Fibonacci Indikator: Automatisch Retracements setzen ...

@binance: The Fibonacci retracement tool is a popular indicator used by traders in the stock markets, forex & cryptocurrency markets. Fascinatingly, it’s based on the Fibonacci sequence which was discovered more than 700 years ago. Level up your trading skills. ⬇️ https://t.co/sWsDNxbxas

@binance: The Fibonacci retracement tool is a popular indicator used by traders in the stock markets, forex & cryptocurrency markets. Fascinatingly, it’s based on the Fibonacci sequence which was discovered more than 700 years ago. Level up your trading skills. ⬇️ https://t.co/sWsDNxbxas submitted by rulesforrebels to BinanceTrading [link] [comments]

Some trading wisdom, tools and information I picked up along the way that helped me be a better trader. Maybe it can help you too.

Its a bit lengthy and I tried to condense it as much as I can. So take everything at a high level as each subject is has a lot more depth but fundamentally if you distill it down its just taking simple things and applying your experience using them to add nuance and better deploy them.
There are exceptions to everything that you will learn with experience or have already learned. If you know something extra or something to add to it to implement it better or more accurately. Then great! However, my intention of this post is just a high level overview. Trading can be far too nuanced to go into in this post and would take forever to type up every exception (not to mention the traders individual personality). If you take the general information as a starting point, hopefully you will learn the edge cases long the way and learn how to use the more effectively if you end up using them. I apologize in advice for any errors or typos.
Introduction After reflecting on my fun (cough) trading journey that was more akin to rolling around on broken glass and wondering if brown glass will help me predict market direction better than green glass. Buying a $100 indicator at 2 am when I was acting a fool, looking at it and going at and going "This is a piece of lagging crap, I miss out on a large part of the fundamental move and never using it for even one trade". All while struggling with massive over trading and bad habits because I would get bored watching a single well placed trade on fold for the day. Also, I wanted to get rich quick.
On top all of that I had a terminal Stage 4 case of FOMO on every time the price would move up and then down then back up. Just think about all those extra pips I could have trading both directions as it moves across the chart! I can just sell right when it goes down, then buy right before it goes up again. Its so easy right? Well, turns out it was not as easy as I thought and I lost a fair chunk of change and hit my head against the wall a lot until it clicked. Which is how I came up with a mixed bag of things that I now call "Trade the Trade" which helped support how I wanted to trade so I can still trade intra day price action like a rabid money without throwing away all my bananas.
Why Make This Post? - Core Topic of Discussion I wish to share a concept I came up with that helped me become a reliable trader. Support the weakness of how I like to trade. Also, explaining what I do helps reinforce my understanding of the information I share as I have to put words to it and not just use internalized processes. I came up with a method that helped me get my head straight when trading intra day.
I call it "Trade the Trade" as I am making mini trades inside of a trade setup I make from analysis on a higher timeframe that would take multiple days to unfold or longer. I will share information, principles, techniques I used and learned from others I talked to on the internet (mixed bag of folks from armatures to professionals, and random internet people) that helped me form a trading style that worked for me. Even people who are not good at trading can say something that might make it click in your head so I would absorbed all the information I could get.I will share the details of how I approach the methodology and the tools in my trading belt that I picked up by filtering through many tools, indicators strategies and witchcraft. Hopefully you read something that ends up helping you be a better trader. I learned a lot from people who make community posts so I wanted to give back now that I got my ducks in a row.
General Trading Advice If your struggling finding your own trading style, fixing weakness's in it, getting started, being reliably profitable or have no framework to build yourself higher with, hopefully you can use the below advice to help provide some direction or clarity to moving forward to be a better trader.
  1. KEEP IT SIMPLE. Do not throw a million things on your chart from the get go or over analyzing what the market is doing while trying to learn the basics. Tons of stuff on your chart can actually slow your learning by distracting your focus on all your bells and whistles and not the price action.
  2. PRICE ACTION. Learn how to read price action. Not just the common formations, but larger groups of bars that form the market structure. Those formations carry more weight the higher the time frame they form on. If struggle to understand what is going on or what your looking at, move to a higher time frame.
  3. INDICATORS. If you do use them you should try to understand how every indicator you use calculates its values. Many indicators are lagging indicators, understanding how it calculates the values can help you learn how to identify the market structure before the indicator would trigger a signal . This will help you understand why the signal is a lagged signal. If you understand that you can easily learn to look at the price action right before the signal and learn to watch for that price action on top of it almost trigging a signal so you can get in at a better position and assume less downside risk. I recommend using no more than 1-2 indicators for simplicity, but your free to use as many as you think you think you need or works for your strategy/trading style.
  4. PSYCOLOGY. First, FOMO is real, don't feed the beast. When you trade you should always have an entry and exit. If you miss your entry do not chase it, wait for a new entry. At its core trading is gambling and your looking for an edge against the house (the other market participants). With that in mind, treat as such. Do not risk more than you can afford to lose. If you are afraid to lose it will negatively effect your trade decisions. Finally, be honest with your self and bad trading happens. No one is going to play trade cop and keep you in line, that's your job.
  5. TRADE DECISION MARKING: Before you enter any trade you should have an entry and exit area. As you learn price action you will get better entries and better exits. Use a larger zone and stop loss at the start while learning. Then you can tighten it up as you gain experience. If you do not have a area you wish to exit, or you are entering because "the markets looking like its gonna go up". Do not enter the trade. Have a reason for everything you do, if you cannot logically explain why then you probably should not be doing it.
  6. ROBOTS/ALGOS: Loved by some, hated by many who lost it all to one, and surrounded by scams on the internet. If you make your own, find a legit one that works and paid for it or lost it all on a crappy one, more power to ya. I do not use robots because I do not like having a robot in control of my money. There is too many edge cases for me to be ok with it.However, the best piece of advice about algos was that the guy had a algo/robot for each market condition (trending/ranging) and would make personalized versions of each for currency pairs as each one has its own personality and can make the same type of movement along side another currency pair but the price action can look way different or the move can be lagged or leading. So whenever he does his own analysis and he sees a trend, he turns the trend trading robot on. If the trend stops, and it starts to range he turns the range trading robot on. He uses robots to trade the market types that he is bad at trading. For example, I suck at trend trading because I just suck at sitting on my hands and letting my trade do its thing.

Trade the Trade - The Methodology

Base Principles These are the base principles I use behind "Trade the Trade". Its called that because you are technically trading inside your larger high time frame trade as it hopefully goes as you have analyzed with the trade setup. It allows you to scratch that intraday trading itch, while not being blind to the bigger market at play. It can help make sense of why the price respects, rejects or flat out ignores support/resistance/pivots.
  1. Trade Setup: Find a trade setup using high level time frames (daily, 4hr, or 1hr time frames). The trade setup will be used as a base for starting to figure out a bias for the markets direction for that day.
  2. Indicator Data: Check any indicators you use (I use Stochastic RSI and Relative Vigor Index) for any useful information on higher timeframes.
  3. Support Resistance: See if any support/resistance/pivot points are in currently being tested/resisted by the price. Also check for any that are within reach so they might become in play through out the day throughout the day (which can influence your bias at least until the price reaches it if it was already moving that direction from previous days/weeks price action).
  4. Currency Strength/Weakness: I use the TradeVision currency strength/weakness dashboard to see if the strength/weakness supports the narrative of my trade and as an early indicator when to keep a closer eye for signs of the price reversing.Without the tool, the same concept can be someone accomplished with fundamentals and checking for higher level trends and checking cross currency pairs for trends as well to indicate strength/weakness, ranging (and where it is in that range) or try to get some general bias from a higher level chart that may help you out. However, it wont help you intra day unless your monitoring the currency's index or a bunch of charts related to the currency.
  5. Watch For Trading Opportunities: Personally I make a mental short list and alerts on TradingView of currency pairs that are close to key levels and so I get a notification if it reaches there so I can check it out. I am not against trading both directions, I just try to trade my bias before the market tries to commit to a direction. Then if I get out of that trade I will scalp against the trend of the day and hold trades longer that are with it.Then when you see a opportunity assume the directional bias you made up earlier (unless the market solidly confirms with price action the direction while waiting for an entry) by trying to look for additional confirmation via indicators, price action on support/resistances etc on the low level time frame or higher level ones like hourly/4hr as the day goes on when the price reaches key areas or makes new market structures to get a good spot to enter a trade in the direction of your bias.Then enter your trade and use the market structures to determine how much of a stop you need. Once your in the trade just monitor it and watch the price action/indicators/tools you use to see if its at risk of going against you. If you really believe the market wont reach your TP and looks like its going to turn against you, then close the trade. Don't just hold on to it for principle and let it draw down on principle or the hope it does not hit your stop loss.
  6. Trade Duration Hold your trades as long or little as you want that fits your personality and trading style/trade analysis. Personally I do not hold trades past the end of the day (I do in some cases when a strong trend folds) and I do not hold trades over the weekends. My TP targets are always places I think it can reach within the day. Typically I try to be flat before I sleep and trade intra day price movements only. Just depends on the higher level outlook, I have to get in at really good prices for me to want to hold a trade and it has to be going strong. Then I will set a slightly aggressive stop on it before I leave. I do know several people that swing trade and hold trades for a long period of time. That is just not a trading style that works for me.
Enhance Your Success Rate Below is information I picked up over the years that helped me enhance my success rate with not only guessing intra day market bias (even if it has not broken into the trend for the day yet (aka pre London open when the end of Asia likes to act funny sometimes), but also with trading price action intra day.
People always say "When you enter a trade have an entry and exits. I am of the belief that most people do not have problem with the entry, its the exit. They either hold too long, or don't hold long enough. With the below tools, drawings, or instruments, hopefully you can increase your individual probability of a successful trade.
**P.S.*\* Your mileage will vary depending on your ability to correctly draw, implement and interpret the below items. They take time and practice to implement with a high degree of proficiency. If you have any questions about how to do that with anything listed, comment below and I will reply as I can. I don't want to answer the same question a million times in a pm.
Tools and Methods Used This is just a high level overview of what I use. Each one of the actions I could go way more in-depth on but I would be here for a week typing something up of I did that. So take the information as a base level understanding of how I use the method or tool. There is always nuance and edge cases that you learn from experience.
Conclusion
I use the above tools/indicators/resources/philosophy's to trade intra day price action that sometimes ends up as noise in the grand scheme of the markets movement.use that method until the price action for the day proves the bias assumption wrong. Also you can couple that with things like Stoch RSI + Relative Vigor Index to find divergences which can increase the probability of your targeted guesses.

Trade Example from Yesterday This is an example of a trade I took today and why I took it. I used the following core areas to make my trade decision.
It may seem like a lot of stuff to process on the fly while trying to figure out live price action but, for the fundamental bias for a pair should already baked in your mindset for any currency pair you trade. For the currency strength/weakness I stare at the dashboard 12-15 hours a day so I am always trying to keep a pulse on what's going or shifts so that's not really a factor when I want to enter as I would not look to enter if I felt the market was shifting against me. Then the higher timeframe analysis had already happened when I woke up, so it was a game of "Stare at the 5 min chart until the price does something interesting"
Trade Example: Today , I went long EUUSD long bias when I first looked at the chart after waking up around 9-10pm Eastern. Fortunately, the first large drop had already happened so I had a easy baseline price movement to work with. I then used tool for currency strength/weakness monitoring, Pivot Points, and bearish divergence detected using Stochastic RSI and Relative Vigor Index.
I first noticed Bearish Divergence on the 1hr time frame using the Stochastic RSI and got confirmation intra day on the 5 min time frame with the Relative Vigor Index. I ended up buying the second mini dip around midnight Eastern because it was already dancing along the pivot point that the price had been dancing along since the big drop below the pivot point and dipped below it and then shortly closed back above it. I put a stop loss below the first large dip. With a TP goal of the middle point pivot line
Then I waited for confirmation or invalidation of my trade. I ended up getting confirmation with Bearish Divergence from the second large dip so I tightened up my stop to below that smaller drip and waited for the London open. Not only was it not a lower low, I could see the divergence with the Relative Vigor Index.
It then ran into London and kept going with tons of momentum. Blew past my TP target so I let it run to see where the momentum stopped. Ended up TP'ing at the Pivot Point support/resistance above the middle pivot line.
Random Note: The Asian session has its own unique price action characteristics that happen regularly enough that you can easily trade them when they happen with high degrees of success. It takes time to learn them all and confidently trade them as its happening. If you trade Asia you should learn to recognize them as they can fake you out if you do not understand what's going on.

