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TSLA 4H TRIANGLE BREAKOUTTriangles are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:TSLALong
by Tradingstrategyguides
2
EURGBP 1D DESCENDING TRIANGLEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias (Short) depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
6
ETCUSD 1D RANGE TRADINGRanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
BINANCE:ETCUSD
by Tradingstrategyguides
EURAUD 15M UNIDIRECTIONAL TRADING STRATEGYUnidirectional Trade Strategy STEP 1 - The first step to start trading is to choose the right market to trade and the best time of the day to trade. You chose a market and you stick with it until you master it. For the purpose of his unidirectional trade strategy review, we’re going to stick with trading FOREX. Moving forward, we’re going to lay down some rules to trade only in one direction. STEP 2 - Only Buy if We Trade Above the Opening Price We’re not going to predict which way to trade, but instead, we’re going to go along with the intraday momentum strategy. What we mean by this is simple: If the market price trades above the opening price of the new trading day, it’s an indication that the buyers are in control, so we want to go along with the flow of the market. The other alternative is to try to guess the market, which is a lot harder. Note* conversely, if the price is below the opening price we only trade on the short side. Since we’re trading within the forex market, we want to focus only on the major trading session like the forex London market and the New York sessions. Step 3 - Buy at the First Green Candle that closes above the Opening price of the New Trading Day. We need to clarify some rules: If during the first hours of trading the market has spent most of its time above the opening price our bias for that day is up, and we only look to buy. Conversely, if during the first hours of trading the market has spent most of its time below the opening price our bias for that day is bearish and we only look to sell. When the next major trading session opens (i.e. The London session) we look for the first bullish candle that closes above the opening price to trigger our entry: You can actually buy each time you see the price retesting and getting rejected from the opening price. We’re going to use the same rules and buy at the first bullish candle that closes above the daily opening price. Now, you may be asking yourself: “What if the market is already above the opening price?” “How do we enter?” Buy after each two consecutive bullish candles. Or, if you have a big bullish candle with its trading range bigger than the surrounding candles, you can go ahead and buy. Step 4 - You determine your own Take Profit levels or Take Profit Equals 2 times ATR We are going to use the average true range (ATR) indicator which measures the price volatility. This will give us a more efficient way to pinpoint the dynamic exit price level. As our profit target, we’re going to use the 14-period ATR applied to the 15-minute chart and multiply that by 2. For example, if the ATR is 5 pips our take profit will be 2 x ATR, which is 10 pips. Here are some of the advantages that come with trading only in one direction: Trading along with the momentum. A big profit potential on strong trading days. Reduces risk and improves the risk-reward ratio. Final Words – Unidirectional Trading Strategy In summary, a unidirectional trading strategy is an easy-to-use approach that is a great way for novice traders to get their feet wet. Short-term traders are better off with our unidirectional intraday trading strategy because they can profit without predicting the market. The bottom line is that if you stay nimble and react to the current market price, you’re better than trying to forecast the market. When you’re tied to your predictions you’re blinded to what’s really going on in the market. Keep it simple and trade in one direction! Thank you for reading!
Education
by Tradingstrategyguides
2
LULU 1D TRIANGLE BREAKOUTTriangles are repeatable trading chart patterns. Triangles are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:LULU
by Tradingstrategyguides
1
CHEWY 1D ASCENDING TRIANGLEAscending Triangle are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:CHWYLong
by Tradingstrategyguides
XAGUSD 1D DESCENDING TRIANGLEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
OANDA:XAGUSDShort
by Tradingstrategyguides
CMCSA 1D BIG 3 INDICATORBig Three Sub-Chart Indicator turned Green after the Day Candle Closed for an Entry Signal. Big Three Sub-Chart Indicator shows a Long Entry Signal when the Sub-Chart Bar turned Green after the Day Candle Closed. Big Three Indicator shows a Long Entry Signal when the Big 3 Indicator background turned Green after the Day Candle Closed Entered Long Trade at Daily Candle Close. Close Trade when Sub-ChartBar & Big 3 Indicator Line changes to Yellow or Red.
