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How to improve your trading by looking at interest rates: Part 4Hey everyone! 👋 This month, we wanted to explore the topic of interest rates; what they are, why they are important, and how you can use interest rate information in your trading. This is a topic that new traders typically gloss over when starting out, so we hope this is a helpful and actionable series for new people looking to learn more about macroeconomics and fundamental analysis! You can think of rates markets in three dimensions. 1.) Absolute 2.) Relative 3.) Through Time In other words; 1.) How are rates traded on an absolute basis? AKA, do they offer an attractive risk/reward for investors? 2.) How are rates traded on a relative basis? AKA, what separates bond prices between different countries? 3.) How are rates traded through time? AKA, what is the "Yield Curve"? In our first post , we took a look at how to find interest rate information on TradingView, and how rates fluctuate in the open market. In our second post , we took a look at some of the decision making that investors have to make when it comes to investing in bonds (rates) vs. other assets. In our third post , we took a look at rates on a relative basis between countries. In today's final post, we'll be looking at how rates are traded through time - in other words, the Yield Curve. What information can you glean from looking at the Yield Curve? How can it help your trading plan? Let's jump in and find out! For reference, let's first get a look at the Yield Curve: This chart contains a couple different assets, so let's break them down quickly. The white/blue area is the rate of interest you receive for 2 year bonds when you buy them The orange line is the rate of interest you receive for 5 year government bonds when you buy them The teal line is the rate of interest you receive for 7 year government bonds when you buy them The yellow line is the rate of interest you receive for 10 year government bonds when you buy them The purple line is the rate of interest you receive for 30 year government bonds when you buy them As you can see, differing maturities for bonds pay different yields over time. If you purchased a 2 year bond in early 2021, you'd be earning 0.15% yield PER YEAR. At the same time, if you purchased a 30 year bond in early 2021, you'd be earning 1.85% yield PER YEAR. The situation has changed since then. Currently: If you purchase a 2 year bond, you're earning 3.56% yield PER YEAR. if you purchase a 30 year bond, you're earning 3.45% yield PER YEAR. In other words, the situation has completely flipped. Why did this happen? There are a few reasons, linked to many of the topics we discussed in the last few posts. Let's break them down. 1.) Central Bank Funds Rate risk 2.) Inflation Risk 3.) Credit Risk 4.) Market Risk To start, from early 2021 to now, the central bank has raised the funds rate materially. This means that government bonds must see their yield increase. Why lend money to the government if you get more sticking your cash in a savings account? Secondly, inflation has picked up. This has been a result of supply shocks across the globe for commodities & services. As shortages have cropped up and demand has been steady or increasing, increases in the price of everyday goods has led short term bonds to "Catch up" to the yields of longer maturity bonds. Thirdly, as GDP has shrunk over the last two quarters, the risk that the U.S. government will be unable to pay back its debt through tax receipts and bond issuance rises. Finally, as we said in the second post: When stocks are outperforming bonds, institutional demand for stocks is higher, indicating that people are feeling good and want to take risk. When bonds are outperforming stocks, it can be indicative that people would prefer to hold 'risk free' interest payment vehicles as opposed to equity in companies with worsening economic prospects. This demand for bonds plays out across the Yield Curve. Demand for 'risk free' assets increases as the economic outlook worsens, meaning that the Yield Curve is indicative of how market participants think the market situation will play out over a given period of time. If the yield for 2 year bonds is higher than 10 year bonds, then market participants through their purchases and sales are articulating that they expect the next two years to have more economic risk than the next ten. In other words, they expect some sort of economic slowdown. This is extremely useful for multiple types of traders: Equities are tied to the economy - if rates are saying something about economic prospects, then it's smart to pay attention, as it may inform your asset selection process / trading style FX is intimately tied with rates - if rates are moving, FX is sure to be impacted. Crypto has shown a high inverse correlation historically with the "ease of money" index. If rates are going up, then non-interest paying crypto becomes less attractive. Anyway, that's all for our series on Interest Rates! Thanks so much for reading and have a great rest of your weekend. - Team TradingView ❤️
TVC:US01MYEducation
by TradingView
26
Wyckoffian logicWhen you understand the Wyckoffian phases of the market, you can determine when to be in or out of the market. You begin to understand how the large accounts determining market the trend, change of trend and price action. Wyckoff Phases of Accumulation Phase A: In phase A, supply has been dominant and it appears that finally the exhaustion of supply is becoming evident. The approaching exhaustion of supply or selling is evidenced in preliminary support (PS) and the selling climax (SC) where a widening spread often climaxed and where heavy volume or panicky selling by the public is being absorbed by larger professional interests. Once these intense selling pressures have been expressed, and automatic rally (AR) follows the selling climax. A successful secondary test on the downside shows less selling that on the SC and with a narrowing of spread and decreased volume. A successful secondary test (ST) should stop around the same price level as the selling climax. The lows of the SC and the ST and the high of the AR set the boundaries of the trading range (TR). Horizontal lines may be drawn to help focus attention on market behavior. It is possible that phase A will not include a dramatic expansion in spread and volume. However, it is better if it does, because the more dramatic selling will clear out more of the sellers and pave the way for a more pronounced and sustained markup. Where a TR represents a reaccumulation (a TR within a continuing up-move), you will not have evidence of PS, SC, and ST. Instead, phase A will look more like phase A of the basic Wyckoff distribution schematic. Nonetheless, phase A still represents the area where the stopping of the previous trend occurs. Trading range phases B through E generally unfold in the same manner as within an initial base area of accumulation. Phase B: The function of phase B is to build a cause in preparation for the next effect. In phase B, supply and demand are for the most part in equilibrium and there is no decisive trend. Although clues to the future course of the market are usually more mixed and elusive, some useful generalizations can be made. In the early stages of phase B, the price swings tend to be rather wide, and volume is usually greater and more erratic. As the TR unfolds, supply becomes weaker and demand stronger as professionals are absorbing supply. The closer you get to the end or to leaving the TR, the more volume tends to diminish. Support and resistance lines usually contain the price action in phase B and will help define the testing process that is to come in phase C. The penetrations or lack of penetrations of the TR enable us to judge the quantity and quality of supply and demand. Phase C:In phase C, the stock goes through testing. It is during this testing phase that the smart money operators ascertain whether the stock is ready to enter the markup phase. The stock may begin to come out of the TR on the upside with higher tops and bottoms or it may go through a downside spring or shakeout by first breaking previous supports before the upward climb begins. This latter test is preferred by traders because it does a better job of cleaning out the remaining supply of weak holders and creates a false impression as to the direction of the ultimate move. A spring is a price move below the support level of a trading range that quickly reverses and moves back into the range. It is an example of a bear trap because the drop below support appears to signal resumption of the downtrend. In reality, though, the drop marks the end of the downtrend, thus trapping the late sellers, or bears. The extent of supply, or the strength of the sellers, can be judged by the depth of the price move to new lows and the relative level of volume in that penetration. Until this testing process, you cannot be sure the TR is accumulation and hence you must wait to take a position until there is sufficient evidence that markup is about to begin. If we have waited and followed the unfolding TR closely, we have arrived at the point where we can be quite confident of the probable upward move. With supply apparently exhausted and our danger point pinpointed, our likelihood of success is good and our reward/risk ratio favorable. Phase D:If we are correct in our analysis and our timing, what should follow now is the consistent dominance of demand over supply as evidenced by a pattern of advances (SOSs) on widening price spreads and increasing volume, and reactions (LPSs) on smaller spreads and diminishing volumes. If this pattern does not occur, then we are advised not to add to our position but to look to close out our original position and remain on the sidelines until we have more conclusive evidence that the markup is beginning. If the markup of your stock progresses as described to this point, then you’ll have additional opportunities to add to your position. Your aim here must be to initiate a position or add to your position as the stock or commodity is about to leave the TR. At this point, the force of accumulation has built a good potential as measured by the Wyckoff point-and-figure method. In phase D, the markup phase blossoms as professionals begin to move into the stock. It is here that our best opportunities to add to our position exist, just as the stock leaves the TR. Phase E: Depicts the unfolding of the uptrend; the stock or commodity leaves the trading range and demand is in control. Sell offs are usually feeble. Wyckoff Accumulation Events PS: Preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC: Selling climax, the point at which widening spread and selling pressure usually climaxes, as heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR: Automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST: Secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Shakeouts: (and or Springs) usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements.. Test: Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on diminished volume. SOS: Sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of the prior price action. LPS: Last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU: Back-up. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. Wyckoff Phases of Distribution Phase A: In Phase A, demand has been dominant and the first significant evidence of demand becoming exhausted comes at preliminary supply (PSY) and at the buying climax (BC). It often occurs in wide price spread and at climactic volume. This is usually followed by an automatic reaction (AR) and then a secondary test (ST) of the BC, usually upon diminished volume. This is essentially the inverse of phase A in accumulation. As with accumulation, phase A in distribution price may also end without climactic action; the only evidence of exhaustion of demand is diminishing spread and volume. Where redistribution is concerned (a trading range within a larger continuing down-move), you will see the stopping of a down-move with or without climactic action in phase A. However, in the remainder of the trading range (TR) for redistribution, the guiding principles and analysis within phases B through E will be the same as within a TR of a distribution market top. Phase B: The building of the cause takes place during phase B. The points to be made here about phase B are the same as those made for phase B within accumulation, except clues may begin to surface here of the supply/demand balance moving toward supply instead of demand. Phase C: One of the ways phase C reveals itself after the standoff in phase B is by the sign of weakness (SOW). The SOW is usually accompanied by significantly increased spread and volume to the downside that seem to break the standoff in phase B the SOW may or may not “fall through the ice,” but the subsequent rally back to a “last point of supply” (LPSY), is usually unconvincing for the bullish case and likely to be accompanied by less spread and/or volume. Last point of supply gives you your last opportunity to exit any remaining longs and your first inviting opportunity to exit any remaining longs and your first inviting opportunity to take a short position. An even better place would be on the rally that tests LPSY, because it may give more evidence (diminished spread and volume) and/or a more tightly defined danger point. An upthrust is the opposite of a spring. It is a price move above the resistance level of a trading range that quickly reverses itself and moves back into the trading range. An upthrust is a bull trap — it appears to signal a start of an uptrend but in reality marks the end of the up-move. The magnitude of the upthrust can be determined by the extent of the price move to new highs and the relative level of volume in that movement. Phase C may also reveal itself by a pronounced move upward, breaking through the highs of the trading range. This is shown as an upthrust after distribution (UTAD). Like the terminal shakeout in the accumulation schematic, this gives a false impression of the direction of the market and allows further distribution at high prices to new buyers. It also results in weak holders of short positions surrendering their positions to stronger players just before the down-move begins. Should the move to new high ground be on increasing volume and relative narrowing spread, and price returns to the average level of closes of the TR, this would indicate lack of solid demand and confirm that the breakout to the upside did not indicate a TR of accumulation, but rather a formation of distribution. Successful understanding and analysis of a trading range enables traders to identify special trading opportunities with potentially very favorable reward/risk parameters. When analyzing a trading range, we are first seeking to uncover what the law of supply and demand is revealing to us. However, when individual movements, rallies, or reactions are not revealing with respect to supply and demand, it is important to remember the law of effort versus result. By comparing rallies and reactions within the trading range to each other in terms of price spread, volume, and time, additional clues may be discovered as to the stock’s strength, position, and probable future course. It will also be useful to employ the law of cause and effect. Within the dynamics of a trading range, the force of accumulation or distribution gives us the cause and the potential opportunity for substantial trading profits. The trading range will also give us the ability, with the use of point-and-figure charts, to project the extent of the eventual move out of the trading range and will help us determine if those trading opportunities favorably meet or exceed our reward/risk parameters. Phase D: Phase D arrives and reveals itself after the tests in phase C show us the last gasps or the last hurrah of demand. In phase D, the evidence of supply becoming dominant increases either with a break through the ice or with a further SOW into the trading range after an upthrust. In phase D, you are also given more evidence of the probable direction of the market and the opportunity to take your first or additional short positions. Your best opportunities are at rallies representing LPSYs before a markdown cycle begins. Your legging in of the set of positions taken within phases C and D represents a calculated approach to protect capital and maximize profit. It is important that additional short positions be added or pyramided only if your initial positions are in profit. Phase E: Depicts the unfolding of the downtrend; the stock or commodity leaves the trading range and supply is in control. Rallies are usually feeble. Wyckoff Distribution Events PSY: Preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC: Buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, and heavy or urgent buying by the public is being filled by professional interests at prices near a top. A BC often occurs coincident with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. AR: Automatic reaction. With demand substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of a distribution TR. ST: Secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. If a top is to be confirmed, supply will outweigh demand, and volume and spread should decrease as price approaches the resistance area of the BC. A ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs, then quickly reverses to close below resistance. After a UT, price often tests the lower boundary of the TR. SOW: Sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. LPSY: Last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. UTAD: Upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution. AR - Automatic rally or reaction BC - Buying Climax BOI - Backing upto ice BTI - Breaking the ice BUEC - Backup to edge of creek CREEK - Critical support FTI - First time over ice ICE - Critical resistance JAC - Jumping across the creek (or JOC) LPS - Last point of Support (Demand) LPSY - Last point of Supply MD - Mark down MU - Mark up PS - Preliminary support (Demand) PSY - Preliminary supply SOS - Sign of strength SOW - sign of weakness ST - Secondary test TSO - Terminal shake out (Spring) TUT - Terminal thrust UTAD - Up thrust after distribution SC - Selling Climax TR - Trading Range UT - Up thrust Best regards EXCAVO
BITSTAMP:BTCUSDEducation
by EXCAVO
95
Tips to Help Demystify the RSIPrimary Chart: Tips to Help Demystify the RSI Introduction to Momentum Indicators Many indicators exist for technical analysis. And a number of them focus on momentum, which is distinguishable from other core technical concepts such as trend, support and resistance, volatility, and standard deviation. Momentum tools measure the velocity of a directional price move. Using a train as an analogy, momentum considers the speed, velocity and magnitude of the train's movement in a given direction, e.g., north or south. In a sense, it helps determine the strength and speed of the directional travel of the train. By contrast, trend analysis considers whether a price move is consistently heading in a given direction. A trend can be valid despite corrective retracements, where price retraces a portion of the prior move, consolidates a portion of the prior move, and then resumes movement in the trend's direction. Using the same train analogy, trend analysis considers how effectively and persistently the train is moving in a given direction, such as north or south. Momentum, though, considers the train's speed and velocity in whatever direction the train is moving. Many momentum indicators also are not limited to analyzing momentum and may have utility as a trend gauge as well. For example, Stochastics, MACD and RSI all have the additional capacity to help analyze trends. Basic Concepts and Calculation of RSI Created by J. Welles Wilder, the RSI is one of the most widely used and well-known momentum indicators. The acronym "RSI" means relative strength index. RSI should not be confused with the concept of relative strength, which compares one instrument or security against another to determine its outperformance or underperformance. Some other common momentum indicators that have been in use for many years include the Rate-of Change, Chande Momentum Oscillator, Stochastics, MACD, and CCI. Most momentum indicators, including RSI, share some conceptual aspects, such as overbought and oversold conditions and divergences, even though they may vary in the way they are calculated and interpreted. Reviewing the way an indicator is calculated can sometimes help to sharpen one's understanding of it and interpret it more effectively. RSI's calculation is not as complex as some indicators. So reviewing its calculation remains an accessible exercise, but this is not essential to mastering the indicator. TradingView's RSI description contains a useful summary of how the indicator is calculated. See the Calculation section of the RSI description at this link: www.tradingview.com(close%2C%2014). Another excellent description of how RSI is calculated may be found on this reputable technical-analysis website: school.stockcharts.com To summarize, RSI's basic formula is as follows: RSI = 100 – (100 / 1 + RS), where RS = average gain / average loss. Using the default lookback period of 14 (note that any lookback period can be selected), the calculation then proceeds to include 14 periods of data in the RS portion of the calculation (average gain / average loss). So the average gain over the past 14 periods is divided by the average loss over the past 14 periods to derive "RS," and then this RS value is plugged into the formula at the start of this paragraph. The subsequent calculations also have a lookback of 14 periods (using the default settings) but smooth the results. Smoothing of these values then occurs by (1) multiplying the previous average gain by 13 and adding the current period's gain, if any, and dividing that sum by 14, and (2) multiplying the previous average loss by 13 and adding the current period's loss, if any, and dividing that sum by 14. If the lookback period is adjusted from the default of 14, then the formula and smoothing techniques will have to adjust for that different period. In short, the calculation reveals that RSI's core function is to compare the size of recent gains against the size of recent losses and then normalize that result so the indicator's values may fluctuate between 0 to 100. Note that if a daily period is used, for example, the average day's gain is compared against the average day's loss over the lookback period selected. Similarly, if hours are used, the average hour's gain is compared against the average hour's loss over the relevant lookback period. RSI can be used on any timeframe, including a 1-minute or 5-minute chart, and simply calculates its values based on the period to which the indicator is applied, based on a default using closing prices for the period specified. With TradingView's RSI indicator, traders have a great deal of flexibility in adjusting such defaults to some other preferred value, so the closing price need not be used—the default can be changed to the open, the high, the low, high+low/2, high+low+close/3, or several other options. Interpreting RSI's Overbought and Oversold Signals With some exceptions, the higher-probability RSI overbought (OB) and oversold (OS) signals align with the direction of the trend. The old trading adage remains valid for RSI as with other forms of technical analysis: the trend is your friend. In the chart below, consider the yellow circles flagging OS signals that