TL;DR At the end of the day there is no magic solution that just works. You have to find out what works for you and then what people say works for them. Test it out and see if it works for you or if you can adapt it to work for you. If it does not work or your just not interested then ignore it.
At the end of the day, you have to use your brain to make correct trading decisions. Blindly following indicators may work sometimes in certain market conditions, but trading with information you don't understand can burn you just as easily as help you. Its like playing with fire. So, get out there and grind it out. It will either click or it wont. Not everyone has the mindset or is capable of changing to be a successful trader. Trading is gambling, you do all this work to get a edge on the house. Trading without the edge or an edge you understand how to use will only leave your broker happy in the end.
submitted by marcusrider to Forex [link] [comments]

Biweekly Trading Update #3: Trading without Indicators

Over the weekend my trading strategy changed drastically. At first I decided to let indicators completely rule my trading strategy; however, I quickly ran into issues with that ideology. My trading turned into gambling, and could easily be replicated by a simple program. To combat this issue I pushed back-testing indicators from the prior weekend to after I solidify my technical, sentimental, and fundamental analysis. I started learning Naked Forex, order flow analysis, and price action analysis over the weekend, and have started practicing them during the weekday. Although my win percentage is fairly low, I found that my analysis is getting stronger with each trade I take.
My first trade was on the 30 min EUUSD chart. I saw that the market was entering an ascending triangle and started to expect a bullish breakout. I looked at the market sentiment on fxdaily, and saw that most of the market was bearish. I assumed that the bearish presence in the market were the retail traders, and assumed that the market would move in the opposite direction of their expectations. I used order flow analysis to find the momentum and projection of the market, and ended up placing a buy stop in order to catch the market on the expected breakout. One thing I did not factor was multiple time frame analysis. I did not see that the market had entered a channel, and that I placed a trade when it had hit the resistance level. The price reached my buy stop, but proceeded to drop until it hit my stop loss.
As I went back to analyze my technical analysis, I found that I misread the order flow. I also realized that there were many parts of technical analysis that I didn't factor in, such as multiple time frame analysis, major support/resistance levels, and Fibonacci levels. I also decided to take more precaution when looking at the market sentiment, and try back-testing that data before basing another trade off of it.
Although this trade was a loser, I still learned a great deal from it, and feel like I benefited more than my previous trades. The chart analysis was tough to begin, but progressively got easier as I looked for more and more trades. For the time being I decided to stick with the EUUSD, and exclusively look for repeating market behavior and reactions in order to strengthen my market sense and improve my technical analysis before I start back-testing and using indicators. I also have started to pay more attention to candlestick patterns and their link to trend behavior.
Overall I believe that improving my technical analysis is a step in the right direction for my trading journey. I finally feel like i'm trading with my own mind rather than being overly reliant on the indicators on my chart.
submitted by Aman-1127 to Forex [link] [comments]

Profitable Forex Strategy Reddit | 3 Easy Forex Strategies Easy For MT4

Profitable Forex Strategy Reddit | 3 Easy Forex Strategies Easy For MT4

The need for a trading strategy in Forex market

https://preview.redd.it/r6u8stdmeaw51.jpg?width=1320&format=pjpg&auto=webp&s=1b0292502d6e68f5c220af5a5851aeb8061b395b
Almost all trading manuals talk about the need to have your own trading strategy. First of all, the process of creating your trading scheme allows you to perfectly understand trading and exclude from it any eventuality that hides additional risk.
Profitable forex strategy: it is a type of instruction for the trader, which helps to follow a clearly verified algorithm and safeguard his deposit from emotional errors and consequences of the unpredictability of the Forex currency market.
Thanks to her, you will always know the answer to the question: how to act in certain market conditions. You have the conditions of opening a transaction, the conditions of its closing, likewise, you do not guess if it is time or not. You do what the trading strategy tells you. This does not mean that it cannot be changed. A healthy trading scheme in the forex market must be constantly adjusted, it must comply with the realities of current market trends, but there must be no unfounded arguments in it.
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Profitable Forex Strategy Reddit

Types of trading strategies
The forms of a trading strategy can combine a variety of methods. However, several of the most commonly used options can be highlighted.
  • Trading strategy based on various complementary technical indicators
  • Trading strategy using Bollinger Bands
  • Moving Average Strategy
  • Technical figures and patterns
  • Trading with Fibonacci levels
  • Candlestick trading strategy
  • Trend trading strategy
  • Flat trading strategy
  • Scalping
  • Fundamental analysis as the basis of the strategy

Three most profitable Forex strategies

Important! These strategies are the basis for building your own trading system. Indicator settings and recommended pending order levels are for consultation only. If you do not get a satisfactory outcome in the test result or in a live account, that does not mean that the problem is the strategy. It is enough to choose individual parameters of indicators under a separate asset and under the current market situation.

1. “Bali” scalping strategy

This strategy is one of the most popular, at least its description can be found on many websites. However, the recommendations will be different. According to the author's idea, "Bali" refers to scalping tactics, as it facilitates a fairly short stop loss (SL) and take profit (TP). However, the recommended time frame is high, because the signals appear not very often. The authors recommend using the H1 interval and the EUR / USD currency pair.
Indicators used:
  • Linear Weighted Moving Average. Period 48 (red line).
https://preview.redd.it/9mhs67mxeaw51.jpg?width=461&format=pjpg&auto=webp&s=913d428edd4cab0a3237e7039829a76dd587f1f5
The weighted linear moving average here acts as an additional filter. Due to the fact that LWMA gives more weight to the values ​​of the last periods, the indicator in the long periods practically excludes delays. In some cases, LWMA can give a signal beforehand, but in this strategy only the moving position relative to price is important. Bearish LWMA is a buy signal, sell bullish.
  • Trend Envelopes_v2. Period 2 (orange and blue lines).
https://preview.redd.it/8bap0s41faw51.jpg?width=627&format=pjpg&auto=webp&s=a6236ad06765280bbfd655fa1fb4153b28aaaf56
The indicator is also based on the moving average, but the formula is slightly different for the calculation. Its marking is more precise (the impact of price noise has been eliminated). It allows you to identify the twists of the trend compared to the usual mobile with a slight anticipation. Trend Envelopes has an interesting property: the color of the line and its new location changes when the price penetrates its old trend line, a kind of signal.
  • DSS of momentum. The configuration in the screenshot below.
https://preview.redd.it/9ch27cj4faw51.jpg?width=630&format=pjpg&auto=webp&s=00558bbd90378009bef33b7c96c77f884b912667
The indicator is placed in a separate window below the chart. This is an oscillator whose task is to determine the pivot points of the trend. And it does so much faster than standard oscillators. It has two lines: the signal is dotted, the additional line is solid, but the receiver has 2 kinds of colors (orange and green).
  • Important! Note that the indicators for the “Bali” strategy are chosen in such a way as to ultimately give an early signal. This gives the trader time to confirm the signal and check the fundamentals.
MA is one of the basics on MT4, the other two indicators can be found in the archive for free here. To add them to the platform, click on MT4: "File / Open data directory". In the folder that opens, follow the following path: MQL4 / Indicators. Copy the flags to the folder and restart the platform.
Also Read: Make Money With Trading
Conditions to open a long position:
  • Price penetrates the orange Trend Envelopes line from the bottom up. At the same time in the same candle there is a change of the orange line that falls to a growing celestial.
  • The candle is above LWMA. Once the above condition has been met, we wait for the candle to appear above the moving one. It is important that it closes above the LWMA red line. It is mandatory to have a Skyline Trend Envelopes on a signal candle.
  • The additional DSS of momentum line on the signal candle is green and is above the dotted line of the signal (that is, it crosses or crosses it).
We open a trade at the close of the signal candle. The recommended stop level is 20-25 points in 4-digit quotes, take profit at 40-50 points.
https://preview.redd.it/t48d55s8faw51.jpg?width=1000&format=pjpg&auto=webp&s=1e93863745e74dec536178539817225767cbeb1c
The arrow indicates a signal candle where a Trend Envelopes color change occurred. Note (purple ovals) that the blue line is below the orange line and goes upwards (in other cases the signal should be ignored). In the signal candle, the green DSS of momentum line is above the dotted line.
Conditions to open a short position:
  • Price penetrates the Trend Envelopes sky line from top to bottom. At the same time in the same candle there is a change from the increasing celestial line to the falling orange.
  • The candle is below LWMA. Once the above condition has been met, we wait for the candle to appear below the mobile. It is important that it closes below the LWMA red line. It is mandatory to have an orange Trend Envelopes line on a signal candle.
  • The additional DSS of momentum line on the signal candle is orange and is below the dotted line of the signal (i.e. crosses or crosses it).
https://preview.redd.it/6uixkl1dfaw51.jpg?width=1000&format=pjpg&auto=webp&s=dd53442c633e80c1e55da72cd5ffe9cda2e85b8a
Some examples where a transaction cannot be opened:
  1. In the screenshot below the signal candle closed at the moving level (red line), it was practically below it.
https://preview.redd.it/2o1wpocgfaw51.jpg?width=1000&format=pjpg&auto=webp&s=58d3286bf2884b5f0dfdaa0a62b68d2d50cdabf8
  1. In the screenshot below the signal candle is DSS below its signal line. Also, the celestial line is horizontal and not ascending.
https://preview.redd.it/1nfi1etjfaw51.jpg?width=801&format=pjpg&auto=webp&s=ff9fcbc10a485c5102ef7a135de47332827caf54
The signals are relatively rare, a signal can be expected for several days. In half the cases, it is better to control the transaction and close in advance, without waiting for profit taking. We do not operate at the time of flat. Try this strategy directly in the browser and see the result.
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2. “Va-Bank” candle strategy

This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement, what went up quickly, sooner or later must fall. To trade you will only need a schedule on any platform and W1 time frame (although the daily interval can be used).
You should estimate the size of the candle bodies of different currency pairs ( AUDCAD , AUDJPY , AUDUSD , EURGBP , EURJPY , GBPUSD , CHFJPY , NZDCHF , EURAUD , AUDCHF , CADCHF , EURUSD , EURCAD , GBPCHF ) and choose the largest distance from the opening to the close of the candle in the framework of the week. In this to open a transaction at the beginning of the following week.
Conditions to open a long position:
  • The bearish candle, which signifies last week's movement, has a relatively large body.
Open a long position early next week. Make sure to place a stop loss at 100-140 points and a take profit at 50-70 points. When it is midweek, close the order if it has not yet been closed at take profit or stop loss. After that, wait again for the beginning of the week and repeat the procedure, in any case do not open operations at the end of the current week.
https://preview.redd.it/vuihnqspfaw51.jpg?width=1000&format=pjpg&auto=webp&s=7641e9d7701911cc255c4f0c8a53e1660c35c9fe
On this chart it is clearly seen that after each large bearish candle there is necessarily a bullish candle (although smaller). The only question is what period to take where it makes sense to compare the relative length of the candles. Here everything is individual for each currency pair. Note that a rising candle was observed followed by a few small bearish candles. But when it comes to minimizing risks, it is best not to open a long response position, as the relatively small decline from the previous week may continue.
Conditions to open a short position:
  • The bullish candle, which signifies last week's movement, has a relatively large body.
We open a short position early next week.
https://preview.redd.it/tv4zmf5ufaw51.jpg?width=1000&format=pjpg&auto=webp&s=61cd1dcfc4aebfa6f80343b6c51f7a6e46358602
The red arrows point to the candles that had a large body around the previous bullish candles. Almost all signals turned out to be profitable, except for the transactions indicated by a blue arrow. The shortcomings of the strategy are rare signs, albeit with a high probability of profit. The best thing is that it can be used in several pairs at the same time.
This strategy has an interesting modification based on similar logic. Investors with little capital opt for intraday strategies, as their money is insufficient to exert radical pressure on the market. Therefore, if there is a strong move on the weekly chart, this may indicate a cluster of large strong traders. In other words, if there are three weekly candles in one direction, it is most likely the fourth. Here you also have to take into account the psychological factor, 4 candles is equal to one month, and those who "push" the market in one direction, within a month will begin to set profits.
Strategy principle:
  • A "three candles" pattern (ascending and descending) formed on the weekly chart.
  • It is preferable that each subsequent candle was larger than the previous one. Doji is not taken into account (disembodied candles).
  • Stop is placed at the closing level of the first candle of the constructed formation. Take profit at 50-100% of the last candle, but it is often better to manually close the trade.
An example of this type of formation in the screenshot below.
https://preview.redd.it/iu7cwa7xfaw51.jpg?width=1000&format=pjpg&auto=webp&s=9195d24b72d2bda5394614380e9e5bc167f108a5
Of the 5 patterns, 4 were effective. Lack of strategy, the pattern can be expected 2-3 months. But when launching a multi-currency strategy this expectation is justified. Consider swaps!
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3. Parabolic Profit Based on Moving Average

This strategy is universal and is usually given as an example for novice traders. It uses classic EMA (Exponential Moving Average) indicators for MT4 and Parabolic SAR, which acts as a confirmatory indicator.
The strategy is trend. Most sources suggest using it in "minutes", but price noise reduces its efficiency. It is better to use M15-M30 intervals. Currency pairs - Any, but you may need to adjust the indicator settings.
Indicators used:
  • EMA with periods 5, 25 and 50. EMA (5) in red, EMA (25) and EMA (50) in yellow. Apply to Close (closing price).
https://preview.redd.it/ly7ju8o3gaw51.jpg?width=1000&format=pjpg&auto=webp&s=61dee5b0d994d09a375e01e2b9afe188dd2ee0ed
  • Parabolic SAR, parameters remain unchanged (color correct at your discretion).
https://preview.redd.it/sonpv1m8gaw51.jpg?width=1000&format=pjpg&auto=webp&s=823e9ce5d279d3a98ef072694766a112a3ece775
Conditions to open a long position:
  • Red EMA (5) crosses the yellows from bottom to top.
  • Parabolic SAR is located under the sails.
Conditions to open a short position:
  • Red EMA (5) crosses the yellows from top to bottom.
  • Parabolic SAR is located above the candles.
The transaction can be opened on the same candle where the mobile crossover occurred. Stop loss at the local minimum, take profit at 20-25 points. But with the manual management of transactions you can extract great benefits. For example, close at the time of the transition from EMA (5) to a horizontal position (change of the angle of inclination of the growth to flat).
https://preview.redd.it/4un92jlegaw51.jpg?width=1000&format=pjpg&auto=webp&s=406a700c00722349622d031e20d0858e4196d18b
This screen shows that all three signals (two long and one short) were effective. It would be possible to enter the market on the candle by following the signal (in order to accurately verify the direction of the trend), but you would then miss the right time to enter. It is up to you to decide whether it is worth the risk. For one-hour intervals, these parameters hardly work, so be sure to check the performance of the indicators for each period of time in a minimum span of three years.
And now that you know the theory, a few words about how to put these strategies into practice.
Ready? Then let's get started!

