Cyber Monday saleUp to 70% OFF

Trend Lines

1D SMITH WESSON TRENDLINE BREAKOUTTrend Line Trading: The Trend Breaker Strategy This trendline breakout trading strategy uses three indicators, which are the following: MACD- The inputs for this indicator are: Fast Length= 12 (represents the previous 12 bars of the faster moving average), Slow Length= 26 (Represents the previous 26 bars of the slower moving average), and Signal Smoothing= 9 ( represents the previous 9 bars of the difference between the two moving averages. This is plotted by vertical lines called a histogram). Simple Moving Average- The inputs for this indicator are: Length 8, Offset 0. (Red line) Exponential Moving Average-The inputs for this indicator are: Length 20, Offset 0. (Blue line) This Trend Breaker strategy also uses three different time frames. They are the 4 hour, the 1 hour, and 15 minute time frames. This top-down approach uses these time frames to identify a trend, find a breakout point, determine an entry point, and execute the trade. Step One to trend line trading: Identify a trend The first thing you need to do is identify an upward, downward, or sideways trend by switching to a 4-hour and 1 hour time frames. The reason both are used is that it will give you the best perspective in determining a trend according to this strategy. Draw a trend-line so that 3 points of resistance or support was touched. We created this trendline trading system so that you could easily enter trades without a lot of guesswork on your part. Here You can see a funny video about trading levels. Since this strategy focuses on trends, a trend line will be drawn on the support or resistance lines of the trend. The criteria for a trend is that there needs to be at least three points of resistance or support. As you can see on the 4- hour time frame this clearly is a downtrend. Below is the same chart only this is a 1-hour time frame. This is just to get another perspective of this downtrend. It is good to do this to completely confirm this trend by identifying 3 levels of resistance. Trading with trend lines is not easy, that is why it is important to have a clear system of step by step rules to make it easy for you to follow. Step Two: Identify a Breakout point Trendline Trading System In order to find a breakout point of the trend that was identified in step one, the strategy will use a combination of the three indicators (MACD, 15 minute SMA, EMA) to identify a break out on the 15-minute time frame. This time frame is used because a trend was already identified in step one on the 4 hours and 1 hour time frames. As you can see in the chart above on the 15-minute time frame, the MACD lines were crossed. When the crossover of the fast length and slow length occurs, this will signal a new trend. This gave an indication that a trend was breaking. The moving average and exponential moving average lines also crossed. So when the MACD lines cross and the simple moving average/ exponential lines cross wait until the candlesticks go above/below trend line that was drawn in step one, then identify a point of entry into the trade. One of the reasons we like trend line trading so much is that it is straight forward and simple and we recommend all traders have something simple. So looking at our example above the criteria was met to go to step three because the SMA and EMA crossed and the MACD lines crossed. Also, the trend went upwards and hit our trend line. This is a signal to go to step three. If neither of the indicators crosses before the candlesticks close and hit the trend line then do not go any further because the trade does not meet the criteria of the rules. The indicators need to show that the trend broke before it touched the trend line. Note* When our indicators are crossing, the trend needs to be heading toward the trend line that was drawn in step one. This is because the trend is breaking and a breakout is about to occur. When the breakout happens we will discuss when to make an entry. Step Three: Trend Line Trading Identify a point of entry Here is a list of the entry criteria: These 4 things must happen to enter a trade with this Trend Breaker Strategy. Simple Moving Average Must Cross below the Exponential moving average. Macd Must Cross The price must break below or above the trend line. After the break of the trendline, you must wait for 3 candles to close on the 15-minute chart before taking your entry. Now we need to identify a point of entry. To identify a point of entry always use the 15 minute time frame in this strategy. So in our example below, we see that there is an obvious stand-off between buyers and sellers on the trend line. Once there are at least three candlesticks above or below the trend line, you execute the trade. In this example, there are three candlesticks that fell above the trend line after our indicators signaled that the trend was broken. At this point, you want to make an entry. Also, read about Trader's Tech and Installing MT4 EAs with Indicators. Step four: How to Trade with Trend Lines: Determine where to place a stop loss. 1 Use Pong Position Icon on left side toolbar. Adjust Top Prifit line until center text says 1 to 3 risk reward. This will show you where SL should be placed. OR Place a stop loss past the last support and resistance levels in the trend itself. Again, use