Dark Pool Buy Zones Explained with Pro Trader Nudge SignalsThis lesson is about how to identify when a hidden quiet accumulation of a stock is underway and how to prepare for the momentum runs that follow. NYSE:DIS is our example for today.
Dark Pool activity is explained in detail. Alternative Transaction System (ATS) Venues are called Dark Pools of Liquidity.
A Buy Zone is an extended period of hidden accumulation of often millions of shares of stock over several weeks to months.
Professional traders use these buy zones to enter on the penny spread and instigate a trigger of HFT gaps to the advantage of the pro trader. Learn how you can profit from this activity for swing trading or position trading.
Momentumstrategy
The Hidden Key --> Multi-Timeframe Analysis 🪀I begin by explaining the Video Idea--> Using Multi-Timeframe analysis to put together a trade idea. MTF analysis is absolutely crucial for running a profitable trading business... It's something that takes some experience but once you understand the way in which all timeframes move together it's like an Aha moment. We look at 3 timeframes.. the 1Hr, 4hr and the Daily timeframes. We observe an example from just a few days ago that outlines how it was very possible to catch a 20 pips after the Monday(3/25/24) daily candle closed bullish.. Give and rocket and leave a comment for similar content in the future!
MOMENTUM, GROWTH & INNOVATIONUpdated Watchlist:
www.tradingview.com
Our Strategy:
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The Momentum of MomentumUtilizing oscillators to confirm trend continuations and reversals is a momentum traders’ bread and butter. You most likely have the RSI or MACD saved to your favorites, but have you ever considered analyzing the momentum of an oscillator itself? You would be surprised at what insights the momentum of an oscillator can show you. In this article, we will look at how the momentum of an oscillator can help parse out false signals and give you an edge in your decision-making.
Below is the BTC/USDT 15-minute chart, the True Momentum Oscillator (TMO), and a 50-day EMA. We have highlighted what appears to be a short-term double top, with a weakening oscillator momentum that failed to reach or exceed the previous level. The price consistently bounced around the 50-period EMA and had cleanly broken through with a retrace imminent. Whether you aim to trade the break of the EMA or the retrace and rejection, this appears to be set up for a potential short trade.
Now we take the momentum of the TMO and its signal line and plot those lines (purple and white). Another layer to this story suddenly unfolds. We can now see from the new momentum lines that this move to the downside weakened almost as soon as it began. There is now a clear divergence between the oscillator and its momentum lines. What seemed to be a solid short setup now has upside potential. We must now question our next move.
A few bars later, the price broke above the 50-EMA and quickly touched it one last time and is followed by a robust move to the upside. In the current market, it is easy to lean short. Eager traders might have taken the short only to be burned by the strong move against the desired trade. Adding the layer of the momentum of our oscillator helped us read between the noise. We had a better idea of where the next chapter could take us, or at the very least, we could avoid a risky trade.
This is just one example of how the momentum of oscillators can be another valuable tool in our technical analysis tool belt. This momentum offers a unique visual aid for making quick decisions when trading.
What can you learn from Journey to the westALOT !
Have you ever came across “Journey to the west”.
Journey to the West is a Chinese novel published in the 16th century during the Ming dynasty and attributed to Wu Cheng'en. It is regarded as one of the Four Great Classical Novels of Chinese literature, and has been described as arguably the most popular literary work in East Asia
Short summary:
The plot revolves around Buddhist monk Xuanzang, who travels west to India with his four disciples, including the famous monkey king Sun Wukong, in search for holy scriptures. The other protagonists are the half-pig and half-monk Zhu Bajie and the water monster Sha Wujing.
Everyone’s interpretation of the story is different which makes this more interesting.
I would like to use this classic novel to illustrate one’s journey to peak trading performance aka = becoming rich, financial freedom or whatever goals you wanted out from trading. And in the novel’s context is to obtain the holy scriptures.
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Character
Tripitaka aka Tang Sanzang ( also refers to YOU the trader )
His goal is to obtain the holy scriptures ( monetary goals / your financial freedom ). But as a monk, he is unskilled unlike his disciplines who can fight demons except he is the leader of the group. He has a clear goal but he will face many obstacles ahead. His job is to gather help & transform his disciplines ( your emotions / flaws ) leverage their skills and expertise to obtain the holy scriptures.
