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How To Use Sparks To Kickstart Your ResearchThis video was created by our team to introduce you to the new Sparks tool. Sparks are curated lists to help kickstart your research process. You can find lists of symbols related to specific topics like outer space, alt coins, and a lot more. Markets are sometimes driven by themes, trends, and narratives. Within those themes and trends are lists of symbols that are working to change something or build a better future. With the right research tools, investors and traders can find opportunities and capture enormous growth. But it all starts with a diligent research process and Sparks were created to help all investors and traders get started. That's key, getting started. All it takes is a spark to light a fire, to find the next best investment or trade. For example, here are some Sparks that may interest you: 1. Self-Driving Car Companies www.tradingview.com 2. Environmentally Friendly Stocks 3. Proof of Work Cryptocurrencies 4. Proof of Stake Cryptocurrencies 5. WallStreetBets Stocks And these are only a few examples. Our team is looking build even more Sparks in the future. Our goal is to help all investors and traders learn more about markets. If you have any questions or comments, please write them below. You can also request specific Sparks in the comments below. Thanks for watching the video and following along! - Team TradingView
NASDAQ:ATVIEducation
by TradingView
24
​​YOUR PROFIT FORMULA | Three Essential Ingredients 🤔💭💫 Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. ❤️Please, support this idea with a like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
51
Formation of consolidation according to Wyckoff (addition)Hello amateurs and professionals😎. I would like to add a few clarifications to my previous post about the Wyckoff accumulative model PS - preliminary support. The moment a large buyer appeared, who stopped the market and decided to gain a position. Volume increases and the price spread widens, signaling that the downtrend is nearing its end. SC is the maximum point of sale. Large mass sales by the public are consumed by larger professional interests at or near the bottom. Often the price forms buyout bars - it closes far from the low in SC, reflecting buying from these large interests. AR is an automatic rally that occurs when sellers begin to weaken and change sides or exit the market. A wave of purchases easily pushes prices up; this is further fueled by a short cover. The high of this rally will help determine the upper limit of the cumulative TR. ST - a retest attempt, in which the price revisits the SC area to set the position by a large player. If a bottom is to be confirmed, volume and price spread should be significantly reduced as the market approaches support in the SC area. Usually several STs are placed after SC. Nuance. False breakouts or shakes occur late in the TR and allow large players to check on stock before the mark-up campaign unfolds. The “spring” pushes the price below the low of the TR, and then reverses and closes within the TR; this action allows large players to confuse with the direction of the trend, increase liquidity and enter the market at a favorable price. However, the springs and knockout of the leads are not required elements: the accumulation diagram 1 shows a spring, and the accumulation diagram 2 shows a TR without a spring. Test. Large players check the market for supply throughout the TK (eg ST and springs) and at key points during price increases. If there is a significant supply during testing, it can be seen by volume, the market is often not ready for the markup. The spring is often followed by one or more tests; a successful test updates tops with insignificant volume. SOS - Volume appears and a major player is identified with direction. Often, an emergency signal occurs after a shake. LPS is the last point of support. Some charts may have more than one LPS despite the supposedly extreme accuracy of the term. BU - "back-up" - backups are a common building block prior to larger price increases and can take many forms, including a simple rollback or a new TR at a higher level. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
22
Warren Buffett performance from 14 to 83Boomers love to say "Warren Buffett made most of his money when he was old". Sorry but no, not really. They are mostly coping. They had 60+ years to do something with their lives, bit late to wake up all of a sudden if you ask me. Was Warren Buffet lucky? Considering the era he lived in he was UNLUCKY. His best years were during the worst market period. The market was strongest when he was a kid and an old man. Teens and twenties raging bull, thirties market slowing down, forties flat market, fifties to nineties mostly up up up. Think performance matter? Think the market is efficient? So the oracle of Omaha has always outperformed the market until his late 60s, and "on paper" his best was in his 30s, but in his 40s the market was flat and he still managed to produce very large returns. According to academic research on employees and scientists they peak in their late 30s, and chess sites also say the best players reached their peak ratings between 34 and 43. Coincidences? If you look at it relative of market returns, dividends reinvested, those are his performances: So even by looking at it this way, that seems more fair, his peak was still he 30s. This period where he "only" made 23% a year was the period that marked all these mindless boomers that have been saying for decades "put your money in the bank". Please do not give me advice you noobs. How are these boomers for real? In that skull of theirs, is it empty? Bank deposits used to return something stupid like 15% and now it's 1% or less, so why are they advising this? It blows my mind, they're actual parrots repeating something without knowing why or what it means. Today meta is: - There are zero no risk investments and on the flip side borrowing is free - Stonks only go up (until they won't anymore), for years, with central banks that have unlimited "money" supporting the equity markets - Forex is much harder (too difficult) for amateurs, and does not trend for long - Day trading is incredibly stupid, it was a terrible way to get very poor returns 3 decades ago and negative returns today - Bank deposits, day trading, mindless price action trend following: All haven't "worked" for over 30 years, amateurs still haven't figured it out Another great tip boomers and noobs give: "go sit in class and wait for time to pass that's rly important for ur future", "you don't have to