VIDEO | How to Know if Your Trade is Going to Fail Educational video on my "point of failure" concept. This is a must watch video for all trend followers.
Tutorial
8 WAYS TO IMPROVE YOUR TRADING | Tips From Experienced Trader 🤓
In my years in trading, I’ve been approached by the new and semi-experienced traders for help and advice, and that's how it's supposed to be. Those that «have become» help those aspiring ones.
Then I thought that tens of thousands of people are joining tradingview every day, and most of them are beginners and inexperienced traders, So I decided to share some knowledge here with you today. Condensed wisdom of years in trading. 🦉
You see, trading is unique in that it is accessible to people of all walks of life. Your previous education, social status, and other barriers, that might prevent you from entering some industries are completely absent in trading. The only tool you need is your brain, as trading is essentially an exercise in pattern recognition and our cognition is based on pattern recognition and the endless chain of association.🧠
So the CORE is your ability to learn and recognize patterns, and everything else gets added like pearls on the string. Master these KEY points below, and the Gods of trading might smile at you!
✏️🗒️ MAKE A TRADING PLAN - Develop a strategy!
This bit seems obvious, yet so many traders arrive to this idea only after losing their first account. Don’t be like that, and you will lose your first account much slower. Research all the main strategies that are out there, and dive deep into the one you found appealing(for any reason). This step might take a year or even more, yet, trust me, this will be time well spent. I would advise simple multi-timeframe top-down technical analysis. I might be biased, as that’s the strategy I use myself, but learning it will give you the basics that you will NEED ANYWAY, whichever strategy you will end up using later. Also, I would choose it because it is intuitive and simple to use. You will be able to identify key levels on the chart after a week of staring at the charts and then work your way up, polishing entries, adding indicators if you like.
🔁 Review your plan after every trading session!
After you started trading, even on a demo, DO YOUR HOMEWORK, or else all the trading that you do is in vain, and you will NEVER LEARN. Start your day by reviewing the previous day’s trades, as you will have a fresh perspective that isn’t clouded by emotions of the moment. This WORKS WONDERS! Have a diary with trades, write down your thought process of how you arrived at the particular trade. Then write down your assessment of the next day nearby. Several months' worth of a journal like that is a GOLD MINE, where you can mine data, looking at what works, what does not, etc…
⚠️ DON’T RISK MORE THAN YOU CAN AFFORD TO LOSE - Protect your positions!
USE STOP LOSS and place it the moment you entered the trade. Don’t let your mind play tricks on you. As your inner voice will tell you «Why SL? I will close that trade manually, If I see that I was wrong» Nah, you won’t. You are kidding yourself. So DO use SL, don’t give your money to the market makers!
💯 Don’t risk more than 5% of the account!
Now that we know we need to use SL, I strongly advise you to never risk more than 5% of your account in one trade. In fact, I do not risk more than 1% per each trade myself. Use a lot calculator to help you determine how much you are risking in dollar value per trade. It is a bit boring, but will save you a ton of money!
And who said trading needs to be fun, huh? You are a grownup and it's your job!
😌 BE DISCRETE AND DISCIPLINED -Once you have the system, don’t overthink it!
After you mastered your system, backtested it on multiple pairs and begin trading on demo, stop worrying about whether the strategy is good or bad. You chose it, it showed results on the backtest, now get out and test it on the market. Time will show if your choice was correct.
📜 Follow the rules and reflect on the results later!
Once the system is chosen, make the rules that are as simple and clear as possible so that you could approach each trade with a ready-made algorithm. This will take a lot of stress off your mind.
💢 CONTROL YOUR EMOTIONS - Too much anger or excitement alike hurt your trading!
Having a strict algorithm helps massively, and when trading you need to learn to abstract yourself from the monetary values on the screen. These are just numbers, and you are playing a game of probability, so there will be winning and losing streaks. Learn to treat both with indifference.
🌁 Play it cool!
Trading is a battle of wills. Whoever has the hardest balls wins. So be cool!
⌛️ BE PATIENT - Keep your eyes on the big picture!
When even considering trading as a potential career, please accept the simple fact that there will be losses, a lot of them, all the time. You will NOT be making money for quite some time. Accept it as part of the game and it will be much easier for you physiologically. If you come with the make easy money fast mindset, you will lose!
🏅 Winning takes time!
I’ll stress it again, learning trading will take a lot of time, and there are some hard times ahead of you, so prepare for this beforehand, and no, you are NOT unique or special, so you will have to go through the same trial and error ordeal as others. There are no shortcuts.
✔️ ACCEPT YOUR LOSSES AND MOVE ON - Remember that you are in this for the long haul!
