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What are the parts of a trading strategy?What are the parts of a trading strategy? I was doing a backtest on a new concept yesterday, and I realized the different parts of my testing strategy. At that moment, I became aware that the way I see any trading strategy is like an algorithm with several filters or steps. When those filters become "TRUE," we can check the following filter until we have a valid setup. Another way of understanding a trading strategy is like a funnel with different filters. At the end of the funnel, we have two possible outcomes. Outcome 1. You are allowed to set pending orders. Outcome 2. Do not place orders because one or more filters are not "TRUE." Why am I writing about this? Because it was clear to me that even if you are doing it consciously or not, every strategy is like an algorithm; it doesn't matter if you trade manually. In the end, your brain is taking the price and making it go through a funnel of filters. So my intention today is that by putting together those different filters/stages/steps I realized yesterday, you can try to see them in your strategy and make improvements to your system or maybe become aware of something you have been doing. It's important to say that this is a template, maybe you are using 2 filters, or perhaps you are using 5. The key point is understanding the step-by-step process that systematic strategies follow every time a setup is developed. -------------------------------------------------------- FILTER 1: GENERAL CONTEXT The most probable thing is that your first filter is about general context. What we are trying to answer here is, "Are we in a valid place for the strategy or not?" Some examples can be: - The price must be in contact with a support/resistance zone. - The price must be above/below (a certain technical level) - The price must be on a drawdown of (time) (TRUE / FALSE)?. IF true, proceed with the following filter; IF false, you are not allowed to trade. -------------------------------------------------------- FILTER 2: SPECIFIC CONTEXT. Now that your first filter is TRUE, the most probable thing is that you are using the 2nd filter regarding context; this is pretty similar to the previous filter but happens after the first one is true. Example: - Moving averages should be in the following order... - The price must be above/below (a certain secondary technical level) - On a lower timeframe, the price must be (technical condition) (TRUE / FALSE)?. IF true, proceed with the following filter; IF false, you are not allowed to trade. -------------------------------------------------------- FILTER 3: FINAL CONTEXT BEFORE THE TRIGGER. Here you will be paying attention to the final filter before the trigger; this is the last thing that, if TRUE, you will be able to wait for your trigger. Example: - A technical indicator must be overbought/oversold. - Volume at a certain level should be... - I need to see a divergence. (TRUE / FALSE)?. IF true, proceed with the following filter; IF false, you are not allowed to trade. -------------------------------------------------------- FILTER 4: THE TRIGGER All the filters are TRUE, and we are allowed to wait for the last thing before executing a setup, "The Trigger." Your trigger is a set of parameters that will enable you to place pending orders. Let's take a look at some of them: - Candlestick Patterns - Technical Structures (like Zig-Zag, Triangles, Irregulars, Flat, etc.) (TRUE / FALSE)?. IF true + Risk to Reward ratio is aligned with the minimum requirements. Then set, Entry level / Stop level / Break-Even level / Take Profit level. -------------------------------------------------------- My conclusion: If I understand the different filters I'm using on my strategy, from general to specific ones, it becomes straightforward to make improvements or detect elements that require fixing. Instead of saying "My strategy is not working" or "My strategy requires improvements," we can say: My trigger is excellent. However, my filters regarding general context are not on point so I will work on that. Understanding the parts of your trading strategy, like parts of an engine, will bring you insights into what you are doing. Try to see your system as a series of gears working together. Thanks for reading!
BITSTAMP:BTCUSDEducation
by ThinkingAntsOk
10
How To Backtest Further In The Past On Low TimeframesQuick video to show this little trick using the Replay mode that allows us to load more historical bars than real time, and thus get a better picture at how a strategy can perform over time. The Strategy Tester re-calculate the results everytime we load new bars, as the indicator strategy is correctly applied to these new bars. I got the confirmation from the awesome TradingView Support Team that the extra data that you get this way is real and relevant, and can be used to test your strategies. That means we are no more limited to 15/30 days backtest data in the 5min timeframe for example.
