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NZDJPY LAST WAVE DROPNZDJPY has been bearish since early July but started the trend with a possible leading diagonal which comprises of 5 waves and 3 sub-waves to it. Considering the diagram above, we are done with the waves 1, 2, 3, and 4 going for the completion of the last wave (wave 5). Wave A and B are done and price also going for wave C after which we can witness a big correction. For now, lets see ow it plays out with a target of 410 pips from breakout. WAVE 1 = 5 WAVES WAVE 2 = 3 WAVES WAVE 3 = 5 WAVES WAVE 4 = 3 WAVES WAVE 5 = 5 WAVES
Short
by Ifeanyichukwuxx
3
🚀 Bitcoin ETF: The Next Gold Rush? Predicting a 470% Surge! 📈Introduction: As the allure of digital assets continues to surge, it's fascinating to compare the impact of ETFs on a traditional asset like gold with the potential of a Bitcoin ETF. Main Thesis: After the introduction of the Gold ETF, its price skyrocketed by an astonishing 470%. This influence can be attributed to increased liquidity, accessibility, and heightened institutional focus on the asset. While a Bitcoin ETF hasn't been launched yet, the near future holds strong prospects, especially with big players like BlackRock and Vanguard showing interest. Arguments: Institutional Appetite: With growing attention from major financial entities towards cryptocurrencies, expect hefty investments flowing into Bitcoin. 🏦 Boost in Liquidity: The potential launch of an ETF could see trading volumes soar, resulting in enhanced Bitcoin liquidity and a potential price surge. 🌊 Accessibility: ETFs make Bitcoin more accessible to a broader audience, removing some of the direct ownership risks and complexities of crypto. 🌍 Conclusion : A 470% growth from current values places Bitcoin's price within the $140k - $170k range. These targets align with my forecasts for Bitcoin's next peak in 2025. Although past performance isn't indicative of future results, the anticipated ETF endorsement signals bullish prospects for Bitcoin. 🌟 ❗See related ideas below❗ Follow + Like this post and leave a nice comment, it will allow me to move faster and make more useful content! 💚💚💚
OANDA:XAUUSD
by Yaroslav_Krasko
Top 10 Trading IndicatorsWelcome to the dynamic world of trading indicators! These meticulously crafted metrics, born from the intersection of mathematics and market psychology, offer traders a distinct advantage by transforming raw market data into actionable intelligence. Join us as we embark on a journey through the top 10 trading indicators, exploring their intricacies, strengths, and applications in deciphering the ever-shifting landscape of global markets. Whether you're a seasoned trader seeking to refine your strategies or a novice investor eager to grasp the essentials, this exploration promises to illuminate the fascinating realm of trading indicators and their pivotal role in the pursuit of financial success. 1. Moving Averages (MA) The Moving Average often referred to as the SMA (Simple Moving Average), serves as a valuable tool for discerning the prevailing direction of a current price trend, while filtering out short-term price fluctuations. Through a calculated amalgamation of price points over a defined time span, divided by the total data points, the MA indicator presents a singular trend line that encapsulates the overall trajectory. The timeframe utilized for the MA computation dictates the dataset employed. For instance, a 200-day MA necessitates 200 days' worth of data. By harnessing the insights offered by the MA indicator, one can delve into the realm of support and resistance levels, gaining insights from past price movements and the market's historical evolution. This, in turn, facilitates the anticipation of potential future patterns with enhanced precision. 2. Average True Range (ATR) The Average True Range (ATR) is a widely used technical indicator designed to measure market volatility and assess potential price movement within a given trading period. Developed by J. Welles Wilder, ATR offers traders insights into the range of price fluctuations, accounting for both intraday price spikes and overnight gaps. Unlike many other indicators, ATR does not provide directional signals but instead focuses on quantifying volatility levels. ATR is computed by considering the true range for each trading period, which involves calculating the greatest value among three key metrics: the difference between the high and low prices of the current period, the absolute value of the difference between the previous period's high and the current period's close, and the absolute value of the difference between the previous period's low and the current period's close. These true range values are then smoothed over a specified number of periods, often 14, to create the ATR line. Traders employ the ATR indicator for multiple purposes. It aids in setting stop-loss levels, as larger ATR values suggest increased volatility and the potential for wider price swings. Additionally, ATR can assist in determining position sizing, with lower volatility suggesting smaller trade sizes and vice versa. Overall, ATR provides a valuable quantification of market volatility, enabling traders to adapt their strategies to prevailing market conditions and manage risk more effectively. 3. Stochastic oscillator The Stochastic Oscillator is a momentum-based technical indicator that offers traders insights into potential trend reversals and overbought or oversold conditions in a market. Developed by George C. Lane, this oscillator compares the most recent closing price of an asset to its price range over a specified period, typically 14 periods. The resulting value, often expressed as a percentage, indicates the relative position of the closing price within that range. The Stochastic Oscillator comprises two lines: %K, the faster line that represents the current price's relationship to the recent range, and %D, a smoothed moving average of %K, providing a more stable signal. Traders commonly use the Stochastic Oscillator to identify potential turning points in price trends. When the oscillator ventures into the overbought zone (typically above 80), it suggests that the asset might be overvalued, potentially signaling an impending price reversal or correction. Conversely, readings in the oversold zone (typically below 20) indicate potential undervaluation and may signal an upcoming price bounce. By analyzing the crossovers, divergences, and relationships between %K and %D, traders can derive valuable insights into the market's underlying momentum, facilitating more informed trading decisions and strategic entries or exits. 4. Moving average convergence divergence (MACD) The Moving Average Convergence Divergence (MACD) is a versatile and widely used technical indicator that provides traders with insights into trend direction, momentum shifts, and potential buy or sell signals. Created by Gerald Appel, the MACD consists of two main components: the MACD line and the signal line. The MACD line is derived from the difference between two exponential moving averages (usually 12-period and 26-period EMAs), reflecting the convergence or divergence of short-term and long-term price trends. The signal line, often a 9-period EMA of the MACD line, acts as a trigger for potential trade entries or exits. Traders leverage the MACD for various purposes. When the MACD line crosses above the signal line, it generates a bullish signal, indicating a potential upward price momentum and suggesting a favorable buying opportunity. Conversely, when the MACD line crosses below the signal line, a bearish signal is generated, suggesting a potential downward trend and a possible selling opportunity. Additionally, traders analyze the MACD histogram, which represents the difference between the MACD line and the signal line, providing insights into the strength and intensity of price momentum. With its ability to capture both short-term and long-term trends, the MACD remains a valuable tool for traders seeking to navigate complex market dynamics and make well-informed trading decisions. 