NASDAQ:CMCSALong
by Tradingstrategyguides
GOLD & THE TUESDAY NIGHT? WINS STOCK MARKET RALLY ? WINS STOCK MARKET DOWNTURN NO WINNER TONIGHT STOCK MARKET SEVERE DOWNTURN BECAUSE STOCK MARKET DOES NOT LIKE UNCERTAINTY. Descending Chart Pattern Price Bias is Bearish While gold has an inverse relationship with the dollar, stocks markets also have a deep connection to the metal. Investors commonly perceive gold as a haven in the event of a severe stock market downturn. ... Typically, stocks have a high negative correlation with the US dollar . However, gold has an opposite relationship.
OANDA:XAUUSDEducation
by Tradingstrategyguides
1
20 Days Trading CalculatorThis is my 20 Days trading calculator , i will share it for free..😊 Forex trading it's very simple, you just need to be content with small steps. That's all trading is.😊 Small steps that you take every day so when you look back down the road it all adds up and you know you covered some distance. It took me a long time to accept that, but it's true.😊 If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money. 😊 You need to have patience.😊
by Ghost_Trader_SA
WHY DID THE BULLISH CONTINUATION MOVE FAIL?What does "End of Month Square Up" mean. A square position is a situation where a trader or portfolio has no market exposure. ... The reason for this confusion is that the term "squaring up" is used to describe settling open trades before the market closes. A square position is also referred to as a "flat position." Square position, like many trading terms, can take on a different nuance depending on the speaker. For an individual forex trader, a square position can refer to offsetting long and short positions in the same currency pair or a situation where a currency trader holds no positions in the market. The reason for this confusion is that the term "squaring up" is used to describe settling open trades before the market closes. Squaring usually refers to just a few positions, but a trader could close out all of his open positions and get out of the market. The "Market Makers" can use this trading principle as they move the market. E/U had a Bullish Trend which became a consolidated range. Price had a Bearish Breakout of the Range bottom which failed. Price created Higher Highs and Higher Low making it appear a Bullish Continuation move was happening. This drew in long traders leaving behind lots of money tied up in Stop Losses. The Market Makers can tell where the most money is tied up on the Long side or Short Side. It seems to appear that the Market Makers made the Bullish Continuation Reversal fail and took out the Stop Losses at the Higher Low entry point and also the 50% reversal entry point. All of this happening the last few days of the End of the Month of October. Could this be an example of the "END OF MONTH SQUARE UP?"
Education
by Tradingstrategyguides
SONY 1D BIG THREE SUB-CHART INDICATORBig Three Sub-Chart Indicator turned Green after the Day Candle Closed for an Entry Signal. Big Three Sub-Chart Indicator shows a Long Entry Signal when the Sub-Chart Bar turned Green after the Day Candle Closed. Big Three Indicator shows a Long Entry Signal when the Big 3 Indicator line turned Green after the Day Candle Closed Entered Long Trade at Daily Candle Close. Close Trade when Sub-ChartBar & Big 3 Indicator Line changes to Yellow or Red.
SLong
by Tradingstrategyguides
DASHUSD 1D RANGE TRADINGRanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
BINANCE:DASHUSD
by Tradingstrategyguides
AUDUSD 15M SCALP SHORT TRADE US SESSIONStacey Burkes TSG Podcast Ep. #18 Forex Trading Strategy. US SESSION 3 Hour Window Starting at 8 am EDT Ending at 11 am EDT Step 1 Highest Bullish Candle Inside US 3 hr window. Step 2 Bearish Pin Bar 2nd candle in US window. Step 3 Enter Sell Trade when Price Engulfed the bottom of the High Bull Candle. Step 4 Market Makers Stop Hunt Bullish Wick Confirmation for Short Entry Traders. Step 5 SL above current swing high. Step 6 EXIT - Close Short Trade after Price crossed Bullish Resistance.
Education
by Tradingstrategyguides
3
EURAUD 15M SCALP LONG TRADE US SESSIONStacey Burkes TSG Podcast Ep. #18 Forex Trading Strategy. US SESSION 3 Hour Window Starting at 8 am EDT Ending at 11 am EDT Step 1 Lowest Bearish Candle Inside US 3 hr window Step 2 Bullish Pin Bar 2nd candle in US window. Step 3 Bullish Engulfing Candle Entered at Candle Close. Step 4 Market Makers Stop Hunt Bearish Pin Bar Confirmation for Long Entry Traders. Step 5 SL below Entry Candle Step 6 EXIT - Close Long Trade after RailRoad Tracks Bearish Reversal Candle Pattern with 61 pip profit.