have kids early you have time". Absolutely idiotic. Cool so by 35 you might know what you want to do, and it's already too late. I've told people over the years "sorry but young people don't do great and even if they do they always end up blowing up", this should not be translated as "Get started when you start having grey hair". You start earlier you'll gain more experience. If people "natural" peak is at say 37 and they start at 35, you really think they will reach their peak in 2 years? Of course not. Especially with investing. Investors might learn fast by being complete one tricks but even that would take a few years to really get decent. You can't really be a complete OTP with everything correlated, and you'd still have to learn more than just 1 stock to make money unless you're really lucky or something. The modern western zombie can't help but be wrong, they're imagining the "dynamic" 20 year olds and the "experienced" 60 year olds. No? Why are zombies like this? Are they actually trying to be wrong? They enjoy saying false things to look open minded? Or just dumb? "Dynamic" = excited. If you are excited in your investing you are doing it wrong. I am excited when my investment has been going up in a straight line for a year but not each time I enter a limit order. Even if you started investing at 5, at 20 your brain isn't even fully formed anyway. Garry Kasparov and Magnus Carlsen did become chess world champions at 22 - MC learned to play at literally 5 and GK at 7 (or before) and he started going to a chess school at 10. And still they were far from their peaks. Now who starts investing at 5 years old? Plus honestly, it's much more complex and you take your decisions over days, weeks, months, not a few minutes (I think the average chess game is 40 moves for a total of 1-3 hours). Also in chess you do not get drowned in a sea BS info and peer pressure, and sorting through all this crap takes a lot of rational thinking, something that appears later on. Now concerning this "experienced" 60 yos. These guys really think Warren Buffett was a mindless fool at 40? He'd been investing for 30 years boys way longer than you at your 60. How much more do you think you learn? There are obviously diminishing returns. I don't have any numbers but it got to be something like in the first 10 years you learn 100x, the next 10 you learn 15x, the next 10 you learn 5x, and so on. Also you need to keep up, a lot of things are changing, a lot of the "new things learned" will just replace the old ones that have changed. The majority of people can't even keep up with things as simple as "keeping your money at the bank does not pay anymore" or "day trading has always been bad but now it does not pay at all" after over 20 years... A last word, and it is soul crushing: I heard from a broker that they analysed the perf of the hundreds of thousands of clients they ever had and of the consistent losers (losing for 6 months) not a single one had turned into a winner (they're all short term, obviously you can't tell if someone is a winner or loser after just 6 months if they're long term and the market is in a downturn for 12). Not a single guy "learned" to be profitable. Out of hundreds of thousands. Not one. So hey, at least there is something positive here: you do not have to waste your time. You can actually know quite fast if you stand a chance or if it's best to quit. This is consistent with the french market authority (AMF) report as well as some academic papers showing that people do not "improve" over time and even lose more and more. Day traders (at least 85% of this guy clients) in 6 months had more than enough time for luck to even out, so that makes sense. By 6 months they'd have taken 250-500 trades minimum so their skill is quite certain by then, large enough sample size. These academics and regulators are a bit dense so forgive them, not their fault, investors DO IMPROVE. The regulators and "scientists" simply struggle with words, what they are trying to say is that investors that lose do not start winning, ever. But they all improve! Winners improve at winning and win more, losers improve at losing and lose more. Scientifically proven. In my personal opinion I think you don't even need 6 months to know if you'll make it. You know what brokers do? They mark some accounts as risk. It has nothing to do with years experience or account size. They look at 1 thing and 1 thing only. "Are this account winners bigger than its losers", if the answer is yes it gets marked as "risk" and the broker will hedge all of their positions in the market, if the answer is no the broker will just let it go to zero with a big smile on their face no need to hedge according to this broker there is literally 0 chance they will ever make money (makes sense, they close their winners before they can ever get dangerous). It's crazy how simple it is. Proves how useless it is to repeat these things. No one doesn't hear the basic tips. On day 1 investors will hear the words "follow the trend, cut your losses, don't day trade" and on day 1 will be decided if they are losers or not. They either go in the right direction or the wrong one. If they didn't listen on day 1 they won't listen on day 600, no matter how much proof is shown, no matter how often it has been repeated to them. This is crazy, do humans (99.99%) even possess self-awareness? Or are they just mindless NPCS that repeat something over and over no matter what? Someone has sweaty hands, is all shaky, and incapable of cutting their losses: there is no hope for them. There is a french expression (works with everything) "Pleutre un jour, pleutre toujours" (coward one day, coward every day/forever). People improve at all sorts of things but the hollywood wonderboy 180 story does not exist. There is an example of "Hollywood 180" story: Ryan Lochte is an American competitive swimmer and 12-time Olympic medalist. At 14 years old, his loss at the Junior Olympics changed his attitude. He later commented: "I suddenly said, 'I'm sick of losing'. After that I trained hard and I never lost there again.". Wow what a turnaround. He 👏 was 👏 already 👏 competing 👏 in 👏 the 👏 Olympics. Top 1% of the top 1%. He was competing in the Olympics without even training seriously. Duh. He didn't go from struggling kid bottom of the class that can't even beat some random average Joe to 12 olympic medals. "Boy is it hard I've been losing for 5 years I'm going to make it with the right indicators and the right course ok new years resolution" ye man sure good luck. Great traders are born, not made, but it takes decades of practice and learning for them to reach their best.
