TYPES OF MARKET ANALYSIS1) Fundamental analysis.
fundamental analysis focus mainly on micro and macro event that will control market situations in the present and in the future. it includes various events in economic calendar like PPI CPI NonFarm Payroll, Interest rate decisions, and geopolitical senarios like election war climate issues etc
2) Technical analysis.
Technical analysis mainly focus on indicators chart analysis volume analysis, various analysis like following candle stick pattern, trading strategies based on indicators
3) Market sentiments
Market sentiments focus mainly on how the crowd anticipate wheich direction will market go, like when xauusd reached at its all time top everyone believed it will have a retracement from that zone
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HOW TO BUY THE DIP- What is considered the bottom for a coin?
- How to identify the bottom?
- What technical analysis tools to use?
- What are the fundamental prerequisites for the bottom?
What is the bottom for a crypto asset?
The bottom is the lowest price level of a crypto asset, after which the price of this asset is expected to rise.
The bottom is not always an absolute measure for the entire history of the existence of an asset, but can be calculated for a certain period: a year, a quarter or a month.
How to identify the bottom
Each trader has his own set of tools to determine when to buy an asset.
Here are some of the most clearest signs to each of us:
There is a protracted flat with the upper border breakdowns
The movement occurs in a strong support zone and is accompanied by high volumes
The order book contains big bid checks
Good news on the market or the project
The price is lower than the sale price (ICO, IEO, IDO etc.)
The bottom we search for is not a new all-time bottom
Protracted flat with the upper border breakout
If you observe that for a long time: 2 weeks, 1 month, - the price is at the same level, while occasionally trying to “break out” up, that is, the resistance line is broken, then this is in 90% of cases - the impulse to the rapid growth of prices.
However, if the breakout is more often than just the support level, then get ready to test a new bottom.
Strong support zone and high side volumes
Determine that there is a strong support zone at this level, that is, it met more than 3 times on the chart for the period under study and is supported by good horizontal volumes (Volume indicator).
Display the VPVR (Volume Profile Visible Range) indicator on the same period on the screen and evaluate whether the maximum vertical volumes for the selected period are at this level.
Big average checks
If you observe volumes above average with a “small” candle body, then there are purchases at the same price for a large amount.
This may indicate "big checks" or high market density.
To confirm the existence of “big checks”, you can refer to the order book and make sure that there are real bid orders for large amounts.
Fundamental prerequisites
As an extra springboard from the bottom, news resources can:
Issue positive analytics from experts on this asset
Record the activity of major players - funds
Report new technologies that have been released or are about to be released by the project
Share the conditions for large investments in the project by large funds, etc.
Price analysis for IDO, ICO and Private Sale
If the project token or coin appeared on the market following one of the popular types of crowdfunding: ICO, IEO or IDO, the most popular one, then you need to compare the Public Sale price with the current price.
If the current price is below the Public Sale price of the IDO, then you can put this in another checkbox on your checklist as a sign of a potential bottom.
If the IDO price was lower, then this is not a bottom, there are still a large number of investors on the market who bought the coin at a lower price, which means they can sell it cheaper.
Our bottom is not a new all-time bottom
As we noted earlier, a support line is formed at the level of the potential bottom.
If the price has never dropped so low in the history of the asset, then we cannot build a support zone, which means that the price can go even lower and find many new bottoms.
How to auto-execute TradingView alerts on exchangeIf you have your own strategy in TradingView, you can set up opening trades on the exchange in a couple of clicks.
Next, you’ll see an example of how we set up alerts in 5 minutes, and how orders were opened and closed on the exchange. To do this, we will create alerts and a bot for alerts on our platform.
Step 1. Set the alert parameters.
Go to our terminal, select the Algotrading section → Trading Robots → Add strategy button.
You will see an interface for creating and customizing your bot, where you need to perform the Basic settings and proceed to setting the parameters for sending signals to the system.
To do this, go to the Sending signals block.
The TradingView signal source is already selected.
Copy the Request URL.
On the right side of the window, we see the code with the request parameters. You can add other parameters with checkboxes, we have added Stop Loss and Take Profit. Copy and save the code.
Step 2. Launch the bot.
Next, find the created bot in the All robots section and launch it in Work trading mode according to the manuals in the terminal.