could have been effective in the Nasdaq 100's uptrend in 2021. Supplementary Chart A: Example of RSI OS Conditions That Align with an Uptrend and Key Support As with other technical trade signals, countertrend setups should be avoided in the absence of overwhelming confirmation from other technical evidence. If a countertrend setup is traded, use extra caution and smaller position size. In this context, trading RSI signals against the trend means selling or entering a short or bearish position in an uptrend when an OB signal appears, or it means buying or entering bullish positions in a downtrend when an OS signal appears. It may also mean trading counter-trend positions as soon as RSI begins exiting an OB or OS zone. Stated differently, trading overbought and oversold signals against the trend will likely result in mounting losses. Countertrend trades require much technical experience and significant trading expertise—and even the most experienced trading veterans and technical experts say that the counter-trend trades tend to be low probability setups. In short, never trade the RSI's OB and OS signals mechanically without considering any other technical evidence. Supplementary Chart B: NDX OB Condition in an Uptrend In the chart above, note how the Nasdaq 100 (NDX) reached a fairly high daily RSI reading of 77.17 on July 7, 2021. This chart shows an example of how even very high OB conditions can persist much longer than expected. RSI remained above 70 for over a trading week. And the ensuing pullback was not that significant, and it didn't reverse the uptrend at all. The risk-reward for mechanically trading this setup would have been poor, and stops would probably have been ignored at some point in the days following the signal. For an experienced trader with small position size, perhaps the second RSI peak immediately following the July 7, 2021 peak would have worked for a short-term trade given that a divergence arose (higher price high coinciding with a lower RSI high). But it would still have been a difficult trade requiring excellent timing and precision. In summary, OB / OS signals should not be interpreted and traded mechanically. The trend and other technical evidence should always be considered. OB / OS signals work best when aligned with the direction of the trend on the relevant time frame. They also work best when taken at crucial support or resistance. Consider several other tips and tricks when interpreting OB / OS signals on RSI. 1. The importance of an OB / OS signal depends not only on the context of the trend in which it arises but also on the time frame on which it appears and the lookback period used in its calculation. This is intuitive, but it helps to keep this in mind. For example, an OB / OS reading has a greater effect on the weekly or monthly chart than on the daily, and an OB / OS reading has a greater effect on daily chart than on the hourly or other intraday chart. Furthermore, if the RSI lookback period is set to 5 periods on a given time frame, the effect of an OB / OS reading will less significant than if the RSI lookback period is set to 14 (the default setting). 2. Consider past OB / OS readings for the same security or index being considered (using the same time frame for past and current OB / OS readings). Each security or index may have OB / OS levels that differ somewhat from other securities or indices. In addition, the OB / OS readings that are typical for a given a security, index or instrument may vary over time in different market environments. It may help to draw support or resistance lines on the RSI indicator within the same market environment and trend to determine what RSI OB / OS levels are typical. RSI support or resistance levels in an uptrend should not drawn to be applied and used in a downtrend for the same index or security. Supplementary Chart C.1: RSI Support and Resistance Levels for NDX in 2021 on Daily Chart Supplementary Chart C.2: Two RSI Downward Trendlines Drawn on BTC's Weekly Chart to Help Identify Resistance 3. Divergences can strengthen the effect of an OB / OS signal. Stated simply, a divergence occurs when the RSI and price are in conflict. For example, consider two or three subsequent higher highs in price that occur (this can happen in an uptrend or a bear rally or in a trading range). When price makes the second or third high, a divergence arises if RSI makes a lower high. Or consider two or three subsequent lower lows in price. When price makes the second or third lower low, a divergence arises if the RSI makes a higher low. A greater number of divergences presents a stronger signal than a lower number of divergences. And having divergences on multiple time frames can also be helpful. Finally, a divergence should not be traded until confirmation comes from price itself, i.e., a trendline or other support / resistance violation. Supplementary Chart D: Example of RSI Bearish or Negative Divergence at NDX's All-Time High in November 2021 4. OB / OS signals also can be helpful in chop when they arise at the upper boundary of a well-defined trading range. In choppy trading ranges, one has a better trading edge at the edge. OB / OS signals that arise at the edge (at critical support / resistance) are the most useful. But depending on the trading strategy, setups in choppy trading ranges can be more difficult and lower probability than setups in strong trends. Using RSI as a Trend-Analysis Tool While primarily a momentum tool, the RSI has trend-analysis aspects. Because the RSI will likely remain in overbought (OB) or oversold (OS) for extended periods, it helps evaluate the strength and duration of price trends. In an uptrend or bull market, the RSI (daily) tends to remain in the 40 to 90 range with the 35-50 zone acting as support. In a downtrend or bear market the RSI (daily) tends to stay between the 10 to 60 range with the 50-65 zone acting as resistance. These ranges will vary depending on the RSI settings, time frame, and the strength of the security or market’s underlying trend. As mentioned above, RSI readings will also vary from one security or index to another. They also vary in different market environments, e.g., a strong uptrend vs. a weak uptrend will have different OB / OS readings. So the RSI can help confirm the trend when it moves within the RSI range that is typical of that security or index when trending. As a hypothetical example example, if a major index appears to be making higher highs and lower highs, respecting trendline and other key supports, and showing technical evidence of an uptrend, then RSI can help confirm this trend analysis by marking OS lows within the 35-50 range (perhaps 30 on a volatile pullback). RSI can also help time entries and exits when reaching the area that has been where RSI has found support in its current market environment. The following points summarize how RSI tends to operate during trending price action: During an uptrend, RSI will trend within the upper half of the range (roughly), moving into OB territory frequently (and at times persisting in the OB zone) and finding support around 35-50. When RSI finds support around 35-50, this may represent tradeable a price pullback—a retracement of the recent trend’s price move—that may work as a bullish entry if other technical evidence confirms. During a downtrend, RSI will trend within the lower half of the range (roughly), moving into OS territory frequently (and at times persisting in the OS zone) and finding resistance around 50-65. When RSI finds resistance around 50-65 (sometimes higher given the violent nature of short-squeeze induced bear rallies), this may represent tradeable a price bounce—a retracement of the recent trend’s price move —that may work as a bearish entry if other technical evidence confirms. RSI, like other indicators, cannot produce perfectly reliable and consistently accurate signals. Like other indicators, it can help identify higher probability trade setups when used correctly and when confirmed with other technical evidence. When considering trade setups in terms of probabilities rather than certainties, traders will find position sizing and risk management to be a vital part of any strategy that relies in part on the RSI.
KRAKEN:BTCUSDEducation
by SquishTrade
51
How to improve your trading by looking at interest rates: Part 3Hey everyone! 👋 This month, we wanted to explore the topic of interest rates; what they are, why they are important, and how you can use interest rate information in your trading. This is a topic that new traders typically gloss over when starting out, so we hope this is a helpful and actionable series for new people looking to learn more about macroeconomics and fundamental analysis! In our first post, we took a look at how to find interest rate information on TradingView, and how rates fluctuate in the open market. In our second post , we took a look at some of the decision making that investors have to make when it comes to investing in bonds (rates) vs. other assets. Today, we'll be taking a look at how global investors understand interest rates, using three concrete examples. Let's dive in! As we mentioned last time, when it comes to understanding interest rates in any region, there are three main things to take a look at: 1.) Central Bank Funds Rate risk 2.) Inflation Risk 3.) Credit Risk First, let's take a look at Credit Risk. 💥💥 Credit risk is something that happens when there is a risk that you may not get back the money you loan to a certain entity. For this series, since we're only looking at government bonds, this means the risk that the government won't pay you back. Lesson: All things being equal, the more an entity (Company, Country) has to pay to borrow money, the less 'stable' they are in the eyes of investors. Next, let's take a look at Inflation Risk. 💸💸 Inflation Risk is something that happens when there is a risk that your principal may lose buying power over time, faster than the interest rate, due to the rate of inflation. For example, check out this chart: In the Blue/White, you can see Turkish 1 year bond yields. In the green, you can see U.S. 1 year bond yields. Notice the difference in interest rates - the Turkish bonds pay 14%, and the U.S. bonds pay 3%. While the U.S. is a larger and more developed economy (and therefore runs a lower "credit" risk), some of the difference in yield comes down to the drastically different rates of inflation within the economy. In the red, you can see the rate of inflation in the United States, and in the yellow you can see the rate of inflation in Turkey. Assuming a steady exchange rate, as Turkish Lira buy relatively less and less goods and services over time vs. The U.S. Dollar, investors will demand more yield to prevent against the loss in buying power. Lesson: the direction of Interest rates tells you how investors think inflation might develop over a certain time horizon. Finally, let's take a look at Central Bank Funds Risk. 🏦🏦 Central bank funds risk is something that happens when the Central Bank may move base funding rates adversely to your position. Check out this chart: It's the same chart as last time, but instead of the inflation rates superimposed on the interest rates, we've added the current Central Bank rates to the chart. Remember, the Central Bank rate is the rate you get from the bank without "locking up" your money into a loan to the government. Central Bank rate risk plays the biggest part in bond pricing, as you can see that interest rates and yields move together rather closely, especially as these are only 1 year bonds (we will look at the yield curve next week). That said, given that Central Banks across the world are typically mandated to try and create stable prices for consumers, their actions are often dancing with inflation. Sometimes banks will raise rates too much and create deflation. Sometimes banks will raise rates too little and will be "behind" inflation (as many believe is currently the case). Lesson: Interest rates are indicative of Central Bank policy, which is informed by several factors and varies from region to region. In other words - interest rates can describe the health of an economy. Too "High", and the Central Bank may have lost control. Too "Low", and the economy may be stagnant. These are generalizations, but they are a nice place to begin comparing regions on a relative basis. And there you have it! Some concrete examples and lessons to be learned from looking at live moves in the market. Understanding these dynamics can be really helpful to building out a more comprehensive trading strategy. In other words, if you're trading FX, it's incredibly important to know interest rate differentials between countries, along with the underlying drivers of rates. Similarly, if you're looking at investing in a company, looking at that company's bond yields can tell you how much risk investors think the company has of defaulting on obligations. Next week, we'll take a look at the Yield Curve, and include some more lessons about how you can use that information to begin forecasting prices and the overall economy. - Team TradingView ❤️❤️