TVC:DJIEducation
by MrRenev
62
TradingView Hotkeys That I Use The MostHi, Just wanted to point out some TradingView hotkeys that I use the most: * ALT + H = Horizontal line - a great way to quickly mark the round numbers on your chart or tight support/resistance areas. * ALT + V = Vertical line * ALT + T = Trendline * ALT + I = Invert the chart - probably the most interesting hotkey. Do you have some trouble taking "SELL" ideas? You are more kinda "BUY-guy" or vice-versa. In TradingView you can turn your chart upside down and see does it look good if you would want to buy it. Sometimes, it is quite a big help. * ALT + S = Take a screenshot of your chart * ALT + F = Fibonacci * ALT + W = Put the chart to the watchlist - seeing something interesting you can add it quickly to your watchlist. * ALT + A = Set the alert * SHIFT + CLICK = Measure tool Regards, Vaido
COINBASE:BTCUSDEducation
by VaidoVeek
99
Perma-bears are wrongHave you ever experienced a moment where someone is saying that a huge market crash is inevitable? Or maybe you have watched a video some expert with a legion of followers was declaring the same fact? I've seen plenty small names and even big names who are just constantly doing that so I decided to have a brief overview why most of these statements are false and they are just created for marketing purposes to attract more followers, not to warn an investor. Bearish bias and perma-bears are doing it for wrong reasons and investors shouldn't be too much into this apocalypse of the financial markets stuff. In fact the bearish bias in the market since 2008 is probably the costliest human bias in finance. Yet many of the best-known Wall Street pundits are persistently pessimistic and many of them have been around for decades. These are all incredibly smart guys who do amazing analysis that mostly points to an imminent large-scale bear market. And yet the evidence shows these forecasts are almost always wrong. Why do we keep reading their stuff? Because it sounds really smart! The forecasting business has very little accountability and is mostly about marketing and sounding smart, not accuracy. If you looked at the chart you instantly figure out that markets in a long run are always long. It seems a lot like perma-bull and none like perma-bear and charts speak for themselves. Two graphs with two very different instruments - bitcoin, which only appeared 13 years ago and DOJI 120+ years. Nonetheless they look quite the same - curve which constantly goes up. Obviously there are times where shorting is probably the only option, but is less often when you think. Financial markets reflect in human progress and it is going faster and faster. Smart investors set and forget or know what majority don't know, but most people who pretend that they can predict the crash and do it constantly without any any good reasons (markets are overextended most of the time and they form new higher price value zone again and again) just trying to do that for all the wrong reasons. Don't fall into the category of naive believers. Do your own due diligence, trust statistics and what you see, not what you hear. Good luck with investing and trading.
TVC:DJIEducation
by Sharkethics
26
Your Ultimate Guide to RSI DivergenceYour Ultimate Guide to RSI Divergence (Settings & Tips) Hey traders, Relative strength index is a classic technical indicator. It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change. Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tips: 💠First of all, let's start with the settings. For the input, we will take 7/close. For the levels, we will take 80/20. Then about the preconditions: 1️⃣ Firstly, the market must trade in a trend ( bullish or bearish ) with a sequence of lower lows / lower highs ( bearish trend ) or higher highs / higher lows ( bullish trend ). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence. A strong counter-trend movement will be expected. Also, I should say something about a time frame selection. Personally, I prefer to apply it on a daily time frame, however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal.