Step 3. Set up an alert in TradingView.
Go to TradingView, open the Alerts section and set up an alert, for example, for opening an order (Buy) based on a simple indicator - in our case, Crossing.
Paste the code that we got in Step 1 in the Message field.
Paste the request URL we got in Step 1 in the Webhook URL field and Save.
The alert has been successfully created and is active on TradingView in the Alerts section.
Step 4. Monitor the orders.
The alert triggers and ... Go to the Alerts log, where we see a notification about executed alerts from TradingView.
We can check in the bot on our platform, open the Trades tab - we see open orders.
And we see that alert orders are open on the exchange.
Since we set Stop Loss and Take Profit, the orders were not only opened, but also closed. In the platform we can find deals, on the exchange we can find orders with the Sell parameter.
We hope that now trading with TradingView will become even easier. We will release new and more detailed articles for you on using webhooks so that the strategy created here works 24/7 without your participation.
Imaginary wavesAgain as with the levels, first ima tell how to locate both real & imaginary waves, then I'll explain the principle itself, what are they, why it works etc, why we need em & how to use em. It's really easier this way.
Let's start with imaginary waves.
First, pls read the linked "Imaginary levels: fair price aka value", it has an explanation and another common example & about the imaginary levels.
As with imaginary levels, imaginary waves are, well, imagined xd, when there's nothing else, but a decision has to be made.
Look at the chart as if you're in 2k13 (when ASAP dropped Trap Lord) as in the previous example in the linked study, we have an overridden wave 520-1923.7, we have an imagined fair price level somewhere around 1200.
When we have an overridden wave -> we have the imaginary fair price level somewhere ~ in the middle of this wave -> that fair price level divides the real wave into 2 imaginary waves.
As with imaginary levels, imaginary waves can be used for further processing.
How to Avoid False Breakout ? Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Have you ever seen a key resistance level breached and entered a long position right before the market turns the other way and dumps hard?
Have you watched the price smash through support, and entered into a short position only to watch the market bounce?
Don’t feel bad, this has happened to everyone – you’re just one of many victims of the false breakout, and learning to spot these things can be tricky.
Read on as we discuss breakouts, and fakeouts and introduce two powerful indicators from the @CRYPTOMOJO_TA team that can help you stay on the right side of the market and avoid further pain.
The solution to this problem is actually pretty simple (as depicted above). Rather than act on trade in real-time as soon as the price breaks a key level, we should wait until the candle closes to confirm the breakout’s strength. So the idea of setting entry orders above or below support or resistance levels to automatically get us into a breakout trade is not a very good one. Entry orders allow us to get “wicked” into breakout trades that never actually materialize.
On the surface, this would lead us to believe that the only way to effectively trade breakouts, is to be at our trading terminals ready to act as soon as the candle closes in breakout territory. Once the candle closes, we can then open our position that hopefully has a higher chance of success.
using EMA CROSSOVER with Williams Trend IndicatorPurely for Educational Purpose Only:
Indicators Used:
Chart: Use Heikenashi Candles (trend detection gets easier)
Signals: Buy Sell SIgnals are given by ema crossover indicator. Signals are triggered whenever EMA 5 crosses EMA25 in both directions.
Blue Line: EMA 200 Long-term Trend Detection
RED+GREEN Line: EMA100 Trend confirmation
smoothed heikenashi candles for ENTRY
parabolic SAR triangles for secondary entry signals
ENTRY Condition:
Buy: green candle + open above smooth candles+ ema 100 (Green Color) + open > ema200(blue line)
Buy Confirmation: WIlliams Trend oscillator is above ZERO LINE and Green Color
Sell: red candle + open below smooth candles + ema 100 (red Color) + open < ema200(blue line)
Sell Confirmation: WIlliams Trend oscillator is below ZERO LINE and Red Color
EXIT condition:
when ever candle closes below smoothed candles for Buy
when ever candle closes above smoothed candles for Sell
EURUSD.... SEE WHY MANY PEOPLE LOST THIS TRADE... AVOID ITHello Traders,
So today I am doing a trade recap on a trade I lost due to lack of detail. Note, in trading, after knowing how trading works, every thing comes down to the level of attention/detail you give to your chart.
Detail, detail, detail... never forget.