When feeling down because each trade this week was a losing one, imagine yourself free from the location, from your job, from all the constraints that usual people have, and remind yourself, that that’s exactly what you are working towards, because the moment you can make stable returns, you can multiply your income by a factor of x10 overnight. It might be a factor of an x100, it just depends on how big your balls are. So whenever you want to quit, think of what life could have been like if you persisted!
🚫 A loss is a part of the learning process!
You will lose multiple accounts. There is no way around it! This is your way of learning, and no one has created a different one so far. You might be as good as a God on demo, but the moment you enter the real world emotions kick in and you will have to learn a lot again. So when entering trading, be prepared to pay the market a fair price for educating you. And remember that the reward is much greater still!
📰 READ THE NEWS - Current events can affect the markets!
This one is certainly not for beginners! If you start doing that from the start, it will be too much info for you and you will get lost in the constant swirl of hot air that surrounds the markets. But once your strategy is good enough and you are beginning to be profitable, you might want to start paying attention to the key events and dates that might have an effect on your trading. I never actively trade fundamentals myself, but who said that you shouldn't?
🤏 Keep in mind big political events that can cause big moves!
This! If the FOMC meeting is tomorrow, you better close all your positions today, because whatever analysis you made might get invalidated by what the FED minutes bring to the market. We are playing probabilities that we can predict based on past experience, but whoever is trying to predict the FED and the market's reaction to it is fooling themselves, so once such a whale enters the room our ability to predict rationally vanished, thus we need not trade that day at all. And the FOMC is just an obvious example. Important statistical data such as CPI, jobs, etc might affect the pair you are trying to trade, and you better know about it. As a famous trader’s saying goes «Not being in the Market Is a position too»
🆕 UPDATE YOUR TECHNOLOGY - Slow internet connection or an old computer might make you miss your trade!
There is a side note yet do not neglect your workstation. Don't let it be dirty or messy, and make sure your equipment, i.e. a computer or a smartphone work properly. Missing a trade because of a bug is SUCH a pain! You don’t want that, right?
📈And not trading update charts is even worse as some level breakouts can happen in seconds.
That one is less relevant today thanks to tradingview charts being awesome, yet always make sure that the data on the chart is given to you without a delay. Trading a setup that ain’t there anymore is not good…
🦉📚 These are the «words of wisdom» that came to my head today, and I really hope I helped some of you get back on track, or begin your path as a trader with a slightly better understanding of what is ahead of you.
❗️ JUST REMEMBER: IT IS POSSIBLE! But it will take time, money, and effort, so brace yourselves, and may the odds be always in your favor!
💖Adios, Amigos! Give me a like and comment, if you agree with what I said!💖
Divergences Explained by a RaccoonThis video's purpose is to go over the fundamentals of divergences.
How to spot them and the effects they have.
I might make a video later on practical application and how to trade them; as well as how to combine them with other technical analysis tools and techniques.
And I should be doing a stream soon where we just spend an hour hunting divergences on different commodities; whether it's crytpo, stonks, or forex.
I hope this helps those trying to understand divergences.
Let me know if anything seems off or is confusing, I am more than happy to make another video to clarify anything that seems off or incomplete.
Thanks for watching.
🌐 How not to be stuck in your position?🌐 How not to be stuck in your position?
SIGNAL + TIMING = SUCCESS
You asked me how not to be stuck in one long-term, seemingly losing position and how not to miss opportunities.
You have to consider at least two dimensions of timing: zone and scale.
What is a zone? - The time-zone of my signals is UTC, and so, you have to translate.
What is the scale? - The scale of my signals varies from 1-minute to 3-month, and thus, you have the following kinds of positions.
Top traders have at least three kinds of positions: base, intra-day, and long-term.
What is your base position? - It is the base currency within which you feel most comfortable holding most of your capital, and it is usually USDT or BTC.
What are the guidelines for intra-day and long-term positions?
- Professionals often put up to 5% of their base per intra-day position, and they rarely use more than 25% overall of their base at one moment.
- When you make a profit on an intra-day position, you put a part of it (for example, 50% of the profit) into your long-term trade, and you return the rest to the base.
- This way, you manage your risks, and both your intra-day positions and long-term position will grow.
+1 So, why can't an automated system simply do it for you?
You have got your accounts, your assets, and your responsibility.
Exchanges do not allow a bot to read how much capital you have in total, nor how your investment breaks down to different assets and accounts.
Only you have got this information, and only you hold the right to manage your account.