From the theory to the practice

Step 1. Open demo account It's free, requires no deposit, takes up to 15 minutes, and no verification required. On the main page of your broker there is for sures a button "Register", click and follow the instructions. An account can also be opened from other menus (for example, from the top menu, from the commercial conditions of the account, etc.).
Step 2. Familiarize yourself with the functionality of the Personal Area. It won't take long. It is at the most user friendly and intuitive. You just need to understand the instruments of the platform and understand how the trades are opened.
Step 3. Launch the trading platform. The Personal Area has the platform incorporated, but it is impossible to add templates. Hence, the "Bali" and "Parabolic Profit" strategies can only be executed on MT4.

Characteristics of an effective Forex strategy Reddit

And finally, let's see what makes a profitable Forex strategy effective. What properties should it have? Perhaps three of the most important characteristics can be pointed out.
  • The minimum number of lag indicators. The smaller they are, the greater the forecast accuracy.
  • Easy. Understanding your strategy is more important than your saturation with complex elements, formulas, and schematics.
  • Uniqueness. Any trading strategy must be "tailored" to your trading style, your character, your circumstances, and so on.
It is very important to develop your own trading strategy, but it is necessary to test a large number of already available and proven strategies. On the Forex blog you will find trading strategies available for download. Before using a live account, test your chosen strategy on the demo account on the MetaTrader trading platform.
Conclusion. To successfully trade the Forex currency market, create your own trading strategy. Learn what's new, learn out-of-the-box trading schemes, and improve your individual action plan in the market. Only in this case, the trading results will satisfy you to the fullest. Success, dear readers!
>>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated On Investing.com |Free Forex Signals Trial: CLICK HERE TO JOIN FOR FREE
Join the community for more articles on trading and making money on the Forex and Stock market.
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submitted by kayakero to makemoneyforexreddit [link] [comments]

H1 Backtest of ParallaxFX's BBStoch system

Disclaimer: None of this is financial advice. I have no idea what I'm doing. Please do your own research or you will certainly lose money. I'm not a statistician, data scientist, well-seasoned trader, or anything else that would qualify me to make statements such as the below with any weight behind them. Take them for the incoherent ramblings that they are.
TL;DR at the bottom for those not interested in the details.
This is a bit of a novel, sorry about that. It was mostly for getting my own thoughts organized, but if even one person reads the whole thing I will feel incredibly accomplished.

Background

For those of you not familiar, please see the various threads on this trading system here. I can't take credit for this system, all glory goes to ParallaxFX!
I wanted to see how effective this system was at H1 for a couple of reasons: 1) My current broker is TD Ameritrade - their Forex minimum is a mini lot, and I don't feel comfortable enough yet with the risk to trade mini lots on the higher timeframes(i.e. wider pip swings) that ParallaxFX's system uses, so I wanted to see if I could scale it down. 2) I'm fairly impatient, so I don't like to wait days and days with my capital tied up just to see if a trade is going to win or lose.
This does mean it requires more active attention since you are checking for setups once an hour instead of once a day or every 4-6 hours, but the upside is that you trade more often this way so you end up winning or losing faster and moving onto the next trade. Spread does eat more of the trade this way, but I'll cover this in my data below - it ends up not being a problem.
I looked at data from 6/11 to 7/3 on all pairs with a reasonable spread(pairs listed at bottom above the TL;DR). So this represents about 3-4 weeks' worth of trading. I used mark(mid) price charts. Spreadsheet link is below for anyone that's interested.

System Details

I'm pretty much using ParallaxFX's system textbook, but since there are a few options in his writeups, I'll include all the discretionary points here:

And now for the fun. Results!

As you can see, a higher target ended up with higher profit despite a much lower winrate. This is partially just how things work out with profit targets in general, but there's an additional point to consider in our case: the spread. Since we are trading on a lower timeframe, there is less overall price movement and thus the spread takes up a much larger percentage of the trade than it would if you were trading H4, Daily or Weekly charts. You can see exactly how much it accounts for each trade in my spreadsheet if you're interested. TDA does not have the best spreads, so you could probably improve these results with another broker.
EDIT: I grabbed typical spreads from other brokers, and turns out while TDA is pretty competitive on majors, their minors/crosses are awful! IG beats them by 20-40% and Oanda beats them 30-60%! Using IG spreads for calculations increased profits considerably (another 5% on top) and Oanda spreads increased profits massively (another 15%!). Definitely going to be considering another broker than TDA for this strategy. Plus that'll allow me to trade micro-lots, so I can be more granular(and thus accurate) with my position sizing and compounding.

A Note on Spread

As you can see in the data, there were scenarios where the spread was 80% of the overall size of the trade(the size of the confirmation candle that you draw your fibonacci retracements over), which would obviously cut heavily into your profits.
Removing any trades where the spread is more than 50% of the trade width improved profits slightly without removing many trades, but this is almost certainly just coincidence on a small sample size. Going below 40% and even down to 30% starts to cut out a lot of trades for the less-common pairs, but doesn't actually change overall profits at all(~1% either way).
However, digging all the way down to 25% starts to really make some movement. Profit at the -161.8% TP level jumps up to 37.94% if you filter out anything with a spread that is more than 25% of the trade width! And this even keeps the sample size fairly large at 187 total trades.
You can get your profits all the way up to 48.43% at the -161.8% TP level if you filter all the way down to only trades where spread is less than 15% of the trade width, however your sample size gets much smaller at that point(108 trades) so I'm not sure I would trust that as being accurate in the long term.
Overall based on this data, I'm going to only take trades where the spread is less than 25% of the trade width. This may bias my trades more towards the majors, which would mean a lot more correlated trades as well(more on correlation below), but I think it is a reasonable precaution regardless.

Time of Day

Time of day had an interesting effect on trades. In a totally predictable fashion, a vast majority of setups occurred during the London and New York sessions: 5am-12pm Eastern. However, there was one outlier where there were many setups on the 11PM bar - and the winrate was about the same as the big hours in the London session. No idea why this hour in particular - anyone have any insight? That's smack in the middle of the Tokyo/Sydney overlap, not at the open or close of either.
On many of the hour slices I have a feeling I'm just dealing with small number statistics here since I didn't have a lot of data when breaking it down by individual hours. But here it is anyway - for all TP levels, these three things showed up(all in Eastern time):
I don't have any reason to think these timeframes would maintain this behavior over the long term. They're almost certainly meaningless. EDIT: When you de-dup highly correlated trades, the number of trades in these timeframes really drops, so from this data there is no reason to think these timeframes would be any different than any others in terms of winrate.
That being said, these time frames work out for me pretty well because I typically sleep 12am-7am Eastern time. So I automatically avoid the 5am-6am timeframe, and I'm awake for the majority of this system's setups.

Moving stops up to breakeven

This section goes against everything I know and have ever heard about trade management. Please someone find something wrong with my data. I'd love for someone to check my formulas, but I realize that's a pretty insane time commitment to ask of a bunch of strangers.
Anyways. What I found was that for these trades moving stops up...basically at all...actually reduced the overall profitability.
One of the data points I collected while charting was where the price retraced back to after hitting a certain milestone. i.e. once the price hit the -61.8% profit level, how far back did it retrace before hitting the -100% profit level(if at all)? And same goes for the -100% profit level - how far back did it retrace before hitting the -161.8% profit level(if at all)?
Well, some complex excel formulas later and here's what the results appear to be. Emphasis on appears because I honestly don't believe it. I must have done something wrong here, but I've gone over it a hundred times and I can't find anything out of place.
Now, you might think exactly what I did when looking at these numbers: oof, the spread killed us there right? Because even when you move your SL to 0%, you still end up paying the spread, so it's not truly "breakeven". And because we are trading on a lower timeframe, the spread can be pretty hefty right?
Well even when I manually modified the data so that the spread wasn't subtracted(i.e. "Breakeven" was truly +/- 0), things don't look a whole lot better, and still way worse than the passive trade management method of leaving your stops in place and letting it run. And that isn't even a realistic scenario because to adjust out the spread you'd have to move your stoploss inside the candle edge by at least the spread amount, meaning it would almost certainly be triggered more often than in the data I collected(which was purely based on the fib levels and mark price). Regardless, here are the numbers for that scenario:
From a literal standpoint, what I see behind this behavior is that 44 of the 69 breakeven trades(65%!) ended up being profitable to -100% after retracing deeply(but not to the original SL level), which greatly helped offset the purely losing trades better than the partial profit taken at -61.8%. And 36 went all the way back to -161.8% after a deep retracement without hitting the original SL. Anyone have any insight into this? Is this a problem with just not enough data? It seems like enough trades that a pattern should emerge, but again I'm no expert.
I also briefly looked at moving stops to other lower levels (78.6%, 61.8%, 50%, 38.2%, 23.6%), but that didn't improve things any. No hard data to share as I only took a quick look - and I still might have done something wrong overall.
The data is there to infer other strategies if anyone would like to dig in deep(more explanation on the spreadsheet below). I didn't do other combinations because the formulas got pretty complicated and I had already answered all the questions I was looking to answer.

2-Candle vs Confirmation Candle Stops

Another interesting point is that the original system has the SL level(for stop entries) just at the outer edge of the 2-candle pattern that makes up the system. Out of pure laziness, I set up my stops just based on the confirmation candle. And as it turns out, that is much a much better way to go about it.
Of the 60 purely losing trades, only 9 of them(15%) would go on to be winners with stops on the 2-candle formation. Certainly not enough to justify the extra loss and/or reduced profits you are exposing yourself to in every single other trade by setting a wider SL.
Oddly, in every single scenario where the wider stop did save the trade, it ended up going all the way to the -161.8% profit level. Still, not nearly worth it.

Correlated Trades

As I've said many times now, I'm really not qualified to be doing an analysis like this. This section in particular.
Looking at shared currency among the pairs traded, 74 of the trades are correlated. Quite a large group, but it makes sense considering the sort of moves we're looking for with this system.
This means you are opening yourself up to more risk if you were to trade on every signal since you are technically trading with the same underlying sentiment on each different pair. For example, GBP/USD and AUD/USD moving together almost certainly means it's due to USD moving both pairs, rather than GBP and AUD both moving the same size and direction coincidentally at the same time. So if you were to trade both signals, you would very likely win or lose both trades - meaning you are actually risking double what you'd normally risk(unless you halve both positions which can be a good option, and is discussed in ParallaxFX's posts and in various other places that go over pair correlation. I won't go into detail about those strategies here).
Interestingly though, 17 of those apparently correlated trades ended up with different wins/losses.
Also, looking only at trades that were correlated, winrate is 83%/70%/55% (for the three TP levels).
Does this give some indication that the same signal on multiple pairs means the signal is stronger? That there's some strong underlying sentiment driving it? Or is it just a matter of too small a sample size? The winrate isn't really much higher than the overall winrates, so that makes me doubt it is statistically significant.
One more funny tidbit: EUCAD netted the lowest overall winrate: 30% to even the -61.8% TP level on 10 trades. Seems like that is just a coincidence and not enough data, but dang that's a sucky losing streak.
EDIT: WOW I spent some time removing correlated trades manually and it changed the results quite a bit. Some thoughts on this below the results. These numbers also include the other "What I will trade" filters. I added a new worksheet to my data to show what I ended up picking.
To do this, I removed correlated trades - typically by choosing those whose spread had a lower % of the trade width since that's objective and something I can see ahead of time. Obviously I'd like to only keep the winning trades, but I won't know that during the trade. This did reduce the overall sample size down to a level that I wouldn't otherwise consider to be big enough, but since the results are generally consistent with the overall dataset, I'm not going to worry about it too much.
I may also use more discretionary methods(support/resistance, quality of indecision/confirmation candles, news/sentiment for the pairs involved, etc) to filter out correlated trades in the future. But as I've said before I'm going for a pretty mechanical system.
This brought the 3 TP levels and even the breakeven strategies much closer together in overall profit. It muted the profit from the high R:R strategies and boosted the profit from the low R:R strategies. This tells me pair correlation was skewing my data quite a bit, so I'm glad I dug in a little deeper. Fortunately my original conclusion to use the -161.8 TP level with static stops is still the winner by a good bit, so it doesn't end up changing my actions.
There were a few times where MANY (6-8) correlated pairs all came up at the same time, so it'd be a crapshoot to an extent. And the data showed this - often then won/lost together, but sometimes they did not. As an arbitrary rule, the more correlations, the more trades I did end up taking(and thus risking). For example if there were 3-5 correlations, I might take the 2 "best" trades given my criteria above. 5+ setups and I might take the best 3 trades, even if the pairs are somewhat correlated.
I have no true data to back this up, but to illustrate using one example: if AUD/JPY, AUD/USD, CAD/JPY, USD/CAD all set up at the same time (as they did, along with a few other pairs on 6/19/20 9:00 AM), can you really say that those are all the same underlying movement? There are correlations between the different correlations, and trying to filter for that seems rough. Although maybe this is a known thing, I'm still pretty green to Forex - someone please enlighten me if so! I might have to look into this more statistically, but it would be pretty complex to analyze quantitatively, so for now I'm going with my gut and just taking a few of the "best" trades out of the handful.
Overall, I'm really glad I went further on this. The boosting of the B/E strategies makes me trust my calculations on those more since they aren't so far from the passive management like they were with the raw data, and that really had me wondering what I did wrong.