I have labelled the chart accordingly so your understanding can be seamless. But if you still need clarity let me know.
I use my weekend to analyse why my trade won or lost. And this is an approach to trading that people should undertake. This should come after journaling your trade.
The thing is, you will make mistakes, you will not see everything (detail) but continue. Reduce the number of pairs you trade, reduce the indicators, reduce the trendlines and every other thing... Your chart should be clear and easy on the eyes. I only look at 10 markets (the 7 majors and AUDNZD, CADCHF & EURGBP). I add the 3 crosses only because I want to have alternative for all the currencies excluding JPY. I don't use indicators (not saying it is bad but reduce it), I don't use trendline (because price is moves horizontally - unpopular opinion).
When you have just a few pairs, you are able to understand the moves better and you can free your brain from analysing so many pairs. Just imagine using indicators, lines upon lines, and the market changes form... now you need to start all over again your analysis on all your multiple markets, looking at so many things. Trust me, you are bound to miss the obvious details not to talk of the hidden ones and its a lot of work. I am sure you must have experienced it.
I am still very bullish on EURUSD and right now, I am not looking for an entry, I am waiting for a break of the 4H high then I will look for an entry which I will share on my page.
If you would like to see it, all you need to do is click on follow.
I will also link my previous analysis on EURUSD, AUDNZD, USDJPY
Stay tuned for more.
BR.
David
EURJPY +85.3 PIPSSo this i a classic retest trade that i took yesterday and holding till this morning,we se zone 137.776 holding,retest and buy after bullish candle broke above the wick of a previous candle thats my confirmation for entry,hope it can help someone understand better how to enter a trade.My original tp was 139.000 but i followed a trade 10 pips below,because it was close to tp,as u can see it reversed later so kept my profit secured.
RSI:MACD advanced indicatorgreetings, hope you're doing well and thanks for your likes and comments .
Today i'm gonna teach you how to mix two indicators there's lots of indicators that you can mix together and use them, at this tutorial i'm gonna try adding MACD and RSI .
1_ Once you have added the RSI indicator, you have to open RSI settings.
2_then you have to process the way below : go to settings > go to inputs (its a tab like button above) > open source, select MACD:MACD .
congrats you have mixed these two indicators, but it haven't finished.
3_ after these steps you have to go to style tab > set the upper band on number 66.66
4_ you have to turn of the check of middle band (there's no need to use it;)
5_ then, set the lower band on number 33.33;
well done !
"Guys there is no any %100 true analysis" .
you should buy if the RSI line goes upper than lower band, you can expect growing up the price
you should sell id the RSI line goes lower than upper band, you can expect getting down the price,
thanks for your likes, and comments <3
If there was any questions, i will be so glad to reply to your messages !
How to trade fundamentals (AUDUSD BUYS)Hey traders!
A common question I get is, do I trade fundamentals??
-From my experience it is to hard to trade off the back of data releases as the moves are to quick to happen and usually get very messy...
-Fundamentals I believe just help push a currency in the right direction as technicals give us the entry points to catch these moves
-For me its a rule to always have my stop-loss at breakeven when trading around the times of any news event or data release.
-It is important that we always know when a big event or release is coming out to cover any trades we currently have running or are about to open, price can move so quick and cause slippage on accounts especially if you are over leveraged.
-So the answer is I do and I don't trade fundaments, the aim of the game for me is to already be in a position with stops at breakeven to catch the bigger move but also protecting my account at the same time, at the end of the day we never know what's going to happen and price can do some wild things...
......... fundamentals overall control the market but technicals provide us with the entry points and create market structure.........
When is the Best Time to Buy & Sell ?
📊 When Is The Best Time To Buy & Sell? 📊
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The two most important decisions an investor will make are when to buy and when to sell. The best time to buy is when others are pessimistic. The best time to sell is when others are actively optimistic. When buying, remember that the prospect of a high return is greater if you buy after its price has fallen rather than after it has risen. But caution should be exercised. For example, after the stock of fictitious Company X declined by 30%, 40% or more, the first question to ask is why. Why did the stock fall as it did? Did other stocks in the same industry experience a decline? If so, was it as severe? Did the entire stock market fall? If the broader market or other stocks in the same industry/sector performed relatively well, there may be a problem specific to Company X. It’s best to adopt a buy/sell discipline and adhere to it. Benjamin Graham, the father of value investing, once said, “The buyer of common stocks must assure himself that he is not making his purchase at a time when the general market level is a definitely high one, as judged by established standards of common-stock values.” His reference was to what we discussed as fair value under the section Stock Valuation above.