Education
by fxpremiere
18
History of ForexHistory of Forex We have come a long way from the previously practiced barter system to the modern-day system of trading currency. Following is a brief summary of the evolution of currency and how it gave rise to Forex Trading. Here are the main stages that are illustrated on the chart: 1️⃣The Ancient system of Trading - Trading with Gold As early as 6th century BC , the first gold coins were produced, and they acted as a currency because they had critical characteristics like portability, durability, divisibility, uniformity, limited supply and acceptability. 2️⃣Bank Notes Originated - Deposited Gold in banks in exchange for banknotes 3️⃣Role of Geography - Various banks of different regions printed different currencies Gold Standard - Currency pegged to gold In the 1800s countries adopted the gold standard. The gold standard guaranteed that the government would redeem any amount of paper money for its value in gold . This worked fine until World War I where European countries had to suspend the gold standard to print more money to pay for the war. 4️⃣Bretton Woods System - Currency pegged to USD The first major transformation of the foreign exchange market, the Bretton Woods System, occurred toward the end of World War II. The Bretton Woods Accord was established to create a stable environment by which global economies could restore themselves. It attempted this by creating an adjustable pegged foreign exchange market. An adjustable pegged exchange rate is an exchange rate policy whereby a currency is fixed to another currency. In this case, foreign countries would 'fix' their exchange rate to the US Dollar . 5️⃣Birth of Floating Currency - Currency that is not pegged to any assets or other currencies is known as a 'floating currency'. And what will be next? Very hard to say but blockchain technologies will make the system change again.
Education
by fxpremiere
7
Formation of consolidation according to Wyckoff Phase 1 : Stopping the previously dominant trend. The offer prevailed. Decrease in supply is indicated by preliminary support (PS) and sales climax (SC). These events are visible on the charts, where widening spreads and high volume reflect the transfer of a huge number of shares from one speculator to another. As soon as sellers weaken, an automatic rally (AR) follows, consisting of both demand for stocks and covering short positions (two types of ogrok are activated). A successful secondary test (ST) in the SC area will show a decrease in sales, as well as a narrowing spread and a decrease in volume, usually stopping at the same level as SC. If ST falls below SC, either lows renewal or consolidation formation can be expected. The SC and ST minimums and the AR maximum set the boundaries of the TR. Levels can be drawn to help see the market as shown in the two accumulation charts above. Phase 2 : In Wyckoff's analysis, Phase B acts as a “cause-building” for a new uptrend (see Wyckoff's Law # 2 - “Cause and Effect”). In Phase 2, large players accumulate relatively inexpensive stocks in anticipation of a mark-up. The accumulation process can take a relatively long time and includes buying stocks at lower prices and checking for price increases by short selling (false breakouts). Typically during phase 2 there are multiple STs as well as upward actions at the upper end of the TR. In general, as TR develops to acquire most of the remaining supply, the majority of its interests are net buyers of shares. Buying and selling impart a characteristic up and down price movement to a trading range (flat). At the beginning of phase 2, the average true range is wide and accompanied by a large volume. However, as the professionals absorb the supply, the volume of the downward swings within the TR may diminish. When it turns out that stocks are likely to be depleted, the market is ready for Phase 3. Phase 3 : The instrument goes through a critical review of the remaining supply, allowing the big players to make sure the instruments are ready for growth. As noted above, a spring is a price movement below the TR support level (set in phases 1 and 2) that quickly reverses and returns back to TR. This is an example of a false breakout. In reality, however, it marks the beginning of a new uptrend after grabbing liquidity, delaying late sellers. In Wyckoff's method, a successful test of the supply, represented by a spring (or shake out), provides an opportunity for higher expectation trading. A low volume shake test indicates that the instrument will be ready to go long, so now is a good time to enter at least a partial long position. Phase 3 : There is a constant predominance of demand over supply. This is evidenced by the promotion model (SOS) with widening price spreads and increasing volumes, as well as the reaction (LPS) to smaller spreads and reduced volumes. During phase 3, the price will advance to at least the top of the TR. The LPS in this phase is a great place to go long. Phase 5 : The instrument leaves the TR zone, growth is forming, as demand is under complete control. Shakes and more typical reactions are usually short-lived. New higher-level TRs, involving both profit-taking and consolidation by large players, can occur at any time in Phase 5. These TRs are sometimes referred to as "stepping stones" on the path to even greater ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
17
How To Share Your Watchlists (Video Walkthrough)We know how important your Watchlist is. Your Watchlist is where you organize all of your favorite symbols, follow them, and plan ahead. It's also where you track your investments and trade ideas. Our new Advanced View tool makes it possible to share your Watchlists. We believe this is an important next step in Watchlist technology. You can now share your favorite Watchlists with friends, family, and across the Internet either on your blog or social media profile. You can collaborate with groups to make a perfect watchlist, sharing the link and making edits as needed. Create, share, and learn. Get feedback from others and do the research before you make the trade. Our new Watchlist tools can help everyone share and collaborate around markets. Here are links to the two Watchlists we talked about in this video. You can copy this Watchlists, edit them, and add them to your profile: 1. Up-And-Coming Cryptocurrencies 2. Space Stocks The first step to getting started is opening your Watchlist, then clicking the three circles at the top right ••• and selecting Advanced View. From there, you can toggle your Watchlist to be shareable, copying the link and sharing it as needed. You will also see a symbol distribution showing the breakdown of the Watchlist you're looking at. We explain all of this in the video! Make sure you watch it. Please let us know if you have any questions, comments or feedback. You can share them in the comments below. Thank you for watching, Team TradingView
NSE:NIFTYEducation
by TradingView
29
