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Trend-trading

Log Vs Linear TradingAsk a hundred traders whether you should be using Log charts or Linear charts and you will get as many answers. The real answer seems to boil down to - Look at both and find what works. On the lower time frames there is often not a big difference. Log is often considered best for longer-term charting, but that is not an absolute. Badrosha on twitter writes: twitter.com You can test the difference between Linear and Log for yourself. Try these ideas to see if you notice any differences: ->First, use " Magnet Mode " (symbol of a magnet on low left of options on left side of your chart) and pick your two points of a trend using a "Ray" (continuous line). On magnet mode the ray will stick to the top of a candle body or wick for you. >Second, start to shuffle between the log and linear to find the story they are telling. -LOG charts are generally considered to be better in a parabolic rally. -Linear is often considered best for ENTRIES because it can potentially show Down Trend breakouts, short swing trade set ups, and pattern breakouts before the log chart will. -Log is often considered best for EXITS and long term charting. Log shows - Up Trend breakouts, long swing expiration, or short entries sooner than linear. >With Linear you can see classic entries on breakouts, which is the confirmation on a broken trend. While with log, you rarely find a good one - if price action starts to return on a breakout the percentage change (log) will can give false signals - unless in "parabola." The bottom line: there is not a "right" answer. What matters is if it works, not whether one is right philosophically or intellectually. Look at the history of a chart and look at what has worked, because one of the tenants of Technical Analysis is "History Repeats Itself." On the daily chart of BTC 0.00% right now, there is a potentially important difference between Log and Linear charts. Follow the instructions above for Magnet mode and a Ray and switch between Log and Linear. Also shown in the charts here. This difference is why a lot of traders disagree right now on whether we are in a continuation of the bearish trend , or the start of a new, potentially bullish , trend. Ari-Wald, C.F.A, C.M.T Analyst Wolfe Research @AriWald For me, I’m a Log-always analyst. While the differences are many times negligible, there are times that Log scaling provides a considerably stronger view of the stock’s trend vs. Arithmetic scaling, but I’ve never found the opposite to be true. The advantage of Log is clearly seen at long-term horizons or during big price moves at lower prices. As an extreme example, drawing a trendline on an arithmetic chart of the S&P 500 0.05% from 1930-current is not an accurate depiction of the index’s trend during that period in my view. We realize that a 10 point move from 20 to 30 (50%) is not the same as a 10 point move from 30 to 40 (33%). A line on a log chart would look like a curve plotted on an arithmetic scale in this example – but consider that the price on this arithmetic scale gives an inaccurate view of price, in my opinion, and therefore the curved trendline is justified. So overall, if I’m going to use a Log chart in this situation I should maintain my defaults on Log because I won’t encounter a time when I’m at a disadvantage, only times when Log is preferred. Pete-L-Brandt – C.E.O. 2 Factor LLC @PeterLBrandt As a trader I do not use log charts. However, I can see some advantages to log charts for analysts who exam very very long-term trends. The reason I do not use log charts is that they are irrelevant to me as a futures trader. The value of a $15 move in the S&P 0.05% was the same to me when S&Ps traded $150 as it is today when the S&Ps are at 1700 or so, even though on a percentage basis the $15 change was 10% of the price in 1983 and less than 1% of the index today.
BITFINEX:BTCUSDEducation
by Nevermorejk
1
How to use a single trend line for tactical trading.Hello Traders. Yet another Tactical Tuesday. After the euro broke lower a continuation is eminent. Overall trend remains an uptrend even though there is certain decline on EURUSD pair since the begining of Trade wars. So this is a short term proposition. US indeces are declining and even though that is weakening dollar across the board, that does not hold true for EURUSD pair. CPI data coming up from eurozone will clear up the scenery on the most heavily traded pair. My entry point will be bypassing economic data and aiming in a more favourable price point. Trade safe, trade well.
