How to Use Trading Zones in CryptoHello, Skyrexians!
Last two articles were the deep dive into the Awesome Oscillator and Acceleration Deceleration indicators by Bill Williams. In conjunction with the fractals and the alligator these indicators are the powerful concept in cryptocurrency trading. It can significantly boost your cryptocurrency trading strategy, crypto trading algorithm or you can implement it into trading bot. Today we will expand this concept with the trading zones - the periods on the market with the bullish or bearish superiority.
Trading zones is not the popular concept in comparison to Awesome Oscillator, that's why using it can give you a huge advantage in crypto trading because even top crypto traders don't use it in their trading routine. Let's go through its concept.
Before start observing the trading zones concept we have to understand what are the Awesome Oscillator and Acceleration/Deceleration. Awesome oscillator is the approximation of the market's driving force. Usually it starts moving before the price if this is an impulsive wave. During corrections it can flash the false signals. Before the driving force starts moving the acceleration changes its direction. That's why combination of these indicators is so important.
What is the trading zone?
As you know from AO and AC descriptions they can have 2 conditions: increasing (greed bars) and decreasing (red bars). According to this we can define 3 marker conditions:
Green zone. Both AO and AC have the increasing columns. This is the strong bullish phase. Only long trades are allowed.
Red zone. Both AO and AC have the decreasing columns. This is the strong bearish phase. Only short trades are allowed.
Gray zone. AO and AC have the different directions. No signals can be generated by this trading zone
Tradingzone
EURJPY H4 - Sell Signal (TP hit)EURJPY H4
We have now sold all the way down to our area of take profit. 5.75R from 150.00 down towards that 149.000. A slightly in excess of a 100 pip range, with just under 20 pip stops.
Expecting price to bounce from this price before potentially breaching support. But lets see what unfolds from this trading zone
AUDUSD Good buy signalBased on the chart, price have reached a major support area and a rejection happened at this area which can be a sign of buyers at this area. Also a weakness on sellers is observable at this point.
So these scenarios lead me to be buyer at this area with a good risk/reward ratio which is around 1:3
Note: As always please take risk management rules into consideration before opening any position on the market!
Good Luck!
I was wrong about LUNA ! that was not a trading range in fact its clearly a descending channel ,
now we can decide much more better
NZDUSD DAILY IDEA Looking for the candle to close below the 23 fibo and if it does looking for price to hit the support level were the 38 is and make it's way back up or if it hit a 50 as well either or and that's with it stalling yesterday with the break out, so that's why I think it will hit the 38 or 50 and give us one more push to the upside before making a big drop. But only reacting to the trade and not trying to predict.