What I will trade

Putting all this together, I am going to attempt to trade the following(demo for a bit to make sure I have the hang of it, then for keeps):
Looking at the data for these rules, test results are:
I'll be sure to let everyone know how it goes!

Other Technical Details

Raw Data

Here's the spreadsheet for anyone that'd like it. (EDIT: Updated some of the setups from the last few days that have fully played out now. I also noticed a few typos, but nothing major that would change the overall outcomes. Regardless, I am currently reviewing every trade to ensure they are accurate.UPDATE: Finally all done. Very few corrections, no change to results.)
I have some explanatory notes below to help everyone else understand the spiraled labyrinth of a mind that put the spreadsheet together.

Insanely detailed spreadsheet notes

For you real nerds out there. Here's an explanation of what each column means:

Pairs

  1. AUD/CAD
  2. AUD/CHF
  3. AUD/JPY
  4. AUD/NZD
  5. AUD/USD
  6. CAD/CHF
  7. CAD/JPY
  8. CHF/JPY
  9. EUAUD
  10. EUCAD
  11. EUCHF
  12. EUGBP
  13. EUJPY
  14. EUNZD
  15. EUUSD
  16. GBP/AUD
  17. GBP/CAD
  18. GBP/CHF
  19. GBP/JPY
  20. GBP/NZD
  21. GBP/USD
  22. NZD/CAD
  23. NZD/CHF
  24. NZD/JPY
  25. NZD/USD
  26. USD/CAD
  27. USD/CHF
  28. USD/JPY

TL;DR

Based on the reasonable rules I discovered in this backtest:

Demo Trading Results

Since this post, I started demo trading this system assuming a 5k capital base and risking ~1% per trade. I've added the details to my spreadsheet for anyone interested. The results are pretty similar to the backtest when you consider real-life conditions/timing are a bit different. I missed some trades due to life(work, out of the house, etc), so that brought my total # of trades and thus overall profit down, but the winrate is nearly identical. I also closed a few trades early due to various reasons(not liking the price action, seeing support/resistance emerge, etc).
A quick note is that TD's paper trade system fills at the mid price for both stop and limit orders, so I had to subtract the spread from the raw trade values to get the true profit/loss amount for each trade.
I'm heading out of town next week, then after that it'll be time to take this sucker live!

Live Trading Results

I started live-trading this system on 8/10, and almost immediately had a string of losses much longer than either my backtest or demo period. Murphy's law huh? Anyways, that has me spooked so I'm doing a longer backtest before I start risking more real money. It's going to take me a little while due to the volume of trades, but I'll likely make a new post once I feel comfortable with that and start live trading again.
submitted by ForexBorex to Forex [link] [comments]

Part III - My 10 Minutes/Day Trading Strategy

Part III - My 10 Minutes/Day Trading Strategy
Part III - My 10 Minutes/Day Trading Strategy
You can find Part II here: https://www.reddit.com/Forex/comments/h7m1jh/part_ii_10_minuteday_trading_strategy/
Okay I’ve thought about what to include in Part 3 and this is what I’ve landed on:
Some technical nuances and tricks that build on Parts I and II.
I was going to include entry and exit points in Part III but it would be waaaay too long if I did. So that will have to wait for Part 4 or 5. There’s some really good stuff in this post though, I promise. The stuff in this post will lay the foundation for the options you will have in terms of determining your entry and exit points.
Technical Nuances & Tricks:
In this section I want to discuss some techniques that are optional to use. I am going to keep this fairly simple and focus on 2 main topics: fibonacci and horizontal levels of support and resistance.
Horizontal Support and Resistance:

  • There are many ways of identifying support and resistance. I personally subscribe to the K.I.S.S. (Keep It Simple, Stupid!) method when using this strategy.
  • When I identify a strategy setup (Off BB, Stochs overbought/oversold, indecision candle + setup candle) I will simply look to the left and see if there is any prior support or resistance that lines up with the technical strategy. I will also look for prior support or resistance levels to make sure they are not in the way of my target (will cover targets in the next subsection)
  • Support and Resistance are not always clear lines drawn in the sand. Usually they are areas. Areas of prior demand and/or prior oversupply in the market.
  • IF you want a mechanistic manner of identifying support and resistance then here’s an easy indicator: load up the Bill Williams Fractal Indicator and simply look for groupings of fractals near highs and lows of the market
  • KEEP AN EYE ON THE STOCHASTICS IN EACH OF THESE EXAMPLES
Some simple examples below:
https://preview.redd.it/6qm0kauhpz451.png?width=2820&format=png&auto=webp&s=d25a7158314469d168ab6d73a9220adbd7e642e1

https://preview.redd.it/h9540sjkpz451.png?width=2820&format=png&auto=webp&s=2674f1f0d5339529491984ec3a787f8e121b4d26

https://preview.redd.it/lp7n69empz451.png?width=2820&format=png&auto=webp&s=b9fc1090b73f7396e820e413a76740cbc3f36c8e

Here is the same EURGBP D1 chart with the Fractal Indicator:


https://preview.redd.it/daqfijynpz451.png?width=2820&format=png&auto=webp&s=122f41e16e8b2074ede595e7bcca2dc6292083b9


Fibonacci Application:

  • The way I apply fibonacci in my “normal” trading does require a lot of discretion. And it is this discretionary element that trips up a lot of traders and scares them off using fibonacci.
  • This strategy removes ANY DISCRETION involved in using fibonacci levels. This couldn’t be more in keeping with the entire K.I.S.S. philosophy of this trading strategy
  • We use Fibonacci in this strategy as an OPTIONAL tool. If you decide to use Fibonacci with this strategy, the best way of using it will be to have a mechanistic method for determining entry and exit points.

  • Fibonacci retracement levels can be used for limit entry orders and stop loss orders.
  • Fibonacci extension levels can be used for take profit orders
  • You can copy my fibonacci settings in the screenshot below. I use the following fibonacci % levels:

https://preview.redd.it/p4c2a7ep24651.png?width=2906&format=png&auto=webp&s=71dd141e527d0516e6f019a2c7abf8f9f4daa83c

  • It really is a stupidly simple way we will draw the fibs (note: it will be the SAME WAY on every single trade). We simply draw the fibs over the setup candle. ALWAYS draw the fibs in the direction that price is moving ie: from left to right. So if you have a bullish setup candle you draw your fibs from the LOW to the HIGH of the setup candle. If you have a bearish setup candle you will draw the fibs from the HIGH of the candle to the LOW of the candle. I will cover in a future post which levels we use for entry and exit, although many of you will be able to figure it out quickly. Examples below:
https://preview.redd.it/r1vqhq5tpz451.png?width=2820&format=png&auto=webp&s=39732ceb5390eeef4d560600d7dd0a9a2364ac02

https://preview.redd.it/mbbnlh93qz451.png?width=2820&format=png&auto=webp&s=38c70327a2df4d20fbcd2de0bd8bc5c9cde4ed51
That’s a wrap for Part III.
submitted by ParallaxFX to Forex [link] [comments]

S&P 500 (Report 9/28 - 10/2)

With the trading week coming to a close I wanted to help inform those of you who actively trade indexes on what to look for next week.
With a significant amount of volatility in equity markets over the past few weeks, and concerns around the pandemic, election, pace of economic recovery, and serious doubts over another round of stimulus have mounted. I know all of us are watching the market like a hawk to determine the next trend (bull/bear) as the next few months will be very closely correlated to the election and which candidate will win. i.e. If the market goes up Trump's likely to stay in office, downtrend would suggest Biden as the new president. The market historically has always strongly correlated with the presidential election.
After crunching the numbers this afternoon, I have my next week's S&P key support/resistance levels and pivot points to watch out for. I did a combination of classic and Fibonacci that weren't too far off from one another. I tried to upload my chart/drawings but Reddit is saying the file is too big to upload directly into the post. I'll try to add a link later if I get time. For those of you who would like to learn how to calculate support/resistance and pivot points you can learn the basics of how to do so here.
I know you guys love clicking +/-0.30 deltas and exiting at 50% profit, but I feel indicators are key to choosing our options strike(s), and futures entry/exit points. I prefer to sniper my strike(s) to limit my upside/downside risks. When trading options we should all have an entry/exit strategy. Support/Resistance helps us determine what strike(s) to pick, and when to close the order. If you are trading index futures please set stop/limit orders to limit your upside/downside risk as well.


Classic: S3 [3128.42] S2 [3210.41] S1 [3264.94] Pivot Point [3346.93]
R1 [3401.46] R2 [3483.45] R3 [3537.98]

Fibonacci: S3 [3210.41] S2 [3262.56] S1 [3294.78] Pivot Point [3346.93]
R1 [3399.08] R2 [3431.30] R3 [3483.45]
submitted by SmartMoney19 to thetagang [link] [comments]

My Trading Systems- How I trade.

How to analyse which stock to buy? You could use something simple like Moving Average Crossover or your system could be something very complex.
I generally use 5-7 setups when I trade.
The reason is, a lot of times I get false signals on one setup, but when I compare it with the Macro, when 3/5 systems give buy signal, I buy.
When 3/5 systems give me a sell signal, I sell. DISCLAIMER- I only trade in stocks, so some setups may not be available in Forex.
  1. Price Action Trading.
I believe that price action alone is the single greatest system. The more indicators you use, the more messy your chart gets. For me, less is more.
I usually start buy drawing Support and Resistance zones /areas, the immediate zones and long term zones.
Then I plot Fibonacci Points. I love Fibs. This alone is enough to trade.
  1. Heikin Ashi + Stochastic RSI.
The Heikin Ashi candlestick reduces noise and gives good signals. The rules are simple, if there are two continuous green closed candles, it's a buy signal and vice versa.
I usually add Stochastic RSI to improve the success rate, but the number of signals reduce.
  1. Volume.
Volume precedes price. Volume can tell a lot of things about the strength of a trend. I also use a VMA, volume moving average.
I find out if the trend is backed by a volume or not. I look for divergences too.
  1. Divergence.
There are two types of divergences, simple and hidden. I use RSI and/or MACD to find divergence. It's very reliable.
The drawback is that divergence works better in higher time frame.
I usually use 1D chart to plot divergence. Another thing, A divergence doesn't mean that the trend will change immediately.
  1. Delivery % Analysis.
This isn't available for Forex. There's a whole type of analysis on this. It has nothing to do with charts. It's based on numbers.
I like to add numbers along with charts to improve my success rate.
There are a common scenarios and 4 hidden scenarios in this analysis.
  1. Index Correlation.
If the index goes up 2% and the stock is correlated, and it goes up 4%, I can conclude using backtested data that the stock is dependent on the index.
If the index falls a bit, the stock will also fall, much more than the index.
Then there are stocks that have no correlation with the index, or inversely correlated.
  1. Option Chain.
This is probably not available for Forex, I am still learning it. This is a VERY reliable system.
Mastering this will help with get 80-90% accuracy. It's pretty tough.
A single view can give you an entire picture of support and resistance zones and what's happening. Are new positions being created or hedged?
Other Setups.
  1. Moving Averages- 20 & 200 day EMA or the EMA channel.
  2. Sector Performance.
  3. Bollinger Bands using channel.
I can talk deeply about all the systems with examples. But I've just tried to mention everything in brief.
-Vikrant C.
submitted by Vikrantc2003 to Daytrading [link] [comments]

