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Entry Levels is the most important in Tradingin this video we try to make you understand why entry is very much important in trading #nifty #priceaction #priceactiontrading #optionanalysis #banknifty #bankniftyprediction #nifty50 #niftytomorrow #niftyprediction #niftyanalysis #niftyfifty #niftytoday #niftybank #banknifty #bankniftytomorrow #bankniftyprediction #bnkniftytrading #charts #technicalanalysis #crypto #sensex #nse #nseindia #bse #optionsellingstrategy #optionstrading #optionsellingstrategy #optionstrategy #optiontrading #optionsellingstrategy
NSE:NIFTYEducation
by gurubhai
1
Smart Money vs Retail traders (How to Think Like Smart Money)😱 There were a few people there talking about their losses, that they had no idea what to do and I wrote this to them: It's mostly the fault of mainstream media + youtubers + twitterers etc. It's really easy to communicate the simplest approach that everyone understands and subscribes too. Note that if everyone is on the same side... Usually most people are wrong. They take past events too much at face value. But the market is constantly changing. Its to buy on the upside and not during pullbacks + HODL HODL HODL. With that said they really have no idea where they should get out and get in. That's fine by the way. News can be picked up by any of us from the news portals. They don't inform anyone about the negative side of things. It's a tough place to be and you can't take it half as seriously as it is communicated. Unless you are an investor (REAL) you are looking at the market long term. A multi-year perspective. Of course it doesn't pay off here either. The crypto market is still pretty damn small. No one is too late. Now most of you are losing time, but everyone has to start somewhere. I was in the same situation in 2017. I was drowning. Now I'm still looking at these corrections from + xxxxx% profit. Unfortunately we have to give ourselves time in the market and endure pullbacks of -20-30-40-50-60% to see 3000% profits. Realizing upwards during the upswing is not a bad thing. For me, a huge part of my strategy is to have a lot of money on the sidelines. That's why. Especially on 4H trend changes I sell everything that is not bullish. Then I sell others too if they break the trend and just trade. 💡 We are in the best market in the world, but psychologically the hardest market. If you learn to manage these things and use volatility to your advantage rather than your disadvantage, then it's a game changer. 💡 Institutions (fund managers, pension funds, banks and whales) think in long term horizons and monitor price action based on that (Years, Decades) Small investors, retail traders monitor things in low time frames (Minutes, hours, days). Small investors quickly switch between optimism and pessimism based on current price movements and news in the media. It can be a bull market one day and a bear market for a small investor the next. Institutional investors are not sentimental, they assess the growth rate of the market sector, the total market size available, the adoptation/acceptance, the growth of the network, the analysis of revenues (to predict profitability years and decades in advance). If an institutional investor draws a conclusion, they hold it until the underlying financial situation changes. Small investors usually have limited money to invest, so they often resort to leveraging, which typically results in full liquidation. Leveraged trades have "unlimited" potential losses, and therefore small investors (who do not like to buy spot because it is not "cool") can easily "drop out" of trading because of the "unlimited" losses from leverage. Think about it... as a retailer, you have your precious and hard-earned money on the line. Do you have time to lose what you've worked hard to earn, or even more? Why can't you accept that this is a profession? We study in university for 3-10 years to get an average salary afterwards. But here we are not willing to spend a couple of years without constantly taking time away from yourself with losses? Levrage are not bad. The user is the dangerous one. 😱 There is a reason why 90% of retail traders lose money. 💡Institutionalists brazenly exploit those with few resources and fear. Institutional investors have access to billions of dollars worth of resources and have teams of quantitative/statistical experts who control the automated trading algorithms. Institutional investors have deep pockets and can influence the general sentiment of the market through the press (news, social media and interviews). Institutional investors influence the news that small investors read. Institutionalists are well known for advertising higher prices to retailers to "buy at the top", This is the FOMO factor (Fear of Missing Out). They are also notorious for creating tremendous market fear (FUD - Fear Uncertainty and Doubt), which encourages retailers to "sell at the bottom". 💡 Institutions are also actively involved in futures, options and derivatives markets. They all actively benefit from short-term price cycles as well as longer-term accumulation strategies. The institutions are sophisticated, financially strong and have expertise. Institutions make money by attracting small investors into the market (via FOMO) and then liquidating their positions (via FUD). In the market, one person's loss is another person's gain. 💡 There is a learning curve that 90% of your people want to skip and get rich overnight. Unfortunately, this is not reality. Knowledge is incredibly important. If you want to be a doctor, or a surgeon, you don't just walk into the operating room and say give me a knife and I'll cut this guy open and operate him without any knowledge. You really have to know what you're doing. If you're an engineer or you want to be an engineer, without training or knowledge, it would be very difficult for you to build a bridge or a skyscraper. You need the knowledge. If you want to be a teacher, but you don't know the subject matter, it would be very difficult to teach students in a meaningful way if you don't even know what you are teaching. So it is essential to acquire knowledge, but that knowledge has to come from the right people. So mentoring is also vital. Everyone must also understand the psychological aspects of investing and trading. Because a lot of people lose money in the financial markets. Not because they are stupid, but because their emotions get the better of them. Focusing on learning is incredibly important, it changes your life. Of course, this doesn't just apply to investing and trading. It applies to everything, which is why the financial markets are so incredible in their ability to create meaning in life, if people are open to it, and if they don't focus too much on money, then money will simply be the result of doing things the right way. Over time, if you do things the right way, you will become rich, you don't have to become a millionaire overnight. If you want to do that, you will probably lose all the money you put into the hands of institutions that want your money, want you to be captivated by a fantasy world. The reality is that you need the knowledge to fight the big players and win. 💡Self-control is also a must. All wealth will pass without self-control. Self-control makes you keep the money you earn. There are many examples of this among people who have won huge amounts of money without earning it. For example, people who win lottery. These people basically give back all the money they made because they didn't really earn it. A lot of times, the money they didn't earn is put back. When you earn money with self-control, you never have to give it back! It is yours and will continue to grow. 💡 The key is to get off your ass and get moving. Remember these things and you'll be fine.
BITSTAMP:BTCUSDEducation
by CryptofolioHungary
10
HP Bos vs LP Bos - Supply & Demand Trading Hello traders In this example, I will show you what HP BOS (break of structure) and HP POI (point of interest) look like, and on the right side you can see an example of low probability BOS (break of structure) and low probability POI (point of interest). BOS (break of structure) -Break of structure or BOS is the term used by traders, and it simply indicates a break of the recent structure We have 2 types of BOS 1. High probability BOS 2. Low probability BOS High probability BOS -You can see the high probability BOS on the left. The price impulsively breaks through the most recent structure, the momentum is present, and at the end, we see a good candle close, the price did not leave a big wick. Low probability BOS -You can see the low probability BOS on the right. The price barely breaks through the most recent structure, momentum is not present, and at the end the price leaves a large wick - the characteristic of a large wick is that the price no longer has momentum. POI (point of interest) - POI | Supply & Demand is the place where we want to sell or buy We have 2 types of POI 1. High probability POI 2. Low probability POI High probability POI -When we want to select the HP POI , we want to see that the momentum is present, as in the example on the left. The price did not leave a wick, it impulsively broke the high, and we see a nice closing of the candle. Low probability POI -When we see a low probability POI, we don't want to see that OB as a potential trade opportunity. On the right, you can see the low probability POI. The price has no momentum, it leaves a big wick which tells us that the momentum is weakened. I hope this example helped you to better understand the difference between high probability BOS & POI and low probability BOS & POI, if you have any questions, drop it down below.