Support and Resistance is the name of the gameHi all, below is an article that I learned years ago and that has contributed massively to my trading success over the years and I would like to share with you. Due to the rules at tradingview, I cannot post the link so I will write it here.
When it comes to trading support and resistance is the name of the game and support and resistance comes right off the chart. Name any indicator you can imagine, any concept of data crunching you think of, they all use the Open, High, Low, or Close from whatever time frame they are analyzing. In short, they get their data from the chart.
Every indicator, algorithm, volume analysis, Market Profile, or Fib level, all seek to do the same thing, “FIND SUPPORT OR RESISTANCE”! Moving averages, traders try to use them for support and resistance. Bollinger bands, Keltner Channels, MA Envelopes, they use them to try to find support and resistance.
No matter what, all methods ultimately seek to find the support or resistance from which traders will enter, manage, and exit their trades.
Contrary to popular belief, indicators, if used correctly, DO NOT identify support or resistance. Indicators DO NOT time your trades. Indicators if used correctly are “TRADE FILTERS”. They merely give us permission to buy or sell support or resistance once WE have identified it, not a piece of software.
It does not matter what you put on the bottom of your chart if you don’t know how to read the top half of the chart you will not make it in this business. That is our focus and that is what we teach, how to correctly get a “READ” on the market by understanding how Market Structure works.
Key Points:
All trading is about support and resistance: Indicators DO NOT identify support or resistance or time your trades.
The majority of traders use indicators to find support or resistance, the majority of traders lose
Indicator do not identify support or resistance, they are merely trade filters
If you don’t know how to properly read the top half of the chart, then it does not matter what you put at the bottom of the chart.
Trading at its basic essence is about knowing with a high probability where buyers are most likely to come in so we can buy, or where sellers are most likely to come in so we can sell, with a level of confidence that the trade will produce some form of profits while we manage our trades to longer term targets.
If you don’t know how to spot support or resistance, how will you know when the market is testing it? If you don’t know where the market is most likely to go, how will you know when it gets there? How will you know where the best exit is in real time?
Therefore, every day when you check the market opening. Do not ask yourself if you could trade today. Ask yourself if you could find support and resistance today.
Remember, BUY AT SUPPORT & SELL AT RESISTANCE.
HOW TO BE THE 1% 🤔💫🤩
Our culture is obsessed with the rich, famous, and successful people, yet what is left behind is both the hard work and sacrifices of those who «made it»
And millions of those who failed miserably en route to fame and became nothing.
There are multiple theories on and philosophical systems, that reflect on success, but ill bring out the key points:🔑
➡️ Genetics, upbringing, and connections determine 70% of the outcome.
Oh yes, as much as we don’t like to think about it, it is genetics that determines our capacity for sports, singing, our intelligence, speed of reaction, etc.
For example, musical talent is determined by the specific structures in the brain, and some people have those from birth, and some people do not.
These structures might differ by a factor of 10.000 from person to person, even though the brain size would be the same.
So you might spend 20 years in musical training and be good, but you will never be a Mozart without those structures in your brain.
Training and upbringing, In turn, affect whether you will be able to use these Brain structures, as well as the society in which you were born, determines if your talents will be useful or not.
One might be born a genius mathematician, but if he did not get good training, or if he was born in the dark ages, his talent would have been wasted.
One's family and social circle affect which connections will the person have in adult life , and it is for better or worse but cronyism and nepotism as still widespread, And the connected ones, even without being super bright, usually outdo those that aren’t.
➡️ Pareto 20/80 Rule, or risky business VS the safe one.
Almost everything in life follows the Pareto Rule, which says that 20% of your effort brings you 80% of the result.
There is another interpretation too: 20% of people will have 80% of all success in the given industry.
This rule applies best and in its extremes to the high-end risky businesses with ultra-high failure rates paired with the ultra-high payoff.
These industries are Acting, Music, Sports, and Trading!
As you can see, in acting, which is the extreme case, 1% of the actors make 80% of the Income generated by the industry. The same goes for music and sports where the select few make the big buck, and those that aspired but failed, barely make a living. Compare this to being an engineer or a doctor. The failure rate is much lower, which lowers the risk of entering the profession, but the highest potential income is lower too!
This applies to Trading too, as once you’ve learned how to be consistently profitable, the sky is the limit. There is no difference in the cost of labor or time spent on making a trade with the risk of 100$ and making a trade with the risk of 100.000$
Of course, at some point, your trades will get so big, that YOU will start moving the market trying to enter the trade, but that’s a story for another day.
➡️ Your power of will, determination, patience, and readiness for sacrifice.
Trading is a unique industry, where ANYONE can succeed , without needing a diploma, connections, or looks.