Part II - 10 Minute/Day Trading Strategy

Part II - 10 Minute/Day Trading Strategy
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/
Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information.
Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail.
What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this.
The List Of Ingredients & Why We Use These Particular Ingredients
*I will have an image at the end of the post showing a textbook long and short setup*
Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BB help contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB.
Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data.
Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy
Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade.
*MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
  1. Short off the UBB (Here we want to see Stochastics overbought and crossing down. Bearish divergence is even better)
  2. Long off the LBB (Here we want to see Stochastics oversold and crossing up. Bullish divergence is even better)
  3. Long/Short off the Middle Bollinger Band (Here if you are looking for a short trade off the MBB you ideally want Stochs overbought. Vice versa for a long trade. NOTE: Often when taking trades off the MBB, Stochs WON'T go overbought/oversold. Because this doesn't happen often, I don't let it stop me from taking trades off the MBB.)
The actual setup is very simple and straightforward. We look for our candle/bar formation in conjunction with points 1 through 3 from the above.
There will be other nuances I will cover in terms of how to make the strategy more effective in Part 3. For example, I will go into much more detail about how the shape of the BB can tell us a lot about whether a currency pair is likely to reverse or not. I will also cover how to gauge the strength of the setup candle and a few other tips and tricks.
Technical Nuances: You can overlay a lot of other traditional technical analysis on top of the above. For example you can look for short trades off the UBB in conjunction with a prior broken support level that you now expect to be working overhead resistance. If you want to go further and deeper, of course you can. Note: the above is about as far as I went when overlaying other kinds of analysis onto this strategy. I like to keep it simple, stupid.
TEXTBOOK LONG TRADE OFF LBB:

https://preview.redd.it/e06otysgsh451.png?width=2820&format=png&auto=webp&s=101b3eed1b42512d639644bcc096d1026e558f17

TEXTBOOK SHORT TRADE OFF UBB:
https://preview.redd.it/yfg02yjhsh451.png?width=2820&format=png&auto=webp&s=18b427995f3dcecb22e1ae7f15cd5b3cd53c18e4
TRADE OFF MBB:
https://preview.redd.it/8kvzknaish451.png?width=2820&format=png&auto=webp&s=2f1e6113475193e8b812bface880a77e82ad7eeb

And that's a wrap for Part II.
submitted by ParallaxFX to Forex [link] [comments]

Trading Ideas For Next Week [Week 2] (Part 1)

Trading Ideas For Next Week [Week 2] (Part 1)
Due to popular demand I've decided to bring this series back for a week 2 and I'll continue to release 3-5 trading ideas every Saturday. How do you guys feel about the name of this series? Would you like me to change the name to something like "Setup Saturdays" or are you guys cool with the current naming scheme?
So this week I wanted to be a lot more in depth in my analysis and setups since I didn't think I was super clear last week with my reasoning on some the setups. I want these posts to be as beginner friendly as possible because there's a lot more beginners in this Subreddit than I had realized. I want you to use this as an educational tool and not as a signal service as a result I'm going to give you possible trade setups and I want you to be the judge of whether you should enter once/if price gets to that point since I feel like that will benefit beginners in the long run. I got a couple questions about top down time frame analysis so that'll be a focus of today's post. Scroll down to NZDJPY if you really want an in-depth look at how I perform top down time frame analysis.
I'll include a picture of a chart and my TradingView chart so if you want to zoom in and out of the chart you'll have that ability to do so.
Quick Disclaimer: Some of the charts pricing might be off by a bit since I started working on this during the New York session on Friday. If any of the charts are impacted in a way that alters the setup I'll be sure to update the charts before I post this on Saturday. Just gotta hope that hope that Powell doesn't break the market or else I might have to redo this entire post.
AUDUSD:

AUDUSD Daily
TradingView Link For Daily: https://www.tradingview.com/chart/AUDUSD/Wb5K2bS8-AUDUSD-Daily-For-Reddit-Post-6-20-U-AD3133/
Analysis: Which way is the trend pointing? It looks like it's pointing up which we can see with the green trend line but how about we zoom in to the 4 hour char to see if that's actually the case.
Tip: When drawing a trend line, especially on the daily and higher time frames, remember to hit as many wicks as possible since they are relevant and not just some anomaly you can ignore.

AUDUSD 4 Hour
TradingView Link For 4 Hour: https://www.tradingview.com/chart/AUDUSD/aah8294z-AUDUSD-4-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: When we got close to where we are with price and we draw a Fibonacci Retracement from the point where price took off to the point where price peaked we can see that price came down to .5 Fibonacci level where it then started going up again. Coincidence? Possibly. As a result I believe that price could continue higher and it would be justified if it did. However, if we look at the trend lines we can see that price appears to have broke put of of our major trend line (Green) which means that price could fall to the downside if it's actually a breakout. Price then appears like it would then adhere to the new minor trend line (Red). There's also the possibility that this was just a fake breakout and price could go up and adhere to green trend line. I'm going to have a selling bias on this trade since price looks like it double topped at the highs of this year and it looks like we could see price fall. I'm leaning towards the drop of price due to the symmetrical triangle pattern created by the major and minor trend line and looks like price is going to get pushed down which we should get an idea of soon.
Tip: Every time price makes a large move and falls/rises after making a peak/valley always pull out the Fibonacci retracement tool to see if price will bounce from the .382, .5, or .618 levels as they are the most significant levels. This can tell you if you're going to likely get a trend continuation.

AUDUSD 1 Hour
TradingView Link For 1 Hour: https://www.tradingview.com/chart/AUDUSD/IHgrnfYs-AUDUSD-1-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: I drew out multiple different scenarios which I think can play out since like I said before we're not trying to predict a single movement but we're preparing to be reactive to an ideal condition which may be thrown at us. Remember that major trend line we drew in on the daily chart well it's going to play a large role here. This trend line has been in the making since March so we're not just going to brush it off. The trend line appears to have been broken and we seem to be sticking that minor trend line after the break of the symmetrical triangle pattern. After the break of the symmetrical triangle pattern price usually gets pushed heavily to one side and it looks like price is wanting to get pushed to the downside. As a result, I'm going to really keep on eyes on scenario the blue arrows display since I think it's the most probable. Looking at the scenario there are going to be two potentially good entry points for a sell. The first being when price goes up to retest the green trend line which would also serve as a bounce from our red trend line. Once we get that bounce we could enter in for a sell with a take profit hopefully somewhere around the .66 area. Another good entry would be when price breaks the zone of support of .68 and after it retests it. Wait for a confirmation candlestick pattern showing price will fall when retesting (i.e. railroad track, bullish engulfment candle, evening star, shooting star, etc.). Look for these candlestick patterns on the 15 minute chart. Once you got the confirmation take the sell and ride price down to the .66 zone. The other scenario that could occur is we could see price go back into the green trend line by breaking the red trend line (Orange Arrows). If this occurs we want to catch the retest bounce of the red trend line and ride price up to the high of the year which is at .702. At that point price could break the resistance at which point we could catch the retest of the zone and ride price up. Or it could go up to .702 create a triple top and fall. If you get a candlestick confirmation saying it'll fall then take a sell at the high of the year.
NZDUSD:
If there's something I really like in Forex it's definitely got to be harmonic patterns due to their high accuracy. NZDUSD just recently completed one of them and this is a really good indicator of what price is going to do.

NZDUSD Daily
TradingView Chart For Daily: https://www.tradingview.com/chart/NZDUSD/zQpHzUcK-NZDUSD-Daily-For-Reddit-Post-6-20-U-AD3133/
Analysis: Yes, we have trend line that says that price is going up however I make exceptions for Harmonic patterns since they are accurate about 80%-90% of the time. The pattern you see above is know as a Bearish Bat Pattern. Like the name says it's an indicator that price is going to go Bearish so although the trend line is going up I'm going to have a bearish bias on this trade.

NZDUSD 4 Hour
TradingView Chart For 4 Hour: https://www.tradingview.com/chart/NZDUSD/C29kpCyO-NZDUSD-4-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: Not really much to add here just tossed on a Fibonacci retracement tool from where price took off to the peak just to check for any potential support from any of the major levels which we don't appear to have. We'll go a lot more in-depth on this pair on the 1 hour chart since that's where things get interesting.

NZDUSD 1 Hour
TradingView Link For 1 Hour: https://www.tradingview.com/chart/NZDUSD/dKJatcM7-NZDUSD-1-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: Looking at price we can see that since June 11th price has been trading in a boxed consolidation range. Again I drew out the possibilities I believe could be ideal for us. Remember that I said Harmonics work 80%-90%. Well that means that they fail 10%-20% of the time which is definitely not something we can neglect. We can see that there's a descending triangle which price is reaching the end of. This means that price is getting ready to move to one direction since big moves always come after consolidation. If it moves to upside wait for price to close above the the spot marked D then you can enter for a buy and ride price up to the .67525 zone where price could break to upside or bounce back down (Orange Arrow). Remember to wait for it to actually close above point D since it could create a triple top and drive price back down. It's the same procedure as AUDUSD here if it makes this move where if it breaks it then catch the retest and if it looks like it's wanting to fall down wait for a confirmation pattern. If it breaks the box to the downside and breaks the support zone then take a sell and ride price down to the trend line at which point you should close the trade as there's a chance price could move against you and it's best to secure profits while you can. Once at the trend line it could bounce and if it does you should be able to ride price up to that .67525 zone (Green Arrow). If price breaks the trend line then wait for the retest and you should be able to ride price down pretty far (Red Arrows). I think you should be able to ride it down to .5918 zone but you'll have to keep your on it.
EURNZD:

EURNZD Daily
TradingView Link For Daily: https://www.tradingview.com/chart/EURNZD/jzgmGcRe-EURNZD-Daily-For-Reddit-Post-6-20-U-AD3133/
Analysis: Well we got a pretty clear descending channel and price looks like it's at the top part of the channel currently so we're going to want to look for some optimal selling conditions due to the down trend.

EURNZD 4 Hour
TradingView Link For 4 Hour: https://www.tradingview.com/chart/EURNZD/YzOpvcH7-EURNZD-4-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: Looking at the 4 hour chart we can see that there appears to be a symmetrical triangle coming to it's end meaning price is getting ready to get pushed to a side. I believe it'll break the triangle and fall to the downside so once you see it break it would be a good idea to take a sell and ride price down to that support zone at 1.7187. Price could also briefly break to the upside then bounce off the top of the channel and it does take a trade from the bounce and ride price down to the same support zone. At that point, I'll leave it up to you to determine how you think price will go and what you should be looking for. Consider it to be a little quiz if you want to think of it like that. You've got my charts so use them as a reference since I've already marked some crucial support/resistance zones which we should keep our on for the next couple weeks.

EURNZD 1 Hour
TradingView Link For 1 Hour: https://www.tradingview.com/chart/EURNZD/ICWvgEsg-EURNZD-1-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: There's nothing that special on the one hour chart that I have to point out since I think we pretty much got all the big stuff out of the way on our analysis of the 4 hour chart. Be sure to get a good sell in there since there are two potentially good setups which I've outlined for you. Also be sure to be careful and wait for the bounce of the channel if price goes that way since there's a chance price could break the channel and I don't want you to take a loss because you were impatient.
NZDJPY:
This pair is going to be really fun since we're going to be looking through a lot of time frames so if you really want to learn about a top down approach to analyzing time frames and trends then pay very close attention to how I break down this trade.

NZDJPY Monthly
TradingView Link For Monthly: https://www.tradingview.com/chart/NZDJPY/jZh4F2Jv-NZDJPY-Monthly-For-Reddit-Post-6-20-U-AD3133/
Analysis: Yes, we're actually going to be looking at the monthly chart. I bet you guys don't do that very often. Looking at it we can see that price has been following a clear down trend line since late 2014. If you look at the wick of this month's candle you can see that it appears to have touched the trend line meaning we could see a good opportunity to catch a sell since it had just recently bounced off. Let's take a look at lower time frames to see if this continues to be true.

NZDJPY Weekly
TradingView Link For Weekly: https://www.tradingview.com/chart/NZDJPY/dpvI29BB-NZDJPY-Weekly-For-Reddit-Post-6-20-U-AD3133/
Analysis: When zooming into the weekly we can see that using the wicks of the candles we can actually draw a channel for the low portion that runs pretty much in parallel to the trend line we drew on the monthly chart. We can see that price clearly bounced from the trend line and I think this gives us good reason to believe in the coming weeks we could see the price drop. Also looking at the Bollinger Bands we can see that price also bounced from the top band which also supports a drop of price. Let's go into the daily to see if we can get a better idea.

NZDJPY Daily
TradingView Link For Daily: https://www.tradingview.com/chart/NZDJPY/NbWLURkU-NZDJPY-Daily-For-Reddit-Post-6-20-U-AD3133/
Analysis: Looking at the daily time frame we can see that price is currently consolidated and remember big moves always come after consolidation. If you look closely however you can see that price looks like it's about to break the 200 day EMA (Orange line). If it breaks the EMA we could see price drop pretty far at an accelerated rate. Besides those couple observations there's not much else going on with the daily chart.

