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HOW TO TRADE CONSOLIDATION The short answer: DONT. I've decided to use EUR/GBP today as a prime example of when to sit on the sidelines and not risk a cent of your capital. As you can see, the past 7 weeks have been an absolute mess with price looking very indecisive and all over the place. This means that traders are not able to come to a consensus of whether they are bullish or bearish on this particular pair. Now remember when you are trading you want to be able to identify and execute your trades where there is likely to be a large amount of buy/sell orders (particularly 'smart money' orders however this is a lesson in itself) and if price is just moving sideways, how exactly will you be able to do that? The answer is most likely you most likely will not be able to. The trick with trading consolidation is being able to stay patient and let the masses fight over a measly amount of pips while waiting for the market to show you the direction it is heading next. You will be able to identify this when price clearly breaks the current consolidation either to the upside or downside. When this happens after a long period of consolidation, you might notice it does this with tremendous strength (I like to picture this as the market 'coiling' up before releasing its stored energy to either the bull or bear side). Now the question you should be asking yourself after that point is ''How can I now take advantage of this potentially newly formed trend?''. Instead of just getting long or short as hell after seeing a breakout, I like a little more confirmation before putting any of my capital at risk. This usually comes in the form of a pullback to the first potential lower high/higher low after the breakout has occurred and this is usually where I look to place an entry if my strategy signals to do so. Hope you were able to take some value from this mini lesson, let me know in the comments or PM me if you want more short lessons similar to this! Have a great trading week.
Education
by joshdonoghoe
1
Buying $TRX..with math!When a buy opportunity like this presents itself I love to share it with you all. The more of us that understand technical analysis, the more likely charts will follow TA patterns. Buy signals for technical analysts become self fulfilling prophecies, and it's no surprise that a coin that is as heavily traded as $TRX would follow the rules almost perfect. What you see on this chart is $TRX correcting after a big old 3rd Elliott impulse wave up. As you can see $TRX is currently consolidating in a bear pennant. This pennant is distinguished as a bear pennant because the consolidation is following a down trend. We reached a high of about 1080 sats and the apex (the top or highest part of something, especially one forming a point.) of our pennant formed at 890 sats. The downtrend that will follow the previous downtrend after the consolidation of a bear pennant will typically be the same length as the previous down trend. Sorry if that's confusing, I scored a 560 on the english section of my SAT, and the chart shows you the simple math that should clear up any confusion. Isn't it interesting that our target lines up perfectly with the 0.5 fib level!? Beautiful!! Here is a prime of example of how you can use multiple indicators (Elliot, Fib, patterns) to...make money! Oftentimes new traders ask how much do you place on a trade and why? I like to buy when I'm nearly certain the money will be there. On a trade like this, I will bet a lot of marbles. If you found this helpful, please like, follow and share with your friends. Cheers, J
by TeamNeverWorkAgain
26
Lesson 3 : Amazing Trading Method (Swing High / Low)Hello Traders, Here I am again with an interesting but extremely helpful lesson. I’ve given you plenty of time to go over Lesson 1 and Lesson 2. This lesson is going to be a little longer as I have tried to be as simple as possible in my explanation. So, let us get straight to it. Get a pen and a paper if you want to make notes. It’ll be helpful. I learned this great strategy from a course long time back, and I found it very helpful, and it changed the way I used to trade. Knowledge is power and I love spreading it. Note: Here we will be ignoring the main chart, instead focus on the charts in between the post. We all know of indicators such as MA, EMA, MACD, RSI, DMI, Stochastic RSI, etc. but we all know that as much as the indicators are very helpful, they don’t always work. In fact, nothing working perfectly as we want. What if we can use the indicators as a first step, and along with that use some amazing shortcut tricks that will position us better and give us an advantage to be in that trade? That is what we are going to try and work on today. Lets develop some great skills. I will mainly focus on the logic that we can use once we have determined a trade position after using the indicators. We will be working on understanding the logic of trends once we determine a specific pattern using indicator triggers. I have so much material to cover, so forgive me if somewhere I make any mistakes. Enough of the intro. Lets begin. Indicators and What to look for before you can use the price-action logic (You do not have to use all the indicators for a signal): MACD: - Crossover over/under the signal line - Crossover over/under the zero line DMI (Directional Movement Index): Look for the +DI line and -DI chart cross each other. This will tell us whether the price action is going down or up. EMA (Exponential Moving Average): - Shorter term moving average crossing over or under longer term moving average. - Closing prices of the candles crossing over or under a single moving average. Note: The length of the moving averages depends on you. For shorter term, we can use 30 or 50, and for longer term 100 or 200 is preferred. So, now we have these 3 indicator which we will go over first to confirm the trend of the price chart. This lesson is not a tutorial for the above three indicators. I will have separate lessons for each indicators. Once we figure that the chart looks bullish that is when we move on to the below logic tricks I am about to explain. I hope you understood whatever I told you so far. Basically, we will have two steps, the first one being using the above indicators to make sure it is looking bullish, and then comes the second part which would be using our logic to get an entry and look for a possible move out. Got it? If not just ask me in the comments. I am here for you. So now we know what indicators we can look for and assuming we want to enter the trade after all the indicators giving bullish signals, we now move on to the logic before entering the trade. THE TRICK I want to remind you to have your complete attention on this now. Really want you to understand this very well. We will be going over the following patterns as a part of our strategy after the preliminary analysis using the above indicators: - Swing High Pattern (For Buying / Long) - Swing Low Pattern (For Selling / Short) - Inside Intervals - 1 Candle / 2 Candle Pullbacks - Inside Intervals + 1 Candle/ 2Candle Pullbacks - Using it all together - Risk Control ( Will have a separate lesson for it later on) We have lots of topic to cover people, and this is going to be long, so bear with me. Lets go over it one by one, and don’t move on to the next topic unless you have understood the previous one completely. Remember information is powerful but wrong information is dangerous. I will be updating this in sections, so see below to continue reading this.