5. Bollinger bands (BB) Bollinger Bands, a cornerstone of technical analysis, provide traders with a unique perspective on price volatility and potential trend reversals. Created by John Bollinger, this indicator comprises three distinct lines that encapsulate price action: the middle band, typically a simple moving average (SMA), and an upper and lower band, which flank the middle band at a specified standard deviation distance. The width between the upper and lower bands dynamically adjusts according to market volatility, expanding during periods of heightened price swings and contracting during calmer phases. These bands offer traders invaluable insights into market dynamics. When prices gravitate towards the upper band, it suggests potential overbought conditions, signifying that prices might have risen too far, too fast, potentially foreshadowing a reversal or corrective move. Conversely, when prices approach the lower band, it indicates potential oversold conditions, implying that prices might have fallen excessively and could be due for a rebound. Additionally, traders scrutinize Bollinger Band squeezes, characterized by a contraction of the bands, as they often precede significant price breakouts. By incorporating Bollinger Bands into their analytical toolkit, traders gain a nuanced understanding of price movements and volatility patterns, enabling them to make more informed decisions and better navigate the intricacies of financial markets. 6. Relative Strength Index (RSI) The Relative Strength Index (RSI) stands as a pivotal momentum oscillator in the realm of technical analysis, offering traders a comprehensive measure of an asset's strength and potential overbought or oversold conditions. Conceived by J. Welles Wilder, the RSI compares the magnitude of recent price gains to losses over a specific time frame, typically 14 periods. This computation yields a value between 0 and 100, with readings above 70 often indicating overbought conditions, implying that the asset may have experienced excessive buying and could be due for a price correction. Conversely, readings below 30 signify potential oversold conditions, suggesting that selling pressure might have driven the asset's price too low and could lead to a rebound. Traders wield the RSI as a versatile tool to uncover potential trend reversals and assess the underlying strength of an asset. By identifying divergence between the RSI and price movements, traders can pinpoint situations where momentum might be shifting before it becomes evident through price action alone. Moreover, the RSI's ability to generate signals when crossing key thresholds adds an element of decisiveness to trading strategies, guiding traders on when to buy or sell based on the prevailing market sentiment. With its capacity to unveil underlying market dynamics, the RSI empowers traders with a deeper comprehension of asset behavior, enabling them to make more informed decisions and navigate market fluctuations with greater confidence. 7. Fibonacci retracement Fibonacci analysis, rooted in the pioneering work of Leonardo Fibonacci, has become an essential tool in technical analysis, guiding traders and analysts in deciphering potential price levels, retracements, and extensions within financial markets. The Fibonacci sequence, a mathematical progression where each number is the sum of the two preceding ones (1, 1, 2, 3, 5, 8, 13, and so on), forms the foundation of this technique. In trading, Fibonacci ratios such as 0.618 (Golden Ratio), 0.382, and 0.236 are applied to various price movements to identify significant levels of support and resistance. These ratios, when combined with key price points, create Fibonacci retracement and extension levels that aid in predicting potential price reactions and trend continuations. Traders utilize Fibonacci analysis to comprehend price patterns, predict reversals, and identify areas of interest for market entry or exit. The technique's widespread application spans across different timeframes and asset classes, making it a versatile tool for both short-term traders seeking precise entries and long-term investors analyzing broader trends. By integrating Fibonacci ratios with chart patterns, trendlines, and other technical indicators, traders can enhance their decision-making processes, improve risk management, and gain a deeper understanding of market psychology as reflected in price movements. 8. Ichimoku Cloud The Ichimoku Cloud, a distinctive and comprehensive technical indicator developed by Goichi Hosoda, stands as a multifaceted analytical tool that provides traders with a holistic view of an asset's price action and potential trend direction. Comprising five lines and a shaded area, the Ichimoku Cloud offers a layered perspective that transcends traditional technical analysis. At its core, the indicator features the Senkou Span A and Senkou Span B lines, which, when combined, form the cloud-like area on the chart. The cloud serves as a dynamic support and resistance zone, with its thickness reflecting market volatility and potential trend shifts. The Tenkan-sen and Kijun-sen lines, akin to fast- and slow-moving averages, contribute to the indicator's depth by indicating current momentum and trend direction. Finally, the Chikou Span, plotted backward, provides insights into the relationship between current and past prices. Traders and analysts employ the Ichimoku Cloud for its comprehensive insights into market conditions. The cloud's shifting nature offers early indications of potential trend changes, while crossovers between the Tenkan-sen and Kijun-sen lines provide buy or sell signals. Furthermore, the Ichimoku Cloud accommodates various timeframes, catering to both short-term and long-term trading strategies. Its intricate combination of lines and the cloud presents traders with a holistic picture of price dynamics, enhancing decision-making through a blend of trend analysis, momentum assessment, and support/resistance identification. 9. Standard deviation The Standard Deviation indicator, a fundamental component of technical analysis, offers traders a quantitative tool for assessing the volatility and dispersion of price data within a given trading period. By quantifying the degree of variability in prices around their average or mean, this indicator aids in comprehending market dynamics and potential price fluctuations. Computed by analyzing the differences between each data point and the mean, squaring these differences, averaging the squared values, and finally taking the square root of the result, the Standard Deviation indicator produces a numerical value that represents the degree of price dispersion. A higher value suggests greater market volatility and potential risk, while a lower value indicates more stable and predictable price movements. Traders harness the Standard Deviation indicator to achieve a variety of objectives. Firstly, it helps identify periods of heightened market volatility, guiding traders to exercise caution or implement risk management strategies during times of potential turbulence. Secondly, it contributes to the assessment of potential price targets and support/resistance levels. By recognizing how price data typically deviates from the mean, traders can anticipate potential price levels at which reversals or trend changes might occur. Furthermore, the Standard Deviation indicator can be employed in conjunction with other technical tools to fine-tune trading decisions and develop strategies that align with prevailing market conditions. Its quantitative approach to measuring volatility enhances traders' ability to make informed choices and navigate market uncertainty with a greater degree of confidence. 