TVC:US30YEducation
by TradingView
50
The Art Of Do Nothing In TradingSociety… it conditions us to continually chase money, power, and a faster, wilder pace of life. Don’t slow down, and God forbid don’t pause, don’t reflect. Keep chasing or you fall behind. Over-schedule, overthink, overwork… this is the mantra. This is supposed to be what progress is. This is supposed to be what success is. Early, we learn to believe that this is absolutely normal, and in due time it becomes an addiction. We can’t sit still for a moment. Just like any addict, sitting still and doing nothing makes us feel unproductive. We feel we’re losing time, so we become agitated. In trading, patience and the ability to sit still is not only a virtue, it’s gold. Doing nothing can be one of the most productive things you can do. But as one would expect, being the addicts that we are, the moment the trading session opens, we feel the urge to become more productive all of a sudden. It’s like our minds will not let us enjoy doing nothing. We have to analyze, anticipate, worry, stress, tweak, especially when we’re not supposed to THE REASON… You have thoughts, right? Have you ever noticed that those thoughts tend to occur constantly? Have you ever noticed that some of those thoughts are visual?– you have memories (past), plans (future), imaginations (fantasy) just popping up like that in that space you call mind. Have you ever noticed that you have sensations all over your body–in it and on it; pleasant, unpleasant; some physical, some emotional? Have you ever noticed that all these experiences–thoughts and sensations–are continuous? You’re constantly pulled to mental states and body states, and, most of the time, you’re not aware that you are. You’re automatically in the stories, you believe them, and they urge you to act in a certain way. Which you do. Have you ever noticed that too? Then, next thing you know, you’re entering your trades at the wrong time; you’re exiting at the wrong time; you’re removing your stop-loss; you’re increasing or decreasing your position size… essentially, you’re going against your trading rules. This is a problem because this lack of awareness of your urges is costing you money. Trading is mostly a waiting game where you have to strike only when the time is right. If you want action that happens on your own terms, you’re in the wrong field. As a trader, you simply can’t afford to lack self-awareness. The market does not hurry, it moves at its own rhythm, on its own time. And self-awareness helps you cultivate patience and ‘do nothing’ as that happens. This ability to let the market do its thing saves you time and energy. It allows trades to come to you. It puts a stop to the chasing. It embraces the natural order and evolution of things. But best of all, this is a learnable skill. Absolutely! Let’s try a little exercise… THE DO-NOTHING TECHNIQUE Posture : Right where you are. When : While waiting for your entry signal; while waiting for your exit signal. Instructions : Just allow your mind to do its thing. It will generate stories and your body will generate feelings urging you to behave in a certain way. Your aim is to tolerate being there with yourself without trying to change or control anything. Just be there. Let your attention go anywhere it wants. You can fantasize about the perfect trade that yields you 1000% return; you can worry about missing out on an incredible opportunity; you can fear a loss; you can think about nothing or everything. But notice it. Notice where your mind goes. Tune in to that part of you that simply notices what you’re thinking and feeling instead of being automatically captured by those different states. That observing quality of your mind notices things in a neutral way. Notice how it’s not entangled or captured by the different stories and mental and bodily states. It simply observes. Pure, neutral, unencumbered… And that’s it. That’s the whole technique! Now, the do-nothing technique is more readily applicable for day traders since they have to be in front of their screen during the entire process, from trade selection to exit. But swing traders and position traders can also make use of it. In fact, you can use it anywhere, anytime, in and out of the market. This technique helps you tolerate whatever your body and mind do, which helps you overcome impatience. Impatience is you trying to force things to happen by thinking them more strongly or more often, without paying very much attention to where things actually are at. On the other hand, when you’re patient, you’re a keen observer of what’s happening. You notice when there’s an opportunity for something to happen, and when there isn’t yet. You notice that things develop through different cycles, and different things happen at different points in the cycle. In other words, you drop the need to create action on your own terms, you only respond to the action in a systematic way whenever it appears. Now, a few tips… Tip #1 –This Takes Practice It’s OK if you find it hard to do the do-nothing technique at first, but this is where you start from. By the way, Tom Basso (hedge fund manager interviewed in The New Market Wizards uses a very similar technique. Tip #2 –You Are Intentionally Doing Nothing You do not even have to approach this as a meditation technique, although you are free to do so. Notice what your attitudes are, and do not defend yourself against anything. Whether you are bored, happy, tired, excited, anxious, fearful, greedy, restless, you welcome it all. Your goal is to just observe yourself experiencing those different states. You cannot fail at this. Tip #3 –Notice The Urge To Take Action If you have a lot of noise in your head, you may find yourself wanting to take action in some form – entering (or exiting) before you even get a trade signal. As said, all that “noise” or mental rehearsal is not a problem and is not to be resisted. When you resist the noise, it only gets louder. But just this act of noticing the noise is extremely powerful because it allows you to see what’s going on in your mind and body as if from a third-person perspective. This begets objectivity and you can then say “ Okay, this thought, or feeling, or urge is not in line with my trading rules, so I will not act on them .” The Bottom Line The Do-Nothing technique is simply about interrupting your impulsive behaviors. It’s cultivating a calm acceptance that things in life can and will often happen in a different order than the one you could be holding in mind. It’s keeping a good attitude while waiting for your pitch. And this all starts with awareness. Stay Safe & Good Luck Wish You Have Profitable Weeks!! Have Nice Days!
AMEX:SPYEducation
by Zestiria
285
HOW TO SET STOP LOSS | 3 STRATEGIES EXPLAINED 📚 Hey traders, In this post, we will discuss 3 classic trading strategies and stop placement rules. 1️⃣The first trading strategy is a trend line strategy. The technique implies buying/selling the touch of strong trend lines, expecting a strong bullish/bearish reaction from that. If you are buying a trend line, you should identify the previous low. Your stop loss should lie strictly below that. If you are selling a trend line, you should identify the previous high. Your stop loss should lie strictly above that. 2️⃣The second trading strategy is a breakout trading strategy. The technique implies buying/selling the breakout of a structure, expecting a further bullish/bearish continuation. If you are buying a breakout of a resistance, you should identify the previous low. Your stop loss should lie strictly below that. If you are selling a breakout of a support, you should identify the previous high. Your stop loss should lie strictly above that. 3️⃣The third trading strategy is a range trading strategy. The technique implies buying/selling the boundaries of horizontal ranges, expecting bullish/bearish reaction from them. If you are buying the support of the range, your stop loss should strictly lie below the lowest point of support. If you are selling the resistance of the range, your stop loss should strictly lie above the highest point of resistance. As you can see, these stop placement techniques are very simple. Following them, you will avoid a lot of stop hunts and manipulations. How do you set stop loss? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
86
Specific Trendline to Determine the Direction of any MarketHow to identify the specific points for trendline to determine the direction of the market? In this example, I am using the Nasdaq index. You can use this trendline technique to any markets because its principles in this tutorial are applicable throughout whether to an individual stock, indices or even commodities. I am going to introduce the primary and secondary trendlines, I hope after this tutorial, it will bring greater clarity in how you can deploy them. Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. This method I just shared, it can be applied to any market and any timeframe, be it the minute chart or the weekly chart. Micro E-Mini Nasdaq 0.25 = US$0.50 1.00 = US$2
CME_MINI:MNQ1!Education
by konhow
11