What is Bullish Flag Pattern?What is a Bullish Flag Pattern? The bullish Flag pattern is usually found in assets with a strong uptrend. It is called a flag pattern because it resembles a flag and pole. Pole is the preceding uptrend where the flag represents the consolidation of the uptrend. How does Bullish Flag Pattern? The flag pattern resembles a parallelogram or rectangle marked by two parallel trendlines that tend to slope against the preceding trend. Phase 1 : Preceding Uptrend When there is an extreme demand in prices there is an uptrend. It continued as the demand increases. Phase 2 : Flag After the sharp uptrend when supply increases more then the demand prices move to the consolidation phase or flag phase. This acts as a small price channel. Phase 3 : Uptrend Continuation As the flag is a pause in an uptrend, as prices consolidate investors again start to show interest in the asset which eventually leads to heavy demand again which further leads to a breakout and uptrend continuation. Role of Volume: Volume plays a vital role in the completion of the Bullish Flag pattern. When in a preceding uptrend the volume is quite higher. In the flag phase, the volume starts to go down as investors are least interested to buy and sell that particular asset. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend. Above Chart Explanation: This is 4H chart of SOLUSDT We can see a good preceding uptrend with great volumes. Then after the uptrend, we enter the second phase the flag phase we can see perfect bounce and retracement from upper and lower trendlines or flag with diminishing volumes. And again a breakout with good volumes. Here could be the two possible entries one at the bottom of the flag that gives us a very low-risk entry if it breaks the flag we exit. And second entry can be at breakout, first, we have to confirm that the breakout is legit for that we can look at the volumes rising volumes to confirm that the breakout is legit. Usually, we should target the length of the pole after the breakout. Conclusion: Bullish Flag is a continuation pattern it occurs quite often on charts and is one of the most reliable continuation patterns. Comment your thoughts on Bullish Flag Pattern in the comment section below. Disclaimer: This is just an educational post never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
47
Analysis of the PEG ratio and income yieldIn this idea I’ll be covering two valuation metrics the PEG ratio and the income yield here is the PEG ratio: The PEG ratio (price earnings growth ratio): This is another very popular ratio and it is calculated by dividing the share price by the product of the eps and the annualised eps growth rate. There are many different types of PEG ratios, and the annual eps growth rate can be over the course of a different number of years, it could be for 1 year, or even 10 or more. However, it is most common to find the annual eps growth rate over the past 5 years. It is also worth noting that you can have a forward PEG ratio, just like you can have a forward P/E ratio, however, I would prefer to use past earnings as they have actually materialised and therefore are more reliable. The main advantage of the PEG ratio is that it will tell you how much you will be paying for the earnings over time, so whilst a company may look expansive on a P/E ratio now, if it is quickly growing over time the P/E ratio will be looking smaller and smaller and may even be considered cheap when it was once expensive. A PEG scored 1 is considered average and the lower the PEG score, the better, you are paying less for the total earnings. Unlike the P/E ratio, you can more comfortably compare the PEG ratio across different sectors as the sectors with more growth potential will have that more priced in with the PEG ratio. However, whilst the PEG ratio has numerous advantages there are also several drawbacks. 1. A one off charge or gain could mean that the earnings and growth of a company could be depressed or inflated, giving it a PEG score that is too low or too high, when in reality this one of charge will have little to do with what the earnings will be in the future. 2. The PEG score does not include cash conversion rate, a company could have high and rising earnings, but if this is not converted into cash it is difficult to envisage a scenario where the company generates value for the shareholders, or alternatively earnings could start to fall off as the company does not have as much cash to fund growth. 3. The PEG ratio does not give a far representation of cyclical shares, for example during a temporary downturn a company could have a high P/E and a low eps growth rate, but this is actually not an issue of a company it is just a common fluctuation. On the flip side during the upturns the company could have a low P/E and a very high eps growth rate, but this is actually not to do with the company itself. 4. The PEG ratio does not factor in how much debt or cash the group is carrying. A a company can enjoy the dual effect of increasing eps growth and earnings by simply acquiring another profitable corporation. The end effect is that without the company performing well itself a company can have a very low PEG as a result of higher eps and higher growth. So it makes sense that a company with net cash should be rewarded with a higher PEG than one which is highly leveraged as the group with net cash can expand more easily. However, the PEG ratio does not factor this in. 5. The PEG ratio also seems to favour companies with extremely high growth rates. The issue is that if a company has growth rates of 100% or more, the growth is likely to fall off quickly and so the company could look cheap on the PEG ratio, when in reality it is actually expensive. To deal with this I would recommend valuing a eps growth rates over 100% as 100% meaning that no company can have a PEG ratio of 1 or lower with a p/e of over 100. Then there is also the issue of diluted and basic EPS. As stated previously in the P/E article I would recommend using diluted EPS. I would recommend using diluted eps for both parts of the PEG ratio, I.e diluted eps for the earnings and growth parts of the ratio. This is the income yield: The income yield: This is the same as the P/E ratio, except it is calculated as a yield, to convert from the P/E ratio to the income yield find the reciprocal of the yield and multiply it by 100%. Since we are using the reciprocal this time, the larger the yield the better, as you are recovering a higher percentage of your earnings each year. (Complete analysis on the P/E ratio is already on TradingView see link at the bottom) The income yield, has the same limitations and advantages as the P/E ratio, except for the fact that it can be compared against other sources of income such as cash or bonds. It is worth noting that there are several other things to bear in mind apart from the yield when you are planning an investment. Firstly, the risk matters, you should generally expect a higher return from a riskier asset than a safe one, otherwise why take the risk? Secondly, it is also worth bearing in mind that the yield of an asset can fluctuate the yield can fall or hopefully, it should rise, and so it is worth paying a premium if the actual yield is likely to increase over time.