10. Average Directional Index (ADX) The Average Directional Index (ADX), a pivotal technical indicator, empowers traders with insights into the strength of a prevailing trend and the potential for trend reversals. Developed by J. Welles Wilder, the ADX operates in conjunction with two companion lines, the Positive Directional Index (+DI) and the Negative Directional Index (-DI). The +DI line gauges upward movement's strength, while the -DI line measures downward movement's strength. The ADX itself is a non-directional indicator, designed to quantify the intensity of the trend rather than its direction. The ADX is particularly valuable for traders seeking to gauge the robustness of trends and assess their suitability for trading strategies. When the ADX value is ascending, it suggests an intensifying trend, while a descending ADX indicates a weakening trend or a market in consolidation. A low ADX reading may signify a lack of trend, while a high ADX reading implies a strong, sustainable trend. Traders often use the ADX alongside other technical indicators, such as moving averages or trendlines, to validate the strength of a trend before executing trades. This versatile indicator plays a vital role in enhancing traders' ability to navigate markets by offering a quantifiable measure of trend strength and aiding in the identification of opportune entry and exit points.
Education
by SciLog
Continental CON Long term bullish cycleOur probability indicator has observed Long Term BOS (Break-of-Structure) on Daily TF. Essentially what that means is that we closing in on bearish cycle for XETR:CON and new bullish leg is forming for longterm continuation of new bullish cycle. We expect further bearish correction to 68.30 - 64.80 zone ( Current Inverse H&S pattern support zone ) where conditions for perfect LONG entry occur. Take-Profit should be set within High resistance zone 114.50 - 139.30
XETR:CONLong
by wikitrades
A combination of Stochastic and RSI indicatorsHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (Strength indicator) The strength indicator will also be explained gradually. Today, I would like to talk about how to interpret the indicators consisting of the Stochastic indicator and the RSI indicator. It is set as below. 1. RSI indicator ta.ema(rsi, 14) For the setting value of the RSI indicator, we used the most frequently used value of 14. 2. Stochastic indicators ta.sma(ta.stoch(close, high, low, 20), 12) As the setting values of the stochastic indicator, as shown in the above formula, the setting values of 20 and 12 were used. An important way to interpret 1. Stoch > RSI: likely to show an uptrend 2. Stoch < RSI: likely to show a downtrend but, 1. If the Stoch indicator rises below 30, it is likely to show an uptrend. 2. If the Stoch indicator falls above 70, it is likely to show a downtrend thus, 1. When Stoch > RSI, start split buying. 2. When Stoch < RSI, start split selling. In that sense, I used the fill function to make it appear orange (#ff9800) when it is rising, and blue (#00bcd4) when it is falling. It's best to understand the detailed information about all the indicators and use them, but be careful because if you study too deeply, your thoughts can become trapped in them. Therefore, unless you are going to create a new indicator by directly utilizing the formula, it is recommended to understand and use only the core interpretation method of the indicator. Since the stochastic indicator is an indicator of the price position within a certain period of time, it is recommended to use a set value suitable for your investment period, as it can indicate different results depending on how you set the set value. As I said above, I used the settings of 20, 12. The RSI indicator is an indicator of strength. Therefore, when the price enters the overbought zone, the uptrend is at its highest, so once it exits the overbought zone, the likelihood of a downtrend increases. Conversely, when the price enters the oversold zone, the downtrend is at its highest, so once it exits the oversold zone, it is likely to show an uptrend. Therefore, it is not recommended to react in advance by thinking that price volatility will inevitably occur when a stock enters an overbought or oversold zone. The key to the RSI indicator is to respond when it enters the oversold zone and exits the oversold zone, and when it enters the overbought zone and exits the overbought zone. This is because if a full-fledged uptrend has begun, the RSI indicator may remain in the overbought zone. Therefore, it is not a good idea to judge the situation based on all indicators alone. The above is not a big deal, but I think it is a combination of indicators that makes it very intuitive to know whether or not the chart you are looking at is a chart you can start trading with. We will go into more detail when we discuss how to find support and resistance points for that indicator. -------------------------------------------------- ------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
Education
by readCrypto
2
LINK ChainLink Growth Thesis | Trading at 52 week low Chainlink (LINK) is currently displaying a bullish signal as it bounces from its last support level. This price action indicates renewed buying interest and suggests a potential upward movement for the cryptocurrency. Chainlink (LINK) has established numerous partnerships across the blockchain and cryptocurrency ecosystem. Some notable collaborations include: Google Cloud: Chainlink partnered with Google Cloud to integrate its oracle services and bring real-world data onto smart contracts deployed on the Google Cloud platform. SWIFT: Chainlink collaborated with SWIFT, the global provider of secure financial messaging services, to explore how Chainlink's decentralized oracle network can enhance SWIFT's cross-border payments infrastructure. Oracle: Chainlink has a strategic collaboration with Oracle, a leading provider of enterprise-grade software and cloud solutions. This partnership aims to integrate Chainlink's decentralized oracle technology into Oracle's Blockchain Platform, enabling secure and reliable connectivity between smart contracts and external data sources. Binance: Chainlink partnered with Binance, one of the largest cryptocurrency exchanges globally, to support the development and growth of the decentralized finance (DeFi) ecosystem. This collaboration aims to provide secure and reliable data feeds to power various DeFi applications on the Binance Smart Chain. Polkadot: Chainlink has integrated with Polkadot, a multi-chain platform that enables interoperability between different blockchains. This partnership allows Chainlink's oracles to provide off-chain data to smart contracts deployed on the Polkadot network. Hedera Hashgraph: Chainlink collaborated with Hedera Hashgraph, a decentralized public network, to enable developers to leverage Chainlink's oracles for accessing real-world data on the Hedera network. This integration enhances the security and reliability of smart contracts built on Hedera Hashgraph. Based on this analysis, there is a potential price target of $8.70 for LINK. Looking forward to read your opinion about it!
