Happy Holiday, Traders!Just some market analysis to keep the mind having fun during this holiday.
Happy Holiday, traders!
Tutorialtrading
Beginner's Guide To Moving AveragesMoving averages are without a doubt the most popular trading tools. Moving averages are great if you know how to use them but most traders, however, make some fatal mistakes when it comes to trading with moving averages. In this article, I show you what you need to know when it comes to choosing the type and the length of the perfect moving average and how to use moving averages when making trading decisions.
What is the best moving average? EMA or SMA?
In the beginning, all traders ask the same questions, whether they should use the EMA (exponential moving average) or the SMA (simple/smoothed moving average). The differences between the two are usually subtle, but the choice of the moving average can make a big impact on your trading. Here is what you need to know:
The differences between EMA and SMA
There is really only one difference when it comes to EMA vs. SMA and its speed. The EMA moves much faster and it changes its direction earlier than the SMA. The EMA gives more weight to the most recent price action which means that when the price changes direction, the EMA recognizes this sooner, while the SMA takes longer to turn when the price turns.
Pros and cons – EMA vs SMA
There is no better or worse when it comes to EMA vs. SMA. The pros of the EMA are also its cons – let me explain what this means:
The EMA reacts faster when the price is changing direction, but this also means that the EMA is also more vulnerable when it comes to giving wrong signals too early. For example, when the price retraces lower during a rally, the EMA will start turning down immediately and it can signal a change in the direction way too early. The SMA moves much slower and it can keep you in trades longer when there are short-lived price movements and erratic behavior. But, of course, this also means that the SMA gets you in trades later than the EMA.
What is the best period setting?
When you are a short-term day trader, you need a fast-moving average that reacts to price changes immediately. That’s why it’s usually best for day traders to stick with EMAs.
On the other hand, Swing traders have a very different approach and they typically trade on higher time frames (4H, Daily +) and also hold trades for longer periods of time. Thus, swing traders should first choose an SMA and also use higher period moving averages to avoid noise and premature signals.
The best moving average periods for day-trading
9 or 10 periods: Very popular and extremely fast-moving. Often used as a directional filter (more later)
21 period: Medium-term and the most accurate moving average. Good when it comes to riding trends
50 period: Long-term moving average and best suited for identifying the longer-term direction
The best periods for swing trading
20 / 21 periods: The 21 moving average is my preferred choice when it comes to short-term swing trading. During trends, price respects it so well and it also signals trend shifts.
50 period: The 50 moving average is the standard swing-trading moving average and is very popular. Most traders use it to ride trends because it’s the ideal compromise between too short and too long term.
100 period: There is something about round numbers that attract traders and that definitely holds true when it comes to the 100 moving average. It works very well for support and resistance – especially on the daily and/or weekly time frame.
200 / 250 period: The same holds true for the 200 moving average. The 250 period moving average is popular on the daily chart since it describes one year of the price action (one year has roughly 250 trading days)
How to use moving averages
Trend direction and filter
you can use a fast EMA to stay on the right side of the market and filter out trades in the wrong direction. Just this one tip can already make a huge difference in your trading when you only start trading with the trend in the right direction.
The Golden Cross and the Death Cross
But even as swing traders, you can use moving averages as directional filters. The Golden and Death Cross is a signal that happens when the 200 and 50-period moving average cross and they are mainly used on the daily charts.
In the chart below, I marked the Golden and Death cross entries. Basically, you would enter short when the 50 crosses the 200 and enter long when the 50 crosses above the 200 period moving average. the screenshot shows that during the last bitcoin cycle if you stuck to the moving averages you would have been profitable most of the time both in the long and short directions. Also please notice how when the market is moving sideways it's not favorable to use the moving averages.
I will end this article here, I hope you now have a better understanding in moving averages and how to utilize them to follow the trend.
Chart Pattern Review | Diamond Top / Bottom ReversalDIAMOND TOP / BOTTOM:
> A trend reversal pattern indicating the end of up or downward trend - slightly off head & shoulders pattern
> Price increased and declined sharply with significant volume forming a diamond shape
> A mix of expanding and contracting triangle or wedge, often confused with a more popular head & shoulders
> Timing could range from days to months
Key characteristics:
> The price should trending downward then forming a broadening pattern.