In essence, trading at its core is about pattern recognition . You discover a pattern, learn to find it on the chart, and then find a way to use this knowledge to extract monetary gains by playing this pattern with the probability being on your side. That's it. That easy.
Then why is it, that 99.9% of those who try trading, ultimately fail?
In my years of trading, I’ve noticed a pattern: 💡
A - GET RICH FAST attitude
B - Do not spend time educating themselves
C - Do not treat Trading like a business
D - Lack of Patience
E - Can not follow rules
⚠️ People think that forex is a Magic Money Tree, just stretch forth your hand, and you will drown in gold …
In reality, however, learning to trade will take YEARS , will cost you a fortune and no one will guarantee you success.
HERE IS MY ADVICE TO THE NEW TRADERS: 🤓
🎯 HAVE THE RIGHT MINDSET
1)Prepare for failure, disappointment, and tears
2)Realize that you will train for YEARS
3)Learn to fight and not to give up
🎯 GET GOOD HABITS:
1) We ARE our habits , so recognize what is good for you, and make it a habit
2)Staying in good health is underestimated, while in reality, your physical condition has a direct effect on your mind.
3) Work on your mistakes. You will never learn If you do not access your previous work critically.
4) Make a plan for a week , then break it into daily tasks. Do it for a month and that will become a habit.
🎯 MANAGE YOUR FINANCES WELL
1) Learning to trade is expensive and time-consuming, so make sure you have an income.
2) Learn basic financial literacy and spend less than you make. Easy right? But if you lose an account that cushion will help.
3) Do NOT quit your job the moment you became profitable. This sounds obvious, but the market will test you multiple times, and unless you’ve got enough savings to last for 1 YEAR without working, ditching a stable source of income will not only make you vulnerable but will also affect you mentally which will negatively affect your trading.
📈 FOLLOW these steps and you will increase your chances of success in trading by a factor of 10!
PLEASE LIKE AND COMMENT TO GIVE ME A BOOST!
$Nano Call from earlier this year.This is just a quick flex post, I promise I wont do these much :D
Just amazed by how close I called the top price of nano for that past cycle
📚EDUCATION: THE BASICS OF TRADING EXPLAINED📚
Hello, Traders!
The basics of what it takes to be a successful trader are simple and obvious
Yet daily, I see traders who fail at one or multiple KEY points that sink their performance and they keep losing accounts even though these people do have the understanding of the market that would have been sufficient enough for them to be profitable if they followed the basic rules. Trading is as much about pattern recognition and capacity for abstract thinking as it is about the personality type, self-discipline, and specific mindset.
The lucky few are born fit for trading, but others might train themselves.
Below, is the breakdown of the basics behind the day trading!
✅ TRADING IS A BUSINESS NOT GAMBLING
99% of the new traders have unrealistic expectations of the kind of returns trading might deliver. To make matters worse, they do not realize that it will take years of trial and error before they can make trading Their only source of income.
These delusions make the newbies treat trading like gambling. To AVOID this, please follow these 4 easy steps:
🔥SET AND KEEP YOUR RISK-REWARD.
I recommend risking no more than 1% of the deposit per each trade, which also implies using a variable lot size for every trade, so that no matter the SL
size in pips, or the pair you are trading, the dollar value of the RIKS remains the same with each trade. That way, you are in full control of the risks you
are taking.
🔥DO NOT GO ALL IN.
Sounds obvious, but I’ve seen it so many times. New traders, who lost 70% of the account, GO ALL IN on one trade that they think might help them
recover the balance. That is NEITHER a way to trade, nor a way to learn. Slowly losing your account while learning how to trade, is simply a fee that you
are paying the market for your education. Accept it or fail.
🔥PROTECT CAPITAL=USE SL
I can’t stress this enough and I BEG YOU to use SL. Do NOT enter the trade thinking that if the SL level that you had in mind is hit you will close
manually. You will NOT close the position, and the longer you hold it the more is the temptation to wait a bit more because it seems that the reversal is
coming soon.
🔥CUT LOSSES
Set a daily loss limit. For example, you can Ban yourself from trading for the rest of the day if you lost more than 3 trades in a row. You will enter what
is called a tilt most likely, and you will NOT be productive that day. The same goes for a week. Lost more than 10% of the account in a week? Next week
NO TRADING for you. Watch the market passively, or trade on the demo! By the way, That can be helpful even for professional traders too!
✅KEEPING A COOL HEAD IS KEY
The ideal trader is the one who can set all emotions aside as a robot would, while simultaneously keeping the versatility of the human mind and the intuition, that the machines lack(yet). It is of utmost importance for the new traders to understand that being right about the direction but entering too early or too late is the same as being WRONG because the result will be a LOSS.