NZDJPY 4 Hour
TradingView Link For 4 Hour: https://www.tradingview.com/chart/NZDJPY/d1kaogH5-NZDJPY-4-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: Would you look at that, it looks like we got a descending triangle on the 4 hour chart which looks like it's coming to an end. Looking at price it looks like it's wanting to push to the downside. Once you get a break below the lows of the day of June 11th I think it would be a safe bet to take a sell trade and ride it down for 66.825 for this week. If it breaks the 66.825 support zone then I'll definitely take a sell and try to ride price down to the bottom of the channel which we drew on the weekly chart. There's also the possibility that price could take support at any of these support zones and then head back up to test the top of the channel. At which point I'll be looking to get into a sell at the top of the channel but I won't ride price up to the channel since at this current point in time I feel like there's a large amount of risk in that.

NZDJPY 1 Hour
TradingView Link For 1 Hour: https://www.tradingview.com/chart/NZDJPY/83b47mFS-NZDJPY-1-Hour-For-Reddit-Post-6-20-U-AD3133/
Analysis: Not much more to add here since I think by this point we got the entire story so I'm not going to say much more about the 1 hour chart since I think the analysis for the 4 hour chart also sums this up pretty well.
Well that was a lot of information to go through and I hope you found some value in this since it took me quite a few hours to put this together for you guys. Truth be told, I spent most of Friday working on this so I hope at least one person finds some value in which case I'll consider it a win.
So you guys tired of me yet or do you want me to continue this series for a week 3? It takes a lot of time and effort to put this together so I'll only do it if people want it or else I'll pretty much feel like I wasted my time. I might put together a little lesson on how to use the COT in order to catch some big reversal moves in the market since the COT pretty much tells you what the hedge funds are doing and you also want to trade with the hedge funds and institutions. It'll probably take a couple weeks since I'll have to compile some data together and wait for a setup before putting that out but I'll be working on it. Are there any other things you may want explained? Let me know and I'll try to find setups which contain the topic you may want more details on. I hope you have a great trading week!
submitted by AD3133 to Forex [link] [comments]

How I trade.

How to analyse which stock to buy? You could use something simple like Moving Average Crossover or your system could be something very complex.
I generally use 5-7 setups when I trade.
The reason is, a lot of times I get false signals on one setup, but when I compare it with the Macro, when 3/5 systems give buy signal, I buy.
When 3/5 systems give me a sell signal, I sell. DISCLAIMER- I only trade in stocks, so some setups may not be available in Forex.
  1. Price Action Trading.
I believe that price action alone is the single greatest system. The more indicators you use, the more messy your chart gets. For me, less is more.
I usually start buy drawing Support and Resistance zones /areas, the immediate zones and long term zones.
Then I plot Fibonacci Points. I love Fibs. This alone is enough to trade.
  1. Heikin Ashi + Stochastic RSI.
The Heikin Ashi candlestick reduces noise and gives good signals. The rules are simple, if there are two continuous green closed candles, it's a buy signal and vice versa.
I usually add Stochastic RSI to improve the success rate, but the number of signals reduce.
  1. Volume.
Volume precedes price. Volume can tell a lot of things about the strength of a trend. I also use a VMA, volume moving average.
I find out if the trend is backed by a volume or not. I look for divergences too.
  1. Divergence.
There are two types of divergences, simple and hidden. I use RSI and/or MACD to find divergence. It's very reliable.
The drawback is that divergence works better in higher time frame.
I usually use 1D chart to plot divergence. Another thing, A divergence doesn't mean that the trend will change immediately.
  1. Delivery % Analysis.
This isn't available for Forex. There's a whole type of analysis on this. It has nothing to do with charts. It's based on numbers.
I like to add numbers along with charts to improve my success rate.
There are a common scenarios and 4 hidden scenarios in this analysis.
  1. Index Correlation.
If the index goes up 2% and the stock is correlated, and it goes up 4%, I can conclude using backtested data that the stock is dependent on the index.
If the index falls a bit, the stock will also fall, much more than the index.
Then there are stocks that have no correlation with the index, or inversely correlated.
  1. Option Chain.
This is probably not available for Forex, I am still learning it. This is a VERY reliable system.
Mastering this will help with get 80-90% accuracy. It's pretty tough.
A single view can give you an entire picture of support and resistance zones and what's happening. Are new positions being created or hedged?
Other Setups.
  1. Moving Averages- 20 & 200 day EMA or the EMA channel.
  2. Sector Performance.
  3. Bollinger Bands using channel.
I can talk deeply about all the systems with examples. But I've just tried to mention everything in brief.
submitted by Vikrantc2003 to StockMarket [link] [comments]

My Trading Systems - How I trade.

How to analyse which stock to buy? You could use something simple like Moving Average Crossover or your system could be something very complex.
I generally use 5-7 setups when I trade.
The reason is, a lot of times I get false signals on one setup, but when I compare it with the Macro, when 3/5 systems give buy signal, I buy.
When 3/5 systems give me a sell signal, I sell. DISCLAIMER- I only trade in stocks, so some setups may not be available in Forex.
  1. Price Action Trading.
I believe that price action alone is the single greatest system. The more indicators you use, the more messy your chart gets. For me, less is more.
I usually start buy drawing Support and Resistance zones /areas, the immediate zones and long term zones.
Then I plot Fibonacci Points. I love Fibs. This alone is enough to trade.
  1. Heikin Ashi + Stochastic RSI.
The Heikin Ashi candlestick reduces noise and gives good signals. The rules are simple, if there are two continuous green closed candles, it's a buy signal and vice versa.
I usually add Stochastic RSI to improve the success rate, but the number of signals reduce.
  1. Volume.
Volume precedes price. Volume can tell a lot of things about the strength of a trend. I also use a VMA, volume moving average.
I find out if the trend is backed by a volume or not. I look for divergences too.
  1. Divergence.
There are two types of divergences, simple and hidden. I use RSI and/or MACD to find divergence. It's very reliable.
The drawback is that divergence works better in higher time frame.
I usually use 1D chart to plot divergence. Another thing, A divergence doesn't mean that the trend will change immediately.
  1. Delivery % Analysis.
This isn't available for Forex. There's a whole type of analysis on this. It has nothing to do with charts. It's based on numbers.
I like to add numbers along with charts to improve my success rate.
There are a common scenarios and 4 hidden scenarios in this analysis.
  1. Index Correlation.
If the index goes up 2% and the stock is correlated, and it goes up 4%, I can conclude using backtested data that the stock is dependent on the index.
If the index falls a bit, the stock will also fall, much more than the index.
Then there are stocks that have no correlation with the index, or inversely correlated.
  1. Option Chain.
This is probably not available for Forex, I am still learning it. This is a VERY reliable system.
Mastering this will help with get 80-90% accuracy. It's pretty tough.
A single view can give you an entire picture of support and resistance zones and what's happening. Are new positions being created or hedged?
Other Setups.
  1. Moving Averages- 20 & 200 day EMA or the EMA channel.
  2. Sector Performance.
  3. Bollinger Bands using channel.
I can talk deeply about all the systems with examples. But I've just tried to mention everything in brief.
submitted by Vikrantc2003 to IndianStockMarket [link] [comments]

"Trading" vs gambling

What up folks
Have you ever thought one day instead of doing all the technical analysis shit just randomly choose a direction and that's it.
I think they way we trade most of the times is doing a daily/weekly analysis. Like in the weekend you look at a certain currency pair and start putting support/resistance, trend lines, fibonacci, indicators, price action, watch economic calendar, etc. Sometimes actually works and sometimes not and then you wonder "what did i do wrong?". We've recently seen markets are moved by manipulation and who the fuck knows what else. When economic news are released we don't know how market is reacting. Before, if the news/reports were negative, market is bearish, if they were positive it was bull. Apparently now that shit doesn't work anymore.
Sooo, imagine just one day at the market opening look at what you wanna trade and buy or sell based on nothing, just your intuition or because you've seen in the chart it's been going up/down. And just close your position at the end of the week or because you're comfortable with your profit/loss.
Cheers and luv.
Edit: This might apply to forex, options, crypto, stocks, you name it. ;)
submitted by mare1999 to Forex [link] [comments]

Important Support & Resistance Levels for BYFC this week (please read)


Hello Fellow Penny Astronauts


I'm chillin preparing for the week. Took an AUDUSD short in forex and now I'm looking at my pennystocks trades. Currently in BYFC @ $2.12.
Here's the weekly chart:
https://preview.redd.it/spqg6ip0d4951.png?width=1828&format=png&auto=webp&s=a21a0bf0bd842b49713c7c0c2049acea01395add

Support Levels:

$2.76 / Monthly
$2.57 / Weekly
$2.37 / Monthly

Resistance Levels:

$3.19 / Weekly
$3.55 / Monthly
$3.87 / Monthly
$4.24 / Daily
$4.69 / Weekly
$5.00 / Daily
$5.23 / Monthly
$5.89 / Weekly
$6.37 / Weekly
$7.00 / Weekly
$7.50 / Daily
$7.82 / Monthly
$8.49 / Weekly
$8.90 / Daily (my target) (127 fib extension)
$9.52 / Monthly


Here's a photo of me if it gets anywhere above my Target of $8.90, floating off into the next tendies dimension:
https://preview.redd.it/x5os5x2bg4951.jpg?width=522&format=pjpg&auto=webp&s=3dcafe3fe21d850ce35cbd769d06590a91a7dd68

The reason the first resistance points are strike-through is because the previous spike up on Juneteenth went through all those prices, and that usually indicates weaker resistance on moves up in the near term future. I don't really expect to see a big rejection off of any of those points this week, but its worth being aware of those levels
$8.90 is my price target because of the 127 fibonacci extension of the previous move up to $7.24. The price has already gone up 59% from where I bought so I'll start scaling out of my positions at $6 and higher. My stop loss is at break even ($2.12)
The blue square highlights that this last move down went further than a 78.6% retracement, indicating a pump and dump + very volatile swings in price. Play cautiously !
Practice safe trading this week, lets make it rain tendies.
submitted by trevandezz to pennystocks [link] [comments]

Market Sniper Buy / Sell - algorithm Trading

https://www.tradingview.com/script/skKXLsnt-Market-Sniper-Buy-Sell/
Hello everyone,
After the amazing feedback on Market Sniper (THANK YOU!) V. alpha, I am more than motivated to finish my final release! It will be invite-only.
But I did get one type of criticism: "It'S tOo CoMpLiCaTeD To UsE. tHiS dOeSn'T hElP mE" Well, I am thankful for those inputs, but my opinion is that some people were searching for a magic pill. So I created one, overnight! And guess what? This script is as simple as it gets: I took the algorithm I am working on and simply used additions and subtractions of the algos signals,(Yes, I took the reversals signals and +bullish-bearish over Fibonacci periods. NOT HARD! and yes, I wanted to prove a point XD )
What's best, I don't need to guarantee you it doesn't reprint, that is profitable and demand 30-300$ a month for a heinkin-ashi BS script that actually doesn't work, like most people here, (Many people used it, giving a lot of feedback in discord, reddit and TV. not a single reprint). I am giving you a chance to see that for yourself over the next month!
Now, this script will be temporarily up and I will afterwards release my Invite-Only strategy that I have prepared with 80%+ profitable trades, 1%+ profit per trade, <0.35% drawback on every single asset I tested (still need to test FOREX extensively).
Now, with that out of the way, let's get into the technicals:
This is a script contains:
First, I need to point out I spent 3H fine-tuning this script for 15min binance - BTC Perpetual Contracts(it simply gives of the most frequent and best signals on my algo out of all exchanges). I firstly tried to find settings that worked on everything on my watchlist, and I did, combining solely the first 2 Momentum fields (I have 50+ cryptos and some traditional markets on this watchlist). The Algo works best on Heinkin-Ashi (extensively tested it without a single reprint on my algo, it smooths out the oscilators I use for it and increases the success rate). I use SuperTrend as the basis, there shouldn't be any reprints. BUT! since most scam scripts use heinkin-ashi as a way to mask their real backtest (and try to convince you it actually has 90%+ Wr) I will never release any of my work based on those kinds of candles.
How to use You can base your trading of the 15min Binance chart. if not, follow these steps:
Please, let us all know when you find great setting! Grab da profitz
REMEMBER! FEEDBACK IS IMPORTANT!
submitted by LogicalyRetarded to Trading [link] [comments]

Market Sniper Buy/Sell - algorithm trading

https://www.tradingview.com/script/skKXLsnt-Market-Sniper-Buy-Sell/
Hello everyone,
After the amazing feedback on Market Sniper (THANK YOU!) V. alpha, I am more than motivated to finish my final release! It will be invite-only.
But I did get one type of criticism: "It'S tOo CoMpLiCaTeD To UsE. tHiS dOeSn'T hElP mE" Well, I am thankful for those inputs, but my opinion is that some people were searching for a magic pill. So I created one, overnight! And guess what? This script is as simple as it gets: I took the algorithm I am working on and simply used additions and subtractions of the algos signals,(Yes, I took the reversals signals and +bullish-bearish over Fibonacci periods. NOT HARD! and yes, I wanted to prove a point XD )
What's best, I don't need to guarantee you it doesn't reprint, that is profitable and demand 30-300$ a month for a heinkin-ashi BS script that actually doesn't work, like most people here, (Many people used it, giving a lot of feedback in discord, reddit and TV. not a single reprint). I am giving you a chance to see that for yourself over the next month!
Now, this script will be temporarily up and I will afterwards release my Invite-Only strategy that I have prepared with 80%+ profitable trades, 1%+ profit per trade, <0.35% drawback on every single asset I tested (still need to test FOREX extensively).
Now, with that out of the way, let's get into the technicals:
This is a script contains:
First, I need to point out I spent 3H fine-tuning this script for 15min binance - BTC Perpetual Contracts(it simply gives of the most frequent and best signals on my algo out of all exchanges). I firstly tried to find settings that worked on everything on my watchlist, and I did, combining solely the first 2 Momentum fields (I have 50+ cryptos and some traditional markets on this watchlist). The Algo works best on Heinkin-Ashi (extensively tested it without a single reprint on my algo, it smooths out the oscilators I use for it and increases the success rate). I use SuperTrend as the basis, there shouldn't be any reprints. BUT! since most scam scripts use heinkin-ashi as a way to mask their real backtest (and try to convince you it actually has 90%+ Wr) I will never release any of my work based on those kinds of candles.
How to use You can base your trading of the 15min Binance chart. if not, follow these steps:
Please, let us all know when you find great setting! Grab da profitz
REMEMBER! FEEDBACK IS IMPORTANT!
submitted by LogicalyRetarded to Daytrading [link] [comments]

MT4 Basics: How to Use Indicators

MT4 Basics: How to Use Indicators
Using Indicators is simple and we have explained the simple steps here :

Adding chart objects

  1. Click on the Insert menu.
  2. Choose an object to add to the chart (ex. lines, shapes, arrows, Fibonacci).
https://preview.redd.it/g03n0d8rf5g41.png?width=525&format=png&auto=webp&s=8495b9c1f71240af483a3bd7d6a7262bdb7d1d75
  1. Click the chart area where you want the object to appear.