Observations on Technical Verses Fundamental Analysis:Trend Following and Growth Investing In Technical Analysis (TA), trend following is the equivalent of growth investing in Fundamental Analysis (FA). Further, in TA, mean reversion analysis ("overbought" and "oversold") is the equivalent of valuation ("overvalued" & "undervalued") in FA. In both trend following and growth investing, the focus is on finding the best trends (price in TA, revenues in FA), without regard to "value". Therefore, a trend follower will hold onto a trending stock, regardless of how "overbought" it gets, much like a growth investor will hold onto a growth stock, regardless of how "overvalued" it gets. Conversely, a mean reversion investor will buy stocks that are very "oversold" relative to some anchor, such as the 200-day average or 52-week high, regardless of the direction of the trend, while a value manager will buy stocks that are "undervalued" relative to some anchor, such as earnings or book value, regardless of current fundamental performance. In other words, both mean reversion and value investors are making the case that the trends (price or earnings) have simply gone too far and are unjustified. Understandably, we can see why trend following and mean reversion don't "work" at the same time, just as growth and value don't "work" at the same time. In the end, the line in the sand between TA and FA is ego. A pure TA investor accepts the verdict of the market in terms of what it deems fundamentally "attractive" visa vie the existence of either a positive price trend in a timeframe that is driven by fundamental trends (as opposed to short term trends and noise) or a magnitude of "oversold" momentum that overlaps with historical valuation measures. A FA investor, on the other hand, invests perhaps hundreds of hours developing a personal opinion of what is "attractive", and often finds him/herself at odds with the market's verdict. Since we can never make money until the market agrees with us, we can see then how a more holistic investor who has the wisdom to unite the strengths of trend following with growth investing (or mean reversion with value investing) is better off than those who use only one of those inputs. By leaning on trend, a growth investor will know when the market agrees with his/her painstakingly curated fundamental view, particularly when things are changing, most importantly from good to bad. Behavioral bias may prevent a growth investor from seeing the change in fundamentals that is being depicted by the change in price trend. Indeed, it is in this very moment (former highflying, expensive growth stock that breaks price trend in a meaningful timeframe) when "overbought and overvalued" conditions finally start to matter. David Lundgren, CMT CFA Chief Market Strategist Co-Host "Fill the Gap" podcast Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
AMEX:IWYEducation
by CMT_Association
13
Chinese Real Estate Large Cap IndexThis is an updated version of my previous "Evergrande + others" chart of Chinese real estate. Instead of including some smaller companies with longer price history, this focuses on large market cap companies. I weighted the prices against each other equally by their 42 day average, and then weighted that by the market cap: 1. Sun Hung Kai Properties (0016) HKD 268.5 billion -2.06% Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It...See Company Profile HKD 2. China Overseas Land & Investment (0688) HKD 252.28 billion 24.86% China Overseas Land & Investment Limited, an investment holding company, engages in the property development and investment, and treasury...See Company Profile HKD 3. China Resources Land (1109) HKD 245.3 billion 4.88% China Resources Land Limited, an investment holding company, invests, develops, manages, and sells properties in the Peoples Republic of China....See Company Profile HKD 4. China Vanke Co. (2202) HKD 235.54 billion -11.14% China Vanke Co., Ltd., a real-estate company, develops and sells properties in the Peoples Republic of China. The company operates through...See Company Profile HKD 5. CK Asset (1113) HKD 202.95 billion 13.53% CK Asset Holdings Limited operates as a property developer in Hong Kong, the Mainland, Singapore, the United Kingdom, continental Europe,...See Company Profile HKD 6. Longfor (0960) HKD 177.07 billion -20.57% Longfor Group Holdings Limited, an investment holding company, engages in property development, investment, and management businesses in China....See Company Profile HKD 7. Sino Land Co. (0083) HKD 91.07 billion 21.52% Sino Land Company Limited, an investment holding company, invests in, develops, manages, and trades in properties. It operates through six...See Company Profile HKD 8. Country Garden Co. (2007) HKD 80.22 billion -49.28% Country Garden Holdings Company Limited, an investment holding company, invests, develops, and constructs real estae properties primarily in...See Company Profile HKD 9. Greentown China (3900) HKD 40.51 billion 28.98% Greentown China Holdings Limited, an investment holding company, engages in the property development and related business in China. It operates...See Company Profile HKD 10. Yuexiu Property Co. (0123) HKD 29.82 billion 40 .17% Yuexiu Property Company Limited, together with its subsidiaries, develops, sells, and manages properties primarily in Mainland China and Hong...See Company Profile HKD source: fknol.com (Unfortunately they no longer sort by market cap by default. To view it you'll have to sign up for fknol's terrible website.) Here was the logic I used: 'a' = 42 day price average. 'b' = adjust b based on the market cap. if the market cap is larger, c gets smaller, market cap smaller, c larger. Market....a=42D_AVG.....b=a/Market_Cap_Billions --------------------------------------------------------------------------------------------- 0016.......94.14................0.3506 0688.......21.49................0.08518 1109.......35.14................0.1433 2202.......18.51................0.07858 1113.......51.73................0.2549 0960.......37.36................0.211 0083.......0.3542..............0.003889 2007.......5.662................0.07058 3900.......13.34................0.3293 0123.......0.09548............0.003202 (I had to fill in the table with dots so it would show correctly.) Now, for each row, take each market and divide by 'b': 'market1'/b1 + 'market2'/b2 + ... : '0016'/0.3506+'0688'/0.08518+'1109'/0.1433+'2202'/0.07858+'1113'/0.2549+'0960'/0.211+'0083'/0.003889+'2007'/0.07058+'3900'/0.3293+'0123'/0.003202 You can also exclude the second column, skip computing 'b', and instead divide the price by 'a' and you would have a 42 day average price weighted index. Dividing a price by an average would normalize it near 1, weighting each price equally. Does it make sense? Thanks for taking a look! Misc. Analysis: Total valuation, going by the info, is roughly 1623.26 billion HKD , which is ~200 billion USD. This is not an unusually large amount, but the importance of these companies is far beyond their numerical market cap. Chinese citizens and companies purchase properties around the world, so I think this price action goes hand in hand with global real estate, possibly with this index as a leading indicator. A large global surplus of buyers in the last few decades has pushed real estate prices everywhere to unreasonable levels and now there is a deficit of buyers. Any serious bailout will distort prices and at some point it's possible that the price action becomes useless. The CCP owns a piece of every company already so I think this would be the more probable route. Good luck and don't forget to hedge your bets!
CAPITALCOM:0016Education
by fringe_chartist
11
How to improve your trading by looking at interest rates: Part 2Hey everyone! 👋 This month, we wanted to explore the topic of interest rates; what they are, why they are important, and how you can use interest rate information in your trading. This is a topic that new traders typically gloss over when starting out, so we hope this is a helpful and actionable series for new people looking to learn more about macroeconomics and fundamental analysis! Last week we took a look at how to find bond prices on our platform, as well as a few quick tips for understanding how and why interest rates move. If you'd like a quick refresher, click the link at the bottom of this post. This week, let's take a look at why understanding interest rates is important to your trading, and how you can use this info to your advantage. You can think of rates markets in three dimensions. 1.) Absolute 2.) Relative 3.) Through Time In other words; 1.) How are rates traded on an absolute basis? AKA, do they offer an attractive risk/reward for investors? 2.) How are rates traded on a relative basis? AKA, what separates bond prices between different countries? 3.) How are rates traded through time? AKA, what is the "Yield Curve"? It's worth taking a little bit of a deeper look at each of these dimensions and how they work. This week we will begin by looking at interest rates from an 'Absolute' standpoint . 🏦 When it comes to looking at bonds as an investment vehicle on this straightforward basis, investors in the broader market will typically look at how attractive bonds are from a yield / total return perspective vs. other asset classes, like equities, commodities, and cryptocurrencies. When it comes to gauging this total return question, the three main risks are important to know about: 1.) Central Bank Funds Rate risk 2.) Inflation Risk 3.) Credit Risk In other words; 1.) Will the central bank rate move in such a way that makes the interest rate I'm receiving on a bond uncompetitive? 2.) Bonds are loans with timers. Will inflation eat away at my principal in terms of buying power faster than I'm being compensated? 3.) Can my counterparty make me whole when the bond comes due? For the United States, the third question is typically "ignored" as lending money to the U.S. government is oftentimes viewed as "risk free", but in all scenarios understanding the attractiveness of bond yields over given time horizons vs. interest rates and inflation is a huge question. In addition to that, absolute risk/reward for rates needs to be compared to other asset classes. If the S&P 500 is yielding 2%, paid out from the earnings of the biggest companies in the country, then how does the risk of holding equities compare to the risks of holding bonds? Understanding how institutions are judging this decision can often be gauged by looking at the movement of interest rates in the open market. When stocks are outperforming bonds, institutional demand for stocks is higher, indicating that people are feeling good and want to take risk. When bonds are outperforming stocks, it can be indicative that people would prefer to hold 'risk free' interest payment vehicles as opposed to equity in companies with worsening economic prospects. This is the most straightforward way of looking at interest rates - how do they compare to the absolute risks in the market, and how do they compare to other "yield" streams? Do they make sense from a risk/reward perspective? One final thing - If interest rates are rising, then the amount of return needed to "compensate" for taking risk needs to get higher and higher, or other assets like equities begin to look uncompetitive. Additionally, higher interest rates mean that future cashflows are worth less, given that most valuation calculations rely on the "risk free rate". As an example, this implosion happened late last year, as people began selling bonds and interest rates began to rise. As interest rates rose, stocks that had a good chunk of their "value" priced into the future got hit the hardest, as the value of those cash flows in real terms dropped. Interest rates can help a lot for putting the big moves in the market into perspective. 😀 That's all for this week! Next week, we will take a look at how credit risk and FX risk plays into relative bond pricing, and how different sovereign bonds may or may not appear attractive to one another on a relative basis. Our final week will look at the yield curve, and how risk over time affects demand for rates. Cheers! -Team TradingView Here's last week's post if you're not caught up:
TVC:US20YEducation
by TradingView
34