Here is how to keep cool:
🔥CONTROL YOUR EMOTIONS.
Both euphoria and a panic attack are your enemies so the more detached you are, the better. Emotions are for the casino, and we are doing business
here, remember?
🔥AVOID FOMO( FEAR OF MISSING OUT)
That one applies mostly to the trades that you are not so sure about, but still want to take them, in fear of not making money. And the early entries are
determined by FOMO too( what if the price does not reach my limit order, and the trade plays out well, but without ME?)
FOMO is Incredibly counterproductive, don't let it control you!
🔥DON’T FOLLOW OTHERS
Avoid herd mentality! 99% of traders lose money, so doing what everyone does inevitably lands you in the 99% category.
🔥BUILD A WATCH LIST
A LOT of the beginners try to PREDICT behavior of the particular instrument that they decided to trade for some reason, instead of going through the
pairs looking for a ready setup that you KNOW works. The former approach leads to finding patterns, key levels, and setups that just aren’t there.
Naturally, the result of trading these is an inevitable LOSS.You should Build a watchlist big enough for your to have a choice, and go through it at
regular intervals, looking for opportunities but NOT INVENTING them.
✅ CONSISTENCY OVER BOOM-BUST STYLE
Consistent trading is the only way to make trading a reliable source of income. Slow but steady gains always beat leap-like boom-bust performance.
The psychological pressure of the latter will most likely break you sooner or later, and who needs gray hair in their 30es anyway?
That is how you achieve consistency:
🔥FIND A STRATEGY
Do the research on multiple trading strategies and pick those that you understand and that are compatible with your personality.
🔥USE PAPER TRADING AND BACKTESTING
To select which strategy is right for you, use backtesting to see how the strategy performed in the past. And use paper trading to see how the strategy
works in real-time.Once you chose the strategy, go back to paper trading and backtesting to polish it.
🔥TRACK YOUR TRADES
Keeping track of your trading! Working with that data is an invaluable tule for the trader, that helps identify your strengths and weaknesses, while also
helping you notice patterns in your trading that would have been left unrecognized otherwise.
🔥FORMALIZE YOUR RULES
Objectivity is KEY for consistent trading because during the rough patches of the market, being sure of your rules helps you stay in the market, waiting
for the tailwind, instead of questioning your strategy or your implementation of it. Create a strict ALGORITHM and follow it step by step. In order to do
that, you need to define every element of your strategy as precisely as possible. For example, a level for you is a daily horizontal level with at least 3
touchpoints, a breakout is valid only if the 4H candle closed above the level, etc...
The less vague the terms, the fewer emotions will be involved in deciding whether to enter the trade or not.
❗️ IN CONCLUSION: If you want to become a trader, remember:
1- It will take YEARS to learn how to trade.
2- You will lose a TON of money in the process
3- You will FAIL with 95% probability.
4-Realistic returns from trading are WAY lower than you think
5-BUT when you succeed, you will set yourself free!
Please SUPPORT This Idea By A LIKE and COMMENT!
Video How to Set the PERFECT Target Every Time (yeah, right...) Educational video on the different approaches to setting targets & the importance of having a certain mindset when looking to take profits
BTC- 4 TH WAVE CONSOLIDATION DETAILED STUDYEven though i tried my wave count to convince the BTC bulls, it is not possible for me to deviate from NW rules in time cycles.
Wave 4 has to to take equal time as wave 3 taken, if you apply this rule ,we have more time left to finish wave 4,
So far wave 'A' of wave 4 completed in 5 waves (wxyxz), therefore wave B will resume fastly ,DON'T assume it as 5 th wave
Because after wave 'B', BTC bears will start selling to complete the final wave 'C' until 25th OCT,2021.
Since wave A is 5 segmet(motive) waves,the retracement of B is limited to 61.8%(47895)(2nd AUG)
Wave C must be of 5 wave down after wave B with a minimum target of 25300.
Hence 5 th wave will resume from NOV,21
Improve your Technical Analysis using Fundamental Analysis!In this video I decided to show you how to use Fundamental Analysis along with Technical Analysis in order to improve your understanding about the market.
Although it is not common, as most people seem to like Tradingview for its price charts/indicators, you can use this platform for fundamental analysis as well . In this video I explain the importance of looking at the fundamentals through a chart.
I hope you'll like the video! In this case, remember to support this idea, and follow me for more content like this.
Have a good week.