Education
by hybridtradingfx
1
Timing when day trading can be everythingTiming when day trading can be everything In Stock markets typically more volatility (or price activity) occurs at market opening and closings When it comes to Forex (foreign exchange market), the world’s most traded market, unlike other financial markets, there is no centralized marketplace, currencies trade over the counter in whatever market is open at that time, where time becomes of more importance and key to get better trading opportunities. There are four major forex trading sessions, which are Sydney, Tokyo, London and New York sessions Forex market is traded 24 hours a day, 5 days a week across by banks, institutions and individual traders worldwide, but that doesn’t mean it’s always active the entire day. It may be very difficult time trying to make money when the market doesn’t move at all. The busiest times with highest trading volume occurs during the overlap of the London and New York trading sessions, because U.S. dollar (USD) and the Euro (EUR) are the two most popular currencies traded. Typically most of the trading activity for a specific currency pair will occur when the trading sessions of the individual currencies overlap. For example, Australian Dollar (AUD) and Japanese Yen (JPY) will experience a higher trading volume when both Sydney and Tokyo sessions are open There is one influence that impacts Forex matkets and should not be forgotten : the release of the significant news and reports . When a major announcement is made regarding economic data, currency can lose or gain value within a matter of seconds Cryptocurrency market s on the other hand remain open 24/7, even during public holidays Until 2021, the Asian impact was so significant in Cryptocurrency markets but recent reasearch reports shows that those patterns have changed and the correlation with the U.S. trading hours is becoming a clear evolving trend. Unlike any other market Crypto doesn’t rest on weekends, there’s a drop-off in participation and yet algorithmic trading bots and market makers (or liquidity providers) can create a high volume of activity. Never trust the weekend’ is a good thing to remind yourself One more factor that needs to be taken into accout is Blockchain transaction fees, which are responsive to network congestion and can change dramatically from one hour to the next In general, Cryptocurrency markets are highly volatile, which means that the price of a coin can change dramatically over a short time period in either direction The Bottom Line The more traders trading, the higher the trading volume, and the more active the market. The more active the market, the higher the liquidity (availability of counterparties at any given time to exit or enter a trade), hence the tighter the spreads (the difference between ask and bid price) and the less slippage (the difference between the expected fill price and the actual fill price) - in a nutshell, yield to many good trading opportunities and better order execution (a process of filling the requested buy or sell order) The best time to trade is when the market is the most active and therefore has the largest trading volume, trading all day long will not only deplete a trader's reserves quickly, but it can burn out even the most persistent trader. Knowing when the markets are more active will give traders peace of mind, that opportunities are not slipping away when they take their eyes off the markets or need to get a few hours of sleep You are kindly invited to check the script that helps to identify market peak hours : Day Trading Booster .
Education
by dgtrd
23
Learn Cup & Handle Pattern | Profitable Trading Strategy For Beg A Cup and Handle is a bullish continuation chart pattern that marks a consolidation period followed by a breakout. Chart patterns form when the price of an asset moves in a way that resembles a common shape, like a rectangle, flag, pennant, head and shoulders, or, like in this example, a cup and handle. There are two parts to this chart pattern: The cup The handle The cup forms after a downtrend and is followed by an uptrend and looks like a bowl or rounding bottom. As the cup is completed, the price trades sideways, and a trading range is established on the right-hand side and the handle is formed. A breakout from the handle’s trading range signals a continuation of the previous uptrend. The cup should resemble a bowl or rounding bottom. The perfect pattern would have equal highs on both sides of the cup, but in the real world, just like when finding someone to marry, perfect doesn’t exist. After the high forms on the right side of the cup, there is a pullback that forms the handle. The handle is the consolidation before the breakout. The handle needs to be smaller than the cup. The handle should not drop into the lower half of the cup, and ideally, it should stay in the upper third. If the Cup and Handle pattern completes successfully, the price should break above the trend established by the “handle” and go on to reach new highs. The buy point occurs when the asset breaks out or moves upward through the old point of resistance (right side of the cup). Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
Trading Mindset in this post analysis we try to clear some of the very common trading errors, which is generally face by most of new and pro traders . if our mindset is clear then trading is fun like playing a a game #nifty #priceaction #priceactiontrading #optionanalysis #banknifty #bankniftyprediction #nifty50 #niftytomorrow #niftyprediction #niftyanalysis #niftyfifty #niftytoday #niftybank #banknifty #bankniftytomorrow #bankniftyprediction #bnkniftytrading #charts #technicalanalysis #crypto #sensex #nse #nseindia #bse #optionsellingstrategy #optionstrading #optionsellingstrategy #optionstrategy #optiontrading #optionsellingstrategy
NSE:NIFTYEducation
by gurubhai
CURRENCY CORRELATIONSCorrelation only shows exactly how two assets move in relation to each other. In the case of currency correlation, it is exactly the same story. Forex pairs can move together, in different directions, or not interact at all. Keep in mind that we are not trading just currencies, we are trading a currency pair where each participant in the pair influences the other. Therefore, correlation can be a useful tool, and almost the only one if you want to successfully trade several currency pairs at once. Currency correlation is based on the so-called correlation coefficient, which is in a simple range between -1 and +1. • Perfect positive correlation (coefficient of +1) means that two currency pairs move in the same direction 100% of the time. • A perfect negative correlation (coefficient -1) implies exactly the opposite. Pairs constantly move in different directions. If the correlation is 0, then there is no correlation at all, it is zero and the pairs are not related in any way. The Risks of Currency Correlations If you trade several currency pairs at once, you must realize at once how much such