Adding indicators

  1. Click on the Insert menu.
  2. Choose an indicator that you want to add. Indicators are usually grouped according to their type. In this example, the moving average indicator is under the Trend-following section.
https://preview.redd.it/dbreydksf5g41.png?width=525&format=png&auto=webp&s=13f42fcb734b15672b11d2f90ba7365666f52b05
  1. After choosing an indicator, you will be prompted to set its parameters. You can also edit the indicator’s color, line style, and other settings.
https://preview.redd.it/oixwc8htf5g41.png?width=525&format=png&auto=webp&s=360714a0ae815c27aea361264e2ba7708b76e408
  1. Click OK once you’re done tweaking the parameters and settings. And now the indicator is good to go!
It was that simple!
And are you interested to know more about forex indicators? Then you should Read this : https://www.forexracer.com/forex-indicators/
submitted by Ozone21337 to indicatorsforforex [link] [comments]

How to trade Ethereum

How to trade Ethereum

https://preview.redd.it/i6wrjvz5um541.png?width=1000&format=png&auto=webp&s=6334ee0ddb8be6c1219eea8a191780f5b1ca366e
Ethereum is the second largest cryptocurrency by capitalization after Bitcoin, founded in 2014 by Vitalik Buterin. The work of the ether is based on smart contracts technology, which was first implemented in this cryptocurrency. Smart contracts allow to conclude transactions between users without intermediaries, and the program code controls the fulfillment of the obligations of both parties.

Where you can trade Ethereum

Ethereum is traded on all cryptocurrency exchanges, as it is the main altcoin. The most popular trading platforms are Binance and BitMEX. To store ether, you need to have a wallet, such as MyEtherWallet. If you plan to trade, there is no need to buy cryptocurrency through exchangers, but you can buy it on the exchange directly - Binance added support for ruble and currency pairs, including ETH/RUB.

How to trade

The Ethereum price chart is represented by the Trading View resource, which is integrated into the Trade-mate.io service. In your account you can connect three exchanges Binance, BitMEX and Poloniex. In addition to advanced Tradingview charts service provides smart trade functionality with trailing stops and autotrade, allowing you to copy trades of other traders and trading bots.
The Ethereum volatility allows you to use any classic strategies inherited from Forex. If the foreign exchange market has long acquired immunity to technical analysis, the crypto market allows you to make a profit due to the immaturity of the industry. The most popular trading indicators are Bollinger Bands, Fibonacci Levels, RSI and others. A detailed description is easy to find on the Internet, but do not forget about the main rule - set up stop losses, because any cryptocurrency can collapse by 20% or more in a few hours. Trade-mate.io will help to extract the maximum profit, because smart trade allows you to automatically rearrange the stop loss as long as the price rises.

Little trick

Special attention is focused on Ether because of its popularity, so the coin is quite sensitive to news. Even rumors can lead to strong growth or collapse of this cryptocurrency. For example, fake information about the death of the founder of the project at the end of June led to a strong price collapse.

https://preview.redd.it/yx3yjqmcum541.png?width=762&format=png&auto=webp&s=39578308f01912d3b45df2e5dc13ec53f0c2e96a
submitted by mrhadow to matetrade [link] [comments]

[Major pairing: GBPUSD] Am I doing this right?

Hey everyone, I'm new to Forex and I haven't started live trading or even demo yet. This is a massive market that I want to have a decent grasp of before doing either.

To start off, I went into look for GBPUSD pair since the USD currency is overall in a bearish market. I marked up the indicators like the fibonacci, the yellow line would be the entry level, red line is the stop loss and green being take profit range. The bluish rectangle box is the 50.0/62.8 Fib range where I believe the market will eventually reach and consolidate.

https://i.imgur.com/9yGzdIm.png

If I could get some insight of what I did right or wrong, please feel free to point it out!
submitted by facehunt_ to Forex [link] [comments]

Hello, new traders. Here are a few words from my four and a half years of experience.

Hey! I’m a full time currency and cryptocurrency trader, I need to point out a few major fallacies and misconceptions I frequently see in this community and others.
First up. If it’s your first year trading expect to fail. Actually, if there was a contract I could buy that’d pay me out if you ended up liquidating your account in the next 12 months, I’d literally bet on your failure. You need to immediately reduce your trading account to 1/10th of its original size for your first year of trading. Seriously, do it. You are betting that you can outperform billions of dollars of institutional order flow, typically with basic patterns or default setting indicators with no experience. Which brings me to my next point.
Your strategy is not your identity, stop treating what you use to trade as dogma. That indicator or pattern you’re using, can you tell me why it works? Not HOW to use it, but what fundamental paradigm it uses to accurately predict future price action. There are legitimate answers, but trying to use your indicators/patterns without understanding why is like driving across the country without knowing how to open or what’s inside the hood or your car. Sure, you’re going to get pretty far, but eventually it’ll break down and you won’t have a clue what to do, stranded and starving in the middle of the desert.
Chances are, while you were reading this you came up with one of three answers in your head as to why your indicatopattern works. Let me guess. “Everyone else uses it, it’s made me money so far, it’s natures law (for you Fibonacci folks,) or it’s a proven standard.” All of those are appeal to authority fallacies. For instance....
How does a compass work? Are the answers “well everybody else uses compasses” or “compasses are a proven standard” WHY a compass works? If you don’t know how a compass works and you’re lost, you aren’t going to know what variables will stop the compass from working. You might be in the Southern Hemisphere, that’d lead you in the exact opposite direction, but you wouldn’t know it because you DON’T KNOW WHY it works. Then die of starvation shortly after because you didn’t understand a tool paramount to your survival and couldn’t find your way back to civilization. If you’re lost in the ocean of institutional investors, AT LEAST understand why your tools work.
For instance, why does divergence work? You probably know that divergence represents a reversal.
Divergence doesn’t form because of “price” or “its losing momentum,” divergence forms because an oscillator defines a data set that expands and contracts based on the activity in the period lookback you define for it. When you have an expanding data set, it requires increasingly drastic moves to register the same “extreme” values. If you have a tight data set and you have a huge outlier, the data set widens to compensate with every candle close. So now that you have a wider data set, an equal move would register as a less extreme event as defined by the oscillator. That’s why divergence forms/works.
Seriously, it’s worth learning these things. Unless you can explain why something works like I just did with divergence you shouldn’t EVER use it in your arsenal. Then if you do take the time to learn the “why,” you’ll start realizing that a lot of the commonly accepted tools are fundamentally broken. For instance, with your new understanding of divergence, think about overbought or oversold signals. Why would a new outlier of a data set imply a return to the center of the data set if the data set is in an active state of expansion, CAUSED by the outlier?
Now if you’re relying on an appeal to authority fallacy for understanding, could it be that the authority that presented the information doesn’t have your best interest at heart? Breakout patterns for example. If you have a bull flag, and you’re betting on bullish trend continuation, I’ll take a wild guess about where you put your stop loss. Oh, below the bull flag? Large players know this and will scoop up your stops before pushing price up. How often have you said, “wow, I was right but I stopped out just before trend continuation!” The “golden standard” of technical analysis is only so to make the masses of retail traders a predictable herd of cattle.
Also, stay away from entirely subjective strategies that will always appear correct in hindsight. Oh, how many times have you redrawn that Elliot wave extension to match what happened instead of what you predicted? Don’t you dare bring up the Fibonacci to justify your subjective drawings either. Fibonacci doesn’t work because “it’s natures law” or the “golden rule,” it just happens to be very similar to the first standard deviation of any price move. So why are you using a static reading to predict a dynamic value that changes with every candle close?
For TA that actually works (if you use it correctly,) I can recommend ichimoku, though only on macro timeframes and requires a lot of reading to use properly.
Mark Whistler’s books on volatility are my biggest recommendation to learn. Any strategy using WAVE PM and 3D WAVE PM are ideal, treating price strictly as reactionary, multiperiod probability distributions gives an excellent “why” in the chaos of the markets. The compression and expansion cycles can be defined to the exact period on any timeframe with the right readings. I created a write up a while back going in depth on my findings on probability distributions here. https://www.reddit.com/Forex/comments/ah5bxo/lets_talk_about_the_basics_of_advanced_volatility/?utm_source=share&utm_medium=ios_app
I also created a google doc over the years and filled it with a few resources I’ve used to learn, I can hand it out if you dm me.
Finally, don’t forget to do your FA. Macro level economic indications are incredibly important for defining the long term alignment of expectations. However never trade the news, this is an important distinction. Don’t bet that the US dollar will go down because Trump made a stupid tweet, please. What you SHOULD do is measure the strength of the move and the EXPANSION caused by the FA and identify where the compression begins afterwards. For every period of expansion, there is a predictable compressionary range that follows that is equal to the expansion. For every action there’s an equal and opposite reaction. Instead of betting on the news, bet on the reaction after the news has cooled off.
That’s all that immediately comes to mind. Feel free to ask any questions.
submitted by FallacyDog to Forex [link] [comments]

[educational] Technical analysis, patterns, and charts analysis for the day trader

[educational] Technical analysis, patterns, and charts analysis for the day trader
Chart patterns form a key part of day trading. Candlestick and other charts produce frequent signals that cut through price action “noise”.
The best patterns will be those that can form the backbone of a profitable day trading strategy, whether trading stocks, cryptocurrency of forex pairs.
Every day you have to choose between hundreds of trading opportunities. This is a result of a wide range of factors influencing the market. Day trading patterns enable you to decipher the multitude of options and motivations – from hope of gain and fear of loss, to short-covering, stop-loss triggers, hedging, tax consequences and plenty more.
Candlestick patterns help by painting a clear picture, and flagging up trading signals and signs of future price movements. Whilst it’s said you’ll need to use technical analysis to succeed day trading with candlestick and other patterns, it’s important to note utilizing them to your advantage is more of an art form than a rigid science.
You have to learn the power of chart patterns and the theory that governs them in order to identify the best patterns to supplement your trading style and strategies.

Use In Day Trading

Used correctly trading patterns can add a powerful tool to your arsenal. This is because history has a habit of repeating itself and the financial markets are no exception. This repetition can help you identify opportunities and anticipate potential pitfalls.
RSI, volume, plus support and resistance levels all aide your technical analysis when you’re trading. But crypto chart patterns play a crucial role in identifying breakouts and trend reversals. Mastering the art of reading these patterns will help you make smarter trades and bolster your profits, as highlighted in the highly regarded, ‘stock patterns for day trading’, by Barry Rudd.

Breakouts & Reversals

In the patterns and charts below you’ll see two recurring themes, breakouts and reversals.
  • Breakout – A breakout is simply when the price clears a specified critical level on your chart. This level could by any number of things, from a Fibonacci level, to support, resistance or trend lines.
  • Reversal – A reversal is simply a change in direction of a price trend. That change could be either positive or negative against the prevailing trend. You may also hear it called a ‘rally’, ‘correction’, or ‘trend reversal’.

Candlestick Charts

Candlestick charts are a technical tool at your disposal. They consolidate data within given time frames into single bars. Not only are the patterns relatively straightforward to interpret, but trading with candle patterns can help you attain that competitive edge over the rest of the market.
They first originated in the 18th century where they were used by Japanese rice traders. Since Steve Nison introduced them to the West with his 1991 book ‘Japanese Candlestick Charting Techniques’, their popularity has surged.
Below is a break down of three of the most popular candlestick patterns used for day trading.