> The price pattern increased and decreased sharply before squeezed for rebound
> Timing ranging from days-weeks-or months - a strong long-term reversal pattern
> Most trends will begin with a breakout gap and be followed by several runaway gaps.
Trading Tips:
> Price range determines the target reversal
> TP1 @ the size of the diamond extending the breakout or breakdown distance.
> TP2 can be targeted between 1.0 / 1.618 fibonanci retracement.
> TP3 @ key moving average support / resistance within extended range.
> Putting the chart together with a price oscillator like VWAP / CVD for a better early breakout or breakdown catch.
> Price oscillator can monitor the overall likelihood of a high probability trade and confirming strength/momentum as well as spotting false breakout/breakdown trades.
Always trade with affordable risk and respect your stoploss, nothing 100%
Good Luck!
QNT//USDT Simple rules of risk management and trading strategiesCoin in the Coinmarket: Quant
This coin is for work as an example no more, now there are many similar ones with similar trading situations.
On the chart showed the trend, the figures that are formed, the support / resistance levels.
The figures show the potential entry points in case of a breakthrough or holding the support/resistance zones depending on your trading strategy.
I cannot know how you trade or what strategy you use. You have to adapt my information to your trading strategy and first of all to your risk management.
Some simple tips for your work:
1) I advise you not to be like everyone else and not to expect super target. The target must be adequate. The smaller you set target, the more you will earn at a distance. When the price of a coin is rising through most of the volume, it is advisable to work locally up to +80%, so you will always have money to re-buy from the profits.
2) Complex % (using volatility) does its job. It can be used (the principle) not only on one coin (accumulation), but also on several coins without paying attention to the name of the coin (to accumulate profits from coin to coin). They should not be very many.
3) Remember—the level is not a line, but a zone. It is rational to work with a grid of orders.
4) If possible, protect your profits with a trivial stop loss. But do not place it too close to the main intraday volatility zone.
5) Do not work with a large number of coins, there is no need, they are all the same. Their rise in price depends primarily on the general situation on the market and in the world.
6) Take into account the phases of the market, including local character. Creators of individual crypto-funds will not raise the price against the general trend if people are afraid to buy at that time. Playing against the trend is more the exception to the rule.
There is a time to buy, a time to sell, and a time to watch. The third phase should take you the longest. Most people are only in phase one, regardless of the overall trend. Don't be like that…
7) Trade with your thought-out algorithms (trading strategy + risk management + experience), not with emotions. Those who lose money in the market—trade with emotions and ill-considered fantasies – desires.
The basis of your profit is your trading strategy and compliance with risk management based on your experience
Recommendations for trading strategies:
1) If you work in shorts, be sure to put stops and use adequate minimum leverage. Margin trading is a nightmare for an inexperienced and very greedy market participant.
2) When working in the spot on medium liquid coins, it is more rational to wait for a breakthrough in the downtrend and on the pullback after the momentum with a significant (important) buyer volume to enter the market. It's better to buy a bit more expensive, but with more confidence that the trend has changed. But, it is not a panacea, can after a breakthrough and holding the price a certain time—the continuation of the downtrend. Options for solving the problem:
a) stop loss.
b) Money cushion.
c) The first and second options in place.
3) If you really want to buy some crypto-coin before the break of a trend (you are afraid of not having enough time or you "know the exact future”), then don't buy with all the amount allocated to this coin. The first purchase (especially before a trend break) should not have a big % of the main planned volume.
a) If the price goes against your initial purchase and decreases—work martingale from the specified levels (in addition to the position) to average the average purchase.
b) If the price rises strongly by impulse, and you bought a small planned amount, then there are two options in this case:
1) Wait for a pullback and on the pullback to finish (but still not for the whole amount, you should have at least 20-30% cache at any pumping).
2) the second option, if the price has strongly increased and there is no substantial rollback—work with the volume, that is, and the rest of the money allocated to similar coins, which have not had time to grow in price.
DESCENDING CHANNEL - Range Trading StrategyHello my Fellow TraderZ,
Today this is not any Trade idea but a TUTORIAL on how to Trade the RANGE or the CHANNEL.
This is simple, safe, profitable and straight forward Price Action strategy.