trading is exposed to risk. Sometimes people choose several pairs at once in order to minimize their risks, but they forget about the positive correlation, when pairs go in the same direction. Let's assume that we took two pairs on the 4-hour timeframe, EUR/USD and GBP/USD. The correlation coefficient is 0.94, very nice. This means that both pairs are literally following each other. If we open trades on both pairs, we thereby immediately double our position and the risks. They increase. Because if you are wrong with the forecast, you will be doubly wrong at once, because the pairs are mirrored. You have put it up, the price went down, a double loss. So there is correlation. Also, it makes no sense to sell one instrument and buy another, because even with an accurate forecast one of them will bring you a loss. The volatility also differs. One pair might jump 200 pips, while the other might jump only 180 pips. That's why it's necessary to play with simultaneous trades on different pairs very carefully and without fanaticism, the correlation decides everything here. Now let's compare the opposite case, EUR/USD and USD/CHF. They have the opposite case, a strong inverse correlation, where the coefficient often reaches the absolute value of -1.00. The pairs are like two magnets with opposite poles, constantly pushing away from each other. If you open opposite trades on two pairs with a negative correlation, it will be the same as two identical trades on pairs with a positive correlation, again doubling your risk. The most reasonable thing is definitely to work with only one pair and not to play with the opposite pair trades, because you can quickly reach ugly values. Correlation coefficients Now let's see how we can look at the correlation coefficients. -1.0. Perfect inverse correlation. -0.8. Very strong inverse correlation. -0.6. Strong inverse correlation. -0.4. Moderate inverse correlation. -0.2. Weak inverse correlation 0. No correlation 0.2 Weak, slight correlation 0.4. Weak correlation 0.6. Moderate correlation 0.8. Strong correlation 1.0. Perfect correlation So what to do with the correlation, can it be used or not? 1. Eliminate risk If you like to open simultaneous trades on different pairs, knowing about their correlation will help you avoid getting into the described situation where you double your risk if two pairs go in the same direction. Or you bet in different directions, not realizing that the pairs have an inverse correlation and this again doubles your risk. 2. Doubling your profits or losses If you decide to play with simultaneous trades on different pairs, a successful trade on pairs that have a direct correlation will double your profits. Or losses, of course, if something went wrong and the forecast was wrong. 3. Risk Diversification Market risks can be divided into two currency pairs. If you certainly understand what you are doing and if the correlation between pairs is not perfect. To do so, we take pairs with a direct correlation around 0.7 (or higher), say EUR/USD and GBP/USD. Let's say you bet on USD going up. Instead of two bets on EUR/USD going down, you could bet on EUR/USD going down and GBP/USD going up. If the dollar falls, the euro will be less affected than the pound. 4. Risk Hedging This method is already used in forex, where it is taken into account that each currency pair has its own pip value. If you have an upside position in EUR/USD and the price moves against you, a downside position in an opposite pair, such as USD/CHF, can help. You should not forget about the different pip value in forex. For example, the EUR/USD and USD/CHF have a nearly perfect correlation, except that when trading a $1000 mini lot, one pip of the EUR/USD costs $1, while USD/CHF costs $0.93. As a result, buying a EUR/USD minilot allows you to hedge your risks while simultaneously buying a USD/CHF minilot. If the EUR/USD falls 10 pips, you lose $10. However, the return on the USD/CHF will be $9.30. So instead of $10, you would only lose 70 cents, fine. Hedging in forex looks great, but there are plenty of drawbacks as well. For when EUR/USD rises frantically, you simultaneously lose money on USD/CHF. Also, the correlation is rarely perfect, it's constantly floating, so instead of hedging you could lose everything. 5. Correlation, Breakouts and False Breaks Correlation can also be used to predict price behavior at significant levels. Let's assume that the EUR/USD is testing a significant support level. We have studied it and decided to enter upon its breakout. Since EUR/USD is positively correlated with GBP/USD and negatively correlated with USD/CHF and USD/JPY, we should check if the other three pairs are moving in the same volatility as EUR/USD. Most likely, GBP/USD is also near resistance levels, and USD/CHF and USD/JPY are near key resistance levels too. All this means that the USD move the market and there are all the indications for a breakout of the EUR/USD, because all the three pairs are moving synchronously. We have to wait for the breakout. And now let's assume that these three pairs do not move synchronously with EUR/USD. GBP/USD has no intention to fall, USD/JPY does not increase, and USD/CHF does not show any signs of sideways movement. What does this mean? The only thing that the fall of EUR/USD is not connected with the dollar and is obviously caused by negative news from the Eurozone. The price can be below the key support level, but if the three correlated pairs do not move synchronously enough with EUR/USD, we should not expect a breakout. Moreover, it can be a false break of resistance. Yes, you can still enter the breakout without a correlation confirmation, but then make a smaller trade volume, because you need to reduce your risks. Correlation: pros and cons Here everything is obvious. The cons are your risks are doubled if you open trades for two mirrored correlated pairs. In addition, the correlation changes regularly at different time intervals, which should be taken into account in your work. The pros are correlation allows you to diversify risks, hedge your trades. Also remember that: ratios are calculated based on daily closing prices; a positive coefficient means that two pairs move in the same direction; negative in opposite directions; the closer the coefficient is to values +1 and -1, the stronger the correlation. Examples of pairs that move synchronously: EUR/USD and GBP/USD; EUR/USD and AUD/USD; EUR/USD and NZD/USD; USD/CHF and USD/JPY; AUD/USD and NZD/USD. Pairs with negative correlation: EUR/USD and USD/CHF; GBP/USD and USD/JPY; USD/CAD and AUD/USD; USD/JPY and AUD/USD; GBP/USD and USD/CHF. Do not forget to use all that you have learned, keep in mind the risk management, and then the currency pairs correlation may become a valuable tool in your trading arsenal. And most importantly, it will allow you to avoid mistakes when you trade two pairs at once and don't even realize that you are doubling your risks if there is a complete synchronous correlation between the selected pairs.
