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US30 Pushing UpUS30 has been in a area of consolidation for the past week and a half after having a large sell off for the previous two weeks. Technical : On US30 we're seeing the 3 EMA cross the 10 EMA upwards while at the same time the Stochastic is pointing up while crossing the 50%-80% mark. Price action is also making its way to the upper Trendline which has 3 previous touches, possibly setting up for a break out. It is KEY to wait for the candle to close when getting a cross over of the EMAs and Stochastic because its always possible that it just bounces instead of completing the cross over.
ULong
by Iateyourcroissant
And will the drop continue?Continuation south for GBPUSD at the moment, no doubt many are already longing this pair trying to catch a reversal but trade what you see not what you think. I had a clear sell sign from my analysis yesterday and took a sell but only to the low which was still a decent 3.5R. I have a Daily Demand zone marked out in which it's currently sitting. Today I have my areas marked out and will trade exactly the same way as I have on my plan. The markets tell you a story just go with it. Don't try to make up a fairy tale for yourself.
G
by jp7fx
2
TSLA 4H TRIANGLE BREAKOUTTriangles are repeatable trading chart patterns. Triangles and ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of volume average for a full position size. b - If 75% of volume average then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) If not 75% then stand aside from the trade. 2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order. Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit. *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:TSLALong
by Tradingstrategyguides
2
USDJPY 1D MA-X STRATEGYTim's MA-X Strategy. This is a Moving Average Crossover or MA-X Trading Strategy setup. MA-X strategy consists of the 100 period simple moving average (SMA) in red, and the 20 period exponential moving average in blue. If the 20 ema is above the 100 sma then we only take buys or longs. If the 20 ema is below the 100 sma then we only take sells or shorts. *In this case price is above the 100 sma so we will only take buys or longs. *This Pair has been in a nice uptrend for some time. *It's now pulled back below the 20 ema and consolidating below the 20. *We are going to look for a close above the 20 ema to go long. *This trade plan we buy a daily candle close above the 20 ema. On the breaking candle to enter a full-sized position we want the volume bar to reach up to the volume average. If it doesn't reach the average but does reach 75% of the average open a ½ size position to reduce risk. You can calculate the percentage by dividing the first volume average by the second volume average. You should at least get 75%, if you don't then stand aside on the trade. The stop loss will be 1.5 x ATR. The first target will be 1 x ATR. So the way that works is you get your candle close above the 20 ema that's your entry point. At that time you look at the ATR of that candle. You multiply that by 1.5 to get your SL. You measure that distance behind the entry and that will be your SL. Then you measure 1 ATR above the entry and that will be your first target. If after entering the trade the candle closes back below the 20 ema, take the loss right then. Do not wait for the price to hit the SL. Our intention is that a breakout above the 20 ema should be explosive and hit our target fairly quickly. If the momentum goes away we want to shut the trade down without taking a full stop if possible. When the price hits our first target, close half the position for profit and set the SL to break even on the remainder. Follow stops as price moves in our direction until the market takes us out. These two rules are the very definition of cutting your losses and letting your winners run. Typically does this by using two positions. The first position has a stop loss and a take profit. That position will close automatically when the first target is hit. The second position will only have a stop loss and not take profit.