Here we are taking the chart of US Govt. Bond 10Y-yield. This is the perfect setup of DECENDING CHANNEL on MONTHLY chart. No time bound you can trade at any TIMEFRAMES, but Higher Time Frames are more reliable.
You see, to draw any Trendline we need minimum 2/3 touch points.
Whenever the price touches the Trendline, never open any Trade in RUSH, wait, see the kind of candles forming at Touch Points (at LOWER TL = BULLISH PA, at UPPER TL = BEARISH PA). PA = Price Action. This should be coupled with the VOLUME.
Notice the S/R areas, where price gives multiple hits before bounce or rejection. This will give you extra boost as these horizontal S/R are more reliable than Dynamic S/R. Also these areas could be your Pivots to make ENTRY(incase price doesn't hit the channel Trendlines) or TP Targets.
Look at the Percentage(%) wise gains simply following the channel(BUY THE LOW, SELL THE HIGH). Well I've just mentioned the BUYS, you can add the short positions also.
Until the price is in channel you can take Multiple Trades both LONGing and SHORTing the market, unless the channel Breaks. This is the beauty of Range Trading. Similarly you can trade ASCENDING CHANNEL/WEDGES as well.
NOTE : PRICE ACTION is majorly important in the Game of Trading.
If you like this content, kindly give a FOLLOW & BOOST to me. Also COMMENT to bring more such #educational contents.
Sorry if its a bit Lengthy post.
Happy Trading . CHEERS!!!
ETH/USD Main trend. Accumulation/Distribution. Pivot pointsThe chart shows the main trend (most of it) of this cryptocurrency. The timeframe is 1 week.
Most people "trade" and do not understand the profit values of the price from the real set zones (not hamsters).
Also shown are the recruitment zones (horizontal channel) and partial reset zones (until the triangle decoupling) of previously gained positions of large market participants.
The last video explained this in detail and showed it on the example of this coin.
Even taking into account that this triangle (1.5 years) is a position reset. That doesn't mean that this formation must necessarily break down. But, this is something to keep in mind, especially the +3600%.
Volatility narrowing, that is, the end of triangle formation is a “doubt zone”—the “market fuel” (small and medium market participants) for the impulse is clamped down. That is, the decoupling of the triangle and the direction of further trend development.
The price is clamped into a triangle. A formation of this magnitude will only unravel due to future world shocks, especially financial ones. Who knows, maybe this time there will be no correlation at all, as the time of "coming out of the shadows" approaches.
Always trade within your working range (for example 1 day), always understand where the price is in the main trend. Based on this understanding, limit the risks, and make a decision about reducing (partial liquidation) or, on the contrary, about adding to the position.
Locally on the 1-day timeframe a wedge is formed on the decline.
I've shown all the decoupling options for this trading situation in detail in this trading idea, as well as in the video.
ETH/USDT Local trend. Channel. Wedge. Pivot zones.
Under idea fixed my previous trading as well as training/trading ideas where I accompanied the price in updates for quite a long period. Note the exact values and more. You can use the material in them as educational, based on reality.
Remember, the basis of trading is not guessing (that's what everyone wants to do), but your trading strategy and risk management based on your knowledge and experience.
Those who want to guess tend to lose money. Do not be such characters in the market, that is, its fuel. I wish all smart people a big profit, and wish all stupid people to wake up from the dream of stupidity.
Sinusoidal movement in channel, GalaIn this post, I am not referring to physics and math equations and probabilities, I'm just saying that the Display method of the probability of a numerical event is between 0 and 1,
and just for easy recall in tutorials, I consider a number between 0 and 100.
0 indicates impossibility and we know that 100 indicates certainty.
Therefore, will explain this price movement detection method in a simple and concise way.
Consider a few general rules:
1- The price chart in a channel always tends to approach and return to the middle line of the channel.
This is true for all types of the uptrend, downtrend, and neutral channels.
2- Sinusoidal movement is dynamic (of course, I mean in the financial market) and the range of movement, speed, and volume can vary.
3- the price chart after hitting the middle line, faces 3 possibilities.
Usually, we consider these possibilities as 33 - 33 - 33 %
3-1- Reversal (pull-back ) to the previous direction.
3-2- Crossing the middle line and moving to hit the other line of the channel.
3-3- The price chart attached to the middle line of the channel continues to move.