LSE:BOWLEducation
by hammochess
2
IMPROVE YOUR TRADING | Simple Flowchart For You to Follow 🧭📍 A short ⚠️disclaimer before we start: the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc. Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points. In order to increase the accuracy of your predictions analyzing different financial markets, you must learn to identify the direction of the market.📈 The identification of the market trend must be based on strict & reliable & testable rules. It can be based on technical indicators or price action Personally, I prefer to rely on price action. Here are a couple of examples of how I identify the market trend: There are three main types of market trends: Bullish Trend Bearish Trend Sideways Market Depending on the current direction of the market, on the chart, I drew a flow chart✔️ that will help you to act safely. ➡️Sideways market signifies consolidation & indecision. Usually being in such a state the market tends to coil in horizontal ranges. To trade such a market safely, the best option for you will be to wait for a breakout of the range & wait for the initiation of the trend. ➡️Once you spotted a bullish market, do not rush to buy. Your task will be to identify the closest strong structure support. You must be patient enough to let the price reach that support first (and by the way, there is no guarantee that it will happen) and then you must wait for a certain confirmation. Please, check the article about different types of confirmations: Only once you get the needed confirmation you can buy the market. ➡️The same strategy will be applicable to a bearish market. Spotting a short rally it is way early to just sell the asset from a random point. You must find the closest strong structure resistance and wait for the moment when the price will approach that. Then your task will be to wait for a confirmation and only when you got the reliable trigger you short the market. 🦉Try to rely on this flow chart and I promise you that you will see a dramatic increase in your trading performance. And even though it may appear to you that this flow chart is TOO SIMPLE, in practice, even such a set of rules requires iron discipline and patience. Thank you so much for reading this article, I hope you enjoy it! ❤️Please, support it with like and comment. Thank you!
FOREXCOM:XAUUSDEducation
by VasilyTrader
163
How To: Combine Stock Charts and Share Watchlists with FriendsJust A Quick Video On How To: 1. Combine a bunch of stocks on a single chart so you can identify which ones are performing best over different periods. 2. Share this list of charts with friends, family, and followers. I just like creating and saving the overall chart to give people a better visual idea of what you are sharing with them, but you can share your watchlists very simply and easily without having to create the chart. Note: The watchlist WILL automatically update if you add or remove a stock. The Saved Chart: The Watchlist www.tradingview.com
NASDAQ:HUTEducation
by zAngus
37
Learn How to Trade Double Bottom Formation | Full Guide 📚 Hey traders, If you are learning price action trading, you definitely must know a double bottom pattern. Double bottom is a reversal pattern. It is applied to spot early market reversal clues and catch the initiation of a new bullish trend. Preconditions for a double bottom: 1️⃣ The market must trade in a bearish trend. 2️⃣ After a formation of the last lower high, the price must set equal low. 3️⃣ The price must return back to the last lower high level. ✅Once these conditions are met the pattern is considered to be completed. The formation of the pattern is considered to be a ⚠️WARNING sign. Even though many traders buy the pattern once it is completed, for me it is not enough. ❗️Remember that the price can easily start to consolidate and form a horizontal channel for example. The trigger that we will look for is the breakout (candle close above) the last lower high level (based on a wick and its highest candle close) - the neckline. Being broken to the upside, the market sets a new higher high. It signifies a violation of a current bearish trend. ⬆️Attempting to catch an initiation of a bullish trend, we will buy the market with a buy limit order on a retest of a broken neckline. ❌Safest stop will lie below the lows of the pattern. 💰Your reward must be at least 1.5 of your risk. Following these simple rules, you will be impressed by how accurate this pattern is! ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
16
How to use Volume with Trends.Volume is a useful tool for studying trends, and as you can see, it can be used in a variety of ways. Basic principles can be used to determine market strength or weakness, as well as to determine whether the volume is confirming a price increase or decrease.  Volume-based indicators are occasionally used to aid in decision-making. In conclusion, while volume is not a precise tool, price action, volume, and volume indicators can be used to identify entry and exit signals.