Short
by Tradingstrategyguides
EURUSD 1H VOLUME TRADING STRATEGY LONG TRADEVolume Trading Strategy This volume trading strategy uses two very powerful techniques that you won’t see written anywhere else. These are trade secrets that we’ve only been taught to professional traders. The Chaikin indicator will dramatically improve your timing and teach you how to trade defensively. Having a good defense when trading is absolutely critical to keep the profits that you’ve earned. In this article, we’re going to look at the buy side. The Importance of Buying Volume and Selling Volume Volume trading requires you to pay careful attention to the forces of supply in demand. Volume traders will look for instances of increased buying or selling orders. They also pay attention to current price trends and potential price movements. Generally, increased trading volume will lean heavily towards buy orders. These positive volume trends will prompt traders to open a new position. On the other hand, if the cash flow and trading volumes decrease– we see a “bearish divergence”, meaning that it will likely be an appropriate time to sell. You also need to pay attention to the relative volume—regardless of the raw number of transactions occurring in a trading period. Ask yourself how is the prospective asset performing relative to what was expected? By learning how to use the Chaikin money flow and other relevant indicators, you will easily be able to identify whether the buyer or the seller is currently “in control.” With practice, volume trading strategies can yield wins for your portfolio 77% of the time! Step #1: Chaikin Volume Indicator must shoot up in a straight line from below zero (minimum -0.15) to above the zero line (minimum +0.15). When the Volume goes from negative to positive in a strong fashion way it has the potential to signal strong institutional buying power. That’s our base heavy lifting signal! Basically, we let the market to reveal its intentions. When big money steps into the market, they leave a mark as their orders are so big that it’s impossible to hide. When the volume indicator Forex goes straight from below zero to above the zero line and beyond, it shows accumulation by smart money. We’re a firm believer that you get the maximum bang for your buck when you trade side by side with smart money. Chances are that institutions have more money and more resources at their disposal. Odds can be stacked against you, so if you want to change that, just follow the smart money. There is one more condition that needs to be satisfied to confirm a trade entry. Step #2: Wait for the Volume Indicator Forex to slowly pullback below the zero line. The price needs to remain above the previous swing low. Once we spotted the elephant in the room, aka the institutional players, we start to look for the first sign of market weakness. Here is how to identify the right swing to boost your profit. We’re going to let the Chaikin Money Flow indicator slowly drop below the zero line. The keyword here is “slowly”. We don’t want to see the volume dropping fast because this will invalidate the accumulation noted previously. Second, as the volume decreases and drops below the zero, we want to make sure the price remains above the previous swing glow. This will confirm the smart money accumulation. The Volume strategy satisfies all the required trading conditions, which means that we can move forward and outline what is the trigger condition for our entry strategy. Step #3: Buy once the Chaikin Forex indicator breaks back above the zero line. Wait for the candle to close before pulling the trigger. Now that we have observed real institutional money coming into the market, we wait for them to step back in and drive the market back up. When the Chaikin indicator breaks back above zero, it signals an imminent rally as the smart money is trying to markup the price again. We would need to wait for the candle close to confirm the Chaikin break above the zero line. Once everything aligns, we’re free to open our long position. *Note: The trigger candle needs to have the closing price in the upper 25%. This brings us to the next important step. We need to establish the Chaikin trading strategy which is finding where to place our protective stop loss. Step #4: Hide your protective Stop Loss under the previous pullback’s low Using a stop loss is crucial if you want to have an idea of how much you’re about to lose on your trade. Never underestimate the power of placing a stop loss as it can be lifesaving. Simply hide your protective stop loss under the previous pullback’s low. Never use a mental stop loss, and always commit an SL right at the moment you open your trades. Trading with a tight stop loss can give you the opportunity to not just have a better risk to reward ratio, but also to trade a bigger lot size. Step #5: Take profit when the Chaikin Volume drops below -0.15 Once the Chaikin volume drops back below -0.15, it indicates that the sellers are stepping in and we want to take profits. We don’t want to risk giving back some of the profits gained so we liquidate our position at the first sign of the smart money stepping in on the other side of the market. We always can get back into the market later if the smart money buyers show up again. **Note: The above was an example of a BUY trade using the best volume indicator. Use the same rules for a SELL trade – but in reverse. Conclusion – Best Volume Indicator The Volume Trading Strategy will continue to work in the future because it’s based on how the markets move up and down. Any market moves from an accumulation (distribution) or base to a breakout and so forth. This is how the markets have been moving for over 100 years. Smart money always seeks to mask their trading activities, but their footprints are still visible. We can read those marks by using the proper tools. Make sure you follow this step-by-step guide to properly read the Forex volume. The Chaikin indicator will add additional value to your trading because you now have a window into the volume activity the same way you have when you trade stocks. Volume Indicator Forex In the Forex market, we don’t have a centralized exchange of total volume because we’re trading over the counter. If we look at any trading platform like TradingView, they have a volume attached to their chart. But, since we don’t have a centralized exchange that volume is coming from the feed that TradingView uses. Each retail Forex broker will have their own aggregate trading volume. We can see that the volume in the Forex market is segmented, which is the reason why we need to use our best volume indicator. The Volume indicator Forex used to read a volume in the Forex market is the Chaikin Money Flow indicator (CMF). The Chaikin Money Flow indicator was developed by trading guru Marc Chaikin, who was coached by the most successful institutional investors in the world. The reason Chaikin Money Flow is the best volume and classical volume indicator is that it measures institutional accumulation-distribution. Typically on a rally, the Chaikin volume indicator should be above the zero line. Conversely, on sell-offs, the Chaikin volume indicator should be below the zero line.