(I will publish the third point and its reasons in another post because this one is a complete and long tutorial for himself)
4- usually In uptrend and downtrend channels, the movement angle of 45 degrees is the most appropriate movement angle to create sinusoidal movements (consider between 30 and 50 degrees).
And the 5:
"Keep this last point in mind in all the training you read and learn from different people.
From great masters in financial market analysis to an ordinary person like me "
** No theory, method of analysis, or analysis is ever 100% correct.
In probabilities, we always have the nearest states, which means that when we say 100 for the certainty of occurrence,
A probability may be up to 99.999999, but it is NOT 100%.
So remember that there is always a possibility of a movement or change contrary to our analysis, rules, or imagination, and
"This is one of the main reasons for placing a Stop-loss limit in trading"
-----------------------------------
Please write any advice or suggestions.
Dear friends, request any cryptocurrency pair, currencies pair for forex, and any index that you want to be analyzed and ask any questions.
Thanks for your attention
HOW TO SWING TRADE USING BB - MACD!Today im going to show you how to use Bolinger Bands and MACD together to understand where the price is going.
So you can swing trade easily.
By the way swing trade is holding assets for profit for more than a day.
So this strategy is suitable for novice investors. But you will need practice before applying this to your trading strategy!
First of all i do not recommend betting against the market.
Do follow the trend when using this strategy. If the trend is upwards do not short the asset.
But there can be breakout from the existing trend.
Therefore we can also use trendlines to have better understanding of the market.
Lets identify indicators that we are going to use then i will explain how to use them to swing trade.
MACD measure specific EMAs and their relations. EMAs are mainly 12 period EMA and 26 period EMA.
There are 2 lines and 1 histogram on MACD. They are called, MACD line, Signal line, Histogram.
MACD line = 12 EMA - 26 EMA
Signal line = 9 EMA of MACD line
Histogram = Difference between MACD line and Signal line
We use MACD to identify trends so we can trade accordingly.
If the MACD line is above 0, we are in a uptrend.
If the MACD line is below 0, we are in a downtrend.
If the MACD line is above or crosses above signal line it is a buy signal.
If the MACD line is below or crosses below signal line it is a sell signal.
Longer histograms and being too far away from zero line means momentum of the trend is high.
These are the basic of MACD.
Bolinger Band is easier to grasp than MACD.
There is an upper channel and lower channel calculated with volatility and 2 Standard Deviations from 20 Simple of MA line.
Generally if the price is closer to the upper band, market is considered overbought and vice versa.
If the market is highly volatile bands widen and if volatility is low bands contract.
The most important thing about BB is 20MA. Generally price will test 20MA line after it hits the upper or lower band.
If price breakout or rejceted from it, trend is established.
So how can we combine both of them to swing trade successfully?
1- We have to identify the market trend. We can simply draw a trendline on the chart to identify it.
2- Use 20 MA as entry-exit
3- Look MACD histogram for momentum
4- Use lower - higher band as SL-TP
Example;
Look at the chart on the left!
Feb 04 19, uptrend started and MACD signal buy.
But there is no momentum.
MACD far away from zero line and price far away from 20MA.
Wait until price breakout from 20MA.
1- is the confirmation of trend with momentum rising and price breakout above 20MA line. BB start to widen meaning high volatility.
You can enter long trade here since price and momentum rising with volatility.
2- is the upper band of BB. This is take profit levels.
If you are seasoned enough you can open short position here with 20MA area TP.
3- Test of 20MA. You can enter short or long here with lower BB being SL - TP.
But with MACD signaling sell and losing positive momentum in histogram, short seems to be the RIGHT CHOICE .
4-Price cant hold 20MA. Drop to the lower band. SL-TP zone.
If you are seasoned enough, potential entry zone for long trade. TP being with 20 MA zone.
Lets take a look at the chart on the right.
Same chart, after a couple of weeks from chart 1.
There is a clear uptrend that started 09 March 20.
1- At 20 April MACD signal buy but there is no momentum and price was still below MA20.
It is logical to wait for confirmation which is the breakout of MA20.
2-Price breakout MA20 after a week.
Between 27 April - 05 Oct, there are more than couple times that market offers good entry zones.
Between this time, MACD momentum and lines are rising to the positive-buy zone.
3- Price is around upper band for a long time. Could be a TP zone.