Short
by fromzerotospyro
Ripple XRP-BTC Trend AnalysisOn december 12th Ripple (XRP-BTC) broke out a long term descending triangle, coming from 24200 satoshi in may 2017 to 1180 satoshi at the beginning of december. In the last weeks XRP has seen a strong ascending bullish trend, bringing good trade opportunities. At the time of writing this analysis the price of Ripple is 11350 satoshi. For those interested in short or mid term trading XRP I have placed strategic entry points on the chart and resistance and support (Fibonacci) lines to keep your eye on for a break up or down. Please note the entry points, indicated by stars, might move over time if the actual trend deviates from my predicted trend. In that case you can use the (Fibonacci) resistance and support lines to determine a good entry or exit point based on breaks. 1st sell target: 12900 satoshi 2nd sell target: 13900 satoshi 3rd sell target: 20800 satoshi 4th sell target: 23900 satoshi Stop loss: depending on time of entering. For short term trading put your stop loss within a reasonable margin below the current or next support line. For mid term trading put your stop loss 500 satoshi below the lower blue dashed trend line. As always trade safe: monitor your trades and set (phone) alerts and stop loss orders. I hope you can put my TA to good use. If you make a good profit based on my TA I will be very grateful if you tip me, thank you! Bitcoin address: 13MJSpaqqpBm9JfqNUFt424CQZBF8TKHYa Ethereum address: 0x105e37a11abfcfa80ab51c00bc6837f65183af64
by CryptoJC
8
NZDUSD SELL RALLIES FOR THE NEXT LEG LOWER - WITT? #1Three problems alot of traders face. Having the patience and professionality to trade this trends is the tough part. Thats where alot of people surrender if they miss an opportunity or two and escape afterwards to counter-trend trading, because psychologically the market is always offering you a counter-trend trade. In my view to trade trends, one has to be very professional, and has to have a very methodological mindset. So the psychological stability is the first thing alot of traders lack. pbs.twimg.com Second point would be one of the main difficulties people tend to have its defining where a trend is happening, and here is a big problem. People tend to only analyse trends based on technicals, but in my opinion this is simply not enough. To become more accurate in trading with the trend, one has to understand the fundamental background of the currency one is planning to buy or sell. Its not enough to draw a few lines one has to have a general idea of why i am buying this or that. When you go for example to buy a car, you dont just look at it and buy it, you want to know its background, you look at the engine and so on... you don't just buy based on the design. Same is the technical analysis in the end its design. You can always interprate a chart formation bullish and at the same time to be bearish. It only gets really bullish or really bearish if there is a fundamental reason behind a currency to trade in a certain direction - called "clear bias". So don't be lazy, reading, reading and reading always try to know as much as possible about a certain currency you are planning to trade. #What has happened ? = Impuls #What is happening ? = Correction #What is going to happen ? = Continuation Third point is the entry but in my view its the easiest one if you can manage the upper two points. Don't chase the trend, in a clearly defined bear trend - sell high and in a clearly defined bull trend - buy low. Thats where you can use technicals, but you have to have a solid base before. Lets take the NzdUsd for example. I want to sell this pair based on what ? Well the RBNZ was today quite dovish, but the market was anticipating a hawkish shift, and it did not get this. Thats one point in favor of selling the NZD on moves higher. Does this mean i will automatically sell as soon as the prices approaches my trigger zone ? No of course not, i will look and reevaluate up there if my entry and my reasons are still valid. Right now this is just a plan, but its not written in stone. This markets are dynamic, if the reasons change, its better to be careful and just wait and have patience. Blessings to you all, and i hope this helps. Thank you for following and sharing.