Education
by DeGRAM
5
FACTORS THAT PUSH THE PRICEHello everybody! Today I want to discuss with you a serious question - What factors are pushing the price? As you know, there is fundamental and technical analysis. Each trader himself gives preference to what to use in the analysis. And we will try to understand what pushes the price. NEWS The first thing that comes to mind is NEWS . News affects OUR WHOLE LIFE . The news pushes crowds of people to one point and forces them to flee from another. News is a strong factor. If the central bank decides something, it will be in the news and it will definitely push the market. If the president of the country has decided something, it is shown on the news and it pushes the market. If a person who decided the fate of an entire industry was fired, it will push the market and the price. Therefore, it is IMPORTANT to follow the news and, more importantly, correctly interpret the news and be able to predict the future mood and future actions of the crowd based on them. PATTERNS All traders see the same chart, but everyone perceives it differently. There are many reasons for this: someone knows more patterns, someone has more experience, someone understands better than another, someone has better discipline. And when one or another pattern appears on the chart, people start trading and push the price. You may have noticed that if no special picture is visible on the market, then the market is sluggish. As soon as a pattern emerges, movement begins. People entered the market. Can we say that patterns move the price? Or maybe someone is creating patterns on the chart to move the price? EMOTIONS We have already touched on this topic above, but it is worth noting separately. Emotions play an important role in everything. If the crowd is happy, the market is growing. The crowd is afraid - the market is falling. The crowd can be angry at the company or the country, close positions and thereby push the price down because of their bias.. The one who knows how to understand other people's emotions is able to predict the future actions of the crowd and make money on it. Think about it... SUPPLY AND DEMAND Classical works on economics teach us that the market is controlled by supply and demand. more precisely, the difference between supply and demand. If the demand is large, the price rises, if the demand is small, the price falls. The logic is simple: if people buy a lot, someone will start raising the price before selling, why not, because people buy. When people don't want to buy, the one who needs to sell will lower the price to lure the buyer, because you need to sell something. At the same time, it is important that there should always be both a buyer and a seller, otherwise the price will stand still or move slowly. When there is both a buyer and a seller on the market and a lot of transactions are made, the price moves quickly, volumes increase, so even strong jumps (GAPS) are possible. MANIPULATION Manipulation is the darkest, most hidden action from prying eyes. No one can say for sure whether it was manipulation or not. Can someone push the market? You often observe that the price reaches your stop, after which it immediately goes in the right direction, but without you. Many traders believe that manipulation can be observed in the market . Someone thinks that every movement is manipulation. What do you think? Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
10
Why Is The Price Reversing After Hitting Stop Loss?Hello, my fellow Forex traders! Today we will discuss one, one might say, rhetorical question that often arises among beginners and quite experienced traders. This question is as follows: "Why, as soon as my stop is hit, the price reverses?" Why does it happen? Does the market see where you put your orders and why does it kick them out to spite you, immediately reversing in the original direction? Let's try to figure out what is the prerequisite for this situation, where most market participants put their stop losses, what to do about it and how to deal with it. The basic idea Let's assume you have detected the " Engulfing" pattern on the chart and concluded that the price will go up in the future. It does not matter whether the signal was shown by the indicator or the trading system. The question is, where would you place a stop loss here? Most likely, either under the candlestick or near the last local low. Everything seems to be fine, but then the price knocks out your stop loss and goes, as expected, up. I think you can give many such examples from your own practice or from observations of other traders. Why does this happen? The fact is that in addition to other traders like you and me, there are big players in the market: hedge funds, banks, various institutional investors. They open rather large positions, i.e. positions of very large volume, for opening which they need a sufficient level of liquidity. If one tries to open such a position in the middle of a trend, high volume can move the price in the direction of the position, but after that the price is likely to roll back leaving the trader at a disadvantage. Imagine this if you, for example, come to the market to buy potatoes, but not 1 kilogram, but a whole truck. It would seem that you should get a more favorable price as a wholesale buyer, but in fact the more favorable price will be received by the one, who came to buy 1 kg. So, the big players have to cheat and look for places with a lot of liquidity to sell in order to buy profitably and vice versa. Actually, your stop-loss for a buy position is nothing but a sell order. Accordingly, it is profitable for a large player to take exactly this liquidity in the form of stop-loss and pending sell stop orders, and thus gain his own position without moving the market price much. You're probably wondering how such a big player could be interested in such small positions. But the fact is that approximately 95% of traders place orders in approximately the same places. Accordingly, since people think alike, the big players don't need to see all the insider information about exactly where your stop loss is, it's obvious enough. After the liquidity has been absorbed, the market goes in its own direction, but without you. Most market participants place their stop losses at one of these locations: Local lows/highs; Support/resistance levels; Round levels; Borders of channels, rectangles and other consolidation patterns. Where do I place a stop loss? 1) The first thing that comes to mind is not to put a stop in principle, no stop - no problem. However, this practice will not suit everyone. If you are new to the market, it is dangerous to work without a stop-loss, that is, to keep it in mind, or to use a virtual one without placing it directly in the market, and such practice often leads to large losses or loss of the entire deposit. 2) Some use various technical tricks, applying the so-called virtual stop-loss. That is, the order will be closed, but it will be closed by an Expert Advisor, not by an automatic market order. But, in fact, it does not matter whether the stop is in the market or not the behavior of the big players will not change from this. 3) The next logical solution is to put a stop loss with a larger margin (at a farther distance). This solution is not the worst and has the right to live. The reserve, however, should not be too large, otherwise you just increase the risk for nothing. This option will not help in all cases, but in general it is not a bad compromise. 4) The opposite solution a very short stop. If it is hit, you can not worry too much and then re-enter the market. This solution also has the right to life, but most often it implies a re-entry. At the same time, if the stop was hit, you need to understand why it happened, and only after analyzing the situation, enter for the second time. 5) You can enter in the same way after a false-break. If you have received confirmation of a false-break, it is possible to use this situation to your own advantage. That is, to enter the market, when the stops of other participants have been knocked out. 6) To calculate the size of a stop loss, you can use not only the chart itself, but also other tools such as the ATR indicator. The ATR readings are usually multiplied by a multiplier, such as 2 or 3. In this case, we have a daily chart and the ATR values are large enough, so a multiplier of 2 will be sufficient. The indicator shows 112 points, so we set a stop loss at a distance of 224 points (112 * 2) from the entry point. In general, as the tests show, this is probably one of the most correct ways to set a stop loss. Conclusion You are free to apply any of the listed solutions. Perhaps you will find your own solution to the problem some use fibo, some use ATR. The best solution is the Average True Range indicator. This is a sure way to avoid frequent stop triggering situations with a subsequent price reversal. The main thing is try to think differently than everyone else, keep in mind the big players and their methods of position taking and you will be fine!
