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SPY - 4H Short term Analysis - Don't Trade1. Looking at the RSI, it shows oversold conditions at 44, we need to take into account that it needs to tests 50-60 RSI to understand the forward pattern before it can reach 30 RSI or 70 RSI. We call this a dead cat bounce if bearish. Based on the current situation, the idea is to wait until 50 RSI and do a Strangle in options. 2. It's testing the 50 moving average, it is able to break the 20 moving average then we could say with confidence is bullish. If it fails then it will test the 100- and 200 AT THE PRICE $295. This statement could be supported by the support at level 294 starting from March 2020. 3. There is a gap between $311 and $318 that has to be filled in the future. Stay out of the trade until any of these conditions meet, then you can freely trade safer. Have a good day guys.
AMEX:SPY
by Winallday310
1
BTCUSDT 4H | Bitcoin market overview: ShortHello, dear subscribers! Yesterday the price of bitcoin dropped below $9,350, which indicates that the downtrend has begun. MACD and RSI indicators confirm that the price has fallen. On the daily chart of the MACD we can see an increasing force of downward movement. The RSI value is below 50 and is looking down. The first target of this movement is $8,600-$8,800. Further targets for sellers are $6,800-$7,000. The current price is $9,280. If you have a long position, the right decision now is to exit it and wait for the cheaper price to buy. Subscribe to the channel and follow the news from the bitcoin market!
Short
by CatalystsFinance
EURUSD 4H PIN BAR SHORT TRADE STRATEGYBasic Guidelines: Timeframe – ANY Market – ANY Indicators – NONE OTHER – Trend lines, horizontal lines, support resistance lines (anything to help you find these areas). Step 1: Find a Pin Bar On Your Chart. *Note This is a stock price action strategy, and a forex price action strategy. I will use a currency pair as an example. Price action charts are with any market and timeframe. First, identify a pin bar that has formed. In the example, this is considered a bearish pin bar because of the long wick above the body. As you can see, the pin bar “wick” is above the body, which is considered a bearish pin bar. In this case, we are looking for a downtrend bounce of the top of the range. This is a 4 hour time chart EURUSD currency pair. You can see the Bears tried their hardest to stop this uptrend from occurring. The Bears were too strong, which is why you see the pin bar form. This is a perfect example of a pin bar price action reversal setup. Step 2: Look for Past Price Action to Determine Why The Pin Bar Formed. Why did the reversal suddenly hit a price, and then continue to the downside? We can see price has been in a range pattern for quite some time. Note** you can either look at the current time frame you are on, in this case, a 4-hour time period. Or you can bump up or down one or two periods to gather information. Resistance in the past can mean support in the future. What happened is the price hit this level but failed to break through it. Since the long bullish wick formed, we decide it is time to enter this trade based on what we learned from the prior days. This is what Price Action is all about. No two trades are the same. However, we can take what we’ve learned from the past. Then make the best judgment as to where the price is going in the future. You are essentially like a detective when you trade price action. The point is to gather many pieces of evidence to back up your conclusion. You are trading with confluence. Sometimes simple is best. Study the charts and form an educated conclusion as to where the price will go. Step 3: Trade entry You just enter the trade 2-3 pips from the break of the nose of the pin bar. Step 4: Stop loss Place the stop loss 3-5 pips away from the wick. The end of the wick will be a support area. So if this is broken the trend may continue downward. Which is why you place your stop 3-5 pips away from this. Step 5: Exit Strategy Your exit strategy is when you hit the first level of support or resistance on your chart. As you can see, the price hit a point then stalled out. Once we see the price action stalling out, we exit the trade immediately. Conclusion – Price Action Pin Bar Strategy Price action is another fundamental element to learn when trading the market. There are thousands of strategies you can use with price action. It is important to find something that works for you. These pin bars are hard to miss. They are relatively accurate when you learn why a pin bar formed. Pin bar candles are shown in any time frame. The rule of thumb is, the higher the time frame, the stronger the signals. But that does not mean that this will not work on a five-minute time frame. Do not trade every pin bar you see that forms. Gather up key information from the charts. Then form the best conclusion to determine if you should enter the trade based on the rules.
