’s what happened.
Tony had a few losing hands, and after a while, his chip pile was down to half the money that he had.
Now, I’m very conservative, as I’m really not much of a gambler, I barely know the rules of blackjack.
Well when Tony was down almost half of his money, decided for the next round he was all in.
No more discipline. All in. Does that sound familiar?
What do you think happened? It was another losing hand and so we left the casino and Tony wasn’t so happy.
This is also what I see happening to traders.
After a few losing trades, often they do something stupid.
I also did this in the beginning of my trading career.
In the beginning of my trading career I clearly said:
“You know what? After a few losing trades now let’s just increase the bet size and try to make back the money that I lost.”
Have you ever done it? Because if so, you know exactly what happens. So it is super important to stay disciplined.
How do you stay disciplined?
How do you stay focused and disciplined?
This is where we go back to having confidence.
And you see it’s a full circle.
And how do you have confidence?
By knowing what to expect and by knowing your numbers.
Has this been helpful to understand a little bit of what’s happening right now?
And if you have a losing streak, it might not necessarily be new to you.
Know what to expect and know your number.
09/11/2020 #EURUSD Looking for a pullback day.Price is over-extended and based on price action, does look like due for a pullback. If we do hit 1.1910, look for possible rejection for a short - pullback
Upside is probably limited to 1.1910, 1.1946 and 1.196. Below 1.1852, look for shorts towards 1.1814-20, 1.1802, 1.1768-86 and 1.1756. 1.17220 will cap lows of day.
Lots of support below also so need to be nimble with shorts.
Power of Investing lies in your Individual Method Everything can be thought. But not everything can be learnt. Developing a risky instinct in investing is not something you learn. It’s something you are born with. Then you are given the power to share it. Agree? Probably not. It’s understandable. I went into stock trading not because I dig and sturdy deeply into companies’ financial and books at first hand, or mastering the art of options trading, rather I went into it simply because of self possessed gift of intuition to make risky calls that contradicts the majority, which often turn out favorably.
Investing is a game, not a gamble.
Contrary to the general method of investing, I buy a stock based on instinct then I start digging further in its books and financials to justify the instinctive decisions. Yes, I often lose. But yes, I often gain more. The reward comes from balances and checks that falls in favor of more profits at the end of the day. Take an example, on a 3 day stretch Oct 25th-28th, we all witnessed over 95% of stocks thrown downwards to a darkening red (nearing all time lows). Meanwhile, calls on Ford, GE, and Kodak (I made back in July when the market downgraded them to “Strong Sell”) kept a shiny bright green of blocks (upwards momentum). Now that was some risky calls that paid off.
So it begs to ask… What exactly is the rule in stock investing for winning profits? Are there standardized rules to follow? And are these rules created by the 10% of winners, and gets passed down for the mass to follow?
There’s the old saying: Read all that works, but never follow them, there’s a reason it only works for the less than 10%. (OK I made that up, but its true).
The power of investing lies in your individual method... not the market (standards).
ALGOUSDT Engulfing SignalToday, our Automatic Engulfing Strategy revealed a potential growth in ALGOUSDT price.
The reverse in the price movement is confirmed by the DMI Indicator: +DI and -DI lines reflects the increase in the bullish and decrease in bearish activity.
The RSI and Bollinger Bands Indicators demonstrate that the downtrend is over.
We expect the 2.7% price growth from 0.3028 to 0.3110. The alert was automatically executed by SkyRock Signals trading bot.
LTOBTC Intraday Trading OpportunityTechnical analysis with the Automatic Engulfing Strategy the reverse from downtrend to uptrend for LTOBTC.
The resistance line demonstrates the local downtrend which is over with the breakdown. During the price drop the AD line was horizontal, which means the equal bullish/bearish pressure. In total with the price fall it can be the evidence of the downtrend end.
We expect the 2.8% price growth from 0.00000557 to 0.00000572. The alert was automatically executed by SkyRock Signals trading bot.
GBP/CAD: Can This Block Push Us To The Downside Again. Lets SeeThis is an educational + analytic content that will teach why and how to enter a trade
Make sure you watch the price action closely in each analysis as this is a very important part of our method
Disclaimer : this analysis can change at anytime without notice and it is only for the purpose of assisting traders to make independent investments decisions
GBP/USD: Sell NOW! Free Live Signal Is Available Now This is an educational + analytic content that will teach why and how to enter a trade
Make sure you watch the price action closely in each analysis as this is a very important part of our method
Disclaimer : this analysis can change at anytime without notice and it is only for the purpose of assisting traders to make independent investments decisions
EURUSD ready for pullbackAs price reached 1.20 , mentioned in my earlier analysis, we can expect not only a pullback to the bottom of the channel, but also a break of bearish channel.