Sun Wukong or Monkey God ( your lack of patience / arrogance / fear of not being right )
Sun Wukong is the eldest disciple and the most skilful.
He knows 72 transformation (can transform into many forms)
He can create great damages when he is angry, like someone with anger management issues
Sun work fast and act fast based on his own instinct and doesn't have much regards for SOPs ( trading plans).
He is impatience, arrogance and often get into trouble and the needs to be right.
( early entry / refuses to cut loss / turn small loss into big loss just because of the need to be right )
Zhu Bajie or Pigsy ( your greed / fear of missing out / your laziness to seek to continuous learning)
Pigsy is 2nd in command and is not as skilled as Sun. As he is half pig, half human and he is often distracted by greed, food, lust and laziness among other things.
His greediness and fear of missing out often hinder the team’s progress during the journey.
He is always tempted by temporary rewards and lust along the way, often not looking at bigger picture. ( short term profit taking and missed out the bigger trend, FOMO into something you did not do any research or know about and trade what the gurus / finwits are telling you without knowing their motivation, entry or exit ). You are simply too lazy to do your own research.
Sha Wujing or Sandy ( not taking calculated risk / lack of confidence / fear of leaving money on the table / not sticking to the rules )
Sandy is the character in the story who doesn't talk a lot, carries the team's luggage and he would only speak when he needs to and mostly tells the truth about the situation. He is very timid and often sway by the opinion of others’ influence ( finwits / news / rumours / earnings ). He will follow suit ( close position / take pre-mature profit ) based on other’s opinion. He seems like one who doesn’t take risk and lack of confidence. ( your lack of research and back-tests leads to your low confidence to take trades when the signal appear and often missed out the entire trend!) The worst feeling in the world is knowing what is going to happen next but didn’t do anything about it.
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Throughout the journey, these are the issued faced by all the Tripitaka aka Tang Sanzang’s and his job ( your job as a trader ) is to evaluate each disciplines' flaws ( your emotions and flaws ), correct them and create a harmonious flow of team work between one another.
And I quote “ If you define the problem correctly, you almost have the solution.” – Steve Jobs
Of course, they eventually obtained the holy scriptures. I think the bigger take away was never the holy scriptures. It was to find yourself and to be the best you can be.
So is to trading. Many successful traders started out by wanting to be rich ( whatever goals ). Then they realized the true meaning of GOALS. GOALS = The process is more rewarding than the PRIZE.
I wish you best and hope you enjoy my sharing.
WHAT IF YOU COULD TURN BACK TIME? Everyone makes mistakes.
Break rules.
Not being discipline.
Fight the trend.
And the list goes on.
And sometimes you wish you could turn back time and "RETRADE" again. But that's not gonna happen.
What if you REALLY could turn back time?
What are the thing you would have done differently?
I just want to share this counter-intuitive theory.
In order to win, you must lose first.
"
I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed. " - Michael Jordan
And if you want something you never had,
you must be willing to do something you have never done
Here are the major indexes 6 months performance:
SPX -19%
DOW -13.9%
NASDAQ -27%
TAIEX -14.90%
DAX -16.7.88%
CRYPTO TOTAL MARKET -60%
SOX -33.5%
-What did you observed ?
-What would you do if you could turn back time?
-Would you do anything different?
-Would you have gone long knowing that it might due for a (major) correction?
Below a compilation of the BIG CAP stocks that the proprietary Momentum Theory Indicator indicating bearish momentum divergence prior the corrections.
They said prevention is better than cure.
Do you agree ?
Embrace your mistakes!
Do not be afraid to make mistakes!
Mistakes are proof that you are trying.
Momentum play on NQ 45-min via volume-weighted RSIOverview
Simple overbought-oversold momentum play using NEXT RSI , which blends volume analysis with momentum. Volume weighing of the algo reduces the lag and improves accuracy over vanilla RSI as volume often precedes price action. This is a contra-trend (momentum exhaustion) scalping strategy - use order management (TP, SL, trailing stops) and do not trade signal to signal (e.g. long-short-long) .