the 15 minute time frame to find this point of resistance/ support level. In the example shown below, place the stop loss below the last support level. This will ensure that if there was a bearish move, it will hit the last point of support and make a bullish move upwards. You can clearly see that there are two levels of support in the above example. Use the support levels to determine the stop loss. The rules were to place the stop loss below the last support level which is why you see the stop loss below these levels. Step five: Trendline Trading System Exit Strategy The plan clearly identified a trend, a breakout point, point of entry, and determined a stop loss. The final step is to determine the exit point. This Trend Breaker strategy uses 1 risk to 3 reward ratio. What that means is you have the potential to make 3 times more than you are risking. Use the Long Position Icon on the left side toolbar. Adjust top profit level until the center text says 1 to 3 risk reward. Conclusion This Trend Breaker Strategy is simple and yet effective. There is no need to stress and worry that you made the wrong trade. You follow the rules and do not let anything else make you back out of a trade. If it follows the rules, execute the trade with confidence. Always remember to only be risking no more than 2% of your account! This will help you identify daily trends and points where they break. There is no need to force yourself into a trade. If it does not follow your rules and guidelines then search for another pair to trade. Feel free to check out one of our other trading strategies.
NASDAQ:SWBIEducation
by Tradingstrategyguides
1
The Ace Spectrum as a Template for Support ProjectionDemonstrating the big idea: That straight lines in log-space form exponential curves. This property of the log chart is useful for examining assets with exponential growth (like high-growth stocks, cryptos, etc). Because the log scale asymptotically approaches the absolute scale as y slice decreases, this indicator is really applicable to any time scale. This indicator samples a distribution of lines from the past and projects them into the future, these projected lines form indicators of prior support. The idea is longer support at those specific lines is indicative of support strength, which this indicator approximately captures. My initial goal was to capture this intuition about exponential growth in log spaces by applying a monte-carlo style sampling approach to visualize the latent support lines. After I had captured that in a slightly more complex version of this indicator, my goal was to distill the concept into the simplest possible implementation.
NASDAQ:AAPLEducation
by sheganinans
15
EDUCATION _Types of Trend. Wavelike trends.The basis of the technical analysis is the trend. It is a price movement in a certain direction. Upward trend: Trend down: Between trends, the price likes to relax in the lateral movement, when the trend itself is absent: Wavelike trends. Unfortunately, if the trends were straight as an arrow, your cat would be able to earn. However, trends rarely go straight. Usually, this is a combination of the highest and lowest levels, of which the trend consists. For example, an upward trend can often be broken down into such micro waves: In reality, the waves, of course, are not as beautiful as on the scheme, and in a smooth beautiful trend price moves rarely (although, sometimes, it happens). The next post will be about the duration of trends. Friends, push the like button, write a comment, and share with your mates - that would be the best THANK YOU.
TVC:GOLDEducation
by Yuriy_Bishko
24
EDUCATION _Trend duration All trends can be divided by: short-term; medium-term; long-term. To determine the duration of a trend, you need to use senior timeframes. In classical theory, trends are divided into annual, monthly and daily trends. For scalping, as a rule, we have enough: define a long-term trend on a 1-day chart; medium-term trends will be 1-4 hours; short-term trends at 5 and 15 minutes. Thus, we can see the picture, when a single long-term trend consists of several medium and short-term trends. This is often the mistake of beginners. They put one frame, like 5 minutes, define trends, but forget to define medium- and long-term trends. And then they wonder why this price has suddenly turned around at 5-minute. That's why on another timeframe the picture looks different. Say, what do you see on these 5 minutes? Does the price, like an abnormal price, fall down after a side movement? Absolutely. Thus, we can see the picture, when a single long-term trend consists of several medium and short-term trends. This is often the mistake of beginners. They put one frame, like 5 minutes, define trends, but forget to define medium- and long-term trends. And then they wonder why this price has suddenly turned around at 5-minute. That's why on another timeframe the picture looks different. Say, what do you see on these 5 minutes? Does the price, like an abnormal price, fall down after a side movement? Absolutely. the same chart looks like on the 4-hour time frame: It is very important to understand where we are in the trend. You can see the types of trends in this post: Friends, push the like button, write a comment, and share with your mates - that would be the best THANK YOU.