BITMEX:ETHUSD.PEducation
by cyatophilum
55
LET'S GET REAL: Fear of Losing! Hey Traders, Most traders battle it. I myself had to progress past this in order to achieve consistent returns trading the markets. It is seen as one of the hardest challenges to pass in terms of emotional discipline. Understanding yourself better so you can make decisions in a calm, composed and consistent manner is crucial to success. Today I wanted to touch on that. I wanted to talk about the fear of losing what spurred from my fear of losing, how I progressed through it (it still creeps in from time to time). Hopefully you can take from my story and how it improved your trading or how it can help you progress past that fear of losing. If anyone has any questions or maybe some other stories in the way they progressed through a fear of losing or a fear of being a failure, please feel free to share in the comments and I'll get back to you as soon as possible. Have a fantastic trading week!
Education
by the5erstrading
6
Learning to Utilize bots in uncertainty and capitulationOften times when the moments passed, we have lingering hopes of still finding the values of our initial opportunities…however I’ve realized it’s better to win & walk away…come back fresh and plan and execute fresh again! It seems the perspective we have gets colored as we trade. So all my family here and my haters to I simply ask when not certain what to do? Those times utilize trade bots and you’ll certainly woohoo! Matters of capitulation, and when community signals galore! Those who diversify all of their practices will certainly see this through. Imagine setting your parameters based on the channels we draw? Then don’t worry just adjust as it rises and falls ^_^ #BotsFTW
Education
by Zyramaer
Interest rates, Inflation and how to trade it.Hey Traders, Massive week this week fundamentally for the Forex market. 3 big interest rate decisions being released so I thought there was no better time than now to have a chat about what it is, what it indicates and finally, how traders profit from it. Fed and BOE almost guaranteed to hike rates, RBA is sitting unsure. Have a watch of the video and I am more than happy to have a discussion in the comment section! As always, have a fantastic trading week and I wish you all many profits.
Education
by the5erstrading
4
How to distinguish a fake guru from a real professional💯How to distinguish an online conman from a real professional In 2016-17 there was a boom in the info business, and this field grew so fast and unregulated that it opened the door for many scammers. And, unfortunately, many newcomers are caught by them and lose money. After all, scammers are not limited to the truth and can draw the sweetest pictures in the head of their potential victims. And what industry attracts these online conmen the most? Of course, our favorite crypto. It is so attractive because it has the following properties: • No punishment for fraud • The ability to promise endless profits • The unawareness of the masses about its nature Last year, crypto enthusiasts lost more than $14 billion to fraudulent schemes. This is more than the annual budget of Serbia 🇷🇸, Nigeria 🇳🇬, and 3 times more than Georgia 🇬🇪. So that you don't lose your hard-earned money, I have prepared for you a simple list of how to distinguish a pseudo-expert from a real pro: The presence of real statistics. And not for one month, but at least six months. When giga traders sell you a VIP pass to a super-mega-secret group and show you how they made fifty X's by longing doge, ask for real statistics with all trades, or let them return under the rock from which they crawled out. Talks not only about the victories, but also about his defeats, analyzing mistakes and showing opportunities for growth. Don’t confuse it with a heartbreaking story to get attention. Never saying something will happen with 100% probability. No one is Nostradamus, and if your favorite expert is yelling about having a crystal ball and going to Mount Sinai at night to ask God if the bitcoin will grow, then I have bad news for you. Not showing off. For a successful pro, earning thousands of dollars in trading is the norm, he's used to it. He does not need to prove to everyone that he is worth something, showing his park with Lamborghini, he knows himself that he is cool. Having a huge number of real reviews. He doesn't hide the bad ones and communicate with his dissatisfied audience, because he knows that the truth is on his side and he is responsible for his actions. Do you think this post would be helpful to a newcomer? If so, click the like so more newbies will see it trending and I can boast to my mom) Anything to add? Have you ever faced scammers? Tell us about your situation in the comments
Education
by Artem_Dishel
4
The basics of back-testing (HOW TO)Hey Traders, Today I wanted to follow on from the fantastic amount of comments that we are receiving from the previous video, "stop strategy jumping." It seems that so many of you took a whole heap of value from that video and for that I am very thankful and to everyone who reached out and told their story or let me know that it really touched them. As highly requested, I wanted to run through a basic way to start getting the grips with strategy back-testing. How can we go about back-testing our strategies to ensure that they are profitable for us in the long run? Take a look, have a listen and tune in. Set up an excel sheet the way I do and get back testing. There's only one way to do this, and it is to do the hard work. Let me know what you guys find. I can go more in depth in the future, but for now. It seems like most people wanted to get to grips with the absolute basics, which is what I'm going to show you today. If you have any questions at all, please the comment section is the place to be. As always, have a fantastic trading week and a fantastic weekend traders. I'll see you very soon.