Fundamental Indicators used in this video:
- Price to Earnings;
- Net Margin (%);
- Return on Invested Capital (ROIC).
Double EMA (DEMA) From ScratchHello, traders!
Today we’ll speak about the most trivial, but very useful indicator that’s called DEMA. As you know, moving average is a backbone of 90% complicated indicators. It’s able to give lots of information about the price action. Well, let’s speak about it.
The double exponential moving average (DEMA) is a technical indicator introduced by Patrick Mulloy in his January 1994 article "Smoothing Data With Faster Moving Averages" in Technical Analysis of Stocks & Commodities magazine.
The DEMA uses two exponential moving averages (EMAs) to eliminate lag, as some traders view lag as a problem. The DEMA is used in a similar way to traditional moving averages (MA), but DEMAs react quicker than traditional MAs.
How to use DEMA?
-The average helps confirm uptrends when the price is above the average, and helps confirm downtrends when the price is below the average. When the price crosses the average that may signal a trend change.
-Indicate areas of support or resistance.
-Cross overs of 2 DEMAs. We sometimes draw fast DEMA(20) and slow DEMA(50). When the fast line crosses the slow below, it’s a bearish signal, when above - bullish. It’s consider to be a good entering signal. However, we shouldn’t forget that the indicator is still lagging.
Guys, I should remember you that every indicator shouldn’t be used in solo. You should only use them in conjunction with other indictor when they confirm each other. I hope, this knowledge will boost your trading skills and make your trading staff more interesting and profitable. Have a nice day, dear traders.
Pitchfan From ScratchHello, traders!
Today we’ll continue to speak about graphical tools of trading view. We have already completed Fib. Retracement, Gann Square and different kinds of Pitchfork. Today we’ll speak about extremely useful tool, that we are integrating in our strategies. So, ladies and gentlemen, love and favor, Pitchfan.
A Pitchfan is a set of rays spreading out of the point of a trend's beginning. These rays inclined with the coefficients formed by a Fibonacci number sequence.it is recommended to apply a Pitchfan after the first wave of the trend has passed and the correction has clearly begun.
To draw a Pitchfan, it's first and second points are to be set at the trend's extreme points, and the third point is to be set at the extreme point of the first correction wave.
Basically, during the bullish trend, put the first point to the beginning of the trend, second to first confirmed higher high, third to the first confirmed higher low. Whereas during bearish trend put the first point to the beginning of the trend, second to first confirmed lower low, third to first confirmed lower high.
When I say «confirmed», I mean two-three candles should close after the high lower and after the low - higher. Kinda difficult? Have a look at the chart and should become more clear.
What does it say?
Initially, if you plot it correctly, it’ll give you clear support resistance levels. This’s information, in my opinion is priceless for any trader cause it’s much easier to predict the future price movements. But the best of usage, seems to me, in conjunction with Fib Retracement or Trend based Fib. Extension. If it’s interesting to you, dear traders, write down to comments and advise the third indicator or tool. So, we’ll make the trading strategy together.
Read my tutorials, write questions to comments and you are about to boost up. Have a nice trading week, dear traders!
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Fib Retracement From ScratchHello, traders!
As you can see, SkyRock traders always use Fib tools for our analysis and predictions. We find Fibonacci tools a great powerful series of instruments that’s necessary to use. Today we’ll speak about one of my favorite TA tools - Fib Retracement.
Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Well, it seems to be not very important and attractive how to calculate Fib Retracement Levels. You should just know that they are based on something called the Golden Ratio. It’s believed that all natural laws are based on this ratio. However, the right usage of it is deadly important.
To initialize it, put the first point to the previous lower low and the second to the confirmed higher high during the up-trend and vice versa during the sown-trend.
What can it tell you?
Initially, support and resistance. It could hardly be possible to find the tool better for such purpose. Then, the levels of it is usually reached, thus it may produce some signals. Although it’s very powerful tool, it’s kinda ridiculous idea to use it marginally. Also, the areas of sideways is also defined by it, cause of high probability of consolidation in «Golden Pocket». And at last, it helps ms to define Gartley and Elliott patterns.
Well, guys, as you can see it’s really great and multifunctional instrument that can help every of you to trade and make money trading. Use it in the right way! Have a nice trading day, dear traders!
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
How to trade based on a Multi-Timeframe Analysis?Good morning, traders! Today we will do an explanatory post on how a Multi-Timeframe Analysis (Weekly-Daily-4H) can be used to take a trade. The benefit of this is that we will be trading taking into account the short, medium, and long-term behavior of the price, which gives us a higher success rate. Many times, we take a trade focusing only on one timeframe, and we are missing relevant information of higher temporalities, such as areas that we are not seeing.