Strategy Rules:
- NQ Futures, 45min chart
- Long Entry when NEXT RSI crosses over 35
- Short Entry when NEXT RSI crosses under 65
Order Management:
- Take profit @ +$50
- Stop Loss @ -$50
Prerequisites and set-up:
- NEXT RSI configured to 21,3,65,50,35
- NEXT Strategy Visualizer configured to Signal Source: NEXT RSI, LE @ 35, SE @ 65
Volume-Weighted Divergence Play on AAPL 10R via NEXT RSINEXT RSI Divergence Play: Key Concepts
- NEXT RSI is a low-lag, volume-weighted momentum oscillator that often precedes price action
- Divergence play resets at each open (do not count prior session's highs and lows)
- Use as you would other divergence strategies: higher price highs, lower NEXT RSI highs = bearish; lower price lows, higher NEXT RSI lows = bullish
-Use a preset TP / SL and/or close if NEXT RSI retraces back to last relevant high or low
Target Market:
- AAPL 10R Chart
- can be used with almost any market; volatility helps
Order Management:
- Enter on forming divergence, 2 or more clearly separated peaks or troughs
- TP / SL at 30 cents (AAPL)
- Exit if price retraces to the last NEXT RSI top or bottom referenced when opening the position
Optional:
- Additional NEXT RSI strategies can be discovered using the free companion NEXT Strategy Visualizer
Using Standard Deviations As Momentum Or Mean Reverting StrategyUsing standard deviations in trading can be helpful in many way with keeping you on the right side of your trades in this video I break down how I use or would use the 1SD 2SD and 3SD based upon the percentage of time price normally traverses through each SD.
Was GME predictable? Enter to find outThe chart is self-explanatory.
I'm attaching down evidence that shows that the pattern repeats itself.
You are welcome to go search for the same pattern in different stocks and attach their picture in the comments below, making this idea more complete.
The logic of this pattern:
You look for a trend-down stock. You plot the VWAP.
Someone is shorting the stock, massively, but that someone, doesn't think that for every short he sold, he needs a person to buy from (he needs another person to sell the stock to him so he could get out).
The red VWAP is his short position line, the more he short, the harder it will be for him to get out. He shorted for months, and now he needs to exit this position in a matter of days. Short squeeze.
Now he needs to chase the sellers, buying whatever price they request, hence, the price goes up and a new up trend emerges. Consider buying options, if they look profitable. Or buy the stock, whatever your trading spaceship is...
Follow for more.
Here you can see the pattern repeats itself...
How should we trade a Pennant Pattern? Real ExampleToday we have another Academy Post. In this article, we will explain the way we trade pennant patterns on a real setup.
FIRST STEP: Understand the context
-In this case, we have the price inside an ascending channel (that provide us a bullish direction)
-The price is at All-time Highs ( Next Resistance zone, the upper trendline of the channel)
-The price is above a previous Resistance zone (we can deduce Strenght of the price)
SECOND STEP: Creating a Setup
-Now that we have a clear idea about the bullish potential and free path towards the next resistance zone (upper trendline of the channel), we need to develop a setup
-First of all, we need a valid Structure. In this case, a pennant structure to be valid needs an ABCDE formation; the reason is that if we wait for those 5 Waves, we can have a clear idea of the breakout level (The lower and Higher trendline have been tested multiple times, based on that we can set our orders with confidence)
- A setup is composed of 4 items
a) Entry Level: Above B (check the pennant theory)
b) Stop level: Below C
c) Take Profit level: On the 2nd Fibo Extension or in the next resistance zone
d) Break-Even level: First Fibo Extension.
-Only trade if your Risk Reward ratio is above 1.5 ( that means that for every dollar you are risking, you expect to make 1.5)
THIRD STEP: Define your Risk and Follow your rules.
-Only use 1% of your capital on any given trade. That way, you will protect the most important thing as a trader. Your money and your mind
-Follow your rules: The reason you want to have a clear Stop, Take profit, entry, and Break-Even is to act only if the price reaches one of those. otherways, DO NOT TOUCH ANYTHING
-Accept that Stop losses are part of any system: You don't need "90% accuracy"; you need to be right half of the time and a risk-reward ratio above 1.5 to be profitable.
Trade Safe, Thanks for reading!