Price bounced of 1.20 price level, 161.9% Fibonacci and resistence line. Also, we got a daily reversal candle. With so many confirmations, it's walk in the park trade.
First target is at 1.18 (100 pips from current level).
Second target is 1.1690
Bull Capital
What Is a Trading Strategy and Why Traders Must Use ItI think I won't be far from the truth if I say that novice traders think about trading signals and trading strategies as the main components of their profitable trading in the financial markets. They are wrong, but they will need time and enough knowledge to understand their mistakes.
It is obvious that novice traders think that if they know when to buy and when to sell in the market, they will make money. But the reality gives us about 90% failed traders who succeed only in destroying their capital. Trading signals won't make your rich if you know nothing about trading. If we talk about trading signals, we can say that they are useless for the majority of traders. But trading strategies, which produce trading signals, it is another tool which definitely worths your attention.
In this post, let's talk about trading strategies. What is a trading strategy? What type of trading strategies can you use? Why do you need to use trading strategies? How to pick the right trading strategies?
In simple words, a trading strategy is a list of rules which describe when to open a trade and when to close it. A trading strategy gives you a signal for buying or for selling. It tells you where to place stop and where to place profit targets.
Some trading strategies can include information about the risk level and how you can manage open positions. But I would like to talk about it in the context of money management strategies.
We can divide trading strategies into different groups using different criteria.
Trading strategies can be based on Fundamental analysis, Technical analysis, or they can combine both types.
We can divide trading strategies based on the duration of holding open positions, and we will get the following types:
- scalping strategies (very fast trades with very close profit targets)
- day trading strategies (trades which are opened and closed in the borders of a trading day)
- swing trading strategies (when we stay with open positions for more than one day)
- long term trading strategies (when we hold positions for weeks and months)
- investing strategies ( when we buy a financial asset and hold it for years)
We can trade in different market conditions, and for them, we need to use a different approach:
- trend-following strategies (when we trade in the direction of the main trend)
- countertrend strategies (when we trade against the main trend trying to catch pullbacks)
- trend reversal strategies (when we try to catch a trend reversal and join in a new trend in the best point)
- strategies for range markets (when a market moves sideways, and we buy from the support and sell from the resistance)
- volatility breakout strategies (when we try to catch a strong movement and a beginning of a new trend after a consolidation period).
All these strategies are based on different principles and must be used properly in order to avoid false signals. For example, if we use trend-following trading strategies in a range market, we will get tons of false signals. The same goes for using range strategies in markets with solid trends.
Trading strategies can be based on simple Technical tools like trend lines, levels, zones, chart patterns, and a wide range of different indicators and their combinations.
What is very important to note?
There are thousands of different trading strategies, which allow you to trade in any market, timeframe, and in any market conditions.
There are a lot of good trading strategies which can be profitable in the long run. But there are no trading strategies which will give you 100% profitable trades. You must understand that any profitable trading includes trades closed by stop orders. Drawdowns are a part of any profitable trading as well. When someone tells you that this trading strategy has 100% win rate, you are talking with a clown but not with a trader, and you shouldn't use such a trading strategy.
You should note that in order to succeed in trading, you must have at least one trading strategy. When you jump from one market into another market and you trade without the exact rules, you have very good chances to fail. You aren't consistent in your trading decisions and it leads to unpredictable trading results. Of course, you can expect that you will be so lucky and take part in only profitable trades. But the reality can be far from your expectations. Trading strategies allow a trader to be consistent. You have the trading strategy. You trade again and again, following the same rules. You pass through drawdowns. You pass through profitable periods. You are profitable in the long run because you use the proven trading strategy and realize its potential.
What else you should note?
A trading strategy must suit you like shoes. You don't wear shoes which don't match your size, right? The same goes for trading strategies! They must match traders' nature, lifestyle, goals. When you use the right trading strategies, you feel comfortable. It is a good way to avoid mistakes in trading. There are no perfect trading strategies if we talk about trading results. But there are trading strategies which perfectly suit you! You have to use such trading strategies!
Before using any trading strategy, even if you are sure of its profitability, you should backtest it. You will see all ups and downs of your equity curve. You will see the periods of drawdowns and how the strategy can manage it. You will see the weaknesses and strengths of the trading strategy. Based on the information from backtests, you will be much more confident in this strategy when you start real trading. It will also be good to start using a trading strategy in a demo account first.
And I guess you have a question, where you can get a trading strategy?