TVC:UKOILEducation
by Yuriy_Bishko
30
Break out trend line. HOW TO BUILD A TREND LINEBreakout of the trend line Good day to all readers of my blog and colleagues! Today we will consider such a phenomenon as a trend line breakdown, taking into consideration the analysis of traded volumes. What are trend lines drawn for, what are their application variants and what characteristics make a breakout or rebound possible - we will consider all these questions today. The trend line is probably the most popular tool for any kind of technical analysis, which can give an idea of the possible price behavior both in the short term and in the long term. WHY BUILD A TREND LINE Typically, the trend line is used to indicate the direction in which the market is moving. Also, it can be used to identify support and resistance not only at the moment, but also in the future. If the price has reached the trend line but has not broken it, it means the effort was not enough and in the future it will return to it. Old (broken) trend lines can still be used in the analysis, along with the current ones. The places where these lines intersect form fairly strong points of resistance or support. Breaking the trend line with a strong movement, gives a signal that the current trend has changed and the price is changing its direction. HOW TO BUILD A TREND LINE In order to draw a trend line, it is necessary to draw a straight line through two price extremums on the chart. For the growing market, the minimum extrema are considered important, because when the support is broken, the direction of the price changes. And for the descending movement, the maximum values are important, when breaking through which everything can change. The line can go far into the future because the price, as a rule, if it does not break through it, certainly returns to it. TREND CHANNEL A trend channel can be built using a trend line corresponding to the market direction and a parallel line passing through the opposite extremum. Quite often the price moves inside such a channel, bouncing periodically from its borders, which can be used for profitable trading. VOLUME ANALYSIS NEAR TREND LINES Analyzing the traded volumes, when the price approaches the trend line, it is possible to understand the possible further market movement with a high degree of probability. In order to overcome the resistance or support of the trend lines, it is necessary to make an effort, which is expressed in large volume and a large spread (candle or bar of large size). If a small candle is formed when the price approaches the trend line, and the volume is below average, then this effort will not be enough to break the line. Professional traders and market makers have no interest in seeing price move in that direction. Even if price does break through the trend line, without the big players ("smart money"), such a move will not last long and price will return inside the channel again. If there is increased volume as price approaches the trend line, it is likely that resistance or support will be broken. BREAKING THE TREND LINE. In order to break the trend line, as written above, an effort is required. If the candle that broke the trend line of a large size, it really is a break of the previous trend. If a gap is formed, which broke through the trend line and formed a candle with a long body and a large traded volume, then it is also a true breakout.
TVC:GOLDEducation
by Yuriy_Bishko
8
Trading parallel channel like Proin parallel channel there are two trend lines parallel to each other. You buy/sell at trend line. near the yellow arrow sign. you multiple resistance trend line fib retracement previous support now turned into resistance trade always have two part Entry and exit you have multiple resistance to sell and you exit at 100% projection of wave at lower trend line of channel this is perfect example : How you can trade using trend lines, fib retracement and extension, support and resistance. (market doesn't give you this type trade everyday. so you have to wait which strategy is giving you signal to trade. if you wait you always spot this type of trade easily ).
OANDA:XAUUSDEducation
by Sangam-Agarwal
2
Trend Trading Techniques and Strategy!!! In a strong trending market, it is important to find entries at the high probability zones i.e. Fib Retracements. Ideally within the .382 - .618 zones. It may be tempting to enter the market during a period of strong momentum, but itmust be known that every strong trend contains correction phases, this is where you capitalise on the trend momentum. Entering the market mid-impulse can work occasionally and can be misleading to the beginner trader, over a long period of time this just wont work(All profitablilty and success of a trader comes from a long period of trades/ time trading, one trade does not determine success). Once price has corrected to the ideal Fib zone, you can now look for an entry setup to capitalise on the potential momentum shift and continuation of impulse.
