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BTC to trade in range?I would say the chart of BTC/USD clearly indicate the major support is around 9000, where the bull start a major rally after the slump in mid-March. The most crucial resistance is 11000$, because it's a triple technical confluence level. 1) it's the middle point of the slump this month 2) the rally afterward stops at 11000 , also a horizental resistance 3) Exponential Moving Average 100 happens to become a key threhold for bull and bear territory. All said, if the price pushes above 11,000$, it certainly signify the resumption of bull market, and bull will most likely take out 13000 & 14000 highs. However, current tepid market trading volume and these numberous minor rabounces show no sign of a new up offensive anytime s BITSTAMP:BTCUSD xoon. Range trading would be the most rational scenario . BITMEX:XBTUSD
COINBASE:BTCUSD
by UnknownUnicorn3838311
1
Trading Divergences - An Alternate View for New TradersTrading divergences is a very common technical analysis strategy, but it comes with one big problem: the most common divergences (not hidden) trade against the trend. This means that new traders can often get into trouble by constantly looking for, and trading, against a dominant trend. Here's an idea to help you become more profitable over the long-term: identify divergences on your chosen momentum indicator, but only trade on trend continuation signals. I'm not saying you need to do this forever, as once you're experienced you can trade both pullbacks and continuations - but doing so requires multiple layers of confirmation, and a lot of knowledge/planning/experience. By trading trend continuation signals after divergences, you're stacking the odds in your favour by going with the dominant trend. You're also training your eye to see divergences, and seeing how the markets react to divergences. For new traders this can be a valuable lesson in the power of momentum in financial markets. So, what are trend continuation signals? It depends on your chosen momentum indicator, so I can only provide general ideas; you need to adapt things according to what you're using. My chart contains a custom momentum indicator, loosely based on the RSI. However, it's far smoother than the RSI, so I can reliably trade precise signals (e.g. for me, a cross of 0). On the RSI, you may choose something a bit further down the scale, for example, a cross below Oversold (20/30). If you're using a Stochastic indicator, you may trade a cross below Overbought (70/80). If you don't understand why I'm suggesting you trade signals at the opposite end of the scale for RSI and Stochastic, let me know. Hopefully this all makes sense, and remember that it's just an idea if you're a new trader and struggling to make good trades. Let me know if you have any queries. DD
Education
by DreamsDefined
4
How to Trade Correlations for New Traders - AUD/USD vs NZD/USDWelcome! Here's a super simple chart, and strategy, which can help you get started in your trading journey. Trading strongly correlated pairs and looking for divergences is hardly an industry secret. It's a standard technique, and one that is heavily employed by large institutional investors. Basically, correlation means that certain pairs move in a similar fashion. For AUD/USD (AU) and NZD/USD (NU), they are both based on the USD, and the Australian and New Zealand economies are, broadly speaking, based on similar fundamentals. This means that the factors that impact the price of the AU market, will naturally have similar impacts on the NU market. The great thing about the AU and NU correlation is that it's long lasting, and strong. For a few decades now, the pairs have had a 80%+ positive correlation (a positive correlation means two markets move in the SAME direction, whereas a negative correlation means that move in the OPPOSITE direction). This strong correlation has held steady through some significant market events. The exception is a period between 2014-2016, where correlation dropped to a low of 15% - but that was due to a variety of factors that are too in-depth to cover here. However, it's worth stating that if the correlation were to drop below 80% in the future, this strategy/technique would no longer be valid. Hopefully the chart broadly explains things, but in a nutshell: The pairs should move the same. If they don't, e.g. if AU forms higher highs, but NU forms lower lows, that's a correlation divergence. Basically, the markets have moved out of synch for some reason. Often, these are simply short-term phenomenon, and we're counting on the correlation to re-establish itself, allowing us to profit from it. The nature of correlation divergences is that you don't know which pair is going to break first. Therefore, you need a secondary signal in order to make a trade. For example, AU is making higher highs, and NU is making lower highs - which one is going to break? Well, a simple idea is to grab your favourite momentum indicator and look for divergences on either market. On our chart, this plays out in the mid-late April trade. AU is grinding higher, but forming a bearish momentum divergence. Therefore, we're looking for AU to break lower. We can use a moving average, or a trend line break as our confirmation signal to enter the trade. This one worked out wonderfully, but not all of them will. Positive correlations are, like nearly all trading signals, stronger on higher time frames. on a 5min chart, correlations, like the markets themselves, are far more volatile. This is why I would suggest using H4 as your smallest time frame chart, and look at correlations on a Daily basis. A great website to measure/track correlations is www.mataf.net I hope that that all makes sense. I encourage you to try it out for yourself - pick two strongly correlated pairs and start training your brain to look for divergences. And, as with all trading, don't jump on the first correlation divergence you see. You need a secondary confirmation (e.g. momentum divergence, support/resistance), and then a confirmation signal, before making a trade. Trading success is all about how you do things, not what you do. If you have any questions, feel free to contact me. DD
Education
by DreamsDefined
CHFJPY: Analysis and Plan for the week ahead (15 JULY 2019)Looking at CHFJPY pair, there is a bearish engulfment going on. Price has hit Key Level and price is resisted indicating there is a probability that price will go bearish. Disclaimer: These are only an idea or a point of view of what will happen in the market. Please do your own analysis for more confirmation and do not copy blindly. I will not be responsible for any losses if you follow the idea. These ideas are meant for sharing and learning for those who are still new and learning like me. Please manage your risk-reward accordingly as it is very crucial. You are allowed at any moment to leave any comments below as those comments will be taken as a learning point or reviews. Trade at your own risk and good luck.