Dietary Supplements For TradersLong sitting at the computer, constant stress, bad ecology in the cities, unbalanced nutrition all this is detrimental to the health of forex trader, as well as any intellectual worker. Today is not going to be a typical post. We're going to talk about supplements that help improve mental and physical vitality under emotional pressure from the market. I will share with you those remedies that I myself use. What are dietary supplements? Nutritional supplements are supplements, usually based on natural ingredients. They are not medicines, but act similarly to vitamins. There are universal nutritional supplements, and there are specialized ones for bones, brain, heart, etc. Consider dietary supplements not as something magical, but as a kind of bonus, "+1 to HP", if we put it in computer game terms. There are opponents of supplements, there are supporters. Personally, I have tried various supplements for many years, and below is a list of what I think are the best. Of course, it all depends on the individual, for example, I have problems with the stomach and cervical spine, so, let's say, joint supplements for the average person needs less than I do. Try to try everything on your body, diseases (if any) and preferences. My experience is just my experience, not the fact that what works for you is what works for me. Omega Fatty Acids Omega-3, omega-6, omega-7, and omega-9. These are all varieties of fatty acids found in foods such as fish, nuts, some fruits and vegetables. Omega's are healthy bones, immune system, breasts, cardiovascular system, intestines and pancreas as well as improve memory and brain function. I recommend unconditionally to all. I myself have been drinking for many years. Omega-7 is generally rare, and here it is in a complex, perfectly balanced, also containing astaxanthin - the most powerful antioxidant in the world. Cordyceps I use it when I need a lot of energy. When flights, busy days. This is a parasitic fungus that sucks the life juices out of insects that it encounters: grasshoppers, ants, etc. In China, cordyceps has been used medicinally for 5000 years. In addition to energy, it stimulates brain activity by improving blood circulation, strengthens the walls of blood vessels, as well as the immune system. Unfortunately, there are a lot of fakes, be careful. One rule of thumb - cordyceps can't be cheap, as very little of it is extracted. Ginseng Ginseng has long been known for its healing powers. Unlike cordyceps, it gives a deeper energy, not so pronounced, the effect is noticeable a little later. In addition to physical energy helps with mental fatigue. In dietary supplements is usually used artificially grown ginseng, as it is cheaper. Wild ginseng is considered more powerful, I can't recommend any particular supplement, so please try it. If you feel the effect, it means that it is suitable for you. Now I take this one. Ginkgo Biloba Ginkgo Biloba is the plant whose leaf extract is closest to those "NZT pills" from the famous movie " Limitless ". It nourishes the brain, improves memory, attention, mental performance, and slows the aging process of the brain. Result is not instant; miracles is not going to happen. Garlic. Garlic kills a lot of pathogens inside the body, a couple of times a year I take a course. What is interesting, everyone knows about the properties of garlic as an anti-cold and immune boosting agent, but it also helps to reduce cholesterol and improve male potency. Garlic is a dietary supplement in a concentrated form and in large quantities. This will not make your breath stink. Hyaluronic Acid Hyaluronic acid is a constituent of many tissues in our body. Hyaluronic acid is commonly advertised as an anti-wrinkle cosmetic, for younger looking skin, etc. But it is also excellent for joints, muscles and ligaments. Scientists are predicting that in the future, this acid will form the basis of cancer fighting agents. In this way, it is an excellent remedy for the mobility of the joints and has an aesthetic effect on the skin. Blueberries Although modern monitors don't strain our eyes as much, there's still nothing good for vision in the glowing screens of laptops, cell phones and tablets that we all often look at. And it doesn't hurt to take preventive care. Blueberries are very good for vision. And in combination with the substance Lutein, the effect is enhanced. I try to remember to take a course of blueberry extract with lutein once a year to prevent good vision. Calm You also need to drink a soothing magnesium-based mixture. It promotes better sleep and relieves stress, of which there is so much in a trader's job. I drink it at night. How to use supplements? The most important rule is not to overdo it. Make sure that you do not overdose on any components/vitamins. For example, if you drink something with vitamin E, you should not take a supplement at the same time, where vitamin E is also present, albeit as an auxiliary component. Also, watch your own well-being. What works for one person won't necessarily work for another. Conclusion Various supplements help, but they are not a panacea. If you have, God forbid, any diseases, be sure to see a doctor. Also, supplements work many times better when you combine them with physical activity. Yes, that's right: you have to get off the couch and go to the gym. Choose what you like: yoga, aerobics, tennis. It's your business, but physical activity has to be, without it there is no way.
Education
by DeGRAM
44
Why Corporate Bonds are not a good option for Retail InvestorsCorporate bonds or tradeable debt instruments issued by corporations are a type of fixed income security. Given the recent media attention and the rising demand for fixed income investments among retail investors, it may come as a surprise that they are not suitable for all investors. Corporate bonds have different risks associated with them than other fixed income investments like savings accounts, money market funds, and even municipal bonds. If you are considering investing in corporate bonds or are already holding some in your portfolio, here is why you should avoid them as a retail investor What is a Corporate Bond? A corporate bond is a debt instrument issued by a corporation to raise money. Corporate bonds typically have a set maturity date after which the outstanding principal will be repaid. There are many kinds of corporate bonds, including investment grade and high yield, government and non-government, and they can be issued in local or foreign currencies. Corporate bonds are often traded on the secondary market, which means they are liquid and can be bought and sold easily. Investors earn a return on corporate bonds by receiving interest payments and by the increase in the bond’s value as it matures. The interest rate on a corporate bond is based on factors like the company’s credit rating, the length of time the bond is outstanding, and the bond yield in the market at that time. Corporate bonds are typically less liquid than stocks, and may have shorter holding periods, especially if you purchase them on the secondary market. Risks of investing in Corporate Bonds Corporate bonds are considered a form of debt financing, and as such, there are risks associated with holding them. The main ones are default, liquidity, and interest rate risk. - Default risk - Investing in corporate bonds entails the risk that the issuing company will default on the payment of interest or the repayment of principal. However, since corporate bonds are issued by companies in different industries, there is a low probability that they will all default at the same time. - Liquidity risk - The risk that you will not be able to sell the investment in a timely fashion at a price that is attractive to you. - Interest rate risk - The risk that if you hold the investment until maturity, you will earn a lower rate of return because interest rates will have risen in the meantime. Why you should avoid Corporate Bonds as a Retail Investor While corporate bonds may be suitable for institutional investors, they are not a good option for the average retail investor. For one, you will have to educate yourself on the various types of corporate bonds, their risks and returns, and what kind of companies you should be investing in. Even if you are successful at taking this on, you are likely to end up with a very concentrated portfolio, which brings us to the next problem. The other issue is that retail investors typically hold a small number of bonds and these bonds are often concentrated in a few issuers. This is not a good strategy because if a company defaults, you could lose a large portion of your capital. This is clearly a bad strategy. So, How about Investment grade debt ETFs? LQD, In a rising interest-rate scenario. The bonds' tenure is clearly working against them, especially since unemployment continues to fall at an astonishing rate. This is not the time to invest in this ETF if the Fed raises interest rates to combat inflation. In order to completely comprehend this analysis we must know how important the duration is, while investing in bonds. Duration is an important topic. It is the bond's effective maturity, which means it is oriented to something lesser than the time of the bond's final payment since part of the bond's value, generally from coupons, happens earlier in the bond's existence. If a bond has a longer effective maturity at a fixed interest rate, it indicates that investors are tied to an interest rate that was once market for a longer period of time, and if rates increase as they are currently, you will be bound to an uneconomical rate for a longer period of time. Simply put, longer term bonds lose value more severely when interest rates increase. How maturity of a these bonds (Duration) is affecting LQD Unemployment has gone down despite the increased rates, which has surprised many analysts. The Phillips Curve is back in force, where low unemployment yields high inflation if inflation is kept down, and contrary to common perception, Consumer spending has declined, but unemployment is so low that it might rise again unless the Federal Reserve, which is committed to lowering inflation, continues its anti-inflation campaign. The Federal Reserve has raised rates as well as given gloomy recession predictions, and more banks are following its lead, including the Bank of England. LQD, which has dropped 14% this year, have long-duration bonds, majority of fixed-rate, which is concering for this ETF. Credit Spread Global Cooperate Bonds in general Corporate bonds continuing their strong performance in July, producing $80 million (+76% year on year).  July was the most profitable month of the year for CBs . Their  revenues in 2022 have exceeded from 2021 ($512 million). Average balances increased by 9.8% year on year, average costs increased by 59% year on year, and usage have increased by 27% year on year. Spreads on non-investment grade and high yield bonds continue to widen as corporate prospects deteriorate owing to weakening consumer demand and stricter financial conditions. In-turns , asset values fall, yields rises, and borrower demand increases. However, CG Debt funds have seen the highest monthly outflows in May and June (-$73.7 billion) In July, High Yield Bonds enjoyed the relieve rally. Interest rates vs Corporate Bonds comparison Alternatives to Corporate Bonds for retail investors For retail investors, the most advisable option is to go with government bonds. Government bonds have historically offered a lower risk profile compared to corporate bonds. The best way to go about investing in government bonds is to go for a diversified bond fund. Using a bond fund reduces the risk associated with investing in bonds further as the fund manager may hold a large number of different bonds. If you are looking at a short-term investment horizon (less than 10 years), then you could also opt for short-term government bonds. If you have a long-term horizon, then you could consider a long-term government bond fund. Savings accounts, money market funds, and short-term government bonds are very liquid forms of low risk investment options. Conclusion It is important to understand that the corporate bond market is not risk-free. When interest rates are rising, corporate bonds are generally falling in price as they are competing against government bonds with lower interest rates. In times of economic uncertainty or when interest rates are rising, the risk of default is generally higher for companies issuing corporate bonds. Thus, it is advisable to invest in corporate bonds only when the economy is growing steadily. For retail investors, the best options are to go with government bonds or short-term government bonds. These are low risk, liquid investments and will help you achieve your financial goals.