Education
by Tradingstrategyguides
5
USDCHF 4H DOUBLE TOPStep #1: Identify the Phase of the Market. The Double Top reversal needs a uptrend. Just because you can spot the reversal it doesn’t mean you have to jump in willy-nilly. Remember, we need the right context and everything needs to line up for a trade-able setup. So, the first step is to identify the phase or market condition. At any given moment the market can be trading either up, or down, or it can go sideways. Establishing the phase of the market aka identifying the trend is probably the biggest ingredient that can determine the success rate of double bottom pattern technical analysis. Step #2: The historical precedent. An A++ Double Top Reversal is composed of 2 Rounded Tops The second step of the Double Top is to find what we call the historical precedent or a chart pattern. We don’t want to make a trading decision without price confirmation, and in our case, we use the reversal pattern. You need to identify two rounded tops in order for the pattern to be considered trade-able. But, what is a rounded top? In technical analysis, a rounded top is simply a price formation that typically occurs after an uptrend, prices move upwards and then quickly rallies creating a rounded top. Now, of course, that depending on the structure the rounded top will vary in size and magnitude. But the idea is that we need a quick move up followed by a quick move down to define a rounded top Note* A valid double top reversal has two rounded tops. Step #3: Allow a maximum of 10 pips variation between the two tops. Don’t seek perfection, because in trading you need to get rid of your idealistic mindset as the pattern will not look perfect all the time, so be flexible. This is the reason why we need to allow a maximum of 10 pips variation between the two tops. The probability of two tops happening at the same exact price level is almost impossible. Now, we to determine an entry technique for our chart pattern strategy. Step #4: Sell when Double Top breakout candle closes below the neckline. After we identify the phase of the market and the characteristics of a good reversal we need to wait for confirmation that momentum is shifting. The breakout candle is our signal that the momentum has shifted and it’s what it confirms and validates the double top pattern. You’ll see the double top breakdown happen over and over again, but it’s important to analyze them within the context of the market trend. The next logical thing we need to establish for the strategy is where to take profits. Step #5: Take Profit at the same price distance as measured from the highest peak to the Neckline The minimum profit target for this type of trade is approximately equal to the same price distance as measured from the double top to the neckline. If we project the same price distance to the downside we obtain our first take-profit zone for the strategy. The double top pattern can produce a major reversal so we advise you to be very flexible with your profit target not to miss any big profit opportunity. Step #6: Place the protective stop-loss slightly above the resistance created by the Double Top reversal The Double Top chart pattern strategy gives you a simple way to quantify risk because you can place your protective stop-loss slightly above the double top pattern. The double top pattern really gives you the opportunity to also trade with a tight stop loss, which is great as we always want to keep losses at a minimum. Note*** The above was an example of a SELL trade… Use the same rules – but in reverse – for a BUY trade, but this time we’re going to use the double bottom pattern. Conclusion There is no other chart pattern that illustrates the trend reversal. However, despite the high success rate you still need to use a protective stop loss and to wait for the breakout when trading with the double top chart pattern strategy. You can also trade with the breakout triangle strategy. The bottom line is that you still need a plan to successfully trade the double top breakout. Our double top chart pattern strategy should answer all your questions in regard to how to make money with this simple pattern.
Education
by Tradingstrategyguides
2
EURUSD 1D/4H/1H PARABOLIC SAR SHORT TRADE SETUPRule #1- Apply Parabolic SAR system and Moving Average indicators to chart. You can choose different colors for the moving averages. The 20 period moving average is Blue and the 40-period moving average is Red in this example. Rule #2- The Parabolic SAR Indicator must change to be above price candle. Notice how the dots were below the price. The parabolic stop and reversal (SAR) formula showed us that the price stalled out for a few hours and then the dot appeared above the candle. This is a sign that a reversal may be forming. Rule #3- Another element that must occur is the moving averages must cross over. In a short trade, the 20 period moving average will cross and go below the 40 periods moving average. So now the 20 period moving average is below the 40 period moving average. However, something occurred that is notable. The dot may appear below the price candle. Since the moving averages are telling us that a downtrend is most likely going to occur, we will wait until the dot appears again above the price candle to validate this reversal and enter a trade. Rule #4- Parabolic SAR dot must be above price candle AND moving averages cross to where 20 period MA is below 40 period MA. Note** One of these elements may occur before the other. The reversal dot can appear before the MA lines cross. Or the Moving averages can cross before the reversal candle. As long as there are both elements, the entry criteria are met. Rule #5- Enter The Next Price Candle… Enter (SELL) the very next price candle after the dot appears above the candle. You can see on