Long
by TopgOptions
The Phenomenon of Alpha DecayIntroduction: In the realm of cryptocurrency investing, patterns are often perceived, strategies are formed, and indicators are developed to capture potential opportunities. However, there's an underlying factor that traders and investors must be aware of: the concept of alpha decay. Here, we will delve into the nuances of alpha decay, especially in the context of MVRV Z-score, and how market participants have evolved their strategies over various bull cycles. Alpha Decay in Cryptocurrency Investing: At its core, alpha represents the excess return of an investment relative to the return of a benchmark index. As certain strategies become popular and more investors adapt them, the advantage (or alpha) of that strategy diminishes. This is referred to as alpha decay. This phenomenon is especially noticeable in markets as dynamic and rapidly evolving as cryptocurrency. MVRV Z-Score and the Bull Cycles: MVRV Z-score is a metric that gauges the difference between the market value and realized value of a particular cryptocurrency, typically Bitcoin. Historically, peaks in the MVRV Z-score have coincided with market tops, making it a valuable tool for investors. 2013-2014 Bull Cycle: The 2013-2014 cycle witnessed a sharp peak in the MVRV Z-score, aligning closely with the market peak. This made it an excellent tool for identifying market tops. 2017-2018 Bull Cycle: Interestingly, the 2017-2018 bull cycle saw the MVRV Z-score peak slightly earlier than the market peak. This discrepancy suggests that informed traders may have been "front-running" the indicator, leading to alpha decay. As more participants became aware of the indicator and its predictive capabilities, its effectiveness diminished. 2021 Bull Cycle: The second peak of the 2021 bull cycle again showcased the phenomenon of front-running. The divergence between the MVRV Z-score peak and the market peak was even more pronounced, highlighting the diminishing alpha and adaptation of market participants. Indicators and Alpha Decay: While many indicators suffer from alpha decay as market participants adapt, some metrics are inherently protected. A prime example is the unrealized profit/loss metric. This indicator measures the profitability of users, giving insights into the potential behavior of a cohort of traders. As it is based on aggregate behavior rather than predictive patterns, it's less susceptible to front-running and retains its relevance over time. Conclusion: As the cryptocurrency market matures, tools and indicators will continuously evolve, and alpha decay will remain an inherent challenge. Investors must be aware of this phenomenon, continuously adapt, and diversify their toolkits. Relying solely on historically reliable indicators can be misleading, and thus, an understanding of the underlying dynamics and broader market behavior becomes paramount. It's worth noting that as markets evolve and new data emerges, so too will the strategies and tools used to interpret them. Thus, always stay updated, be adaptable, and never rely solely on a single indicator for decision-making.
INDEX:BTCUSD
by AutomatedTradingAlgorithms
The Fundamental Concepts of Technical IndicatorsTrading indicators are essential tools used by traders and investors to analyze price data, identify trends, and make informed decisions in financial markets. They provide valuable insights into market dynamics, helping market participants gain a competitive edge. This comprehensive explainer will delve into what trading indicators are, how they are utilized, and the differences between two prominent strategies: trend following and mean reversion. Additionally, we will explore the importance of using binary and discrete indicators together to enhance trading effectiveness. Part 1: Understanding Trading Indicators 1.1 Definition of Trading Indicators Trading indicators are mathematical calculations based on price, volume, or open interest data that provide graphical representations of market conditions. These calculations help traders visualize price trends, momentum, volatility, and potential reversals. Indicators serve as a supplementary layer of analysis, offering a structured and objective approach to interpreting market behavior. 1.2 Types of Trading Indicators Trend Indicators: Identify the direction and strength of prevailing trends, such as Moving Averages (MA), Moving Average Convergence Divergence (MACD), and Ichimoku Cloud. Oscillators: Measure overbought and oversold conditions, such as Relative Strength Index (RSI), Stochastic Oscillator, and Commodity Channel Index (CCI). Volume Indicators: Assess trading volume to confirm price movements, like On-Balance Volume (OBV) and Volume Weighted Average Price (VWAP). Volatility Indicators: Gauge the level of price fluctuations, including Bollinger Bands and Average True Range (ATR). Part 2: Utilizing Trading Indicators 2.1 Trend Following Strategy Trend following is a popular trading strategy that capitalizes on the continuation of established trends. Traders using this approach seek to identify uptrends or downtrends and ride them for extended periods. Trend following indicators are ideally suited for identifying the direction of a trend and capturing profits during strong market movements. Example of Trend Following Indicator: Fourier Smoothed Stochastic (FSTOCH) (Indicators like the FSTOCH help traders reveal underlying trends in the market) The Fourier Smoothed Stochastic is an advanced tool that utilizes the Stochastic Oscillator in combination with Fourier Transform analysis to identify and ride prevailing trends. By providing smoother signals, it helps traders stay on course with the established trend, allowing for more accurate entries and exits. Its ability to filter out market noise makes it an ideal choice for trend followers seeking a clearer view of market momentum, enabling them to capitalize on prolonged price movements. 