There are two ways. Of course, the simplest way, you can use trading strategies developed by other traders. Google search will help you with this task. Also, ask your favorite traders to share their trading strategies. Pick the most suitable variant for you among thousands of different strategies. Don't forget that you must feel comfortable using the trading strategy. The 2nd way is the best for any trader. It needs more knowledge, experience, and time, but it allows you to get the strategy which 100% suitable for you as a trader and it is oriented on reaching your goals. I'm talking about the way when you create a trading strategy for yourself.
Concluding, I want to say that there are a lot of variants of how to make money in the financial markets. There are a lot of trading strategies that work and they are profitable. You just need to pick the most suitable trading strategy for you and use it properly. Don't spend your time trying to find a strategy that will give you only profitable trades. There are no such trading strategies!
Also, please note that it is impossible to succeed in trading if you don't use a trading strategy or portfolio of trading strategies. I really advise you to stop searching for useless trading signals and focus on the tool which really can be helpful for you. Trading strategies give you what you need, and they make from you an independent trader. You trade in the markets you want and how you want. You follow your own trading plan, which helps you to reach your own goals in the financial world!
I wish you good luck!
BTCUSD: Be careful.Bitcoin shows a very choppy, non-trending market situation right now. It could go both ways:
Bullish Scenario: Current market could be a wave 4 Elliott Wave correction and it will PUMP soon.
Bearish Scenario: A Tenkansen / Kijunsen crossover is observed which is a strong bearish signal according to the Ichimoku technical analysis and the price will drop lower.
Suggestion: lower your position size and just wait for a breakout / confirmation in the direction. No need to take risks and lose money, be patient.
50MA Trading Strategy - Potential Entry Point for Big DropPlease comment below if you have any feedback and LIKE if you agree with the idea.
TYPE OF TRADE:
I am looking for a great setup that could form soon for a SHORT position.
CONDITIONS TO TRADE:
I will be looking for 2 specific conditions to enter into a short position
- This 2 year resistance holds and doesn't get broken...even by a wick.
- We close below the 50MA
Note: I have put 3 possible scenarios that could play out that would satisfy these conditions (don't look into the periods of them too much as I have drawn them roughly)
OTHER NOTES:
The reason why I am really excited about this potential trade is we are near the 2 year resistance and if we reject off it this could be the big move we have been looking for.
FUNDAMENTAL ANALYSIS:
- We have had a surge in stocks around the world but what worries me are issues of:
-Supply chains being disrupted
-Could trigger more bankruptcies
-COVID-19 cases rising
-This is the original catalyst that has caused the unsteadiness of the markets
-COVID-19 uncertainty
-Are we re-opening too soon...only time will tell
-Unemployment still rising
-What are people doing with their incomes?
-Housing prices and Banks health
-Nothing as of yet but the potential problem if housing drops and banks' security to people's loans becomes a risk for the banks.
I will continue to update this trade idea as we progress but please comment as I would like to hear peoples thoughts on my ideas.
Note: I have put a link to what my 50MA Trading Strategy is and what drawbacks and risks it has.
BEWARE FIRST & LAST SESSION HOUR- KDD CORPORATION-30MN- MY IDEASAfter a past long ranging period , we can observe that the KDD CORPORATION curve in 30mn has been at first descending.
After a short period with flat movement we observed a change in direction, seeing now the market going up back to the former ranging zone.
We see that there is a huge amount of fight between buyers and sellers. For the time being, buyers win!
Illustrated by two strong buying signals opportunity to get profits in the long direction.
Next:
-High probability of seeing the market running up more even in this slop angle.
- Beware of the first and last hour of session , major moves has been happening during those times.
- Possibility of a short entry around the top dotted black line which is a strong resistance point OR if we observe a large candlestick (one unique candlestick ) going down to break all lines and reshape the market.
USDCAD preparing to SHORTPrice is going to sell after the market opens Sunday. For a quick entry, you can get in at 1.41200 and set your stop loss 15 pips from entry. My take profit would be 104 pips away, giving me a risk/reward ration of 7. I'm a new trader so I open to comments on the potential trade.
How to Trade Bull & Bear Pennant Pattern | Pennant Tutorial !Pennant Chart Patterns Tutorial !
Pennant Pattern : Pennant Patterns are continuation chart pattern, forms when price of a security or asset makes strong upward or downward movemnt followed by a consolidation period with converging trendlines which forms a pennant before continuing to move in the same direction. Bullish pennant forms in a bullish trend market and Bearish pennant forms in a bearish trend market.
Bullish Pennant : Bullish Pennants are bullish continuation pattern that occurs in strong uptrends and it forms after a sharp climb in price then a consolidation period with converging trendlines. After formation of the pennant, price breaks above the upper trendline of the pennant and continues the bullish trend.