Education
by adamhylandnew1
2
How To Trade Channels?The above chart shows what is called a “channel” in trading. It is basically diagonal support and resistance (a.k.a Trend-lines). The area in between is known as a channel. The red zone is said to be the perfect entry area for sells whereas the green is for buys. How To Find The Zones? Using the “Parallel Lines” tool, draw the diagonal S/R then measure the first candle/wick that starts the channel and that area is where you would get entries with the least possible drawdown.
Education
by FXwithJess
1
Ma144 and MACD are the Holy Grail of tradersThe most important one is ma144. Ma144 allows you to abandon your self-consciousness and accept that the dumbest way is the best way: 1. When ma144 began to turn up, the price was pushed back to touch the line for the first time. 2. When ma144 starts to turn down and the price picks up for the first time, it is short when it hits the line. 3. When ma144 is in a flat state, it is not appropriate to make too much speculation. However, what needs to be noted here is that the novice should not try the second and third hitting the line, because the possibility of reversing changes is higher and higher, and the risk is also increasing. If the red and green column of MACD is used to go to pingkong or pingduo, the effect is better
Education
by WSBChairman
1
Hive Mind v Irrational MarketsThis ed post is not aimed at anybody and thinking that it was aimed at you should in itself make you think why you would think that. Money Man knows the day he does not approach trading with humility, will be the day he regrets. Big predictions are normally related to “hot inpatient money” that homerun (not necessarily big) traders make on markets with this money they calculated would be fine to lose. This is fine for them, if they calculated their risks reasonably, but lethal to inexperienced traders who might not have. These big predictions have potential great rewards at great risk and only come to pay on big moves. Reasonably, these big moves happen when there are fundamental shifts. The two major recent fundamental shifts in BTC have been the opening of futures and then the virus. Major fundamental happenings are thus things like addition or manor change in tradability (the start of shorting, legislation, closure of exchanges, etc), macroeconomics (recessions, lock downs, trade restrictions, etc) and integrity issues (like Satoshi’s stash, his identity, major 3rd party hacks – Mt Gox, etc). Please comment below if you can think of more. The market is a collective of traders causing a current price. A quick note to illustrate how big the thinking is behind this: The price is derived from a seemingly ‘invisible hand’ according to Adam Smith and Bastiat, before him. Max Planck, the Quantum Theory guy, said that he wanted to study economics, but it was too complex a subject for him. These guys are giants of thought. Irrelevant? A recent big idea is that of the Hive Mind. We have all heard of the six degrees of separation and that, to me, makes this something to think about when trying to explain market moves. I listened to a respected crypto guy asking: why is it that major events seem to coincide with decision points on the chart? Is the market anticipating the event or is the event motivated by the market? The crypto analyst is a nice guy, but I reason that this is a chicken or the egg argument: we have chickens after all (a fact like a chicken). Looking at the chart tells us that BTC always seem to look for the decision points and then move with intent from there to the next one. Most times, the next decision area is not all that far away (Hive Mind related), but then we have a few black swan events thrown in. Looking at great non-trader achievers around us today, and their pearls of wisdom, and thinking about trading lessons learned at the same time, makes it obvious that trading is such a great educator about life, that it would be a loss to everybody if a beginner trader would have to quit trading because of taking on uncalculated risk and blowing up their account. To me, trading is not a zero-sum game where I win if you lose. Trading is multifaceted and I plan to make a case for this in the future and thus why I am humbly sharing what I have learned. Conclusion: A good trading strategy to start with would allow for using the ‘Hive Mind moves’, but prevent a sudden Black Swan move from undoing all the profits and more – allowing new traders to stick around for long enough to get to grips with what is cooking. So, what I am alluding to is to always have your current position in perspective, (combine the 2 ed posts related to this added below with a sound strategy). Very important to me: Please leave a like if you appreciate the effort, please comment to develop this further, Please follow if you might like to know about where this leads. PS Have a look, with a trader’s mindset, at Hive Mind if you are that way inclined (six neighbours to starlings, headbutting bees and cannibalistic locusts – great stuff). Warning: this post is not alluding to hive mind interconnected black box trading, sociological arguments, intelligence warfare, political manipulation, or The Borg. This was to tie two trading discipline edu posts together with a market psychology strategy.