🎓 EDU 6 of 20: What Market Indicators do I Need to Follow?Hi traders, it's time for a new part of our educational series. This series aims to equip new traders with all the necessary tools to trade the forex market. Most of these tools are also used by large market participants in their daily analysis, and for making trading decisions.
Getting started with trading isn't easy, mostly because the internet lacks quality when it comes to trading education. Yes, there are some great posts out there, but how are you supposed to know where to find them, and how to distinguish bad trading practices from good ones? This is why I created this educational series, to equip you with the main tools used by institutional investors and banks in trading.
Alright, let's move on with the sixth part: What Market Indicators do I Need to Follow?
Capital chases yield. Investors will move their capital to markets that offer better yields, be it in the USA, Europe, or Asia. Central banks play a huge role in determining yields when they hike domestic interest rates to fight inflationary pressures (making the domestic currency relatively more attractive), lower yields to support economic activity (making the domestic currency relatively less attractive), or keeping rates unchanged. To recap how this works, visit my previous post (EDU 5 of 20).
Central banks follow market indicators to determine what is the correct monetary policy for current economic conditions. Just like traders, central banks follow CPIs, PPIs, industrial output, PMIs, and labor market numbers, to name a few. And if central banks follow them, you should too.
1. CPIs - Since most central banks have a specific inflation target they want to reach, Consumer Price Indices (CPIs) are one of the most followed market indicators. CPIs measure the change in the prices of goods and services at the retail level over a specific period of time (usually one year), and compares that change to a base period (in the US, the base period is 1982-1984, where the value of the CPI is set to 100.) However, markets are mostly focused on the annual rate of change in the CPI.
2. PPIs - While the CPI measures the change in prices at the retail level, PPIs do the same at the manufacturing level. For example, the PPI would catch changes in the prices of manufacturing input, such as raw materials or labor. Since most of the price changes are spilled over to the retail level, traders often follow PPIs to get early clues on where the CPI could be heading.
3. PMIs - The Purchasing Managers Index is a major leading indicator that catches trends in the overall economic activity. It's based on a survey of purchasing managers in 19 industries, who are asked to assess the current conditions on five major survey areas: new orders, inventory levels, production, supplier deliveries, and employment. Currencies often react with great volatility to PMI releases, making it an important market report to follow.
4. Labor Market Conditions - When talking about labor market conditions, we are actually referring to all the indicators which cover the labor market, including unemployment rates, unemployment claims, non-farm payrolls, average hourly wages, employment change, etc. Many central banks closely follow labor market numbers, as their mandate can also be to target full employment (in addition to an inflation target.) Labor market numbers can also provide some leading insights into the future economy, as the creation of many new jobs usually leads to higher economic output and GDP growth.
Besides the mentioned reports, there are many more reports that can have a significant impact on the forex market. Some of them include retail sales and core retail sales, consumer confidence indices, GDP growth rates, etc. Check them out if you want to get a deeper understanding of the major market reports.
What's important to mention is that markets are focused on the actual number vs the forecasted number. For example, if non-farm payrolls come in at 500k but expectations were set at 350k, this will usually lead to a strong positive reaction in the US dollar. Also, the reaction is stronger is the surprise comes in the direction of the central bank policy (for the example above, if the Fed is hawkish and the NFP comes in stronger, the reaction in the US dollar will be stronger than in the case of a dovish Fed and strong NFP.)
If you find my educational series useful, please consider hitting the "LIKE" button to share the word. Thanks!
Quick profit heikin-ashi trade! System test Here is a good example of the Heikin-Ashi system in action in a forex market
Always watch for the main signals to enter or sell: donchian, stochastic, heikin-ashi doji, CMF
This trade as shown worked well, always make sure that each signal has been ‘ticked’ before entering or selling.
Live trade ideas coming soon!
15 Minute Bollinger Band Strategy Here we use a 15 Minute chart with Bollinger bands set to 20 with a standard deviation of 2.