Price also lost %25 value 2 in weeks. Some people use here as TP zone.
But MACD lines and histogram were positive.
Price didnt test the 20MA.
Also BB is still widening. Meaning high volatility in a bull market.
Opening short is not logical here.
4- Last time price touched the upper band.
Histogram started to lose momentum.
Potential TP zone and short entry.
To be honest this seems to be a good point for short trade but didnt work out.
Price went up (2. ATH) couple of weeks later with MACD momentum nearly finished.
Therefore always put SL-TP with your orders.
5- MACD signaling sell.
Low negative momentum.
If open short here, it could be like NO.3 on the chart.
Wait for confirmation.
6- Price test MA20.
After couple of weeks we broke down MA20. Bear confirmed.
Momentum rapidly increase to the negative zone.
Potential short entry.
7-Price cant hold MA20.
Lower BB reached.
Possible SL-TP area.
So sign from MACD to enter a long trade just yet.
8- Possible long entry with MA20 breakout above.
MACD signal buy with low momentum. Therefore wait for confirmation is logical.
After a week momentum rises.
Long entry seems logical.
New ATH for BTC.
So in short,
Identify a trend!
Check MACD for momentum and trend strength.
Enter when price breakout MA20.
Confirm the breakout before enter!
TP-SL at the MA20 and Band limits.
Bitcoin Short Term Analysis with Curved Trend Line!Today i will be showing you how to use Curved Trend Line indicator.
This indicator contains 21 period ema which is red line and 20 period sma which is yellow line.
This 2 averages together work like a trendline. So if the prices are below both lines we are in a downtrend and vice a versa.
If price is in the green are which between the 2 lines, that means price is in a area of indecision.
Just like regular trendline, this curved trendline shows us resistance and support areas.
Let me show you with an example.
There is an uptrend that formed in the late January.
Price tested that trend line 1 month later and price went 45k area quickly.
Last week we tested that trendline again and held.
Price can go to the 45k area again.
It can retest trendline before going up.
Or it can go up without testing it again.
This also correspond with my Curved Trend Line indicator!
We are trying to break above Trend Indicator at 40k!
Right now we are testing CTL to go higher. If we can manage to stay above price action will be to the upside of 45k.
Also, for a month CTL act as a resistance.
Everytime price test the CTL and try to breakout above it got rejected.
This is an indicator that works as an support - resistance of a price!
You can also use this CTL to validate your formations, SL-TP points!
Use this CTL with daily or higher timeframes for more accurate decisions!
If you want to try that %100 free indicator just message me!
Important Daily Support
38k
35k
Important Daily Resistance
40k
41k
45k
The analysis of the behavior of major player Part 3Today i want to proceed my sharing of my knowlege about the behavior of large players in the market,
how to notice them and how to use it.
So on this example of BTC we can see the candle that activated those stops of the major players that we talked about in the previous two parts of this tutorial.
This candle staying on the circled zone that we talked about last time.
Look! It is Amazing.
So after this candle we can be sure that the next target is the pump, becouse all stops of the major players it is = BIGGEST BUYS in the market.
Have a good mood
How Ya All Guys Liking This ApeCoin Futures Trade!!!!!!Padawans, How are you Liking this Ape coin Trade Futures Trade! Your Lightsabers must be tired. Over the last few weeks we have been posting numerous successful trades and persons message to ask how do i do it.
Well these last few weeks I have been perfecting trendline trading not really a novel strategy but especially for futures it is essential to get the entry right. I essentially look for breakdowns of the trendline and then wait for consolidation and then THEY produce a new trendlines. I update all my trades telling you to enter or to re enter based on this.
Now this week we had two failed trades, 1 was a scalp and 1 was Snx and a Forex Pairing. Snx was human error, ii actually gave the signal at the resistance to upper band of the trendline while i should have waited for the retest and then well bitcoin crashed. The most interesting one however was the forex pairing and it lead me to realize that I need to do my trendline analysis on large time frames for forex pairings. On crypto you can get away with using the 15 minute chart but in all my test in forex you are 50% likely to get wrecked. This may be a yawn, i already knew that moment for some of you but we are developing as we go.
Also lastly, here we were using multiple confirmations because there was also price level support which was $10.58 cents and that support has not broken not once in the last three days,.