Education
by the5erstrading
12
How to use relative strength/weakness in Forex — GBPUSD exampleIchimoku makes identifying trends very easy, but it can be difficult to know when to enter a trend. This factor is often overlooked by newer traders, and it makes a significant difference to risk-adjusted returns. One of my favourite ways to identify when to enter a trend is to use the concept of relative strength or weakness. Put simply, relative strength or weakness is when you compare a security to an "index" and try to understand whether: The index is moving up, and your chosen security is moving up even faster = Relative Strength The index is moving down or ranging, and your chosen security is holding ground or moving slightly higher = Relative Strength The index is moving down, and your chosen security is moving down even faster = Relative Weakness The index is moving up or ranging, and your chosen security is holding ground or moving slightly lower = Relative Weakness This concept is incredibly important to understand. It can turn a B+ setup into an A+ setup. The question is then, how do you find relative strength? The really easy, beginner-friendly, way is to plot the "Rate of Change" (ROC). This is an included indicator in TradingView and simply tells you how quickly something is moving up or down. What you can do with ROC is to plot it against the symbol you're trading, and then plot it again against an index. An example of an index could be $DXY for the USD. This index would work for pairs like USDJPY, USDEUR, USDGBP, etc. Any pair where USD is the base. I found a perfect example of relative weakness on GBPUSD. I plotted the ROC for GBPUSD (green) and the ROC for all GBP pairs (red). Ichimoku already told me that GBPUSD was bearish and I was looking for an opportunity to go short. Notice, that when GBPUSD becomes weaker than all GBP pairs, there is almost no bullish pressure. If you short when there is relative weakness, your trade would have almost zero drawdown, and you would be in profit almost instantly. Yes, you could short anywhere on this chart and make money if you didn't have a stoploss, but this is not how to trade like a professional. If you tried to short this morning when there was no relative weakness, you would have to suffer through +37 pips of drawdown before it started moving down again. Could you take that? Could your risk manager take that if you were trading someone else's money? I encourage all traders to explore Relative Strength/Weakness. It is one of the most powerful concepts in trading, and as long as you have your "index" right, you can use this anywhere. Stocks, Forex, Crypto, Commoddities, etc.
Education
by ichimokucorner
4
Trading SetupHi traders in this post would like to share a trade setup i use for a while. first - supertrand indicator second - 20-50-200 sma indicator for supertrand - click on indicators and search for supertrend - choose the 3rd 1 from the list u see. change settings to - atr period - 5 source - hlcc4 - and atr multiplier - 1 now u have a system which will print out buy / sell signals. combined with 20-50-200 sma - i take a position when price cross the 20 sma. look @ the examples - sell signal + cross the 20ma test it @ home :) ##this is not investing advise## hope you find it usufull ... good luck
NYSE:ZIMEducation
by DaxiDriver
3
How to Read a Candlestick | Beginners Guide 🕯 Hey traders, If you follow me for quite a while you probably noticed that I apply a candlestick chart for the market analysis. In this post, we will discuss how to read an individual candlestick and we will outline its important elements. 🔰The candlestick reflects the price movement for a selected period of time. An hourly candle will show you a price action within an hour and a daily candle within a day. 🔰The candlestick pattern has a very specific shape: it is composed of a body and a wick. The wick of the candle indicates the range of the price action within the candle. Its upper wick will show you the highest price during that time period and its lower wick will show the lowest price, while the body of the candle indicates its opening and closing price. 🔰From the color of the body of the candle, we identify its direction. Green signifies a bullish candle while red signifies a bearish one. 🔰The lower boundary of a body of a bullish candle will show its opening price and its upper boundary its closing price. 🔰The upper boundary of a body of a bearish candle indicates its opening price and its lower boundary its closing price level. With so many elements within a single candlestick, one can derive a lot of valuable information. Some candlesticks have a very specific form and are called candlestick patterns. They are applied for predicted the future market behavior. A proper reading of a candlestick chart may unveil a lot of insights about the market so it is very important for you to learn to work with that. ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