AMEX:LQDEducation
by EQTSHARES
10
How to improve your trading by looking at interest rates: Part 1Hey everyone! 👋 This month, we wanted to explore the topic of interest rates; what they are, why they are important, and how you can use interest rate information in your trading. This is a topic that new traders typically gloss over when starting out, so we hope this is a helpful and actionable series for new people looking to learn more about macroeconomics and fundamental analysis! The first question when dealing with interest rates is how to see the information on TradingView. While you can always click the "Bonds" tab under "Markets" and navigate to the "Rates" table, an even easier way to view interest rates across the globe is by using the 'search' terminal and typing in "10Y". Then, click "Economy", and you should be able to see all of the global 10 year interest rates markets: This configuration will get you "10 year" rates, but you can get different maturity bonds by using other tickers. For example, you can see United States 3 month rates by typing "US03M", or Brazilian 10 year rates by typing "BR10Y". All of the rates markets in our system follow this ticker standard. Try one! It's easy. For people who aren't familiar, here's the lowdown on how interest rates work. Interest rates fluctuate in the open market just like stocks or cryptocurrency; they move inversely to government bond prices. In this way, you can simply look at government bond prices to get a sense of how interest rates are doing -> they will be moving in the opposite direction. The reason behind this is that when bonds are issued, they are issued with a "par value" and a "coupon rate". Let's say that the par value for a government bond is $1,000, and the coupon rate is 2%. This means that every year, the bond issuer will pay the bond owner $20. The thing is, after bonds are issued, they can be traded freely in the open market. Let's say that the $1,000 bond increases in value and begins trading at $1,030 because there is significant demand for some reason. Because the $20 paid to the bondholder is fixed, the actual "interest rate" that buyers get when they pay $1,030 for the bond a bit lower than 2% -> 1.94% to be exact. Thus, changes in bond prices change the real time "interest rates" in the market! One thing to note: Government bond rates are different than the Government-set "funds" rate, which is decided on by a country's central bank. Next week in part 2, we'll take a look what drives supply and demand for government bonds / interest rates, and how monetary policy influences all the assets you trade. Plus, how you can use this information to your advantage! See you next week! - Team TradingView ❤️❤️
TVC:US10YEducation
by TradingView
66
Crypto101 - What is DeFi & Blockchain ?Hi Traders, Investors and Speculators📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Whether you've just gotten into crypto trading or you're trying to expand your knowledge on what this space has to offer; this post is for you! Decentralized finance or DeFi, is a financial ecosystem based on blockchain technology. So lets recap, what Is a blockchain exactly? Blockchain is a software technology, it is basically computer coding that creates a usable service like an app or website for the public. Most blockchains are entirely open-source software. This means that anyone and everyone can view its code. The first-ever implementation of Blockchain was originally written in C++ (coding language). Blockchain and it's possible use cases was first introduced to the world in the Bitcoin Whitepaper, written by the infamous Satoshi Nakamoto (the pseudonym used by the creator or creators of BTC). A blockchain is an online database that is shared to many computer networks. This means that if one computer in the network fails, the data is unaffected and transactions carries on. It is not dependent on one single data storage facility. As a database, a blockchain stores information electronically in digital format. A blockchain collects information in groups, known as blocks, that holds many sets of information (like time of transactions, amounts etc.). Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. An online database usually structures its data into tables, whereas a blockchain, as its name implies, structures its data into "3D chunks" (blocks) that link to each other. For easy reference and transparency, each block in the chain is given an exact timestamp when it is added to the chain. The revolutionary innovation idea behind blockchain is that it guarantees the truthfulness and security of data and generates trust without the need for a government/private institution to validate it. Back to DeFi - In centralized finance , your money is held by banks and corporations whose main goal is to make money . The financial system is full of third parties who facilitate money movement between parties, with each one charging fees for using their services. The idea behind DeFi was to create a system that cuts out these third parties, their fees and the time spent on all the interaction between them. Defi is a technology built on top of blockchain - it can be an app or a website for example, which means that is was written in code language by software programmers. It lets users buy and sell virtual assets (like crypto and NFT's) and use financial services as a form of investment or financing without middlemen/banks. This means you can borrow, lend and invest - but without a centralized banking institution. In summary, DeFi is a subcategory within the broader crypto space. DeFi offers many of the services of the mainstream financial world but controlled by the masses instead of a central entity. And instead of your information being filed on paper and stored by a banker, your information is captured digitally and stored in a block with your permission. Many of the initial DeFi applications were built on Ethereum (which is a blockchain technology, but the code is different to Bitcoin's, in other words it operates/works differently). The majority of money in DeFi remains concentrated there. Lending may have started it all, but DeFi applications now have many use cases, giving participants access to saving, investing, trading, market-making and more. A prime example of such a market is PancakeSwap (CAKEUSDT). PancakeSwap is a decentralized exchange native to BNB Chain (Binance chain). In other words, it shares some similarities with established platforms like UniSwap in that users can swap their coins for other coins. The only difference is that PancakeSwap focuses on BEP20 tokens – a specific token standard developed by Binance . The BEP20 standard is essentially a checklist of functions new tokens must be able to perform in order to be compatible with the broader Binance ecosystem of dapps, wallets and other services. PancakeSwap uses liquidity pools instead of counterparties/orders from other traders. A liquidity pool in this context refers to funds deposited by investors – which can be anyone from around the world – into smart contracts for the aim of providing liquidity to traders. With this system, buyers do not have to wait to be matched with sellers, or vice versa. Whenever someone wants to trade one token for another, they simply deposit the token they have into the pool and withdraw the other token they wish to receive. That said, PancakeSwap is not just for swapping coins. You can also take up the role of a liquidity provider (that is, you can deposit tokens in a liquidity pool for the chance of earning a share of trading fees paid by those trading against the pool in question). Yield Farming is another income-generating opportunity available on PancakeSwap. With this, you can farm for a token called CAKE. So why would you want a token? Tokens are like the money video-game players earn while killing monsters, money they can use to buy gear or weapons. I personally love collecting my Glimmer in Destiny 2. But with blockchains, tokens aren't limited. They can be earned in one way and used in lots of other ways. They usually represent either ownership in something or access to some service. For example, in the Brave browser, ads can only be bought using basic attention token (BAT). I think I'll cover more on this in another post, otherwise this will become a too long read. Final Thoughts 💭 Even though banks are slow and inefficient (to name only a few of the problems), there is still something that comes with using a bank that crypto cannot (yet fully) offer - guarantees and peace of mind. At least at this point. I believe in a future where blockchain is easily accessible, open but at the same time protects user privacy, transparent, decentralized and safe. But the truth is, we're still far away from that. Blockchain is in its infancy, being used by too many opportunists and crooks. So be careful when you invest in DeFi. The beautiful dream of blockchain still contains too many scammers that have no intention of cutting out banks; instead they want to get to the bank FIRST. __________________________ 👀Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 📉 Hit like & Follow 🔔 We thank you for your support ! CryptoCheck
Education
by CryptoCheck-
59
Tricks for Reading the VIXUnderstanding VIX Generally VIX measures the pricing of at-the-money options on the S&P 500 SP:SPX FOREXCOM:SPXUSD where such options have about 30 days until expiration. Higher VIX readings mean that demand for at-the-money options on SPX has risen through hedging or bearish positioning (usually both)—meaning that fear and uncertainty has arisen along with expectations of greater price movement (price declines) and volatility. In essence VIX tends to jump during major sell-offs in the S&P 500 and other global equity indices, and it also tends to fall back during long, gradual rallies. Its historic average is about 20. The average of all VIX closing numbers is about 19.4. Further, a VIX reading at 27–28 is at the upper end of one standard deviation from its mean. At the height of the 2008 recession, VIX peaked around 89.5 (intraday) and closed just above 80 several times. In March 2020 amid the Covid-19 pandemic, it surged to about 82. During the dot-com market from 1997-2000, the VIX held above its historical average (above 20) even though equity markets continued to drive higher for years. This was not a typical period for the relationship between VIX and markets with above average VIX readings coinciding with higher S&P 500 returns (33.1% in 1997, 28.3% in 1998, 20.9% in 1999). Understanding VIX Readings In General, High VIX Readings Help Spot Trading Lows or Lasting Market Bottoms VIX helps spot market bottoms. Some market experts assert that VIX is a measure of stress in the system, a measure of worry and fear as defined by various formulas derived from SPX puts and calls. Readings above 40 on the VIX tend to signal pure panic and indicate either an interim low (e.g., a temporary trading low followed by a bear rally) or a final bottom