Short
by IamJeanPaul
1
AAPL Set Up For Short Spread EntryUtilizing our system, AAPL currently has ~76% chance of a trend reversal based upon 3 years worth of price data. Therefore, with a $2 risk to set up for a counter trend entry, AAPL may be ripe for a $145/$146 Credit Spread. This sets a max profit of 53% ROR/ROI. Stop loss is above the reversal bar on market close. Implied volatility is increasing due to earnings being just around the corner, so we've looked to sell the April 28 expiration for a decent risk/reward. The one word of caution on this trade though is earnings, as it can be a double-edged sword in the game of trading AAPL. If price does indeed drive downward to begin a potentially strong down-move, IV will drop and we'll close the trade if any bullish reversals show in order to maintain our strong position.
NASDAQ:AAPLShort
by EdgeAnalytics
We Think $SIRI Has Some Sirius PotentialHonestly, I didn't even know Sirius XM was a publicly traded company until 6 months ago. Mainly because it's under $5, and I generally tend to avoid such stocks after getting burned in the penny stock world so many years ago. But SIRI is an interesting ticker, and one we recently acquired quite a sum of shares in for the long run, and by long run, I mean retirement. We bought for multiple reasons, none of which revolve around Warren Buffet's company Berkshire Hathaway (BRK-A/B) increased stake in the company; although that can be a nice boost. First, the company declared a quarterly dividend of $.01/share (.04/share/year). Granted, this is not a lucrative dividend amount by a long-shot, but it is one indicator of a fundamental shift in the company's long-term outlook to their business success. In essence, I like to see a company project confidence in their model by thereby rewarding their shareholders, even if it's a little. Oh, and that doesn't mean it won't grow in the future either. Second it's maintained a nice technical uptrend, so we're at least going to ride it for a bit of the long haul.  We've had two entries hit since the stock really started running. Third, we don't like to speculate on the future of a company's capabilities or markets, but due to our knowledge of satellites, I find it interesting that SIRI is named as a potential contender in the "Connected Car". The possibilities of Sirius's S-band downlink being used as a secondary or tertiary backup link, or a data stream to the cars' ability to predict traffic and best routes possibly could be a market entry when the self-driving car technology gains a foothold. This would allow for contractual growth and a steadily grown curve of revenue. For just a minute though, let's get a little crazier and speculate a little bit. Another interesting concept is Sirius' versatility and the company's placement's potential for scale. In reality, Sirius is a Satellite communications provider; it's just a one-way transmission to your car radio. But here's food for thought: satellite phone communications. At the moment, most sat phones are not even worth the average consumer buying due to the high cost of operation ($6/minute) and the infeasibility of carrying a brief case that holds the equipment. But when we looked at SIRI, we look at how other companies might be looking to scale, and how SIRI might do the same. We personally think that there's only so many cell towers one can build, and they only provide coverage in a certain area. Furthermore, the current satellite phone providers such as Iridium, Globalstar, and INMARSAT have a huge cost, and rightly so due to the amount of satellites they've put in orbit to maintain their service provision. But I think Sirius is a well-known consumer brand. Seriously. Ask any person on the street what it is and they'll likely tell you it's a satellite radio. Now tell that same person that Sirius is providing phone services to their iPhone/Android/Pixel. They probably wouldn't be very surprised would they? But how would SIRI do it? Possibly through a joint venture with a company like Google or Android since Apple is a competitor in the online music streaming business. If Google (NASDAQ:GOOG) were to come in, design a proprietary receiver/transmitter into the phone it'd be a win-win for both companies. Also, SIRI would be that service provider undercutting the competition SATCOM providers as well as terrestrial providers like Verizon (NYSE:VZ), T-Mobile (NASDAQ:TMUS) and AT&T (NYSE:T). Thus, Sirius would have then successfully expanded and would gain an insurmountable competitive advantage. The transmission architecture could possibly be supported both through uplink communications to a leased COMSAT (cheaper than building a new one) or through the joint venture to build an entire new constellation. Not to mention, Sirius already has a terrestrial repeater network for their radio services (much like cell towers), and this could have a
NASDAQ:SIRILong
by EdgeAnalytics