Education
by DeGRAM
3
♻️UNDERSTANDING THE BULLISH ENGULFING CANDLE PATTERN♻️ ☑️WHAT IS A BULLISH ENGULFING CANDLE? The bullish engulfing candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in trend as more buyers enter the market to drive prices up further. The pattern involves two candles with the second candle completely engulfing the body of the previous red candle. ☑️HOW TO SPOT A BULLISH ENGULFING PATTERN AND WHAT DOES IT MEAN? ▪️Characteristics of a bullish engulfing pattern: • Strong green candle that ‘engulfs’ the prior red candle body (disregard the wicks) • Occurs at the bottom of a downward trend • Stronger signals are provided when the red candle is a doji, or when subsequent candles close above the high of the bullish candle. ▪️What does it tell traders? • Trend reversal to the upside (bullish reversal) • Selling pressure losing momentum at this key level. ▪️Advantages of trading with the bullish engulfing candle: • Easy to identify • Attractive entry levels can be obtained after receiving confirmation of the bullish reversal. ☑️KNOW THE DIFFERENCE BETWEEN A BULLISH AND A BEARISH ENGULFING PATTERN Engulfing patterns can be bullish and bearish. The bearish engulfing pattern is essentially the opposite of the bullish engulfing pattern discussed above. Instead of appearing in a downtrend, it appears at the top of an uptrend and presents traders with a signal to go short. It is characterized by a green candle being engulfed by a larger red candle. ☑️CONCLUSION A Bullish Engulfing Candle becomes an excellent tool for the trader, once he masters how to use it properly! ✅Thank you for reading! Please, like and comment if you liked the article☺️ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
Do That BEFORE You Start REAL ACCOUNT Trading Here is the list of thing that you should learn in advance before you start trading on a real account. 1) Open a demo (practice) account and learn to execute trades without making errors 2) Study the methods of great traders and financial minds throughout history - Jesse Livermore, W D Gann, Charles Dow/Dow theory, Paul Tudor Jones,Richard Wyckoff. Learn their methods and employ them. Learn their mistakes and avoid them. 3) Focus on learning, not winning. Forget about money and profits. Think about developing a winning strategy and a winning trading mindset. Always be open-minded. Observe. Be flexible. 4) I recommend reading the following books. These books will help you to start to think like a trader and realize what you are getting yourself into: a) "Reminiscences of a Stock Operator" by Edwin Lefevre b) "Art of War" by Sun Tzu (Not a trading book but an old book on rules of war and how to protect yourself from being outsmarted and defeated by your enemies) c) "The Trading Methodologies of W.D. Gann" by Hima Reddy d) "Time Compression Trading: Exploiting Multiple Time Frames in Zero Sum Markets" by Jason Alan Jankovsky e) "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude" by Mark Douglas 5) Watch YouTube videos. Absorb all the info you can as the more you know, the more the pieces of the puzzle fit together later on. You can learn the basics of trading on your own and then when you are ready to take your trading to the next level. To win the game, you need to develop your thinking and how you participate in the game. You are in a market trading against professional traders. The beginning traders in the market are not your competition-they are incidental. You need to trade with the professional traders who run the market. I wish you luck on a battle field! Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
12
Back to Basics - Trend and trendlinesThe first thing to do when looking at any chart is to identify the trend. What we need mean by trend? We simply mean what direction is a market moving in? Luckily there’s only three ways a market can move - it can move up; it can move down or it can move sideways. How do we identify the trend? The definition of an up move is for higher reaction highs and higher reaction lows. The definition of down move is for lower reaction highs and lower reaction lows. The definition of a sideways trend is when the highs and lows are about the same level. Once we’ve identified the trend. It’s helpful to place on a trend line, now In a down move really you want to be connecting the highs and for a valid trendline you need to connect at least three highs. Why do we like to do this? because trendlines help to enforce discipline and not only that but they offer potential entry points. They also help you with timing and they can give you a good place to put your stops. It is worth noting that the longer a trendline the more important it becomes. So a 3-month trend line is more important than a 3-week trend line.
Education
by The_STA
HOW THE INTEREST RATE AFFECTS THE FOREXGood day, fellow traders! The topic of interest rates often appears on the agenda of various media and many are aware that it is closely connected with the global economy and finance and somehow affects the processes taking place in the foreign exchange markets. But what do interest rates really mean and why do they influence Forex trends? The interest rate is the rate at which the central bank lends to commercial banks. They, in turn, lend to commercial companies based on this official rate. If the rates are high, then the loans are more expensive and so are the goods on the markets, and therefore less competitive. The demand for loans falls, inflation slows down and, consequently, the currency becomes more expensive. Conversely, if rates are low, then commercial banks and then companies take loans at lower interest rates (sometimes negative), which allows you to sell goods cheaper, the Central Bank prints more money and inflation accelerates the currency becomes cheaper. Monetary policy: why and how rates are regulated Rates can be high or low. However, these values are always relative, so it is important to consider the historical trend and the rise/decline in relation to their own historical values. The central bank raises the rate to prevent the economy from overheating. This happens when there is no room for growth in the economy and prices begin to rise outside of real increases in the production of goods and services, which leads to accelerated inflation and a depreciation in the trade rate of the currency. A rate hike slows inflation and makes the currency more attractive in the eyes of investors, and commercial banks deposit investor funds at a higher interest rate. In contrast, a rate cut is stimulative and serves to accelerate economic processes, cheap credit for business, low taxes, lower unemployment, and increase business activity. This accelerates inflation and lowers the trade rate of the currency. When and how often interest rates are changed Central banks independently determine the timing of interest rate reviews. In the U.S., for example, rates are regulated by the Federal Open Market Committee (FOMC). And needless to say, the whole world is watching their meetings. Usually, special committees of national central banks adopt a particular monetary rate at the beginning of the fiscal year, but, if necessary, they can change it later. In the EU, the refinancing rate is regulated by the European Central Bank. In the United Kingdom, it is the Bank of England. In Japan it is the Bank of Japan and so on. The markets also take into account the rates of Switzerland, Canada, RBA, Norway, China, India, Korea and some European countries such as France, Italy, Germany, Spain and others. What happens in the forex market? If you opened the economic calendar and found that the officials of a national Central Bank are meeting to decide on interest rates then the rates may change and change the trend, depending on whether they are going down or up. Or rates can remain at the same level, and then the trend will be determined on the basis of the current dynamics: if last time rates were cut then the trend will be bearish, and if they were raised it will be bullish. As a rule, the prospects for rising or falling rates are repeatedly announced for a long period before they are changed. Long-term investors and position traders take advantage of this to take profits or to avoid risks. Conclusion • Watching interest rates is important to understand the global currency trend; • A decrease in interest rates stimulates the economy and an increase in interest rates cools economic growth; • If interest rates rise, the currency strengthens; if they fall, it weakens.