Let's see how it would look in practice:
🔸The first thing is to start with the chart with the higher temporality, in this case, the Weekly:
- We see here that the price is in a range and bouncing in the support zone where a strong bullish momentum was previously generated. This gives us a first bullish hint.
🔸Then, in the Daily chart (published), we see that the price bounces off the previously marked zone and breaks the downtrend channel. This is the second bullish sign.
- In addition, in this chart, we proceed to mark the potential targets of the movement.
🔸Finally, in the 4H chart is where we will look for our entry into the market:
- After the break of the bearish channel, the price begins a corrective process at the edge of the trend line. When the breakout of this structure happens, the optimal thing is to place an income above the last lower high of the structure to avoid potential fakeouts.
BTC / USD Price game with meanings from 04 2013 to 09 2014Make an analogy with the trading situation now with a slight shift in time and taking into account the slowdown of the process itself due to increased market liquidity. This is just an observation-comparison nothing more.
Learn to notice what at first glance seems unimportant, casual and unimportant ... That is what most market participants do not notice, because they should always only lose and give, it just can not be otherwise. If they win, then only accidentally and temporarily, in order to lose more in the future.
ETHUSDT Short range Analysis | Both Long and Short PossibilitiesHello, traders!
Today we gonna speak about Ethereum and possible trade opportunities on it. As you know, it's the most powerful Altcoin with great capitalization and powerful fundamentals. Moreover, some analysts call it the alternative of Bitcoin. We've already told, but you should remember that the great update will be on 21-th of July. Read about it in our related idea. Now, let's speak about technicals. Today we'll kill two birds with one stone. I'll show you the application of Gann Square and give some possible trades on ETHUSDT. Here we go!
Let's have a look at the chart. As you can see, we have double top that tells us about the trend reverse. As you know, the range of the price goes down is the height of double top. As you can see, the price doesn't reach maximum level, thus the continuation of falling down is possible. Then, we have strong confirmed bearish divergence completed with crossover. This tells us about the highly probable price. Let's have a look at Gann Square. Here we can see that the price is in local triangle that can be break either up, or down.
Moreover, we can see more global triangle that's broken broken below. Based on these knowledge, I see two possible outcomes.
Scenario 1)
Price returns to the blue triangle and after three bars closed inside it, we can enter the long positions. Take profit is on the top side of triangle, stop loss a bot lower than the current support-resistance line, entrance after 3 closed inside bars.
Scenario 2)
One-two bars closes under the triangle. Thus, we have consolidation under it and we can open short position. Take profit is put on weekly pivot and stop loss on possible level after the probable breaking down the resistance.
Here you are my vision of future ETHUSDT. Please, don't enter position without your own analysis. It would boost your trading skills much better than just following over ideas.
As you know guys, we work hard for you every day to make interesting and useful content. However, your opinion is extremely important for us. Thus, please, write down to comments what would you like to read about, what would you like to study and so forth.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Introduction To Gann Theory | Gann Square From ScratchHello, traders!
Today we gonna start one of the most complicated topics. Please pay as much attention as it possible and ask any questions you like.
Gann technical analysis methods are a bit complicated because they are based on geometry, ancient mathematics, astrology, and astronomy. Popular technical methods like Gann Angles and the Master Charts are at Gann’s disposal. The Gann Square is also among the several powerful tools that Gann developed.
How to use?
It can be used in a variety of ways.
One way is to start at the previous major pivot point (normally the end of the last 5 wave sequence) and draw it so that the 1 X 1 line follows the current market support areas to a good degree.
Simply put, if you want to draw it from the higher high, the end should be at the previous lower low to follow the price cycles. And if you are drawing it from lower low, finish it at previous higher high.
Another way is to highlight geometric formations that can forecast key support and resistance levels by counting forward from the all-time low or all-time high.
Well, I understand the difficulty of the instrument. It's kinda difficult to use it from scratch. However, tomorrow I will elaborate this article with short analysis using this powerful tool.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Tutorial | How To Create An Order Panel Trading TemplateThe TradingView Order Panel doesn't currently have a template setting to save the order parameters. Here's a work around thanks to a comment from @thatjeph Appreciate it!
Instructions:
1) Using the Long/Short Drawing Function and drop it on a chart.
2) Adjust the levels to reflect the trade entry, take profit, and stop level. (Note: The default quantity is a bit weird)
3) Save the object as a Template named to reflect the settings.
4) Right click on the trade object and Select > Create Limit Order.
5) Boom - you Order Panel is opened with the trade setting from the order object.