12
The Element of Time - The Most Underrate Technical Analysis ToolMarket timing is an essential tool whether you're a day-trader, portfolio manager and/or long-term investor. I present to you the most underrated technical analysis tool in the space of retail trading. The purpose of this short educational webinar is to open your eyes to something you don't hear about abundantly because it is the most disregarded aspect of trading in my opinion. As an intraday trader, my main focus is on the speculation of "the next daily candle". However, I first analyze and project on "the next weekly candle". Each weekly candle is broken into 5 individual daily candles, and each daily candle is broken down into 3 main market sessions - namely, Asia, London & New York Session. You'll find that my main focus in this lesson is on the day in which you find a lower / upper wick being created on the weekly candle. More often than not, "Tuesday" typically forms the low of a bullish weekly candle, and the high of a bearish weekly candle. Watch the lesson entirely, take notes, but most importantly, let it open up the opportunity for you to exponentially elevate your trading skillset.
Education
by Maroun4x
9
The Power of the P0 - P3/P4 Fork for finding P5 ReversalsThe power of the Fork is NOT in just anchoring 3 pivots. The power comes from how the USER applies & interprets the "Story" the FORK is showing you. Today I am showing you a unique method of isolating important pivots in the market that give the trader an increased probability or edge in capturing a strong move. it is NOT the unicorn you've been searching for however unicorns leave clues for those who can see them! Thanks RB
Education
by inflectionpointtrader
multitype dynamic multi registry with categories 3d matrix using matrixes, and overloads.. a complete parallel multiregistry, multitype,multikey datastore. it can use get, set, delete, with as many registries and individual matrixes as the system can handle. system > registry category names key names for each item value (( to x/y in value matrix) value matrix item in x/y coords so putting item 'float XXX' with a value of XXX (ohlc..) for category 'ohlc values' into value matrix floats, floats1 for hist... etc.. historical value for the past X num of bars for all 4 values in historical matrixes.. here's an example.. almost done testing.. very powerful tool anyone with extensive skills who can take a look at it, i'm open for help prepping and finding any optimizations available as is, it is very very fast.. i believe i can improve though from here. _ohlcreg = initkeyregistry(2,2) _regfloats = ini_float(2,2) _hist1_floats = ini_float(2,2) _colorreg = ini_color(2,2) set(_regfloats , _ohlcreg, 'Normal', 'open ' , open ) set(_regfloats , _ohlcreg, 'Normal', 'high ' , high ) set(_regfloats , _ohlcreg, 'Normal', 'low ' , low ) set(_regfloats , _ohlcreg, 'Normal', 'close ' , close ) set(_regfloats , _ohlcreg, 'MTF' , 'open ' , request.security('MSFT', 'D', open )) set(_regfloats , _ohlcreg, 'MTF' , 'high ' , request.security('MSFT', 'D', high )) set(_regfloats , _ohlcreg, 'MTF' , 'low ' , request.security('MSFT', 'D', low )) set(_regfloats , _ohlcreg, 'MTF' , 'close ' , request.security('MSFT', 'D', close )) set(_hist1_floats, _ohlcreg, 'Normal', 'open ' , open ) set(_hist1_floats, _ohlcreg, 'Normal', 'high ' , high ) set(_hist1_floats, _ohlcreg, 'Normal', 'low ' , low ) set(_hist1_floats, _ohlcreg, 'Normal', 'close ' , close ) set(_hist1_floats, _ohlcreg, 'MTF' , 'open ' , request.security('MSFT', 'D', open )) set(_hist1_floats, _ohlcreg, 'MTF' , 'high ' , request.security('MSFT', 'D', high )) set(_hist1_floats, _ohlcreg, 'MTF' , 'low ' , request.security('MSFT', 'D', low )) set(_hist1_floats, _ohlcreg, 'MTF' , 'close ' , request.security('MSFT', 'D', close )) // add colors for these specific ones.. if a value is attempted to retrieve // but the spot on the value matrix is empty, it will siimple pull a typecast na. // so these colors show when specidfied.. will have to make a global or a '*' for any' set(_colorreg , _ohlcreg, 'Normal', 'open ' , color.red ) set(_colorreg , _ohlcreg, 'Normal', 'high ' , color.green ) set(_colorreg , _ohlcreg, 'Normal', 'low ' , color.blue ) set(_colorreg , _ohlcreg, 'Normal', 'close ' , color.orange) // ... etc.. // the retrieval now can select along any axis... // which matrix to use valmatrix = switch input(0) 0 => _regfloats 1 => _hist1_floats /// which group to pull from _barchoice = input.string('MTF', options = ) /// which value from that group-. valuechoice = switch input(1) 1 => 'open ' 2 => 'high ' 3 => 'low ' 4 => 'close ' plot(get(valmatrix, _ohlcreg, _barchoice, valuechoice )) plot(get(_regfloats , _ohlcreg, 'Normal', 'open '), 'Normal open ' , get(_colorreg , _ohlcreg, 'Normal', 'open ')) plot(get(_regfloats , _ohlcreg, 'Normal', 'high '), 'Normal high ' , get(_colorreg , _ohlcreg, 'Normal', 'high ')) plot(get(_regfloats , _ohlcreg, 'Normal', 'low '), 'Normal low ' , get(_colorreg , _ohlcreg, 'Normal', 'low ')) plot(get(_regfloats , _ohlcreg, 'Normal', 'close '), 'Normal close ' , get(_colorreg , _ohlcreg, 'Normal', 'close '))
Education
by kaigouthro
2
The Most Underrated Technical Analysis Tool - Element of Time !Market timing is an essential tool whether you're a day-trader, portfolio manager and/or long-term investor. I present to you the most underrated technical analysis tool in the space of retail trading. The purpose of this short educational webinar is to open your eyes to something you don't hear about abundantly because it is the most disregarded aspect of trading in my opinion. As an intraday trader, my main focus is on the speculation of "the next daily candle". However, I first analyze and project on "the next weekly candle". Each weekly candle is broken into 5 individual daily candles, and each daily candle is broken down into 3 main market sessions - namely, Asia, London & New York Session. You'll find that my main focus in this lesson is on the day in which you find a lower / upper wick being created on the weekly candle. More often than not, "Tuesday" typically forms the low of a bullish weekly candle, and the high of a bearish weekly candle. I encourage you to mark out the Open of your week, and highlight the swing point on the Tuesday of each week. I promise, you'll start implementing the "Element of Time" in your trading toolbox. Of course this is not a standalone tool, however is helps greatly with the determination of your weekly directional bias. It will also assist with your trade and risk management. It is to up to you to put the work in and infer whatever information you can from this little teaser of an illustration. Let this open up the opportunity for you to exponentially elevate your trading skillset.
Education
by Maroun4x
9
HOW TO: Find the money making stocks, cryptos and FX pairsToday I'm going to be looking to something a little bit different than our normal analytics! We're going to dive into the tradingview screener! The Forex Screener specifically, but everything I do talk about does also apply to the crypto Screener and the stock Screener. What I want to explain is how I use it to find pairs, stocks and cryptos which are setting up the way I want them to, in order for me to day trade. I show how I use a range of different Bollinger bands to moving averages to overall technical aspects, like growth statistics or reaching all time highs. The Forex Screener and the tradingview tools that they offer is top of the range stuff. I recommend trying to figure out how to use them and how to utilize them to benefit you in your trading. Have a listen. Have a look yourself through the Tradingview screener and the different technical aspects in which you can change. I guarantee it'll streamline your process in finding the right pairs that you're going to choose when it comes down to day trading. I hope you enjoyed it. If you did, please leave a comment and a like. As always, have a very successful week of trading guys. Thank you.