2.2 Mean Reversion Strategy Mean reversion is a counter-trend strategy that assumes prices will revert to their average or mean over time. Traders using this approach aim to profit from price reversals when an asset's price deviates significantly from its historical average. Mean reversion indicators are ideal for identifying overbought and oversold conditions and anticipating potential reversals. Example of Mean Reversion Indicator: Bollinger Bands Percentile (BBPct) (The BBPct indicator marks out price extremes which may lead to potential reversals) The BBPct (Bollinger Bands Percent) is an indicator designed for mean reversion trading strategies. It utilizes Bollinger Bands to determine overbought and oversold conditions in the market. The indicator calculates the percentage of the current price's position within the Bollinger Bands' upper and lower boundaries. When the price is near the upper band, it suggests an overbought condition, indicating a potential mean reversion towards the lower band. Conversely, when the price is close to the lower band, it indicates an oversold condition, suggesting a possible mean reversion towards the upper band. Traders can use this information to identify potential reversal points and make informed decisions to capture price movements back towards the mean. Part 3: Trend Following vs. Mean Reversion 3.1 Key Differences Direction: Trend following aims to identify and ride established trends, while mean reversion seeks to capitalize on price reversals. Risk Profile: Trend following strategies typically involve higher risk, as traders enter positions in the direction of the trend, which may be challenging to time accurately. Mean reversion strategies are often considered less risky as traders expect price reversals to occur relatively soon after significant deviations from the mean. Market Conditions: Trend following tends to perform well in trending markets, while mean reversion thrives in ranging or sideways markets. 3.2 Combining Trend Following and Mean Reversion While trend following and mean reversion strategies have distinct approaches, they can complement each other when used in confluence. Combining both strategies can provide a more comprehensive view of the market and reduce reliance on a single indicator. For example: Confirming Trend Reversals: Mean reversion indicators can be used to confirm potential trend reversals identified by trend-following indicators, increasing the probability of successful entries and exits. Managing Risk: Trend following indicators can help traders stay in trends longer and avoid premature exits when using mean reversion strategies. Identifying Range-Bound Markets: Mean reversion strategies can be employed during periods of low volatility or when the market lacks a clear trend, while trend following indicators can be set aside until a new trend emerges. Part 4: Binary and Discrete Indicators 4.1 Binary Indicators (The Super Schaff gives out binary signals when it detects a potential change in trend) Binary indicators provide straightforward, yes-or-no signals, indicating the presence or absence of a particular condition. Examples include Moving Average Crossovers and Super Schaff, which produce buy (long) or sell (short) signals when specific conditions are met. 4.2 Discrete Indicators (The Volume-Trend Sentiment displays the overall implied sentiment based on volume and price action) Discrete indicators generate signals based on a range of values or levels. These indicators offer more nuanced insights into market conditions, allowing traders to interpret the strength or weakness of signals. Examples include RSI and VTS. Part 5: The Importance of Using Both 5.1 Diverse Perspectives Combining binary and discrete indicators provides traders with diverse perspectives on market conditions. Binary indicators offer clear entry and exit signals, while discrete indicators offer a finer understanding of price trends and potential turning points. 5.2 Enhanced Decision-Making Using both types of indicators helps traders make more informed and confident decisions. By cross-referencing binary and discrete signals, traders can filter out false signals and identify high-probability trading opportunities. Conclusion: Trading indicators play a vital role in modern financial markets, providing traders and investors with valuable insights into price trends, momentum, and market conditions. Trend following and mean reversion strategies offer distinct approaches to trading, each with its unique advantages and risk profiles. However, combining these strategies and utilizing both binary and discrete indicators can provide a comprehensive and powerful toolkit for traders seeking consistent success in the dynamic world of finance. Check out the indicators mentioned in this post:
INDEX:BTCUSDEducation
by AutomatedTradingAlgorithms
HOW TO START BUILDING A STRATEGY?As it is said, A strategy is a reflection of a trader’s character . Whatever sentiments/emotions you have, reflect in your trading decisions. At first, people think that, ‘I will use xyz indicator and buy here and sell there’, thinking it’s easy to have a method that is simple. But when reality hits, all the simplicity runs out of the window with your money. Trading is not for those who take it lightly. You have to respect the market before coming up with a strategy that suits your personality/mindset/character. One might ask, what does personality have to do with trading? And that’s where all the secrets are. Newbie traders often run after YouTube channels, Twitter handles of some high MTM traders and try to copy them. They keep hopping from one setup to another. Because in the beginning, traders do not have the knowledge of risk management, importance of back testing etc. You should test your strategy for at least 100 trades before scrapping it. And that’s where they lack. But in my experience, you may learn the method from another trader but you cannot learn the mindset . You have to develop that on your own. There are certain ways of self-assessment when it comes to finding the right approach towards trading. Just because some day trader is making a killing in the market every day, doesn’t mean you can replicate the same performance too. You might be well suited for positional/swing trading. Just like that if someone is better in swing trading, you may be crafted for long term investing if not that even for scalping. There is a vast array of segments to choose from. From intraday to swing and scalping to options writing. You can decide any segment as per your patience level. The only goal should be to make money. You are not here to be right or wrong. You are here to make a living. Choosing a trading style is completely based on your patience level. If you are a patient trader then you can go for short to long term trading. Find the good setups, take the trade and sit tight. Your actions should be either target or stop loss. You can manage the trade as per your style e.g. , pyramiding or averaging. If you are an adrenaline junkie, then intraday, scalping & F&O trading is your cup of tea. But remember that the lesser the trade duration, more the chances of losses . Because these segments are much more risky than those of others. You need the skill of a sniper & the eye of an eagle to execute such trades and come out of it profitably. Now the question is how to decide? There are some ways you can shorten the learning curve, some of them are as follow… 1.Mentor👨‍🏫: Mentor is the person who is willing to share his experience to those who seek to shorten the learning curve. Warren Buffet had Benjamin Graham, Rakesh Jhunjhunwala had Radhakishan Damani . Everyone needs a mentor, be it in the form of books or a person . Learning what not to do is more important than learning what to do? And that is the biggest lesson I’ve learned from my mentors . A mentor teaches you that in the most practical ways by showing some real-life examples. He will also tell you when to trade and when not to. Because compulsive trading is one of the major reasons why traders lose big. So, finding a good mentor should be your priority. 