Quick guide on three buy/sell position suggestion scripts.+ Cyber Ensemble Buy/Sell positions signaling is derived from an optimized scoring of a large number of conventional indicators. (Blue/Purple plus Background HeatMap)
+ FG-Divergence is based on my own modified version a MACD style oscillator, with its own accompanying Momentum and Acceleration oscillator. (Light Green/Red)
+ PRISM Signals is based on PRISM, a pSAR derived oscillator coupled with its Momentum/Acceleration/Jerk Oscillator as well as pSAR based RSI and StochRSI. (Bright Green/Red)
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For best results, users can tweak the parameters and enable/disable specific tests and scoring Thresholds for a specific chart and timeframe, and checking how well they perform wrt historical trends. Timeframe specific presets will be added in the future when I have more time. Please do feel free to play around with the parameters and share them. If they are good, they may be added as a preset in future updates with you credited. These scripts are freshly made, and for now, my focus is to slowly refactor and improve on the code, and tidying up the ordering of the inputs to make them easier for users to navigate and understand what each of them do. In the future, once things are sufficiently improved, I aim to include alert features and release a proper “strategy version” as well, and I may post up a clearer user guide for each one of them.
XRPUSD Indicator Based AnalysisAs we know there is a lots of talk around the traders for XRP, few are bullish by calling the price as bottom while few are still bearish.
Let's have a look at charts with some indicators.
At first one must notice that the bigger time frame(1D chart) is showing that the XRP is in descending triangle pattern(shown in chart with blue lines) according to the triangle the bottom price is around $0.277.
Now lets talk momentum:
EMA cross
EMA cross is showing us continuation of falling prices for medium term.
Following this scenario price behavior should go to the down around $0.29 before a turn around.
Here possibly we can see a low wick to the down in attempt to touch the bottom of the triangle, if the price needs to go higher in short term.
Key Level
Short term price may bounce back to $0.36 - $0.37, but momentum will be still bearish.
If we break the resistance around $0.46(triangle breakout), we can expect a bull trend.
I haven't gone with trend lines, this analysis is based on a few reliable indicators(EMA cross,MA, ichimoku cloud, support and resistance).
REMEMBER : Use your analysis before pressing LONG/SHORT, you are the owner of your mind and it is your money.
If your idea(s) matching with this analysis you're good to go. :)
If you found it useful, do not forget to hit thumbs up button. :)
Best Wishes
BTCUSD Momentum SetupsEvening everyone. Looks like BTC is stuck in a range or figuring out its next move, so let's examine a month of momentum trading setups that we're sure to see again as the bull market plays out.
Quick review -
-50 wma = buy/sell line. Longs only when price is above and shorts only when price is below. This keeps us from pissing into the wind...unless you're into that. Trading with the momentum will accommodate a lot of slack for new traders and will maximize profits for anyone who has clean entries and exits.
-5 period RSI with over/under lines at 51/49 = momentum oscillator. Crosses top to bottom or bottom to top are a clue as to upcoming price direction. More useful on the daily chart, but in this case the peaks coincide well with short term tops.
-ATR = my stop loss tool of choice. I've gone over it in previous ideas. Great for calculating a position size for consistent risk amount no matter the volatility of the product. Let me know if you want the tutorial on it in the comments, but I find most people have their own stop setting process and are quite fond of it.
Price crossed above the 50 wma on the 4h chart in the beginning of June. We should've went 500x leverage long there...right? Hindsight is awesome. Another way to do it is to wait for a couple red candles and a clear peak in the RSI. Mark the peak, mark a horizontal line across the highest close. When the RSI heads upward again and price exceeds the previous top, it's fairly safe to go long. You can even wait for the candle to close and just know that you might have some short term draw down. A properly set stop loss will give the trade room to breathe and keep you in the game.
The first three opportunities in June would've been slow to take off and had 1-2% draw down, but they all would've led to about 15% profit. After that we were looking at 15-25% per move not counting the blow-off top. Also notice this method will keep you out of false breakouts. Price didn't close above that blow-off top, so no trade. Then a series of lower highs = no trade.
I know we can't trade the left side of the chart, but studying it gets us ready for the future. Not trading or financial advice...just some simple tools that have been useful to me. Leave questions/comments below and best of luck to everyone.