Education
by the5erstrading
55
How to understand your Brain In Trading? (educational post)What does this have to do with trading? Everything. Trading is mental. Before continuing make sure to like and save this post. Your trading errors don't come from the market , they come from your own perception and reaction about the market information. Neurons are what transmit information to different parts of the brain. The stimulus starts in the amygdala and then move into the neocortex. Your brain and memory react with past information. These neurons will start to associate themselves to respond accordingly. Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth or stagnancy. Choose wisely Trading examples : [/list In trading you will fell the pain that you experienced from that previous loss and that will make you feel afraid for the next decision. You won't be able to execute once the edge appears in front of you. If we had a major win, then these neurons will start to associate themselves to the pleasure that you experienced from those profits. However, neurons do not have a mind of their own, and they are simply doing their job by transmitting information. That Information can either be right or wrong! We can develop false or negative neuro-associations throughout life. For example: smokers will associate pleasure to the inhalation of a cigarette, instead of the pain that could be caused by cancer. Some people associate pain to falling in love if they have experienced a bad breakup, and the begin to create a negative neuro-association to entering into a new unique relationship. Some will associate fear to every dog they see in the street if they have experienced a dog attack Drug addicts will assimilate pleasure by consuming desctuctive substances But how does all this apply to trading financial markets? Almost every trader has suffered after a massive losing streak , only for the market to show a entry that could have been able to make us back the money lost but we did not had the courage to take the trade Almost every trader has experienced the pleasure of making a large amount of profits, only for the market the reverse and it becomes a big loss. The brain will create a neuro-association that will link pain to a normal retracement in price. You will begin to equate a retracement to pain, and thus create a false neuro-association. You are going to close your trades with a simple pullback. It requires a mental process called neuro-associative conditioning. The negative neuro-associations must be turned into positive neuro-associations. For example : Do you have hope when a losing trade runs and you wait it to turn back into profit ? Do you feel despair when the market is redistributing your profits with one single retracement ? then change that and do the opposite. feel despair when a trade is running in loss and feel hope when a trade is running in profit. This is a change in your neuro-association; a negative one to a positive one. Is the market retracing ? Do not associate this with 'the market is taking my profits back!' but rather 'the market may be presenting me with an opportunity to add to my position'. This is a change in your neuro-associations; a negative one to a positive one. Did the market hit your stop loss ? Do not associate this with the pain of losing money, but rather associate it with the fact that the probability of the next trade being a winner will stay because of your profitability. This is a change in your neuro-association; a negative one to a positive one. Do you feel great after a massive win ? then change that and feel protective about what you collected. this is a change . Hope this post was helpful . Now let me know if you have another example about bad neur-associative conditionning that can be turned into This is a change in your neuro-association; a negative one to a positive ones ?
Education
by AIRFOREXONE_
8
RuckSack Time Highlighter This tool allows you to highlight specific blocks of time which help to cut down noise in 24 hour markets such as Forex or Crypto. This can be very useful for spotting trends that occur during traditional market open and closing hours as traders look to enter or exit their main position for the day. The tool includes two user inputs, one for the pre market and one of the after hours session. The block of time highlighted can also be customised with colour and transparency so you can achieve a look that suits your chart style.