Education
by Tradingstrategyguides
2
SILVER 1D DESCENDING TRIANGLE BREAKOUT SHORT TRADEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trend line in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
OANDA:XAGUSDShort
by Tradingstrategyguides
FOUR CANDLE HAMMER STRATEGYStep #1: The market needs to make a 20-candle new high The first step is to identify the market trend. This makes sense since the four candle hammer strategy is a pullback strategy it needs a prior trend. The first and the most important thing are to identify a strong trend that is moving vigorously up. Identifying strong trends can be done through technical indicators. However, our retracement strategy doesn’t use any technical indicators and rely solely on price action. Price action is the most accurate way to determine trends and hedge fund managers know this best. The 20-candle high rule is an excellent way to identify markets that are having a strong trend and is it’s rather a simple way to spot the trend. Step #2: Identify a 4 candle pullback that goes against the prevailing trend. As a general rule, the second part is to spot a pullback that moves against the prevailing trend. This step is quite important because the pullback will create our entry opportunity before the market starts resuming the prevailing trend. The four candle hammer strategy will relay again on the price to identify the retracement. Technical analysis trading can be done even without indicators. However, the retracement still needs to satisfy some trading conditions. Namely, we want to see 4 consecutive candle retracement in a row after the 20-candle high was put in place. Step #3: The 5th candle closing price needs to be above the 4th candle closing price It’s our job to identify when the short-term retracement will end and jump on the wagon before the dominant trend resumes and leaves us in the dust. On the 5th candle, we’re looking for the market to put an end to the retracement. The upside momentum should pick up on the 5th candle. The stronger the momentum at this stage, the better. Note* It’s sufficient for the 5th candle closing price to be above the 4th candle CLOSING price. Please note that we didn’t say the 4th candle HIGHEST price. The rule is that the higher the 5th candle closing price is, the better. This is a crucial day because it’s the candle prior to our possible entry point. Step #4: Buy at the close of the 5th candle of the pullback Our retracement strategy is offering us a good entry point that is close to the end of the pullback. This is also the point where the market will begin resuming the primary trend. In this regard, we buy at the close of the 5th candle of the pullback. Or you can say that we buy at the opening of the 6th candle. Our entry strategy will help you maximize your profit potential and minimize your risk level. Step #5: Place protective Stop Loss 10 pips below the 5th candle low Usually, the lowest risk trades happen when the retracement of a strong trends end. This is the reason why we’re able to use such a tight stop loss. Place your protective stop loss 10 pips below the 5th candle low. We’ve added a buffer of 10 pips to protect ourselves in case of any false breakouts. Note* Remember to always use SL because not using stop loss is the number 1 reason why traders take significant losses. Step #6: Take Profit equals 3 times the distance between your entry price and your stop loss price The best way to establish your profit targets is to multiply the distance between your entry price and your stop loss price by 3. In other words, we want our profit target to be 3 times greater than our stop loss giving us a positive risk to reward ratio of 1:3. Note** the above was an example of a BUY trade using technical analysis trading. Use the same rules for a SELL trade – but in reverse.
Long
by Tradingstrategyguides