Education
by DeGRAM
9
CHOOSE YOUR STYLE💹 🔘What is Scalping? Scalping is considered the most profitable but, at the same time, the most challenging trading strategy in any type of market. Alternatively, scalping is also known as high-frequency intraday trading because a large number of deals and the high speed of making them allow a scalper to earn on almost any market movement due to small but frequent profits. Traders who use scalping tactics, often called scalpers, profit by buying at low prices and selling at high prices. It's as simple as that. They make money on even the smallest divergence in the current price of an asset, so even the slightest fluctuations in the price of financial assets are seen as opportunities to make a profit. However, the downside of such an "easy" earning process is potentially minimal profit from a single trade. That is why scalpers often spend 24 hours at the monitor: many small transactions are made in parallel with very short holding periods (often in just a few minutes) to make more or less a weighty profit. Scalpers act quickly and constantly watch the intraday trading indicators. They take short positions in one trade and long positions in the next, looking for frequent, albeit tiny, chances. Basically, scalpers make money using the difference in the buy and sell price. These windows of opportunity are more common than massive price changes since even relatively calm markets are subject to regular fluctuations. Most traders using the scalping technique use charts with a time frame of one minute. Scalpers benefit from charts that show even the smallest price "pips." 🔘What is Day Trading? As the name suggests, day trading involves making multiple trades in a single day. Day traders rely heavily on technical analysis and sophisticated charting systems to detect trading patterns and identify strategic enter and exit opportunities. The day trader's objective is to make a living by making small profits on numerous trades and capping losses on unprofitable trades. Day traders typically do not keep any positions or own any securities overnight. Know for its fast pace and adrenaline-inducing approach, not all investors are suited for this approach to financial markets. However, day trading is arguable more than the pursue of profits: it is a lifestyle of pitting your wits against the market and living in a thrilling, high-risk environment. 🔘What is Swing Trading? So, what is swing trading? In the most general terms, it is a style of trading in the financial markets that focuses on identifying the cyclical nature of price movements. This approach assumes that each trend consists of several up and down phases. Swing traders try to take advantage of these short-term impulses and corrections. Traders working with this strategy tend to keep positions open for several days to take advantage of large market trends. Most swing traders follow the direction of the market trend. Their actions are dynamic. They may open long positions during an uptrend and short positions when a downtrend begins. When one bets on market trends, they often open a position and hold it for days or weeks (even months), depending on the opportunity presented by the trend. Like scalpers, swing traders capitalize on market volatility because it creates opportunities for them. In swing trading, there is no need to make decisions in real-time or quickly. That's why this method is popular with part-time traders; they can use their lunch hour to check the markets, for example. But an effective swing trading strategy requires patience, as the timing of holding an asset can fluctuate considerably. Therefore, it is not the best choice for people who are nervous in stressful situations. 🔘What is Investing? Investing involves putting money into a financial asset (stocks, bonds, mutual or exchange-traded fund, etc). that you expect will rise in value over time. Investors generally have a long time horizon and predominantly look to build wealth through gradual appreciation and compound interest rather than short-term gains. The shorter the time horizon, the higher the risk that you could lose money on an investment. That's why the Securities and Exchange Commission (SEC)'s Office of Investor Education and Advocacy recommends putting money in a savings account if you'll need to access it within three years. For all other goals, investing could yield much better returns. Some investors may even plan to hold onto their investments for multiple decades. ☘️Here are some basic details about scalping, day trading, swing trading and investing, and I hope that information will help our new members to decide what’s best for them. Thank you for reading folks! Till next Time!🌹 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
📖Ray Dalio famous quotes📖📖Ray Dalio famous quotes📖 Raymond Thomas Dalio (born August 8, 1949) is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York. A $5 million investment from the World Bank's retirement fund was made within five years. His innovations are regarded as some of the best in the industry, having popularized many commonly used practices, such as risk parity, currency overlay, portable alpha and global inflation-indexed bond management. ~ Wikipedia "If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money" ~ Ray Dalio "To make money in the markets, you have to think independently and be humble" ~ Ray Dalio "Don’t mistake possibilities for probabilities. Anything is possible. It’s the probabilities that matter. Everything must be weighed in terms of its likelihood and prioritized" ~ Ray Dalio “Truth - more precisely, an accurate understanding of reality - is the essential foundation for producing good outcomes.” ~ Ray Dalio "Listening to uninformed people is worse than having no answers at all" ~ Ray Dalio “If you’re not failing, you’re not pushing your limits, and if you’re not pushing your limits, you’re not maximizing your potential” ~ Ray Dalio 🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
Education
by InvestMate
5
FALSE BREAKOUTHow predict a false breakout? Predicting a false or true breakout is complicated by the fact that the currency rate takes into account everything. The release of news or any unforeseen events, or insider information can make big traders give up their intentions to reverse price or breakout levels. In most cases currency rates behavior near important lines will show if the breakout is true or false. High volatility is associated with the actions of a large trader, who is "pushing through" the currency rate in order to gather stop-losses and reverse quotes. High volatility and large candles on the approach to the level is a sign of an upcoming false-break. A true breakout is defined by low volatility, especially in case of a sharp transition to a sideways trend after a strong trend. The phenomenon of volatility narrowing before the resumption of a trend movement is described in details in the literature and in the strategies of various indicators. False breakdouts usually occur when market volatility is low you will notice that the range of candles becomes small. False Breakdown Trading Strategies If we talk about the general approach to strategies for catching reversals from important levels, it is worth highlighting two tactical techniques. 1. Entry after the price returns beyond the key level The first one is aggressive and the most efficient way to enter by pending order, which is executed after the candle closes behind the level. The break in the resistance level gives the opportunity to place the Sell Stop. The indent of the pending order may be larger or smaller depending on the pair type, timeframe and volatility. The order will be triggered only upon reversal of prices. The trader should protect the trade with a stop loss, which is placed behind the maximum of a false breakout. Take Profit can be set at the closest support level if the situation with a false breakdown is considered in the growth of the currency market. In case of the fall the trader places the Buy Stop order. The size of the stop loss is determined by the minimum of a false breakdown candle. After the rebound and the activation of the order, it is necessary to set a take profit at the nearest resistance. The trader should understand that high volatility is able to activate the pending order without the long tail of the candle and continue the trend movement in the direction of the breakout. Quotes may also fail to reach the take because of low liquidity or an incorrectly chosen level. However, in general, a false breakout is a profitable strategy and can be explained by the logic of the market. So, the rules in brief: - After the formation of a breakout level, which we consider to be false, we place a pending Sell Stop order slightly below the level that was broken through; - We set a Stop Loss order for the maximum of a false breakout; - Take Profit to the nearest opposite level. For sell trades, everything is the same. 2. Waiting for a pullback to the key level. The second method is more conservative, as it requires waiting for a false breakout signal. The tactics requires to wait not only for the quotes return after the price has passed the level, but also for the first correction. This pullback should confirm the resistance/support and breakout falsity. Once this confirmation is obtained, the trader can enter using a pending order or the market, placing a stop loss after the breakout candlestick and take the order at the nearest support/resistance. The trading tactics in this case does not differ from the considered plan of actions in the first example. Conclusion The mechanism of a false-break involves the removal of stop-losses of most traders, which increases the probability of a rebound, i.e. the profit of the trader who caught the reversal. In this case, the first method, aggressive trading, is more justified. As with any strategy, breakout trading requires the user to fine-tune the strategy by adding additional indicators, testing indents for placing pending orders, developing methods for determining resistance and support lines.