Shooting Star Candlestick

This is often one of the first you see when you open a chart with candlestick patterns. This bearish reversal candlestick suggests a peak. It is precisely the opposite of a hammer candle. It won’t form until at least three subsequent green candles have materialized. This will indicate an increase in price and demand. Usually, buyers lose their cool and clamber for the price to increasing highs before they realize they’ve overpaid.
The upper shadow is usually twice the size of the body. This tells you the last frantic buyers have entered trading just as those that have turned a profit have off-loaded their positions. Short-sellers then usually force the price down to the close of the candle either near or below the open. This traps the late arrivals who pushed the price high. Panic often kicks in at this point as those late arrivals swiftly exit their positions.

https://preview.redd.it/gf5dwjhbrdh31.png?width=300&format=png&auto=webp&s=437ff856bfd6ebc95da34528462ba224d964f01f

Doji Candlestick

One of the most popular candlestick patterns for trading forex is the doji candlestick (doji signifies indecision). This reversal pattern is either bearish or bullish depending on the previous candles. It will have nearly, or the same open and closing price with long shadows. It may look like a cross, but it can have an extremely small body. You will often get an indicator as to which way the reversal will head from the previous candles.
If you see previous candles are bullish, you can anticipate the next one near the underneath of the body low will trigger a short/sell signal when the doji lows break. You’ll then see trail stops above the doji highs.
Alternatively, if the previous candles are bearish then the doji will probably form a bullish reversal. Above the candlestick high, long triggers usually form with a trail stop directly under the doji low.
These candlestick patterns could be used for intraday trading with forex, stocks, cryptocurrencies and any number of other assets. But using candlestick patterns for trading interpretations requires experience, so practice on a demo account before you put real money on the line.

https://preview.redd.it/4yo650lcrdh31.png?width=300&format=png&auto=webp&s=b2aa3cdeef23e44e1e3e3047bbe2604fce0a4768

Hammer Candlestick

This is a bullish reversal candlestick. You can use this candlestick to establish capitulation bottoms. These are then normally followed by a price bump, allowing you to enter a long position.
The hammer candlestick forms at the end of a downtrend and suggests a near-term price bottom. The lower shadow is made by a new low in the downtrend pattern that then closes back near the open. The tail (lower shadow), must be a minimum of twice the size of the actual body.
The tails are those that stopped out as shorts started to cover their positions and those looking for a bargain decided to feast. Volume can also help hammer home the candle. To be certain it is a hammer candle, check where the next candle closes. It must close above the hammer candle low.
Trading with Japanese candlestick patterns has become increasingly popular in recent decades, as a result of the easy to glean and detailed information they provide. This makes them ideal for charts for beginners to get familiar with.

https://preview.redd.it/7snzz8qdrdh31.png?width=300&format=png&auto=webp&s=f83ff82f0980dd30c33bc6886ae7e7ed3a98b72f

More Popular Day Trading Patterns

Using Price Action

Many strategies using simple price action patterns are mistakenly thought to be too basic to yield significant profits. Yet price action strategies are often straightforward to employ and effective, making them ideal for both beginners and experienced traders.
Put simply, price action is how the price is likely to respond at certain levels of resistance or support. Using price action patterns from pdfs and charts will help you identify both swings and trendlines.
Whether you’re day trading stocks or forex or crypto with price patterns, these easy to follow strategies can be applied across the board.

Zone Strategy

So, how do you start day trading with short-term price patterns? you will likely employ a ‘zone strategy’. One obvious bonus to this system is it creates straightforward charts, free from complex indicators and distractions.

https://preview.redd.it/7e5x37zerdh31.png?width=300&format=png&auto=webp&s=2098a4c9df4a4556c3024cec1c176ce50c9806c0

Dead Zone

This empty zone tells you that the price action isn’t headed anywhere. There is no clear up or down trend, the market is at a standoff. If you want big profits, avoid the dead zone completely. No indicator will help you makes thousands of pips here.

The Red Zone

This is where things start to get a little interesting. Once you’re in the red zone the end goal is in sight, and that one hundred pip winner within reach. For example, if the price hits the red zone and continues to the upside, you might want to make a buy trade. It could be giving you higher highs and an indication that it will become an uptrend.
This will be likely when the sellers take hold. If the price hits the red zone and continues to the downside, a sell trade may be on the cards. You’d have new lower lows and a suggestion that it will become a downtrend.

The End Zone

This is where the magic happens. With this strategy, you want to consistently get from the red zone to the end zone. Draw rectangles on your charts like the ones found in the example. Then only trade the zones. If you draw the red zones anywhere from 10-20 pips wide, you’ll have room for the price action to do its usual retracement before heading to the downside or upside.

Outside Bar At Resistance Or Support

You’ll see a bullish outside bar if today’s low exceeded yesterdays, but the stock still rallies and closes above yesterday’s high. If the complete opposite price action took place, you’d have yourself the perfect bearish example.
Unfortunately, it isn’t as straightforward as identifying an outside candlestick and then just placing a trade. It’s prudent to find an outside day after a major break of a trend.

https://preview.redd.it/egb0lp6grdh31.png?width=300&format=png&auto=webp&s=b0170eceea5006464e5832bc3a9083c72ee677ad

Spring At Support

The spring is when the stock tests the low of a range, but then swiftly comes back into trading zone and sets off a new trend. One common mistake traders make is waiting for the last swing low to be reached. However, as you’ve probably realized already, trading setups don’t usually meet your precise requirements so don’t stress about a few pennies.

https://preview.redd.it/q82lap2hrdh31.png?width=300&format=png&auto=webp&s=9e40f0bc25c2df06a1d93edb68b293c858a32592

Little To No Price Retracement

Put simply, less retracement is proof the primary trend is robust and probably going to continue. Forget about coughing up on the numerous Fibonacci retracement levels. The main thing to remember is that you want the retracement to be less than 38.2%. This means even when today’s asset tests the previous swing, you’ll have a greater chance that the breakout will either hold or continue towards the direction of the primary trend.

https://preview.redd.it/ey997b2irdh31.png?width=300&format=png&auto=webp&s=c938aac51e3b3bbf1f45a11c46f4ae3dfd1b6dd4
Trading with price patterns to hand enables you to try any of these strategies. Find the one that fits in with your individual trading style. Remember, you’ll often find the best trading chart patterns aren’t overly complex, instead they paint a clear picture using minimal indicators, reducing the likelihood of mistakes and distraction.

Consider Time Frames

When you start trading with your short term price patterns pdf to hand, it’s essential you also consider time frames in your calculations. In your market, you’ll find a number of time frames simultaneously co-existing. This means you can find conflicting trends within the particular asset your trading. Your stock could be in a primary downtrend whilst also being in an intermediate short-term uptrend.
Many traders make the mistake of focusing on a specific time frame and ignoring the underlying influential primary trend. Usually, the longer the time frame the more reliable the signals. When you reduce your time frames you’ll be distracted by false moves and noise.
Many traders download examples of short-term price patterns but overlook the underlying primary trend, do not make this mistake. You should trade-off 15-minute charts, but utilize 60-minute charts to define the primary trend and 5-minute charts to establish the short-term trend.

Wrapping Up

Our understanding of chart patterns has come along way since the initial 1932 work of Richard Schabacker in ‘Technical Analysis and Stock Market Profits’. Schabacker asserted then, ‘any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental…’ So whilst there is an abundance of patterns out there, remember accurate analysis and sustained practice is required to fully reap their benefits.

The source : https://www.daytrading.com/patterns
submitted by JalelTounsi to ethfinance [link] [comments]

Learn Forex - Fibonacci Fan and Arcs - YouTube Forex Scalping 5 minute Fibonacci  NO Signals! NO Indicators! FIBONACCI RETRACEMENT HOW TO USE IT IN FOREX - YouTube Best Fibonacci Forex Indicator Forex Trading Attached ... Forex Fibonacci Indicator FREE Download - Forex Fibonacci ... STOCHASTIC  TRENDLINE  FIBONACCI Super Indikator Forex!!!

Fibonacci retracement trading uses Fibonacci levels to indicate potential reversals in price movements during a strong upward trend. The Fibonacci retracement indicator is based on so-called retracements, which means periods in which the price moves against the trend, after which it moves back in the trend direction.These movements last for short periods. Fibonacci Quantum Indicator. Der Fibo Quantum Scalper hat seine Wurzeln in der intelligenten Entwicklung des Fibonacci Trading indikator. Auf der Basis dieses Indikators wurde die neue Trading Software entwickelt. Dieser Scalper ist kein EA (Roboter). Das Tool ist für Trader gedacht, die im 1 Minuten und 5 Minuten Timeframe handeln wollen. Damit werden Sie bessere Endscheidungen treffen, ihr ... Der Fibonacci Indikator ist häufiger Bestandteil der technischen Analyse, er ist jedoch nicht ganz einfach anzuwenden. Aber was bedeutet diese mathematische Formel eigentlich und auf welche Weise kann dieser Indikator verwendet werden? Wir werden Ihnen diese Fragen im folgenden Artikel beantworten und zeigen Ihnen, wie Sie den Fibonacci Indikator korrekt in der LYNX Handelsplattform in einen ... Forex Fibonacci Niveaus, die als Fibonacci Retracements genutzt werden, basieren tatsächlich nicht auf Zahlen aus der Fibonacci Reihe. Sie werden stattdessen abgeleitet von den mathematischen Verhältnissen zwischen den Fibonacci Zahlen. Den goldenen Fibonacci Schnitt (61,8%) erhält man durch Division einer Fibonacci Zahl durch ihre Nachfolgerin, also zum Beispiel 89/144 = 0,6180. Die ... Heute möchte ich Euch einen sehr nützlichen Forex Indikator vorstellen, den Ihr für euren MetaTrader downloaden könnt. Dieser Indicator macht es euch möglich, Fibonacci Retracements automatisch zu setzen. Ihr müsst also nichtmehr "mühselig" alle eure Fibonacci Linien aktualisieren oder neu einzeichen, der Fibonacci Indikator erledigt diese Arbeit völlig automatisch für euch. Fibonacci Forex indicator refers to areas of support and resistance level. support and resistance are very powerful analysis to identify price reversal. Therefore Autofibonacci Forex indicator better tool to enter your trade. Auto Fibonacci gives us to three Take profit levels. Which are 161.8%, 261.8%, 361.8%. Fibonacci is drawn within higher & lower points of the last wave. Then, it will ... Fibonacci Level: Verschiedene Arten und wie man sie benutzt. Die Fibonacci Niveaus basieren auf der mathematischen Theorie, welche der italienische Wissenschaftler Leonardo Fibonacci im 12. Jahrhundert entwickelt hat. Diese Theorie ist außerhalb der Finanzanalyse weit verbreitet. Außerdem kommt die Fibonacci Zahlenfolge häufig in vielen ... This is the best Forex indicator,more than 90% profit.Try this. Related MetaTrader Indicators. Retracement Finder; Fibo Retracement Indicador; Kevinator Retracement System ; Kevinator Forex Retracement System; KG Fibonacci MA Indicator; RSI with Fibonacci Auto Channel; Fibonacci Average Indicator; Auto Fibonacci Retracements; Elliot + Fibonacci Indicateur; Pulse Fibonacci Pivot Indicator; MA ... Sie können die Fibonacci-Lehre in Ihr Trading einbeziehen und durch die Anwendung der Fibonacci Retracements Ihr Forex und CFD Trading dauerhaft verbessern. Erfahren Sie hier alles über die verschiedenen Rücksetzungsebenen, die Fibonacci Levels, die Fibonacci Zahlenreihe und den goldenen Schnitt. Forex Trading System using the Fibonacci indicator. This is a non-repaint & profitable Forex Trading System. Use your money management.

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Learn Forex - Fibonacci Fan and Arcs - YouTube

fibonacci sequence,golden ratio,fibonacci number (literature subject) forex online,online trading, macd indicator,technical analysis,macd strategy, moving average,moving averages trading strategy ... Recommended Forex Copy Trade: https://youtu.be/f_OB69cg_lU Forex Fibonacci Indicator FREE Download - Forex Fibonacci Trading Strategy Click here 👉 https://li... Learn what is fibonacci fan and arcs and how to use these indicators in your trading. For more forex education check https://www.youtube.com/ukspreadbetting ... Hey Family! In this video I share HOW TO USE FIBONACHHI RETRACEMENT IN FOREX. This FIBONACCHI FOREX STRATEGY has the potential to return 100 pips a day in fo... Forex Scalping 5 minute Fibonacci NO Signals! NO Indicators! Forex Scalping 5 minute Fibonacci Live Forex Trading Strategy. NO Signals! NO Indicators! Co... ★★★ Recommended For You ★★★ Free Download Most Reliable Forex Metatrader 4 Platform https://bit.ly/30NrtLP Reliable Forex Broker with a ★Profit of up t...

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