First we look for an established trend direction, once that has been found we apply our bands, set the deviation for 2 and wait for the price to test or slightly break that lower band. (test/break of higher band in the case of a down trend and sell order)
Here we have highlighted these tests/breaks with a green circle. The blue arrow represents a 200 point gain on each trade. Once the trend has begun to level out the opportunity is extinguished and we move on to the next chart.
Tips/Rules
Don't trade against the trend! eg sell at a high break/test of band on an uptrend!
Keep stops loss tight - if the break and trade entry occurs, but the price keeps moving against you time to get out!
Stay cautious in a sideways market (we will post a strategy for that soon too)
If the bands widen drastically that could indicate high volatility and potential trend change.
Be aware of new releases and high importance data when entering set up.
Good luck!
Orion Fx Trading Team
Volume Indicators Masterclass Part 1VOLUME INDICATORS
Volume is one piece of information that is often neglected by many market players, especially beginners.
However, learning to interpret volume brings many advantages and could be of tremendous help when it comes to analyzing the markets. The usage of volume indicators has long been restricted to just the Forex Markets. Thereby in the Volume Indicator Masterclass, we will be looking in-depth for a few volume indicators.
Traders often use volume which measures the number of shares traded during a particular time period as a way to assess the significance of changes in a security’s price.
Traders rely on it as a key metric because it lets them know the liquidity level of an asset, and how easily they can get into or out of a position close to the current price, which can be a moving target.
Volume analysis is a technique used to determine the trades you will make by discovering the relationships between volume and prices. In order words, it shows how many times the security has been bought or sold over a given timeframe. The time frame can be one minute, four hours, one day, or anything.
The volume transacted in the given timeframe is represented as a bar, which can be color-coded. The color of the bar shows whether the security’s price closes up or down.
A green bar is generally used to show that the security closed higher during the trading session
A red bar is used to indicate that the security closed lower
The height of the bar shows whether there’s an increase or a decrease in the volume of the security transacted a taller bar shows a higher volume while a shorter bar shows a lower volume.
Trend Confirmation :
If the volume increase with an increase in price or with a decrease in price, it indicates a strong buying or selling pressure.
Trend Non-Confirmation :
If the volume decrease with an increase in price or with a decrease in price, it indicates a weak buying or selling pressure.
There are various Volume Indicators, out of which we will be discussing the Money Flow Index in this Masterclass.
Money Flow Index
The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure.
The indicator is synonymous with “volume-weighted RSI” as it integrates volume and mirrors the relative strength index (RSI) with respect to its mathematical formulation and categorical classification as a momentum oscillator MFI.
Calculation of the Money Flow Index:
Typical Price: (High + Low + Close) / 3
Money Flow: Typical Price x Volume
Positive Money Flow: The Money Flow on days where the Typical Price is greater than the previous day’s Typical Price.
Negative Money Flow: The Money Flow on days where the Typical Price is less than the previous day’s Typical Price.
Money Flow Ratio: 14-Period Positive Money Flow / 14-Period Negative Money Flow
Money Flow Index: 100 Money Flow Ratio / (1 + Money Flow Ratio)
Signal Generation
BUY When Money Flow Index crosses up 20 i.e. from the oversold region
SELL When Money Flow Index crosses down 80 i.e. from the overbought region
There a lot of more interesting Volume Indicators that can be used, about which we'll be talking in the next Masterclass of Volume Indicator.
STAY TUNED!
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- Mudrex
Chop Zone 10kIntroducing the Chop Zone 10k. This is an improved version of the Chop Zone 9000 and includes "RSI-like" lines but this is not RSI-- it's better than RSI. There are 5 lines and as the selling begins, 4 of the 5 split into positive and negative dualities, resulting in very hot "do not touch" look on the chart. If you do touch it while it's hot, you may get electrocuted! Real RSI at the bottom for comparison. This indicator would have gotten people out of the market as early as FEB 20th and back into the game on March 24th. I created this indicator to create trading as easy as possible. There are no special rules on how to use. It is also my belief that the tools made available to average traders are severely lacking because all of them require additional indicators to verify the signal. I am not sure if there is much else I can do with Chop Zone. This is pretty much as good as it gets.