Education
by DeGRAM
8
FOREX & COMMODITIES CORRELATIONHello everyone! Today we will discuss the correlation for some currencies and commodities. GOLD GROWTH Recently, gold has risen sharply. Not everyone knows why and what may happen next. But if you disassemble gold, then historically, it turned out that in difficult economic moments or in a crisis, dollars are exchanged for gold, since GOLD has historically been considered a rescue tool from inflation. As you know, inflation eats up the value of the dollar and gold is an excellent tool for saving money. According to the above, the DOLLAR and GOLD have an inverse correlation, that is, when the DOLLAR falls, GOLD rises and vice versa. In addition, gold can be an indicator of the future crisis and or acceleration of inflation. Maybe that's why GOLD is growing now? CANADIAN DOLLAR AND OIL Canada occupies one of the first places in the world in oil production. And, of course, oil plays an important role in the country's economy. As soon as oil prices rise, the CANADIAN DOLLAR becomes stronger. Conversely, the fall in the cost of oil has a bad effect on the currency. SWISS FRANC Switzerland is historically famous for its economy and its banks. Trillions of dollars are stored in Swiss bank accounts. We will not talk about how they get there, where and why, but the main thing is that everyone knows that many people keep money there. Switzerland is a time-tested country, people trust their country and consider it very reliable. Do not forget that 25% of Switzerland's reserves are secured by gold. The currency is very strongly linked to gold and therefore when gold falls, the currency falls too, and when gold grows, the currency grows. Everything is simple. There are many correlations of currencies with other assets in the world. There is also a correlation between currencies. An attentive trader will be able to identify a pattern and make money on it. Thanks! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
9
TRADINGVIEW PINESCRIPT CODERS PRO+ USER NEEDS YOUR HELP ! traders i am looking for help creating a volume strength indicator i have created and back testing manually, everyone believes price is king but i believe price is just the amount of traders trading and how much volume dictates price action, indicators today are great and i do use them 2nd to price action and volume but believe volume is the true king so i created a idea using multi time frame top down method like dr. elders triple screen, im using (14) time frames and getting the most recent 5 bars volume and taking the average of the 5 bars and giving each time frame a vale 1-3% giving the lowest time frames the lowest number percent and the higher time frames the higher value percentage, then i add up each bull/bear volume and put it in a standard win rate calculator to get the winning volume percentage average, im now back testing manually every 1h if i were looking for trade set ups on the hourly tf and the 4h for day trades and intraday trades have written a pdf with all the details on how im back testing and what i want the indicator to signal for buys and sells based on the percentage of overall volume i have manually calculated using my values, please is anyone interested in building this pine script indicator i want to use on trading view as a paid subscription service once its been back tested and has a good win ratio/rate, anyone ,all trading view coders if u think u are interested in building and testing with myself please pm me, thank you.
Education
by TRADERBUG_TECH
BIGGEST TRADING MISTAKES YOU MUST KNOW While some trading mistakes are unavoidable, it is important that you don’t make a habit of them and learn from both successful and unsuccessful positions. With that in mind, these are the 10 most common trading mistakes. 1 - Not researching the markets properly Some traders will open or close a position on a gut feeling, or because they have heard a tip. It is important to back these feelings or tips up with evidence and market research before committing to opening or closing a position. 2 - Trading without a plan 3 - Over-reliance on indicators 4 - Failing to cut losses The temptation to let losing trades run in the hope that the market turns can be a grave error, and failing to cut losses can wipe out any profits a trader may have made elsewhere. 5 - Overexposing a position 6 - Overdiversifying a portfolio too quickly While diversifying a trading portfolio can act as a hedge in case one asset’s value declines, it can be unwise to open too many positions in a short amount of time. 7 - Not understanding leverage 8 - Not understanding the risk-reward ratio The risk-to-reward ratio is something every trader should take into consideration, as it helps them decide whether the end profit is worth the possible risk of losing capital. 9 - Overconfidence after a profit 10 - Letting emotions impair decision-making Emotional trading is not smart trading. Emotions, such as excitement after a good day or despair after a bad day, could cloud decision-making and lead traders to deviate from their plan. Every trader makes mistakes, and the examples covered in this article don’t need to be the end of your trading. However, they should be taken as opportunities to learn what works and what doesn’t work for you.
OANDA:BTCUSDEducation
by EliteTradingSignals
4
TRADE FROM ACCUMULATION ZONESHello everyone! Today I want to analyze a very useful topic - how to trade from accumulation zones . Accumulation Surely you have noticed that the price first makes an impulse, then stops, after which it makes an impulse again. This is the simplest scheme of price movement. Each stage can be disassembled and a good trader should be able to trade at each stage. Accumulation is the stage at which the price moves sideways, that is, accumulates. This stage exists due to the fact that the price cannot constantly move up or down, there are moments when the strength of sellers or buyers ends and you need to take a break, gain a new position and push the price. Trading is possible inside the accumulation, but using a different technique, today we will discuss how to trade when the price has left the accumulation zone. beginning First , you should note the resistance and support levels between which the price moves in the accumulation zone. They are usually easy to identify. If you can't identify them, don't trade, wait for a situation that will be clear to you. Exit At the moment when the price goes beyond the accumulation limits, we start looking for an entry point. Most often, if the price has broken through the accumulation zone down, the price will continue to go down. But there are times when the price makes a false breakout and goes in the other direction. Such moments occur and you should not forget about them. It is impossible to always know where the price will go. If the price has broken through the zone down, you can go straight into the short - it will be an aggressive entry. It is aggressive because there is a possibility that this is a false breakdown and the price will go further up. A conservative entry will be when the price rolls back to the zone and begins a reversal from it. A reversal means that the price cannot go higher back into the zone and will fall down. Similarly, long trades are opened only in the other direction. As you can see on the chart, accumulation zones appear not only during the reversal, but also during the continuation of the trend. In situations where the price after the accumulation zone went further towards the previous trend, it means that the trend is strong enough, although there was resistance on the other side. Positions are always opened the same way: 1. Identify the area of the field. 2. Waiting for the breakdown. 3. Looking for an entry point (aggressive entry or conservative). This technique is very simple and it works quite well . The main thing is to follow the rules and don't risk too much. In addition, the direction on the higher timeframe is important. And don't forget the most important rule: the trend is your friend . Thanks! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
Dealing with losses...before they happenLosses are part of this business. People do not react well to losses. Badly handled losses in trading can trigger bigger losses. Furthermore, these have the dangerous potential of wiping out entire accounts. If you want to make it as a trader you need to have a solid psychological approach to accept and handle losses. Lots of internet articles are suggesting that the way to prevent debilitating losses in trading is to follow risk management rules. What are those rules about? Basically, they are simple thresholds indicating the maximum $ /percentage you should risk per trade, day, month, etc. Having such rules is a must but it’s not enough. You can still lose much if your mind is not actually prepared to implement them. That’s why many traders set rules only to break them in the most inappropriate moments. People do not follow their own risk management rules because they are not psychologically prepared to accept losses. They are not prepared for the pain caused by a loss or a series of losses. The single most efficient way to handle losses is to accept them consciously and unconsciously. One of the most dangerous ways to react to losses is “revenge” or “on tilt” trading. This happens when the pain caused by a loss is so high that the trader loses his / her rationality and only wants his / her money back, disregarding most of the things he/she actually knows about the market. The brain cannot accept the emotional discomfort and the fastest solution is to quickly find a trade to make the money back. Most of the time, the quickest trade is in the same instrument (FX pair, stock, etc) that generated the initial loss, by averaging down/up or flipping. Some of the most experienced traders can work their way out but the vast majority will only make things worse. In order to prevent this kind of psychological slippage, you need to prepare your mind to consciously and unconsciously accept losses BEFORE they occur. With the help of a psychotherapist or by yourself you can perform visual exercises where you will imagine yourself being in a losing position and reacting the right way. This would desensitize you if done right. The technique I always use each time I open a position is to do that desensitization process “on the fly”. I watch the market and I see an opportunity. BEFORE opening the position, I imagine myself in the posture of facing that trade ending in a loss. After that, I imagine that trade going the way I want. I might even go back and forth (in my mind) a few times between losing and winning. This way, I prepare my unconscious mind. If I cannot imagine myself easily handling the loss (or the win) I will simply reduce size. Pay attention though, I am not recommending here to imagine yourself constantly losing because this would do more harm than good. This would be a separate topic about the power of visualization exercises.