NASDAQ:AAPLEducation
by MoonBets
42
Spot Trading vs Margin Trading Pros and ConsSpot Trading is the most basic form of trading method and is the most suitable for beginners in trading. It's simply a BUY > HOLD > SELL mechanism. On the Other Hand Margin Trading is complicated and should only be done by experienced traders. There are various components to margin trading such as Maintenance margin, margin calls, leverage, and liquidation. Pros and cons of Spot Trading 👉Spot trading is easy to learn and understand and is a good starting point for beginners in Trading. 👉It's an easy process to manage risk in spot trading not taking all the complications of liquidation or margin calls. 👉You can hold an asset for a much longer time and in the case of cryptocurrency can also transfer to any cold wallet. 👉No Trading happens during downtrends. 👉The potentials gains are not very good on a smaller investment amount. Pros and cons of Margin Trading 👉Margin Trading needs some advanced knowledge of various things such as margin calls, liquidation, leverage, etc. Hence it's not recommended for new traders. 👉You can make profits on both uptrends(by going LONG) and downtrends(by going SHORT). 👉Gives an ability to trade much larger amounts with a relatively small initial investment by using leverage. 👉Margin Trading is risky, and if not done properly can blow your account in a very short time span. 👉Profits are higher when utilizing margin trading, and so are the losses. Every exchange has its own rules for margin trading, which need to be understood carefully before investing. Thanks for reading and what kind of trading technique do you use and why? Share in the comments below. For more similar educational ideas, scripts and trend analysis follow us. Happy Trading.
Education
by Tuned_Official
22
The importance of the STOPLOSS protective orderOur protective stops are vital to managing our risk, and just a single position you open without a stop can lead to the suicide of your trading account. The uniqueness of stop orders lies in the fact that they, being pending orders, await their execution at a predetermined price. When stop orders are triggered, their important function is that they add momentum to the market and at the same time use the liquidity present in the market. 1) Many have probably heard such information as: "When entering a trade, place a protective stop just below the high / low of the price." The reason is that this level has been identified as an important support level. What else is posted in the support area? Limit orders of traders to buy, who have identified the support area and are waiting for the time to open a position when retesting the level. Is there a large number of stops under each level? It depends on the size of the timeframe and how quickly the price leaves the given zone at the time of purchase. 2) When the price gets to this level, traders are still interested in long positions, but this time the price does not bounce off that level as one would expect. It does not break it, does not make lower lows, but displays lower highs. If you were interested in going long right now, what would you do? The average trader who bounces off the support level would enter a long position with a stop just below the support level. If you had a limit order that hadn't been filled yet, I would have postponed the order. Candlesticks / Bars displays lower highs; The price does not rise as fast as one might expect; You know that just below the support area there are a lot of stop orders. 3) What happens next? The price moves downward under pressure and breaks the stops of traders who have long positions, and, as we remember, when buy stops are triggered, these are market sell orders, and they force the price to move further down. And traders, who are waiting for the opening of short positions, open them because the price breaks the support level, but then the market takes them out, “eats” them, because the price goes higher. 4) Those traders who were initially set for long positions and who were thrown out of the market by broken stops help push the price up. Now the graph looks like this: New stops are placed below the new level, in front of us is Groundhog Day. And everything that has just been played will be played over and over again ... only at different price levels. STOPLOSS is a way to limit losses when managing an open trading position or portfolio of positions. In fact, a stop loss is an order to close a position in the event of an unfavorable price movement. The trader sets a stop loss to limit his own losses and trade within his own money management rules.