Education
by Tradingstrategyguides
4
LITE CRUDE OIL FUTURES 1DRanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYMEX:CL1!
by Tradingstrategyguides
1
AUDJPY 1H EMA STRATEGYExponential Moving Average Strategy (Trading Rules – Sell Trade) Our exponential moving average strategy is comprised of two elements. The first degree to capture a new trend is to use two exponential moving averages as an entry filter. By using one moving average with a longer period and one with a shorter period, we automate the strategy. This removes any form of subjectivity from our trading process. Step #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade below the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade below both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover, which will add weight to the bearish case. We refer to the EMA crossover for a buy trade when the 20-EMA crosses below the 50-EMA. By looking at the EMA crossover, we create an automatic buy and sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bearish sentiment is strong enough to push the price further after we sell to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. Step #3: Wait for the zone between 20 and 50 EMA to be tested once when selling (and at least twice when buying,) then look for selling opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for 1 successive and successful retests of the zone between the 20 and 50 EMA. The successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend. Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to sell. This brings us to the next step of the strategy. Step #4: Sell at the market when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and sell at the market price. We now have enough evidence that the bearish momentum is strong to continue pushing this market lower. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Los 20 pips above the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is down. As long as we trade below both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips above the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. The last part of our EMA strategy is the exit strategy. It is based again on the exponential moving average. Step #6: Take Profit once we break and close above the 50-EMA In this particular case, we don't use the same exit technique as our entry technique, which was based on the EMA crossover. If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse. Because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. For a Buy trade we wait for 2 retests of the zone. After the EMA crossover happened. How to Trade With Exponential Moving Average Strategy. The exponential moving average is the oldest form of technical analysis. It is one of the most popular trading indicators used by thousands of traders. In this step-by-step guide, you’ll learn a simple exponential moving average strategy. Use what you learn to turn your trading around and become a successful, long-term trader! A moving average can be a very effective indicator. Many traders use exponential moving averages, an effective type of moving average indicator, to trade in a variety of markets. An exponential moving average strategy, or EMA strategy, is used to identify the predominant trend in the market. It can also provide the support and resistance level to execute your trade. The Exponential Moving Average EMA Strategy is a universal trading strategy that works in all markets. This includes stocks, indices, Forex, currencies, and the crypto-currencies market, like the virtual currency Bitcoin. If the exponential moving average strategy works on any type of market, they work for any time frame. In simple terms, you can trade with it on your preferred chart. Also, read the hidden secrets of moving average. Let’s first examine what a moving average is and the exponential moving average formula. After, we will dive into some of the key rules of the exponential moving average strategy. Exponential Moving Average Formula and Exponential Moving Average Explained. The exponential moving average is a line on the price chart that uses a mathematical formula to smooth out the price action. It shows the average price over a certain period of time. The EMA formula puts more weight on the recent price. This means it’s more reliable because it reacts faster to the latest changes in price data. An exponential moving average tries to reduce confusion and noise of everyday price action. Second, the moving average smooths the price and reveals the trend. It even sometimes reveals patterns that you can't see. The average is also more reliable and accurate in forecasting future changes in the market price. There are 3 steps for the exponential moving average formula and calculating the EMA. The formula uses a simple moving average SMA as the starting point for the EMA value. To calculate the SMA, take the sum of the number of time periods and divide by 20. We need a multiplier that makes the moving average put more focus on the most recent price. The moving average formula brings all these values together. They make up the moving average. The exponential moving average formula below is for a 20-day EMA: Initial SMA = 20-period sum / 20 Multiplier = (2 / (Time periods + 1) ) = (2 / (20 + 1) ) = 0.0952(9.52%) EMA = {Close - EMA(previous day)} x multiplier + EMA(previous day). The general rule is that if the price trades above the moving average, we’re in an uptrend. As long as we stay above the exponential moving average, we should expect higher prices. Conversely, if we’re trading below, we’re in a downtrend. As long as we trade below the moving average, we should expect lower prices.
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