OANDA:XAUUSDEducation
by Mihai_Iacob
12
What makes you start trading (trading strategy)Hello? Welcome, traders. By "following", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- The HA-MS indicator is a combination of the previously disclosed HeikinAshi_Point (HA-P) and MACD-Total (MACD-T) indicators. (The formula for this indicator will be released again soon.) The MS-Signal indicator that can confirm the trend was created using the formula of the MACD indicator. Using Heikin Ashi, H.A. (Heikin Ashi body), HA-Low, HA-High indicators were created. The HA-Low and HA-High indicators were created for trading purposes. Therefore, you can proceed with trading depending on whether you are supported or resisted by the HA-Low and HA-High indicators. In addition, the H.A. indicator (Heikin Ashi body) can also be used to view trends along with the MS-Signal indicator. In order for the price to rise 1. The Heikin Ashi candle should switch to an uptrend. 2. It should rise above the HA-Low indicator. 3. It should rise above the MS-Signal indicator and the MA-Signal indicator should turn into a bullish indicator. When all three of the above are satisfied, it can be interpreted that the price has turned upward. For the price to continue its uptrend (for the price to surge), it must rise above the HA-High indicator and hold the price. In particular, in order to see the mid- to long-term flow of MS-Signal indicators, the M-Signal lines corresponding to MS-Signal indicators corresponding to 1M, 1W, and 1D charts are displayed on all timeframe charts. Therefore, we wanted to avoid the part where you could miss the big flow when you keep looking at the lower timeframe charts. In addition, the 5EMA line of the 1D chart was displayed in the low frame chart to prepare for sudden movements. This is because we see the price rising along the 5EMA line on the 1D chart to indicate that the price is soaring. If supported by the HA-High indicator, it is likely to surge. Conversely, if you encounter resistance on the HA-High indicator, there is a possibility of a sharp decline, so you need to be careful with your movements when you touch the HA-High indicator. the start of the downtrend 1. Heikin Ashi body turns into a bearish indicator. 2. Receive resistance at the HA-High indicator. 3. As it falls below the MS-Signal indicator, the MS-Signal indicator should turn into a bearish indicator. Therefore, if such a movement is detected after the price has risen, it is better to preserve profits with an appropriate response. In order to preserve profits by split selling, it is good to do it while the price is rising, but after a sharp rise, it is necessary to split sell in order to preserve profits in line with the above-mentioned signs of a downtrend. A fall below the HA-Low indicator means you never know when it will rise. Therefore, it is necessary to review whether stop loss is possible to preserve profit and loss when resistance is received in the HA-Low indicator. If it rises above the HA-High indicator, there is a high possibility of a sudden movement, so a quick response is required when making additional purchases. Also, if you find resistance on the HA-High indicator, you should consider whether you can sell in splits as this could lead to a sharp downtrend. We believe that this indicator provides minimal information to proceed with the trade. The important thing in trading is your trading strategy. To create a trading strategy, you need to think in terms of 1. the duration of the investment, 2. the size of the investment, 3. the way the trade will be done and how the profit will be realized. 1. Investment period The investment period is to think about how long the coins (tokens) you are trading will be traded over a long period of time. This is because the investment size, transaction method, and profit realization method are different when making a trade through short trades such as same-day trades and short-term trades and when conducting trades for large profits by purchasing for a long period of time. Therefore, you should think about the investment period first before buying. Therefore, it should be oriented as it can lead to very bad results in the mid- to long-term to carry out trades that have been processed for same-day trading or short-term trading. 2. Investment scale The investment size will set the appropriate funds according to the investment period. Therefore, if the investment period is not properly followed, the distribution of the investment will be twisted, greatly affecting future transactions. For mid- to long-term investments, the initial investment capital should be small. Otherwise, if you spend a lot of money right from the start, you're likely to feel a lot of psychological pressure from boredom or less profit from other trades as the holding period increases. These issues will raise another issue of lost time. Therefore, the shorter the investment period, the greater the use of investment funds at the beginning, and the funds should be concentrated on mid- to long-term investments as the investment progresses. This movement of funds should be done slowly as the coin market begins to enter an uptrend. 3. How to trade and how to run profits The trading method is different for same-day trading, short-term trading, and mid- to long-term investment, but basically, when you start trading, you must first set a buy point, a sell point, and a stop loss point before proceeding. If you can't set this up, I don't recommend trading. The first buy point and the first sell point can be the start and end of a trade for same day or short trades. In the case of mid- to long-term trading, it can be the starting point of a purchase, and the second and third buying points and stop-loss points are set according to this buying starting point. The first selling point is the target point that is reached for the first time after the purchase is in progress or after the purchase is completed. This psychological stability plays a very important role in mid- to long-term investment, so it is important to sell a certain amount at the first selling point. How to realize revenue 1. Sell 100% for Cash Profit 2. Increase the number of coins (tokens) corresponding to profit by selling as much as the purchase principal No matter how you take profit, the ultimate final trade close is to sell 100% for a cash return. However, the difference in return may vary considerably depending on the investment period. 100% sold coins (tokens) can be re-entered when one cycle of wave is over. If you ignore this and start trading again when one cycle is not over, you can make the mistake of selling 100% of the profit and turning it into a loss. Therefore, 100% selling is recommended only for same-day trading or short-term trading. No one knows how volatile the coin market cycle will be in the future. As regulations on crypto assets are currently underway in countries around the world, volatility may be lower than the default. Even so, it is very important to increase the number of coins (tokens) corresponding to the profit, because the more coins (tokens) you have, the greater the profit. As an individual investor with limited funds, it is an issue that cannot be ignored in order to achieve greater returns. This is because it is important to increase the number of coins (tokens) corresponding to profits through many transactions in order to obtain greater profits with limited funds. Analysis of charts and analysis of the coin market are only analysis and are not directly related to profits. A trading strategy is absolutely necessary to profit from analytics. To create a trading strategy, you need an eye that can identify coins (tokens). In order to trade the selected coins (tokens) with such an eye, it is necessary to determine the investment period and investment size. And then I'm going on a long journey to profit. In order to overcome the many obstacles that will be faced with the start of the transaction and arrive at the desired destination, it will be necessary to respond to reduce the psychological pressure. Therefore, more time should be invested in creating and modifying trading strategies than time invested in analysis, and based on this, you should seek psychological stability. Thanks for reading to the end of this long post. We congratulate everyone on their successful investment. ---------------------------------
Education
by readCrypto