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USDJPY 15M DONCHIAN CHANNEL STRATEGYStep #1: Attach the Donchian channel indicator to your chart. Preferred setting 20 periods. For the purpose of this example, we’re going to plot the Donchian channel on the 15-minute time frame. The preferred Donchian channel settings is 20-periods, which means that the channel lines will be calculated based on the price action from the last 5 hour candles Note* The Donchian indicator is a free pre-build technical indicator that comes free with most trading platforms. Step #2: Wait until the price crawls along the upper Donchian Channel. The price should not go below the middle band during this stage. It’s quite easy to visualize the Crawling Along pattern. When the price action touches the upper Donchian channel, and it stays glued to the upper line, we create the price effect where the price looks like it’s crawling along the top Donchian line. If you think in terms of supply and demand, when the price is crawling along the upper Donchian channel, without departing too far away it means there are lots of buyers that try to push the price higher. This eventually will lead to seller capitulating once the breakout happens. Another characteristic of the Crawling pattern is that during this stage, the price shouldn’t go below the middle Donchian band. Note* The closer the price action moves along the upper band, the stronger the trend is. If you spot this type of price action, then you know this day trend has a big potential for following through. Step #3: Buy1 when the price pulls back to the middle Donchian band. Buy2 when the price pulls back to the lower Donchian band. The channel width gives us a measurement of the market volatility. When we have high volatility in the market, this will be shown on the chart by wide channel bands, whereas low volatility will be displayed on the chart by a narrow channel. Like with all technical indicators the Donchian channel can be subject to false signals from whipsaws and sizeable market swings. Breakouts are very hard to trade, and that is the reason why we prefer to enter on pullbacks. We recommend splitting your trade into two parts as this will give you a better average entry price. The first buy order is deployed when the price pulls back to the middle Donchian band, while the second buy order is deployed when the price retraces all the way to the lower Donchian band. Our entry strategy will give us the opportunity to implement a proper risk management This entry strategy is a good way of framing a trade. So, you have a very specific entry point By sticking to this entry rules, you will realize this is not a bad trade to take because you trade in the direction of the prevailing trend Step #4: Hide your protective Stop Loss below the lower Donchian band Your stop loss can be placed below the lower Donchian band. The catch is that you need to move to the left side of the chart and find the first part of the lower Donchian band where it is flat. You’ll find that often times the Donchian channel will plot perfectly flat lines. This can provide us with excellent spots to hide our stop loss. Step #5: Take profit at the end of the day or if you want to ride the trend more take profit when The beauty of the Donchian trading strategy is that you can apply multiple exit strategies so you can maximize your profits. Now, that we know that the supply and demand balance is skewed to the upside, we can expect buyers to step in far quicker on retracements than they have before. This can indicate that we’ll have a buy explosion to the upside. The first proposed exit strategy is to liquidate your position at the end of the day. Since we’re trying to take advantage only of the intraday trends we don’t want to have any overnight exposure. Secondly, you can wait until the price breaks below the most recent flat lower Donchian band. Note** the above was an example of a BUY trade using our Donchian Channel Strategy PDF. Use the same rules for a SELL trade – but in reverse.