COINBASE:BTCUSDEducation
by Rule72
23
Psychology and description of the ascending triangleHi every one Kindly like the ideas if it is helping you and leave a comment Triangle patterns are some of the most commonly used chart patterns within the world of trading. The vertex of a triangle pattern represents a pivotal point during an ongoing battle between the bulls and the bears, thus making it an attractive setup for traders. The three most common triangle patterns include symmetric, descending, and ascending. Today, me will discuss the ascending triangle pattern. what is ascending triangle: An ascending triangle pattern is comprised of two key elements: 1. Bottom Trend Line (Support) – An ascending triangle is characterized by a bottom trend line that is formed as the stock continues to set higher lows. The more touch points on the trend line, the more reliable it will be. 2. Flat Resistance Line – An ascending triangle also contains a flat horizontal resistance line that is formed as the stock continues to reject its previous highs (for a given period). Once again, the more touch points on the resistance line, the more reliable the pattern will be. Characteristics of an Ascending Triangle Pattern: Bullish Pattern – An ascending triangle is considered to be bullish, meaning traders will be looking to initiate a long position upon a break of the upper resistance level. Continuation Pattern – An ascending triangle is generally a continuation pattern, meaning that it’s predictive nature is most effective when a stock is continuing an uptrend. Time frame – Ascending triangles can be used on multiple timeframes. They may exist on intraday charts, hourly charts, daily charts, and weekly charts. Psychology Behind the Ascending Triangle Pattern: It can be helpful to think of the ascending triangle pattern as a visualization of an ongoing battle between the bulls and the bears. The bulls keep pushing the stock up in price until they get overpowered by the bears (at the flat resistance level). The bears attempt to push the stock down, however the bulls are persistent and the stock sets a higher low (bottom trend line). This pattern continues until the price action becomes confined to the vertex of the triangle, representing a pivotal moment in this battle. At this point, either the bears will win and the stock will break the bottom trend line, or the bulls will win and break the flat resistance line. Historically speaking, this pattern favors the bulls, and if the flat resistance line is broken, the bulls will be able to push the price up, triggering a breakout. How to Trade the Ascending Triangle: It’s important to keep in mind that even though this is a bullish pattern, a breakout is not guaranteed. Chart patterns should be used as tools, not definitive solutions for conquering the market. Therefore, you should still apply your other trading rules and strategies when utilizing chart patterns. Here are a few guides for placing a trade based on the ascending triangle pattern. Wait for the Breakout – Unless you’re experienced in trading ascending triangle patterns, you should wait the stock to break above the flat resistance line before placing a trade. You may get a better price if you buy shares earlier, but you are also exposing yourself to additional risk. Be patient and set an alert in your trading software if you’d like. Look for Volume – High volume in the stock market represents conviction behind a move, indicating that a large amount of traders want a position in the stock. While above average volume is not necessary for an ascending triangle pattern breakout, it may increase the likelihood of a stronger move. Look for Confirmation – If an ascending triangle breakout is genuine, the flat line resistance level should become a support level. If the stock starts to pullback after the breakout, you should look for the previous resistance level to hold as support. This will help confirm the legitimacy of the breakout. It also allows traders who missed the initial move to take a position. Have an Exit Plan – All trades require an exit plan for both favorable and unfavorable outcomes. If the stock pulls back and breaks the support level (previous flat line resistance), you may consider exiting your position, as the legitimacy of the breakout is in question. You will also want to have a plan for when to take profit if the stock moves in your favor. Traders, if you liked this idea or have your opinion on it, write in the comments. I will be glad Thank you for seeing idea . please support us Good luck.
BITSTAMP:BTCUSDEducation
by CobraVanguard
24