2.Self-Learning🎓✍️: There are some successful self-made traders who learned from trial and error. But you need to check the time they took to be successful. It’s not impossible but it’s time consuming. Also, you need to have lots of patience and money as well. Because self-learning is like flying a plane by reading manuals. You have to do all the work from developing a strategy to back testing it and it's too lengthy process to start with. You can self-learn trading, but be ready to give it time. 3.Books📚: Aahh books… the first love of any trader. For me it still is. I read as much as possible. The very foundation of my trading journey is based on reading. I read many books in my initial days. Some of them still help me today. But textbook knowledge is not sufficient in real time trading . You can learn patterns such as triangle, channel, cup and handle and head and shoulders. But textbook patterns are so rare that it’s exhausting to spot them on charts let alone trade them, unless you have a knack for them. It’s a good start but not the best process. Above information should give you some perspective on how to approach the market and build your strategy. Strategy doesn’t just mean a trading setup (Entry & Exit). It includes everything from trade setup to your mindset. Find the best possible way, stick to it and follow the path. Eventually you will reach the destination. Keep learning, keep growing…!! 💗✨ Support TradingView✌️
NSE:BANKNIFTYEducation
by khushaljain023
2
Educational: Tuning Indicators to Optimize Performance📊 Introduction Technical analysis is a fundamental part of any trader's toolset since it offers insightful information about market activity and potential price moves. The foundation of this research is made up of indicators including Moving Averages (MAs), Relative Strength Index (RSI), Bollinger Bands, and MACD. However, using these indicators' default values without adjusting them can frequently lead to subpar performance. This publication aims to clarify the benefits of modifying indicator values as well as how to do it efficiently. 📊 Chapter 1: Understanding Trading Indicators 🔹 1.1 What are Indicators? Traders who utilize technical analysis employ indicators, which are mathematical computations based on the price, volume, or open interest of a security or contract. They are instruments that offer quantitative information on market patterns and can be used to predict prospective price changes. 🔹1.2 Types of Indicators There are two primary types of indicators: leading and lagging. Leading indicators aim to predict price movements before they occur, while lagging indicators confirm trends that are already underway. The choice between these types should be dictated by the trader's strategy and goals. Chapter 2: The Case for Adjusting Indicator Values 🔹 2.1 One-Size-Doesn't-Fit-All When you first use an indicator, its values are frequently set by default to standard values. These defaults might not be appropriate for all markets or trading philosophies, though. You can get more precise signals by modifying them to better reflect the unique dynamics of your trading market. 🔹2.2 Changing Market Conditions Market conditions fluctuate over time. Volatility, trading volume, and other factors change, and these variations can impact the effectiveness of indicators. Regularly adjusting your indicators can help you adapt to these changes. 🔹2.3 Optimizing for Your Trading Style Different traders employ various trading strategies. Different types of data are needed by swing traders, day traders, and long-term investors. You can fine-tune your indicators to fit your own trading strategy and timeframe by making adjustments to them. 📊 Chapter 3: Adjusting Common Indicators 🔹3.1 Moving Averages (MAs) The Moving Average is a trend-following or lagging indicator because it is based on past prices. The two main types are the simple moving average (SMA) and the exponential moving average (EMA). Typically, the default value for MAs is set at 50 days for the short-term trend and 200 days for the long-term. However, if you're a day trader, you might want to adjust this to reflect the shorter time frames you're working within, such as 10 or 20 periods. 🔹3.2 Relative Strength Index (RSI) The momentum oscillator known as the RSI gauges how quickly and dramatically prices move. It typically has a period setting of 14, however it can be changed to sharpen detection or lessen spurious signals. Setting it to a shorter time, such as 7, would suit your preference for more frequent trading. On the other hand, a longer time, like 21, would be acceptable for less frequent trading. 🔹3.3 Bollinger Bands The overbought or oversold price levels and volatility are recognized by Bollinger Bands. Usually, a 20-day simple moving average with a 2 standard deviation is used as the default setting. You might want to alter the number of standard deviations or increase the number of periods if the market gets more volatile. 🔹3.4 MACD (Moving Average Convergence Divergence) The relationship between two moving averages of the price of an asset is displayed by the trend-following momentum indicator known as MACD. The difference between the 12 and 26-period EMAs serves as the default preset for MACD. This can be altered, though, to accommodate various market circumstances or specific trading philosophies. 📊 Chapter 4: Fine-tuning Indicators Backtesting your altered settings against prior data allows you to fine-tune your indicators and see how they would have performed. Remember that this process necessitates perseverance, diligence, and a willingness to take lessons from both successes and failures. 📊Conclusion Keep in mind that there is no "holy grail" or universally applicable trading approach. Long-term market success requires constant indicator adjustment to reflect shifting market conditions and your trading style. You stand to gain most from your trading endeavors the more you comprehend your tools and how to customize them to your demands.