Bearish Pennant : Bearish Pennant is the opposite of a bullsish pennant. Bearish pennant forms after a sharp drop in price then a consolidation period with converging trendlines after that price makes a brekout below the lower trendline of the pennant and continues the bearish trend.
(* Key things to know : In a pennant pattern the period of consolidation should have low volume and the breakout should occur on higher volume like most pattern. Above average volume confirms the breakout. You can also use other indicators like MACD or RSI to know the strength of the breakout. Look at below detailed examples - )
Please Like & Comment and Stay Tuned ! 👍
Thank You-
How to Trade Bull & Bear Flag Pattern | Flag Pattern Tutorial !Bull & Bear Flag chart patterns Tutorial!
Bull Flag : A bull flag forms in bullish trending market, After a strong bullish movement when this pattern forms it signals the market is likely to move more higher. Bull flag pattern much similarly looks like a horizontal parallel channel or downward parallel channel along with a strong bullish vertical rally; when we draw the pattern it looks like flag on a pole, that's why they are called bull flags.
How to identify and Trade Bull Flags : - It is easy to identify a bull flag you just need to look for a Bullish Vertical Rally or Trend which is Pole of the Flag then identify the consolidation which will look like either horizontal channel or downward channel which will be the Flag. After identifying the pattern you can enter at the bottom of the flag or you can enter when price breaks the upper trendline of the flag which is more safe.
The breakout may also be a fakeout that's why we will take help of Volume and RSI Indicator to confirm the breakout. As shown on the below example you can see when price breaked the uppper trend of the flag the Trend drawn on the RSI was also broke and the Volume was high.
()
( *Key things to know : If the retracement measured from the vertical rally or Flag Pole retrace more than 50% the pattern becomes weak and it may not be a Flag Pattern but sometimes it stays valid if it breakouts above the uppertrend of the flag.)
Bear Flag : Bear Flag is just the opposite of the Bull Flag Pattern. A bear Flag forms in bearish trending market. Bear Flag pattern signals the market is likely to drop more lower. You need to identify Bear Flag in bearish trend when the price of a financial asset drops then if the price forms a horizontal channel or upward channel which will look like a inverted flag whose flag pole will be upside and the flag will be downside.
Stay Tuned; 👍
Like this tutorial & share your comment below and also
check other tutorials with example linked below;
Thank You-
4H Support / Resistance with RSI Day Trading StrategyRSI = Blue, EMA of RSI = Red.
RSI 14, EMA 45
Long Rules:
1) RSI > EMA RSI = look for long setups
2) Resistance is broken ( a new high )
3) Price rejects (pulls away) from the previous resistance
4) RSI > EMA RSI >> 50
Short Rules:
1) RSI < EMA RSI = look for short setups
2) Support is broken ( a new low)
3) Price rejects (pulls away) from the previous support
4) RSI < EMA RSI << 50
I typically like to place a stop loss at the top of the closest resistance (if going short) and at the bottom of the closest support (if going long) and TP 1:1.
Another method is to go for partial profit at the closest support/resistance and move the stop to breakeven to catch longer trades.
3/4 trade setups in the past month on AUDUSD
FLAGS:
*the setup on the 20th of March was a working short position, but the strategy is looking long.
*the setup on the 31st of March was not validated as the RSI is not > EMA of RSI
Head and Shoulders the accurate price action patternHead and Shoulders Pattern Tutorial -
Head & Shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway; this reversal signals the end of an uptrend.
The formation of a H&S pattern resembles a baseline or neckline with three peaks where the middle peak is the highest between the two right and left peaks.
Head and Shoulders patterns are statistically the most accurate chart pattern, almost 85% of the time they reach their projected target.
The formation of a H&S pattern resembles a baseline with three peaks where the middle peak is the highest. The two left and right peak don't have to be at the same price, but the more closer they are to the same level the more stronger the pattern becomes. The pattern completes when price breaks through the neckline.
Stay Tuned, 👍;
Three Percent Trade Idea: Go short WHere is a great opportunity to go short on Wayfair (W). If you are able to go short closer to $90 we think that would be the best time to build your short position.
At Three Percent Trades we have a price target of $65.00 / share, which is a potential upside of 22.3% from the current level.
We use a combination of fundamentals & technical analysis to trade high probability set-ups, and believe this is a great opportunity to take advantage.
The Power of a Momentum MoveNever underestimate the power of a momentum move... either up or down!
Because once the momentum train starts going its very hard to stop it and it will keep going much further than most have anticipated so don't be that trader that try to predict the reversal!
This video explains more!