Long
by Tradingstrategyguides
1
POSSIBLE FUTURE FOR AUGJPY FIRST OF WEEKHere are some signs of possible bullish bias for next week for the AUDJPY Day Chart double bollinger bands - price closed above BB midline bullish bias 4H Chart - Macd crossed above zero line and Price closed above 100 sma bullish bias 1H showing possible bearish retracement back to the 50 sma area, macd over bought 15m showing possible bearish retracement back to 50/100 sma, macd over bought Take Profits will be in updates below
Long
by Tradingstrategyguides
HOW TO TRADE PIVOTS THE RIGHT WAYBest Pivot Point Strategy PDF Pivot Points are one of our favorite trade setups, and we’re going to show you what is the best method to trade pivot points through our best pivot point strategy PDF. The pivot point strategy doesn’t require significant trading capital, and it can yield positive results right away. More often than not retail traders use pivot points the wrong way. They usually sell to quickly when the first pivot point resistance level is reached and buy too soon when the first pivot point support level is reached. This is the wrong way to trade because you’re trading against the prevailing momentum which is one of the reasons why retail traders lose money. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the trading strategy. For this article, we’re going to look at the sell side. Step #1: Trade only at the London open or the 8:00 AM GMT The best time to trade the pivot points strategy is around the London session open. However, it can be used for the New York session open with the same rate of success. We trade the London open because that’s the time big banks are opening for business, and the smart money operates in the market. Note* We’re going to use the 15-minutes time frame and trade based off of the daily pivot points. Step #2: Sell at the market if after the first 15-Minutes we’re trading below the Central Pivot Point If after the first 15-minutes into the London trading session we’re trading below the central pivot point then we sell at the market. The trade logic behind this simple rule is that once the market is displaying a disposition to trade below the central pivot point, the same as with the law of motion, we assume that the bearish momentum will continue to persist. If the price of any currency pair is trading below the central pivot point, then the bias for the day is bearish and we’re only looking for selling opportunities. Important Note * If after the first 15-minutes into the London session we’re too close to the first support level we better skip this trade opportunity because the profit margin has tightened. Step #3: Hide your Protective Stop Loss 5-10 pips above the Central Pivot It’s essential to have a good strategy for your stop loss as much as to have an entry strategy. If the price breaks above the central pivot point then the sentiment has shifted on the bullish side and it’s wise to get out of any short trades. However, in order to accommodate any false breakouts, we also use a buffer of about 5-10 pips above the central pivot point for our SL. Step #4: Take Partial Profit #1 at Support 1; Take Partial Profit #2 at Support 2. We employ a multiple take profit strategy because we want to make sure we give the market the chance to reach for deeper support levels. The first pivot point support level is the first trouble area and we want to bank some of the profits here. We also advice moving your protective stop loss to break even after you took profits. At the second pivot point support level is where we want to liquidate our entire position and be square for the day. Note** the above was an example of a SELL trade using the best pivot point strategy PDF. Use the same rules for a BUY trade – but in reverse. To find out the complete strategy with chart examples PM me and I will be happy to help.
Short
by Tradingstrategyguides
BEST COMBINATION OF TECHNICAL INDICATORS15M USDJPY SCALPING STRATEGY Best Strategy Multiple Indicators RSI Momentum Indicator - The Relative Strength Index is a momentum indicator and a leading indicator at the same time. We use the RSI indicator to identify possible overbought and oversold conditions in the market. OBV – Volume Indicator - The OBV indicator is based on the idea that both the volume and the price activity are equally important. In this regard, the OBV combines both price and volume to show you the total amount of funds going in and out of the market. The main idea behind the On Balance Volume indicator is that the market price will follow where the volume flow is going. Bollinger Bands – Trend Following Indicator - The Bollinger bands is the best trend following indicator that measures the volatility of any given market. It’s also the third indicator of our best strategy multiple indicators. Buying and selling based on the Bollinger bands can be a very effective trading strategy especially if used in combination with other technical indicators. Note* This strategy can be used on any time frame so go ahead and apply it to your preferred time frame. Step #1: Price needs to Break and Close above the middle Bollinger Band So the first trade confirmation we need is for the price to break and close above the middle Bollinger band. Once this trade condition is verified, we can check the other indicators for adding more confluence to our trade signal. Step #2: Wait for the RSI indicator to trade above the 50 level if it doesn’t already. During this step, we seek to find an agreement between what the Bollinger Bends is saying and the RSI own price reading. So, the breakout can be confirmed if the momentum is behind the move. Usually, a RSI reading above the 50 level is considered as a positive momentum while a RSI reading below the 50 level is considered negative momentum. Note* Not all the time you’ll see the RSI breaking above the 50 level at the same time as price breaks above the middle BB. Sometimes, we need to wait longer for the bullish momentum to show up. Step #3: Wait for the OBV indicator to rise. Buy at the market once you see volume confirming the price. Step #3: Wait for the OBV indicator to rise. Buy at the market once you see volume confirming the price. Last trade condition before pulling the trigger is again easy to understand. We want to trade on the side with the smart money. In this regard, we look for evidence that the trade we want to take as real buying power behind it. We can notice that the real volume only showed up later. It’s important to have patience and wait for the exact trade conditions to be satisfied before getting into a long trade. Step #4: Hide your Protective Stop Loss below the lower Bollinger Band Knowing where to place your protective stop loss is as important as knowing when to enter the market. The logical place to hide your protective stop loss is below the lower Bollinger band. A break below the lower BB will invalidate our trade idea, and we want to minimize our losses. Step #5: Take Profit when the price breaks below the lower BB Our take profit strategy only looks at one indicator to signal us a possible exit zone. If we wait for confirmation from multiple indicators then we might as well give back some of our profits. In this regard, the best way to take profits is when we see the price reversing. A break below the lower Bollinger Band is a good signal for a possible reversal, so we want to cash out our profits. Note** the above was an example of a BUY trade using multiple technical indicators. Use the same rules for a SELL trade – but in reverse.