Education
by DeGRAM
7
Analysis of the P/E ratioThe P/E valuation metric: This is by far the most popular valuation and it is simply dividing the market cap by net income (for the year), it can also be calculated by dividing the share price by eps, the lower the p/e the better, as you are having to pay less for the earnings. Generally, a company is considered expensive with a P/E of over 30 and cheap with a P/E of less than 15. The main advantage of p/e is that it provides a quick and simple way of finding how many years would you have to wait to get your money back from the investment. There are however, numerous drawbacks of the P/E ratio: 1. It does not factor in how quickly the earnings are growing. Whilst the earnings may look small in comparison to the price now, if the company is quickly growing in the future the earnings could look large in comparison to the market cap. 2. A one-off loss or gain could distort the earnings to look smaller or larger than they actually are and thus not giving an accurate representation of how richly the companies earnings are being valued. 3. It does not factor in how indebted a company is. A company can easily boost eps, by simply acquiring another profitable company and then using debt to finance the acquisition. The end result is that net income is boosted without diluting the shareholders. So a cash rich company should be rated more highly than an indebted one, as the cash rich corporation can use that cash to boost eps through acquisitions. 4. It does not factor in how cash generative the business model is, a company can be producing plenty of net income, but if the company is not converting it into cash it will be harder to create value for the shareholders. 5. The P/E ratio can be skewed for cyclical companies and earnings could be temporarily depressed or inflated, but this is not actually to do with the actual company itself is doing, but just the nature of cyclicals. 6. Earnings could also be skewed by events that impact trade. Most notable is a black swan event, of which Coronavirus is the latest event. It can however be more subtle than that, for example in 2018 British bowling alley operator Hollywood bowl had trading impacted after England did very well in the World Cup, people had sources of entertainment by watching England and so less people went bowling than otherwise. It is also worth noting that there are actually several types of P/E ratio. Mostly the P/E is compared to last years earnings, but you can also have forward P/E ratios. When people talk about forward a P/E ratio they almost always mean next years, however it can also be meant for years in the distant future for example forward 2030 earnings. It is worth noting to take forward estimates with a pinch of salt, they are usually overly optimistic and there is no guarantee that these earnings will be the same (or even near) to the earnings, so I would prefer sticking to past earnings as these are more reliable. It is also worth noting that whilst I have said that P/E = share price / eps it is worth noting that there is not one eps but two. In a company’s income statement, you will have basic (undiluted) eps and diluted eps. Undiluted eps is simply net income divided by total number of shares outstanding. However, diluted eps is slightly different in that it uses the number of shares when all convertible securities (such as convertible bonds or stock options) are converted into shares. I would recommend using undiluted eps as although earnings may be constant your earnings will look less and less as these securities are converted into shares. It is also worth noting that if you use market cap / net income, you have used the same as share price / basic eps, but I would recommend to actually use diluted eps, after all the share price can decrease even if the market cap increases, I.e. if your stake gets smaller.
LSE:BOWLEducation
by hammochess
4
📈📉How Market Cycles Work | Bull & Bear Market 🐿 All the financial markets are cyclical : after a sharp and strong bullish trend always comes a severe bearish rally. After panic & massive selloffs, the market tends to recover and awakens optimism closing a vicious circle. Watching carefully how the price acts during these cycles, an observer can identify the recurring stages . #1 Accumulation The accumulation stage starts once the market finds its bottom. Bearish pressure weakens and the market starts trading in sideways. While the crowd remains cautious, smart money like banks and hedge funds start buying the asset considering that to be undervalued. It leads to occasional moderate spikes of a price. Being the best time to buy the market, the accumulation stage is the hardest to spot correctly. Global pessimism and disbelief make the investor scared to buy the asset. #2 - 3 Public Participation & Excess Stage The accumulation stage and the actions of smart money make the crowd buy the asset steadily. Pushing the market to new highs and generating sufficient profits, the crowd brings more and more liquidity into the market. Bullish trend is universally confirmed. The optimism steadily transforms into euphoria and the asset quickly becomes overvalued. Greed starts to dominate the crowd. Record highs are reached and no one doubts further growth. #4 Distribution At some moment the market stops growing. Even though everyone is very confident in a bullish continuation, the market naturally refuses to grow. Moreover, the market starts to slow down and volatility drops steadily. The market starts ranging and trade in sideways. Smart money starts selling their positions steadily to a greedy crowd. #5 Bearish Trend With an absence of growth, more and more market participants start selling the asset. Optimism steadily vanishes and pessimism comes into play. Contemplating negative figures, the crowd starts to panic, making the market fall sharply. The outlook is dark and no one believes in recovery. Then the market suddenly starts slowing down and the cycle repeats. Watch how the price acts, learn the price action & master the market cycles to benefit from any of them. ❤️ Please, if you enjoyed this article, like it and share your feedback in a comment section. Thank you! ❤️
Education
by UnitedSignals
4
Tutorial | How To Identify Potentially Strong Trend DaysI got smoked shorting the MNQ today. And it was avoidable. The MNQ1! and the MES1! were flashing warning signs since the Sunday open to NOT fade the move. I stayed off the sell side for the opening 30 minute candle, but then got sucked in at a level. The entry was a violation of one of the Golden Rules of Range Trading - STAY AWAY from Outside Days! In this video, I discuss how to identify Outside Days and look for Untested Prior Session POCs as signs that conditions are pointing to trending price action.
CME_MINI:NQU2021Education
by RodCasilli
40