Short
by FUADALHAKIM
CADCHF: Analysis and Plan for the week ahead (12 JULY 2019)Looking at the CADCHF pair, the price have hit the weekly high again, price is rejecting currently. Therefore looking at the Key Level, the price will be going downwards. Price have been rejected at this key level for the past couple of weeks. Next move: You may either wait for the candlestick to have a bearish engulfment or you can go short straight away if you feel confident. Disclaimer: These are only an idea or a point of view of what will happen in the market. Please do your own analysis for more confirmation and do not copy blindly. I will not be responsible for any losses if you follow the idea. These ideas are meant for sharing and learning for those who are still new and learning like me. Please manage your risk-reward accordingly as it is very crucial. You are allowed at any moment to leave any comments below as those comments will be taken as a learning point or reviews. Trade at your own risk and good luck.
Short
by FUADALHAKIM
AUDCAD: Analysis and Plan for the week ahead (8 JULY 2019)Currently looking at AUDCAD pair. The weekly range is to BUY LOW, SELL HIGH. Now that is is currently at low, we are looking for longs(BUY). Next move: I will be going long towards the next high. Disclaimer: These are only an idea or a point of view of what will happen in the market. Please do your own analysis for more confirmation and do not copy blindly. I will not be responsible for any losses if you follow the idea. These ideas are meant for sharing and learning for those who are still new and learning like me. Please manage your risk-reward accordingly as it is very crucial. You are allowed at any moment to leave any comments below as those comments will be taken as a learning point or reviews. Trade at your own risk and good luck.
Long
by FUADALHAKIM
USD/CAD BEARISH MARKET STRUCTURE*-CONSECUTIVE LOWER HIGHS AND LOWER LOWS *-REJECTED WITH A PIN BAR OF 1.30684 SUPPORT ZONE *-WE MIGHT SEE A CORRECTIVE PRICE BEHAVIOUR *-POSSIBLE CORRECTIVE STRUCTURE UP TO 1.33 FIB/RES/TRENDLINE *-I AM SEEING A POSSIBLE NICE DOWNTREND HERE AFTER WE HAVE BROKEN A MASSIVE&HUGE IMPORTANT UPTRENDLINE *-PRICE MIGHT ALSO CORRELATE WITH 50 EMA *-WAITING TO SEE SOME PRICE ACTION/CANDLESTICK PATTERNS ON MY POCKET BEFORE ENTERING A LONG TRADE *-BE CAREFULL OF NFP THIS FRIDAY *-ITS BETTER TO CLOSE ALL OPEN TRADES BEFORE NFP #tradesafe #education #bestsetup #learn #freecontent
Education
by theforexdaddy
BTC time to rest after a long run up Let's take a look at a bigger picture of BTC moves. It appears that a long run up must end with a bit of a 'rest'. Normally, it is roughly a 40% (of the size of the run up) reduction or so the past dictates. The past year's events of this nature were circled on the chart. It appears that last year it was also around June. Interestingly this price reduction would coincide with the area of strong support at $6000. Adding this up I see us going there first before resetting the course up again. For educational purposes and record of play.
BITSTAMP:BTCUSDShort
by KonradB
NZDUSD: Analysis and Plan for the week ahead (9JUNE2019) CanadiaWe are looking at the NZDUSD pair. Currently this pair is in down ward trend. The price is currently hitting the monthly high key level. Therefore, I believe the price will actually go down wards. Disclaimer: These are only an idea or a point of view of what will happen in the market. Please do your own analysis for more confirmation and do not copy blindly. I will not be responsible for any losses if you follow the idea. These ideas are meant for sharing and learning for those who are still new and learning like me. Please manage your risk-reward accordingly as it is very crucial. You are allowed at any moment to leave any comments below as those comments will be taken as a learning point or reviews. Trade at your own risk and good luck.
Short
by FUADALHAKIM
CADJPY: Analysis and Plan for the week ahead (9JUNE2019)We are looking at the CADJPY pair. Currently this pair is in down ward trend. AS you can see there is the Lower Highs (LH) and Lower Lows (LL). At the moment it is at Lower High. I am looking at it that it will be making another Lower Low (LL). Disclaimer: These are only an idea or a point of view of what will happen in the market. Please do your own analysis for more confirmation and do not copy blindly. I will not be responsible for any losses if you follow the idea. These ideas are meant for sharing and learning for those who are still new and learning like me. Please manage your risk-reward accordingly as it is very crucial. You are allowed at any moment to leave any comments below as those comments will be taken as a learning point or reviews. Trade at your own risk and good luck.
Short
by FUADALHAKIM