Moving Average Cross Over StrategyWe start by creating a visual for when all moving averages are in order and across the 200 moving average . In this example, I have used a vertical line in the colour of our bias direction, Long(Green) , when this condition has been met. We now have an increased confidence by filtering out trade setups that do not meet our bias giving a higher probability and focus.
Levels of previous resistance give us a price that we can enter the market by turning into a new level of support . In this example I have highlighted this with a red arrow located on the left hand side.
Now we have a trading bias and a methodology to set price restrictions to enter the market, we can now trade only long positions and trade setups . In this example I have highlighted long opportunities that have been triggered with arrows in green located on the right hand side. Entry points can be executed on either the daily , 4hour or 1hour charts depending on risk and trading style preference. Please note - Lower time frames may generate more signals which presents more risk.
The analysis of the behavior of major player Part 1I would very much like to share with you my knowledge about the behavior of large players in the market,
how to notice them and how to use it.
It's very interesting and in fact you can talk about it for a very long time,
people have been studying these strategies for years.
I will try to explain the simplest first, this will be the first part.
If you look at the chart that I have shown, you will see the level underlined with a blue line, this is it, the stops of a major player, in the event of a breakdown of this level, a major player will exit by stops, which means a sale, since closing by stops for the exchange is tantamount to sale. Thus, at this moment, the price is guaranteed to go further down.😉
It was a first part.
Best wishes.
I will happy to see you in next parts😊
Steps to invest successfully #2Hello everyone,
During this video we are going to analyse the following subjects:
- Look at the bigger picture.
- Draw trend lines using the most significant lows/highs.
- Look for support and resistance.
- Look for candles.
- Understand where the stock/coin sits now.
- Reasonably predict where the stock/coin will be in the future.
- Make sure you are using EMA lines.
- When and why placing your stop loss is important.
- Pivot point.
Remember, you will never be right every time. However, the key factor is to limit your risk by buying close to support.
Seb.
The beginning of an investorHello everyone,
This is my first tutorial video, during this video you will find the following concepts:
- Primary trend
- Secondary trend
- Risk vs Reward
- Stop loss
- Volume
- Moving Averages
- Capital
20 minutes will never be enough to discuss all the basics related to trading and investing, however I hope that some of you are going to find this video useful for their personal growth.
Seb.
How to avoid getting Rekt with Heikin Ashi + Winning Trades1) Use Volume divergences to your advantage
2) Use Heikin Ashi weak green candles to find high points to short
3) Use dynamic trendlines by finding high + low points of volume to find "Volume breakouts"
Usually volume breakouts can happen before price, and you can predict price trends before they happen.
When to close Long BUY trades with small loss or small profit?
1) Weakness in Heikin Ashi candles upwards
2) Bear Divergences
3) Bear Volume increasing
4) RSI falling underneath the MA and retesting the MA
When to close SHORT SELL trades with small loss or small profit?
1) Bull Divergences
2) Bear Volume decreasing + Big Green Heikin Ashi candle with high volume
Also ^ switch back to normal candles and see if candle is Bull engulfing
3) RSI breaking out over the top of MA
When to Take Profit?
Use the reactive trendline:
When you are short and it turns Green after Shorting, take Profit on Short
When you are long and it turns Red after Buying, take Profit on Long
BTC_USD,GPAThe two resistances 44100 and 411100 are the most important numbers in the price of bitcoin and both numbers are the most important resistances and supports.
These two numbers are related to market rotations at our roof angle, and the failure of any of these numbers needs to be examined after failure.
We are in a period of time in the market when one of the floor-to-ceiling time cycles of the market is about to be completed and the failure of each can start a new trend.
Be successful and profitable
Training Trading Positions | Nikkei 4H• Training trading positions Along with how to use trading volume and the impact of volume on price movement !
Training Trading Positions | 4HTraining trading positions Along with fake breakouts and how to use trading volume and the impact of volume on price movement! Use Kendall patterns as well as use resistance and support correctly.
What Does the Inverted Hammer Candlestick Pattern Mean? Hello Traders!
Have you ever wondered when will a strong trend end? Do you struggle to spot candlestick patterns that potentially signal when the bulls or bears might take over?