COINBASE:ETHUSDEducation
by ChristopherDownie
Indicators that can identify trends: MS-Signal indicatorHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (LINKUSDT chart) The composition of the chart consists of price and volume. Therefore, chart analysis can be interpreted differently depending on how you interpret price and volume. First of all, if you look at the price part, you can see that the trend and various indicators were created based on price candles and moving averages. Therefore, it will be difficult to interpret the chart as the concept of the arrangement of the candles and the price moving average is not established. The array of price candles, that is, the high and low points formed by connecting the candles, draws each trend line to check which direction the current price movement is moving. However, it is necessary to be careful because it is difficult to find the highs and lows of a low time frame chart, so it is possible to draw an incorrect trend line. A false trend line means that you drew a trend line, but did nothing with it. The more false trend lines you have, the less information you can get from chart analysis, and the trading strategy created with such reduced information loses its usefulness, so you need a solid basis even when drawing a trend line. With a firm basis on how to draw a trend line, we will have time to explain in detail later on how to draw it. The MS-Signal indicator shown in this chart is an indicator that can confirm the trend by using the formula of the MACD indicator. Therefore, it is necessary to become familiar with the interpretation method using MS-Signal indicators before practicing drawing trend lines. The MS-Signal indicator utilizes the formula of the MACD indicator. If you look at the formula of the MACD indicator, you can see that it was created using a moving average. Therefore, if you understand the concept of moving averages, I think you will have no difficulty in using the MACD indicator. MS-Signal indicator consists of M-Signal indicator and S-Signal indicator. Therefore, an arrangement of M-Signal indicator > S-Signal indicator means that it is in an uptrend. During this uptrend, if the price candle holds the price above the MS-Signal indicator, it means that the uptrend is likely. We have also explained indicators that use volume to mark support and resistance points. That index is the OBV index included in the HA-MS index. The OBV indicator is an indicator that shows the change in trading volume due to price fluctuations, and the key point of the OBV indicator is 0. Interpretation of trading volume can be difficult to understand, so we will take time to explain in detail when the explanation of the price chart part is being finalized. In this chart, the 'Vol & Trend' sub-indicator includes indicators that utilize trading volume. What I want to explain this time is about the MS-Signal indicator explained above. Since the MS-Signal indicator is published in the trading view formula, you can look it up if you want to know the formula. (HA-MS indicator) MS-Signal indicators are composed of M-Signal indicators and S-Signal indicators. Among these two indicators, the key indicator is the M-Signal indicator. Therefore, it is designed to display M-Signal indicators of 1M, 1W, and 1D charts separately. Utilizing these indicators, it plays a role in showing the overall trend of the price chart immediately even if it is below the 1D chart. (4h chart) The 4h chart above is a chart set to display only the M-Signal indicators of the 1D, 1W, and 1M charts. If the M-Signal indicators form a regular arrangement (1D > 1W > 1M), you can see that there is an upward trend from a long-term perspective, just by looking at the 4h chart. These marks can reduce the time it takes to analyze a chart because it can shorten the viewing time when viewing multiple charts. It also reduces the chance of getting caught in a whipsaw by price fluctuations. Chart analysis is just analysis, you need a trading strategy to trade. Chart analysis should focus on finding support and resistance, as it is possible to find support and resistance points by analyzing the shape of the chart in order to create a trading strategy. As mentioned above, all you need for chart analysis is the shape of the candlestick and the concept of the moving average line. Therefore, if this concept is in place, all the indicators shown in this chart are unnecessary. However, chart analysis can take a long time, and it is recommended to use indicators that are basically reliable even in order to reduce psychological agitation caused by whipsaw-like volatility. Descriptions of the MS-Signal indicator have been published several times. Therefore, after candlesticks and moving averages, the indicator that must be familiar to the eye is the MS-Signal indicator. This is because I think there is no better indicator than the MS-Signal indicator to find out the trend of the chart. -------------------------------------------------- ------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
Education
by readCrypto
1
📈Golden Cross and Death Cross: Decoding Forex Trading Signals📉 ✅When it comes to analyzing the Forex market, traders often rely on various indicators and patterns to make informed decisions. Two popular patterns that can provide valuable insights are the golden cross and death cross. In this article, we will explore what these terms mean, how they can be identified, and how traders can use them to their advantage. ✅Golden Cross: The golden cross is a bullish signal that indicates a potential uptrend in the market. It occurs when the shorter-term moving average, typically the 50-day moving average, crosses above the longer-term moving average, usually the 200-day moving average. This crossover suggests that the price is gaining momentum and that buyers are becoming more active. Traders often interpret the golden cross as a confirmation of a strong market sentiment, leading them to open long positions or increase their current holdings. It is seen as a positive sign as it suggests that a positive trend is likely to continue. ✅Death Cross: On the other hand, the death cross is a bearish signal indicating a possible downtrend. It occurs when the shorter-term moving average crosses below the longer-term moving average. Similar to the golden cross, the death cross is typically identified using the 50-day and 200-day moving averages. The death cross can be interpreted as a confirmation of a negative market sentiment with increased selling pressure. Traders may consider opening short positions or reducing their existing long positions in anticipation of a downward trend. ✅Using Golden Cross and Death Cross in Forex Trading: While the golden cross and death cross patterns can provide valuable insights, traders should not solely rely on them for making trading decisions. It is important to consider other indicators, fundamental analysis, and overall market conditions. 🟢Confirmation: Traders should look for additional confirmation, such as increased trading volume or other technical indicators aligning with the signal, before entering a trade. 🟢Timeframes: Different timeframes (hourly, daily, weekly, etc.) can produce different crossing signals. Traders should select the timeframe that suits their trading strategy and goals. 🟢False Signals: It is crucial to acknowledge that golden cross and death cross signals are not foolproof. In certain market conditions, they may generate false signals, leading to incorrect trading decisions. Thus, it is advisable to use them in conjunction with other technical analysis tools. ✅The golden cross and death cross are popular patterns used in Forex trading to identify potential bullish and bearish market conditions, respectively. These signals provide traders with valuable information about market sentiment, allowing them to make more informed trading decisions. However, it is important to use these patterns in conjunction with other indicators and analyses to increase the probability of success. Remember, understanding these patterns is just the beginning of the trading journey – continuous learning and adaptation are key to becoming a successful trader. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
SAND Sandbox and the Altcoin Season ThesisIf you haven`t sold SAND here: or bought it back here: Then the recent developments in the cryptocurrency market, particularly the favorable court ruling for Ripple Labs, signal an optimistic start to a new altcoin season. With the federal judge ruling that some of Ripple's sales of the XRP token do not fully meet the definition of a securities offering, it instills confidence in the altcoin space. This ruling brings clarity to the regulatory landscape and alleviates concerns surrounding XRP, leading to major cryptocurrency exchanges, including Coinbase, relisting the token. The reintroduction of XRP to these platforms demonstrates growing acceptance and renewed interest in this altcoin. The anticipation surrounding the approval of a spot bitcoin ETF in the United States adds to the positive sentiment in the market. The successful launch of a previously approved ETF in Europe further reinforces the upward trend for altcoins. The recent court ruling that declared XRP as not a security sets a precedent that could potentially benefit other cryptocurrencies currently classified as securities by the SEC. In the SEC's case against Binance, they designated 10 cryptocurrencies, including BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS, and COTI, as securities. Additionally, in the SEC's lawsuit against Coinbase, they named 13 cryptocurrencies, reinforcing their stance on SOL, ADA, MATIC, SAND, and AXS, and adding CHZ, FLOW, ICP, NEAR, VGX, and NEXO to the list. This development showcases the increasing institutional acceptance of cryptocurrencies and creates a ripple effect across the market, providing a boost for various altcoins, including SAND Sandbox, for which my price target is $0.60. Looking forward to read your opinion about it!