our chart where we entered the trade. Waiting for one candle after makes sense because this proves to us that this reversal is strong. The moving averages are supporting the downtrend + the dot is signifying a downtrend. Rule #6- Stop loss / Take Profit The stop loss you will place 30-50 pips away from your entry. Always look for prior resistance or support to determine a stop loss. In our example, a stop loss was placed 40 pips from entry. Your exit criteria are when the 20 and 40-period lines cross over again. OR when the dot reverses appears at the bottom of the candle. Some will get out of the trade when the dot appears below the price candle. So basically you can use either exit strategy. This trade the downtrend was very strong so we stayed in until the MA lines cross. Determine where you are in a trade. If you are up +100 pips and the dot changes to reversal consider getting out then and taking your profit. Rules for Long Entry. Rule #1- Apply indicators to chart Rule #2- Dot must change to be below price candle. This is a sign that a reversal may be happening. Rule #3– Another element that must occur is the moving averages must cross over. In a long trade, the 40 period moving average will cross and go below the 20 period moving average. Rule #4- Dot must be below price candle AND moving averages cross to where 20 period MA is above 40 period MA. Note** One of these elements may occur before the other. The reversal dot can appear before the MA lines cross. Or the Moving averages can cross before the reversal candle. As long as we have both elements the entry criteria is met. Rule #5- Enter Next Price Candle. Enter the very next price candle after the dot appears below candle + MA lines cross and 20 period MA is above 40 period. Rule #6- Stop loss / Take Profit The stop loss you will place 30-50 pips away from your entry. Always look for prior resistance or support to determine a stop loss. Your exit criteria in the example below were when the dot appeared above the candle. Note** Scalpers should not be using a 30 to 50 pip stop with this strategy. Consider your rules and adjust accordingly. A 5-10 pip stop may be more appropriate on that low of a time frame. If you like this strategy and have a stop you think works best, leave us a comment below and tell us what you think! Conclusion As stated the Moving Average Trading Strategy can be used on any time frame. However, you should always check different time frames and look at what the market is currently doing. No strategy can give you a 100% win ratio so always be placing your stops at the appropriate areas. I would recommend practicing making both short and long trades with this moving average trading strategy. Reversal Trading Strategy In this article, you are going to read about a trading strategy that teaches you how to use a parabolic SAR indicator (Stop And Reversal) trading tool, along with two moving average trading strategies to catch new trends on the reversal. This moving average and Parabolic SAR trading strategy will show you how to use the parabolic SAR indicator effectively and how you can add this trading system into your daily trading techniques. The Parabolic SAR (PSAR) is an indicator favored by technical traders that captures reversal signals. The Parabolic SAR (Stop and Reverse) was developed by J. Wells Wilder. Wilder was a mechanical engineer best known for his technical analysis developments. He has also developed the DMI (Directional Movement Index), the RSI (Relative Strength Index), and other indicators dear to technical analysts today. Hopefully, by the end of the article, you will have the right parabolic trend formula, learn what a crossover is, find out buy signals, the best moving average crossover for swing trading, best moving average crossover for day trading, and the best moving average crossover for scalpers. Also, read the hidden secrets of moving average. The strategy is a dynamic trading tool that is used by many professional traders of every market (Forex, Stocks, Options, Futures). It is best used when the market is trending. If the market is choppy, the market is moving sideways, this tool does not particularly work at its best. This was developed by Welles Wilder when he introduced this into his book in 1978 that was titled, “New Concepts in Technical Trading Systems.” What this tool basically does is helps traders determine when the current trend will end, or when it is about to end. The way it shows you this is by placing dots that show up above or below the price candle. They appear above or below the current candle for a specific reason. If the dot is above the candle it will be a SELL signal or downtrend. However, if the dot is below the candle this can be a signal to BUY or an uptrend. When the change occurs (the dot goes from below to above the next candle) this indicates a potential price reversal may be happening. Some may think why not just trade the dots. When it reverses, just make an entry at that price. Technically you can trade like this and may win some, but this is a very risky way to trade this indicator. You need other tools to validate this potential trend. Which is why we use this indicator and two moving averages to determine an entry point. The moving average trading strategy will help verify that a reversal is in fact occurring. The combination of these indicators will give you accurate trend reversal setups. This strategy can be used on any time frame on your chart. So day traders, swing traders, and scalpers are all welcome to use this type of strategy. Here are the indicators you need to apply on your chart to use this trading strategy: Parabolic Sar strategy: Default Settings 40 Length Moving Average= Green color in our example 20 Length Moving Average= Red color in our example
Short
by Tradingstrategyguides
1