Take a look at this example of EUR/CAD and let's see how the trade plays out! :)
About the Inverted Hammer Candlestick Pattern and Why It Forms:
The Inverted Hammer is a bullish reversal candlestick pattern. It occurs when the price has been falling and suggests the possibility of a reversal. Its long upper
shadow shows that buyers tried to bid the price higher. However, sellers attempted to push the price back down. Since the sellers weren't able to close the price any
lower, this is a good indication that everybody who wants to sell has already sold. And, if there are no more sellers, who are left? Buyers!
And just an important observation, the Inverted Hammer has a small real body, and has a large upper shadow with a small or no lower shadow (also known as "wick").
Would you like to receive more "live charting" tutorials like this?? Comment below and let us know! :)
Happy Trading!
Video Tutorial/Features of TradingView Free EditionVideo Tutorial/Features of TradingView Free Edition:
www.tradingview.com
CryptoHellas Team
GANN Theory Finally Completed StrategyI took a couple of months off to read a book i found on Amazon on Andrew Gann the inventor of GANN theory. After finishing his article i theorized that it could be transformed in these modern times. This will a Membership to perform, Alerts mean allot to people that want to automate the thought process behind this. Please note that i am not a paid person posting this, i been trading for 16 years ever since i graduated from High School, I went to college to understand Pattern Recognition. Believe it or not there is a pattern to every aspect of our Lives.
I have the MTF Support and Resistance from Annan Set to Daily .
Poor Mans Volume Profile ___ this is critical for plotting the GANN BOX onto the Charts with little to no thought process.
To plot the GANN BOX (not the GANN fix Box or the GANN angles) You are taking the Gann Box Placing it on the Poor Mans Volume Profile DAILY chart. For an Uptrend you go UP 2 and right 2 , you'll understand when you plot it. For Down Trend down 2 right 2 . Sideways (rangebound) oddly special one. Up 1 Right 2 Down 1 Right 2 . When your plotting on the charts LOCK the Gann on the chart. I use Daily Right 2 because i set it at the beginning of the MONTH and its good for until the NEXT month. you set alerts on the GANN FIB LINES. (ENTRYS) BASED... If you are having issues with plotting this LET ME KNOW... its gets very automated when you plotting it. The Poor Mans Volume Profile takes the calculations out of the picture.
Posting a picture of the Points your going up or down 2.
How you Plot it on the Poor Mans Volume Profile. last step is to LOCK it on the Daily CHART.
Alerts need to the be set on the 2 of the Gann Lines. ( set to Crossing ) Subscription premium allow you to set an unexpired alert. If you want to Swing with this strategy. You have to do something different by Anchoring on the Weekly and trading on the 30 min or 1hr you can swing with this. But as yourself are you going to swing or are you going to Day-trade this.
Stop loss is a very touchie subject that everyone should think about doing... Personally i use 4 different methods Count 5 bars back, last Swing point, or Halfway between the two fibs of entry. if i am feeling lucky just on the other side of the Fib Entry point. * the Lucky part of this one is if it goes bad you have a very LOW LOW risk of loosing allot of hard earned capital. Generally I will use the 5 bars back method.
CM- Slingshot set to Conservative.
Next 2 will be the Exits on the Trades and Indicators to take the Trade.
DYNAMIC RSI - DRSI for short just tweak the color on this one, from DreadBlitz. ____
MTF RSI from Chris Moody 14 70 30 D D 30 ___ set a color where you can see the MidPoint.
NOTE: When Entering you are looking at the Chart___ when it crosses the GANN FIB line. after the Bar completes, look at the DRSI and MTF RSI midpoint cross. (after the Cross has Happen and you can Confirm it on both u can now Enter the Trade.)
The exit point is when the DRSI goes Solid Filled color, secondly this effect will be happening on the MTF RSI.
I take all of my trades on the 15min timeframe with an Anchor on the Daily Chart. Anchor meaning MTF MTF MTF MTF all of them are set to the daily. I want to make thoughtful readings based on the Daily Overall proceedings of the market direction.
CADJPY: ANALYSISWe saw a strong impulsive move to the downside after a long corrective phase. We shall now keep watch on what may appear to be a small flag formation before we decide whether we will take more pips to the downside or maintain a corrective phase in the meanwhile.
Share your thoughts and suggestions are welcome! Happy trading!