Education
by RuckSack
I was today years old..Did you know when you have one or many indicators on your charts and whilst trying to zoom in or out the chart using the mouse the indicators take up half or even more of screen realestate especially in case of pivot lines indicator?? Well there is a solution to all this madness so that you can zoom in and out of price chart only and IGNORE all indicators on your screen's realestate. Here's how to do it: 0. Keep all your indicators ON on the chart 1. Right-click on the price scale 2. Select "Scale Price Chart only" 3. You'll thank me later ;) Cheer's 🍻
NYSE:BAEducation
by KushC
1
How to trade by using EMA Ribbon ?Hello traders 🐺 . this is an educational idea and it's about the EMA Ribbon . In this idea I want to talk about how to using EMA Ribbon in trading so make sure to read this idea until to the end if you are one of the Moving averages fans . I like to start with an example of trading by using the EMA Ribbon , then I explain more about the EMA Ribbon and how it's work : in the chart above we have 3 different examples of trading by using the EMA Ribbon ; as you can see in the chart above , we have 3 different pattern and the last one which is the symmetrical triangle is actually the current pattern of the BTC and I want to ask you about your prediction for it so leaves your comments below this idea and share your view about the BTC , after learning of how we can trade or in the other words how we can use the EMA Ribbon in our trading . let's start with the ( first example ) : my first example is rising wedge pattern , I try to cover all 3 types of the market conditions in this idea , because it's important to learn to trade in the any direction ; the first example is a bearish pattern : As you can see in the chart above , BTC price after creating the rising wedge pattern started a very long down trend , by how we can trade it ? if you look at the chart you will notify that the every line of the EMA Ribbon acts as a support or a resistance and the more deeps price can penetrate to the Ribbon , the chance of the reversal is higher . For example , look at the rising wedge , during the pattern when the EMA Ribbon was in the bullish mode or in the other word , when short term EMA is above the long term EMA , when price finally success to penetrate to the last line of the EMAs which is the long term EMA ; price was faced to the more stronger support and this is shows us that if price can break below the all of the EMAs , there is strong chance for the changing the trend . but finally when price break below the Ribbon , BTC was started a very long term bear trend , if you are a trader you must know that this bearish pattern after the very long bullish trend could indicate the bear market signs , and if you want to use EMA Ribbon for trading this is good chance , so let's see how we can use it ? first of all when price break below the EMA Ribbon you must wait for the confirmation signs , this is means that you must wait for the EMA Ribbon to flip from bullish to the bearish mode which means that the short term EMAs goes below the long term EMAs , and after the retest of the Ribbon you can say that , thing are looking bearish from the EMA Ribbon sight ; and you can set your short trade based on your trading strategy . but what's the problem of the EMA Ribbon ? let's talk about the EMA Ribbons problem after checking all of the examples , until that please think about it and imagine how we can fix this problem if you find out the problem , if you can't , wait for the end of this idea and also don't forgot to support me with your likes and comments . let's combine the example 2 and 3 together for better understanding : as you might know , the moving averages are trend chaser indicator which means that they are work perfectly when market have a specific trend , for example in the chart above when BTC created a falling wedge pattern and break above the EMA Ribbon and retest it as a new support start a bullish trend , and as you can see when market started to retracement , BTC created a bull flag pattern and after the break out BTC continue the bullish trend . in the bull flag , you can see that price break below the EMA Ribbon and also retest it as a resistance , but price can't continue the bearish trend ; so why this happen ? did you remember that in the example one , I asked you about the EMA Ribbon , could you find the problem yet or not ? if you can't find it wait for the end 🙄🤷‍♀️ . now we arrive to the last example which is the symmetrical triangle , but I gonna talk about it in the next idea because this is an educational idea and not for the analysis purpose , so make sure to follow me to find out what gonna happen for the BTC in the next coming weeks . now it's time to show you the EMA Ribbons advantages and problem in one clear picture : Did you remember that in the example 3 (bull flag) I said that the EMA Ribbon flipped to the bearish and also the price retest it as a resistance but price didn't break below again and after that BTC was breaked to the upside , this is what I mention the reason in the problem number 3 : 3_Moving average ribbons are best used in conjunction with other forms of analysis, such as price action, other technical indicators, and fundamental analysis for longer-term traders. you must know that it's better to use EMA Ribbon in conjunction with other indicators for example , personally like to use it in conjunction by the RSI and TSI and also the price actions . in the example number 3 , the overall trend is still bullish and price is above the support structure and also it's on the bullish pattern , so there is strong chance for goes above the Ribbon again . now it's seems to we reach to the end of the idea and I must appreciate you my friends to read my idea , don't forgot to leaves your idea about this symmetrical triangle and help me with your likes and comments ; thank you for reading my idea .
BITSTAMP:BTCUSDEducation
by Kiu_Coin
2
How To Trade Divergence Divergence simply means separation.. When two similar things things---get separated and start going different directions, you have to consider which direction to follow. That's exactly the concept of divergence. When trading, and you spot a divergence, you want to be sure to understand what they are trying to tell you. In this video, I explain the concept of divergences, how to trade them and what to do when you sight one. Be sure to like, follow and comment. I want to see those div trades!
OANDA:NAS100USDEducation
by lazyluchi