Long
by Tradingstrategyguides
8
LITECOIN 15M SCALPING STRATEGYIf Bitcoin is the gold of cryptocurrencies, then Litecoin is the silver of cryptocurrencies. The only indicators you need are the following: On Balance Volume or the OBV – The OBV indicator is based on the idea that both the volume and the price activity are equally important. In this regard, the OBV combines both price and volume to show you the total amount of money going in and out of the Litecoin. The main idea behind the On Balance Volume indicator is that the Litecoin price will follow where the volume flow is going, volume precedes price! So, if Litecoin price is moving up, we want to see the OBV indicator rising signaling an inflow of money. Conversely, if the Litecoin price is moving down, we want to see the OBV indicator falling indicating an outflow of funds. We’ll also plot a 20-day moving average which it will be used to differentiate between what is normal volume activity and what it’s abnormal trading activity. The use of the 20-day moving average can also signal how severe the change in Litecoin price trend may be. Step #1: Wait for the OBV indicator to enter into a prolonged period of consolidation at the bottom of the window. In other words, what we look for is for the OBV indicator to spend some time in “oversold” territory. Technically the OBV doesn’t show overbought and oversold conditions in the market but, we only use these terms to describe the OBV location on the chart. The On Balance Volume indicator as the name suggests shows the volume activity, and when we see the OBV consolidating, usually this means the market is in accumulation process. But what is accumulation? Very simple, accumulation is the buying up of cryptocurrencies by the professionals. The buying it’s usually done in a manner that doesn’t attract attention on the price chart which is the reason why we use the OBV indicator to spot when the institutional buying happens. Step #2: Wait for a breakout above the OBV consolidation zone. When the professionals accumulate a cryptocurrency, it will usually trade sideways. The OBV indicator is the best indicator to outline when Litecoin is being accumulated. These ranges are deliberately created by the smart money to use fear and panic to shake out weak holders so they can grab as much of the available cryptocurrency at the lowest price. When all the available supply of a cryptocurrency is exhausted, then the smart money will mark up the Litecoin price or any other cryptocurrency. This process can be best visualized on the OBV indicator when we have a breakout above the consolidation zone created. The OBV indicator performs better if it’s used in conjunction with other indicators as well as your own judgment and common sense which brings us to the next step of our Litecoin strategy. Step #3: Buy Litecoin when we close above the 20-day Moving Average. We’re going to use the 20-day moving average indicator to confirm the OBV readings further. After the OBV indicator breaks above its consolidation and right away the Litecoin price breaks and closes above the 20-day moving average, we initiate a buy order. Step #4: Hide the Protective Stop Loss below the most important support level. Knowing where to place your protective stop loss is as important as knowing when to enter the market. That’s the way you manage risk! The best strategy to apply in this case is to place your protective stop loss below the most recent support level. If the smart money were really behind this move than the support level should hold. Otherwise, a break below will invalidate our market view, and we better be out of the market than fighting a losing trade. Step #5: Take Profit when Litecoin price closes below the 20-day Moving Average We take profits at the first sign that the market is about to reverse. When the litecoin price breaks and closes below the 20-day Moving average, that’s the most appropriate moment we want to take profits. Use the same rules for a SELL trade – but in reverse.
BITFINEX:LTCUSD
by Tradingstrategyguides
2