for a bear market or correction. The VIX measures implied volatility from a basket of at-the-money front-month SPX options. Ordinarily, VIX and SPX are supposed to head in opposite directions , meaning VIX climbs (or remains elevated) as SPX falls, and VIX falls (or remains low) as SPX rises. At least some other global indices that correlate to some extent with SPX would typically head in the same direction as SPX, but since VIX is derived from SPX derivatives (options), SPX will be discussed primarily. So the ordinary relationship between VIX and SPX is inverse as shown in the example on the main chart above for the 2000-2002 bear market. Lower SPX lows often coincide with even higher VIX highs. In the chart below, note how the VIX and SPX held to their usual inverse relationship during the 1998 SPX correction, which involving a decline of about -22% from the pre-correction high. As the market fell, the VIX continued to rise. Each SPX interim low was marked by a higher VIX high. Importantly, each VIX high was a "lower high" relative to the final VIX high that coincided with the final SPX low on October 8, 1998. Supplementary Chart 1: SPX 1998 Correction Shows Usual Relationship between VIX and SPX Divergences from the Usual Inverse Relationship between VIX and SPX May Distinguish Lasting Market Bottoms from Temporary Trading Lows But divergences from the usual inverse relationship between VIX and SPX can sometimes appear, and they may signal a lasting market bottom as distinguished from a temporary trading low . In particular, VIX will start to diverge from the usual pattern of higher VIX highs that coincide with lower VIX lows, meaning that SPX will make a new low but VIX will make a lower high rather than a new and higher high. This can be a helpful trick to understanding how VIX behaves at some major bear market bottoms and corrections. The primary chart above shows an excellent example from the 2000-2002 bear market. Consider the penultimate interim SPX low in July 2002. The highest VIX close of the entire bear market printed at 48.46 the day before this major interim low on July 24, 2002. (On the actual day of this interim low, VIX fell slightly to close at 39.86). Corrections also sometimes show this divergence from the usual SPX-VIX relationship. The chart below shows the 1990 correction in SPX where this equity market fell about -20%. Note the divergence between the major interim low in August 1990 and the final correction low in September 1990. Supplementary Chart 2: SPX 1990 Correction Shows Divergence from the Usual Inverse Relationship between VIX and SPX Although not shown in an additional chart, the bear market of 2008-2009 following the Great Financial Crisis contains another useful case study. During this bear market, the VIX peaked with closing highs above 80 in October 2008 and an intraday high of 89.53 on October 24, 2008. These were the highest VIX readings of the entire bear market occurring months before the final bear-market low. A VIX divergence appeared at the final bear-market low—VIX made a lower high of 49.33 and an intraday high of 51.90 on March 6, 2009. This is similar to the VIX divergence that was seen in the final stages of the 2000-2002 bear market (shown in the chart above). Broader Application of VIX-SPX Divergences This phenomenon of VIX and SPX diverging from their usual inverse relationship also may be stated more broadly as follows: when the VIX moves in tandem with the S&P 500, it’s a usually a sign that the trend may reverse . This occurs whenever VIX and SPX fall together or whenever they rise together. When the VIX and the S&P are both going down in tandem, this could present a good long-term buy signal especially when combined with other technical or fundamental evidence of a bottom. Furthermore this divergence from the usual inverse relationship can appear at market peaks as well. For example, when the market rallies higher, but the VIX remains elevated (it rises, does not decline significantly, and holds support), this indicates the rally could soon fail. A rally with elevated VIX shows persistently higher implied volatility / fear—increased demand for 30-day options based on expected volatility / demand for option hedges as downside insurance. This could be a sign the rally is fleeting.
SP:SPXEducation
by SquishTrade
69
5 tips on taking breaks and time off as a trader.This topic is quite a sensitive one. On one hand we enjoy trading and have passion for it, thus we don't want to miss action/opportunities, on the other is balanced life and ability to enjoy fruits of our labor/decisions. When I first started trading in December 2014 - I didn't take a full-week break from charts until February 2022. Almost 8 years of non-stop action. When on holidays I would still trade, do my daily analysis, and check charts. (Though at a time I was more of a swing trader and didn't need to check charts more than 2-3 times a day). However, in February this year I took a week-long break from all work-related stuff and completely relaxed. When I came back - my results improved, mindset and psyche felt better, had more energy to pursue other things. The benefits were amazing. Now, coming back from another 10 day off-time is a prime opportunity to dissect this topic. So, in this publication I want to discuss the importance of taking breaks like that, what they do to your mind and body, and how it all works. (I've been coached by ReThink Group on this topic as well). 1. The feelings of not wanting to take a break due to 'feeling behind', 'wanting to make money, 'speeding up education process', etc., are normal. However, when we experience these feelings - we inevitably bring them to markets and to our trading decisions. If our trading decisions come from that place - then it may create an environment in which we are not trading price action, but our own feelings and perceptions. This can be frustrating. Taking a break in this case disconnects us from that somewhat inadequate feelings and puts us in a different loop. And this loop is much more productive and beneficial. 2. Don't view 'missed trades' during this period as missed opportunities. Hindsight is 20/20. At a time - we have no idea if we would have taken that trade, managed it all the way to TP etc. If we beat ourselves up after a nice week of rest that we missed profits - then there was no point in this rest. Moreover, opportunities will be there always and thus we must operate 24/7 in order to not experience this FOMO. Therefore, taking breaks and practicing detachment from 'missed moves' disrupts FOMO and other similar feelings. You learn to be OK with it. Not only that, you realize that by taking much needed rest you are able to capitalize on the coming moves. 3. Decision fatigue is real. If we don't take breaks we become so decision-fatigued that we are not even aware that we are decision-fatigued. This is a very bad spot to be in. One of the reasons why I decided to stop trading activities after 4PM (in my timezone I trade Asian session + 3 hours of London session), is that I realized that after that time my results drop dramatically. This is a pure outcome of being decision fatigued. But that is a day-to-day fatigue. What we have is a weekly/monthly fatigue that we must also unload. If we don't do that - then we get stuck. 4. Sleep is an edge. If you are sleep deprived you misperceive risk. (That's a scientific fact). Meaning that you think that something more risky is actually less risky. Considering that our job as traders is to risk-manage and put ourselves in asymmetric risk:reward situations, if we misperceive risk then it means we create scenarios that are not skewed in our favor. By simply getting that needed rest we put ourselves in balance to capitalize on opportunities. 5. Trading while traveling in my experience is a fool's game, because instead of fully recovering and enjoying time with family - we disrupt that with our trading activities. What we get is worst of both worlds: we don't fully enjoy the experience of chilling and relaxing, while also not being fully present to trade like a shark. Dedicate separate time to each activity, and both activities will become that much better. After much needed rest - I am back in the game. Not much going on for now on my charts, but it may change quick. 4.5 more hours in my session remain, if anything pops up you will see it. Lightwork_
Education
by Lightwork_
58
Is this recent rally a bull rebound of a bear retracement? To make an assessment if the market has turned bear, during the closing second quarter on 29th June 2022, we discussed on the topic “Using S&P to Identify Recession and on the 19 Jul, 2 weeks ago the tutorial posted here, we studied and expecting this current rebound, topic “Nasdaq a leading indicator of Dow Jones, S&P & Russell”. In today’s tutorial, I thought of doing a recap between the two videos and explore if the current market and its development, if it is a bull rebound heading to break another new all-time high or if it is a bear retracement? I have included both the video links below. Before we get into this topic, please also take some time to read through the disclaimer in the description box below. Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. Tutorial example: Micro E-Mini Nasdaq 0.25 = US$0.50 1.00 = US$2 (12,900 - 11,900) x US$2 =US$2,000 (Note: Opposite is also true) • During the closing second quarter in June, on 29 Jun - “Using S&P to Identify Recession • On the 19 Jul, 2 weeks ago - “Nasdaq a leading indicator of Dow Jones, S&P & Russell”
CME_MINI:NQ1!Education
by konhow
30
How to Send Alerts from Tradingview to Telegram I found a new way for sending alerts from tradingview to telegram channel or telegram group by using webhook. I’ve been looking for a while and most of the ways had problems. Some of them had delays in sending the alerts and were not secure because they were using public bots. Some of them required money and were not free. Some of the ways needed coding knowledge. The way I recommend does not have these problems. It has three simple steps: 1. Creating a telegram channel or group; 2. Creating a telegram bot by using botfather; 3. Signing in/up in pipedream.com. I made a video for presenting my way. I hope it was helpful and if you have any questions make sure to comment so I can help you. Thank you!
Education
by zarafshani20
318
Pain + Reflection = ProgressHi Traders, welcome back to another mindset sharing video. Whenever I go through some obstacles or failures, I always go back to this simple equation by Ray Dalio, "Pain + Reflection = Progress" In life, the only way to not experience any failures is to avoid them, which could be very detrimental to your personal growth. To grow, one need to experience certain levels of pain. To transform, one need to have a high pain threshold and tolerance. For whatever you're going through right now, just remind yourself to not give up, and things will eventually come.
OANDA:XAUUSDEducation
by TraderNeoh
18