Long
by TopgOptions
2
ATOM Cosmos and the Altcoin Season ThesisThe recent developments in the cryptocurrency market, particularly the favorable court ruling for Ripple Labs, signal an optimistic start to a new altcoin season. With the federal judge ruling that some of Ripple's sales of the XRP token do not fully meet the definition of a securities offering, it instills confidence in the altcoin space. This ruling brings clarity to the regulatory landscape and alleviates concerns surrounding XRP, leading to major cryptocurrency exchanges, including Coinbase, relisting the token. The reintroduction of XRP to these platforms demonstrates growing acceptance and renewed interest in this altcoin. The anticipation surrounding the approval of a spot bitcoin ETF in the United States adds to the positive sentiment in the market. The successful launch of a previously approved ETF in Europe further reinforces the upward trend for altcoins. The recent court ruling that declared XRP as not a security sets a precedent that could potentially benefit other cryptocurrencies currently classified as securities by the SEC. In the SEC's case against Binance, they designated 10 cryptocurrencies, including BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS, and COTI, as securities. Additionally, in the SEC's lawsuit against Coinbase, they named 13 cryptocurrencies, reinforcing their stance on SOL, ADA, MATIC, SAND, and AXS, and adding CHZ, FLOW, ICP, NEAR, VGX, and NEXO to the list. This development showcases the increasing institutional acceptance of cryptocurrencies and creates a ripple effect across the market, providing a boost for various altcoins, including ATOM Cosmos, for which my price target is $11.15. Looking forward to read your opinion about it!
Long
by TopgOptions
MATIC Polygon and the Altcoin Season ThesisIf you haven`t sold MATIC here: Then the recent developments in the cryptocurrency market, particularly the favorable court ruling for Ripple Labs, signal an optimistic start to a new altcoin season. With the federal judge ruling that some of Ripple's sales of the XRP token do not fully meet the definition of a securities offering, it instills confidence in the altcoin space. This ruling brings clarity to the regulatory landscape and alleviates concerns surrounding XRP, leading to major cryptocurrency exchanges, including Coinbase, relisting the token. The reintroduction of XRP to these platforms demonstrates growing acceptance and renewed interest in this altcoin. The anticipation surrounding the approval of a spot bitcoin ETF in the United States adds to the positive sentiment in the market. The successful launch of a previously approved ETF in Europe further reinforces the upward trend for altcoins. The recent court ruling that declared XRP as not a security sets a precedent that could potentially benefit other cryptocurrencies currently classified as securities by the SEC. In the SEC's case against Binance, they designated 10 cryptocurrencies, including BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS, and COTI, as securities. Additionally, in the SEC's lawsuit against Coinbase, they named 13 cryptocurrencies, reinforcing their stance on SOL, ADA, MATIC, SAND, and AXS, and adding CHZ, FLOW, ICP, NEAR, VGX, and NEXO to the list. This development showcases the increasing institutional acceptance of cryptocurrencies and creates a ripple effect across the market, providing a boost for various altcoins, including MATIC Polygon, for which my price target is $0.95. Looking forward to read your opinion about it!
MLong
by TopgOptions
ADA Cardano and the Altcoin Season ThesisIf you haven`t sold ADA here: Then the recent developments in the cryptocurrency market, particularly the favorable court ruling for Ripple Labs, signal an optimistic start to a new altcoin season. With the federal judge ruling that some of Ripple's sales of the XRP token do not fully meet the definition of a securities offering, it instills confidence in the altcoin space. This ruling brings clarity to the regulatory landscape and alleviates concerns surrounding XRP, leading to major cryptocurrency exchanges, including Coinbase, relisting the token. The reintroduction of XRP to these platforms demonstrates growing acceptance and renewed interest in this altcoin. The anticipation surrounding the approval of a spot bitcoin ETF in the United States adds to the positive sentiment in the market. The successful launch of a previously approved ETF in Europe further reinforces the upward trend for altcoins. The recent court ruling that declared XRP as not a security sets a precedent that could potentially benefit other cryptocurrencies currently classified as securities by the SEC. In the SEC's case against Binance, they designated 10 cryptocurrencies, including BNB, BUSD, SOL, ADA, MATIC, ATOM, SAND, MANA, AXS, and COTI, as securities. Additionally, in the SEC's lawsuit against Coinbase, they named 13 cryptocurrencies, reinforcing their stance on SOL, ADA, MATIC, SAND, and AXS, and adding CHZ, FLOW, ICP, NEAR, VGX, and NEXO to the list. This development showcases the increasing institutional acceptance of cryptocurrencies and creates a ripple effect across the market, providing a boost for various altcoins, including ADA Cardano, for which my price target is $0.45. Looking forward to read your opinion about it!
Long
by TopgOptions