Brakout or Fakeout ?Hello traders , As you can see in the related EURUSD idea I published sooner , I mentioned that IF we had a breakout of structure you can enter a long position ...
But what happened then ? when you see a candle breaks the resistance area , that dose not mean that you can enter a long position . Actually it's the first sign of a long position of course.
you should go through lower time frames to see a Weakness for sellers to enter a long position.
in the next bear candle we can clearly see no Weakness which means this was a FAKEOUT ...
Balance Of Power From ScratchHello, traders!
As you know it's very important to identify the balance of bulls and bears. Today, we introduce you one of the most pretty and easy-to-interpret tools - Balance Of Power Oscillator.
Balance of Power (BOP) is an oscillator that measures the strength of buying and selling pressure. Introduced by Igor Levshin in the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, this indicator compares the power of buyers to push prices to higher extremes with the power of sellers to move prices to lower extremes. When the indicator is in positive territory, the bulls are in charge; and sellers dominate when the indicator is negative. A reading near the zero line indicates a balance between the two and can mean a trend reversal.
The Balance of Power indicator shows the direction and extent of price change during the trading period. Like most oscillators, the Balance of Power indicator can be used to identify trends, divergences from price, and overbought/oversold conditions. Zero-line crossovers provide buying and selling signals.
Possible Signals
Zero-Line Crossovers
The scale of this oscillator ranges from -1 to +1, with 0 as the centerline. Zero-line crossovers indicate a move into positive or negative territory, and are often used as buy or sell signals. A cross above the center line generates a buy signal, and a cross below generates a sell signal.
The data is smoothed with a moving average in order to reduce the number of whipsaws. An SMA with more periods reduces the number of false crossover signals, but also reduces the responsiveness of the indicator.
While the main signal provided by the Balance of Power indicator comes from zero-line crossovers, it can also be used to determine the trend, look for divergences in price, and identify overbought/oversold securities.
Trend identification
A rising BOP line indicates an upward trend and a falling BOP line indicates a downward trend. The zero-line crossover confirms the trend change.
Divergences with Price
When price makes new highs but BOP doesn't, that is a negative divergence; when price makes new lows but BOP doesn't, that is a positive divergence. These divergences can foreshadow a change in trend.
Conclusion
The Balance of Power (BOP) indicator uses price to measure buying and selling pressure. It determines the strength of the buyers and sellers by looking at how strongly the price has changed, rather than using volume.
As with all indicators, traders should use the Balance of Power indicator in conjunction with other indicators and analysis techniques.
💨𝙀𝙡𝙡𝙞𝙤𝙩𝙩 𝙒𝙖𝙫𝙚 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡🌊●●● 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (D)
❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨
● A diagonal always subdivides into five waves.
● Wave 2 never goes beyond the start of wave 1 .
● Wave 3 always goes beyond the end of wave 1 .
● Wave 4 never moves beyond the end of wave 2 .
● Wave 4 always ends within the price territory of wave 1 (overlap).
● An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat .
● A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag.
● Waves 1 , 2 , 3 , 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags.
● In a leading diagonal, wave 5 always ends beyond the end of wave 3 .
❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Waves 1 , 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses (all zigzags or all impulses ).
● Within an impulse , if wave 1 is a diagonal, wave 3 is likely to be extended.
● Within an impulse , wave 5 is unlikely to be a diagonal if wave 3 is not extended.
● A leading diagonal in the wave one position is typically followed by a zigzag retracement of 78.6 %.
●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Contr.D)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● In the contracting variety, wave 3 is always shorter than wave 1 , wave 4 is always shorter than wave 2 , and wave 5 is always shorter than wave 3 .
● Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves 1 and 3 .
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● In the contracting variety, wave 5 usually ends beyond the end of wave 3 . (Failure to do so is called a truncation.)
● In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3 . (Ending beyond that line is called a throw-over.
● In the contracting variety, wave 3 may be equal .618 to .786 the length of wave 1 , and wave 5 may be equal .618 to .786 the length of wave 3 .
●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Exp.D)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● In the expanding variety, wave 3 is always longer than wave 1 , wave 4 is always longer than wave 2 , and wave 5 is always longer than wave 3 .
● Going forward in time, a line connecting the ends of waves 2 and 4 diverges from with the line connecting the ends of waves 1 and 3 .
● Wave 5 always goes beyond the end of wave 3 .
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave.
● In the expanding variety, wave 3 may be equal to 1.618 the length of wave 1 , and wave 5 may be equal to 1.618 the length of wave 3 .
● In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3 .
Elliott Wave Principal 2005 and Q&A EWI .