COINBASE:BTCUSDEducation
by MoneyChartz
3
Lesson 1: RSI (Relative Strength Index) - Widely used indicatorWelcome to the first lesson from Lets Go Crypto! We aim to educate people who are struggling to understand indicators, and how to use them when it comes to trading. Hope this is helpful for all of you people out there, who are looking for some kind of lessons. If at the end, you do not understand or have any questions, feel free to ask in comments below. Today, we will be talking about RSI (Relative Strength Index), which is one of the most used indicators in crypto. There are many people out there who just use RSI to day trade, or even for a long term trading. Here you will learn what is RSI, the Pros and Cons of RSI, how to use it to trade, and the best strategy to follow if you are only using RSI as an indicator. I will be using 4H time frames as an example for the lesson. Lets dig straight into it. Default RSI indicator Settings: Length (14) . What is RSI? Relative Strength Index is one of the many oscillators out there, which basically calculates the strength and weakness of a coin. It compares the up movements versus the down movements over a given period of time. As you can see on the chart, RSI is plotted as a single line. That line when average gains are greater than the average losses, it moves up, and vice-versa when average losses are greater than average gains, the line declines. It is as simple as that. It basically takes into account, the speed and change of price movements. How do we use RSI? Using the average gains and losses that RSI calculates, a ratio is created, which makes the line move between 0% to 100% borders. Technically in the crypto world, we have our borders placed at 70% and 30% as you can see in the chart. (Some people also prefer using 80% when its bull market and 20% when its a bear market). If we see RSI nearing or crossing 70% line, that means that the coin is overbought. If we see RSI nearing or crossing below 30% line, the coin is in the oversold zone. When RSI is above 70, that means that a coins' price has been increasing for that period of time, and is not in the overbought zone, which means it could be due for a correction. When the indicator is below 30, it shows a strong run lower which might be losing momentum, and the price may be due for a rally upwards. This is not at all hard to understand. I hope everyone is on the same page so far. Make sure you understand this bit. RSI > Price increasing > If nearing 70 or above > Overbought > (We might see some downward movement) RSI > Price decreasing > If nearing 30 or below > Oversold > (Price might start going back up) Easy peasy! Its always easy until it comes to applying it to trading right? Lets have a look at that as well. I am sure after this and a little bit of practice you will be able to use this indicator with full confidence. Applying RSI in trading Just spend a minute looking at the chart for me really carefully and match the price action with the RSI movement. You will see that it is very similar. When the price is going up, RSI is going up, and when the price is going down, so is RSI. When to Buy? Scenario 1: So we know that when RSI is low (less than or equal to 30), it is oversold, and that usually means that the coin can rally up soon. Our aim should be buying in when RSI is low. So if it has crossed below 30%, wait to buy in until it comes above 30, that is just a confirmation that the trend is changing to bullish. It simple. Read this one more time. Scenario 2: There is one more situation when it is not necessary to wait for the RSI to go below 30, but be careful with this one. This is called a bullish divergence. It occurs when RSI makes a higher low while the price makes a lower low. The more times this occurs, the more bullish it is considered for a coin. I will be explaining Higher Lows, and Lower Lows for those who do not understand it. Since I am getting out of words here because of the limit, continue reading below..........
COINBASE:BTCUSDEducation
by MoneyChartz
11
GLOW and my lesson for charting stocksI start by finding a point in the past, unless it's retail, I usually go back about 10 months roughly. Ideally, it's a point in time where the stock hit its lowest price. Retail is such a seasonal driven market that their corresponding stocks behave accordingly; spring time products' stocks, clothing and the Holidays, etc. I like to draw a Begin Watch Vertical Line Marker - let's me know where in time I started watching the stock From there, i'll use the Horizontal Ray tool and mark my lowest stock price and start "telling the story" of its ups and downs. I started my first Begin Watch Vertical Line Marker on 11/28/2016 and drew the red bottom price on that day. That is called the Support Line. Then the stock went up to $0.32 Resistance Line. All stocks want to break the resistance line (go past it) and then have that line be the new Support Line. This stock hovered between these two lines until 01/27 where it broke the resistance line. Once the stock settled and hit its high point, $0.35, that becomes the new resistance line. Five of the next 6 days the price was exactly $0.35!!! And, the stock bounced off $0.32 for those couple days, retesting! ***This becomes the importance of charting your stock*** ***IMPORTANT Remember, investors will always look to the past to determine the price they are willing to pay!!! IMPORTANT*** Between $0.25 and $0.32 the stock hovered and the disparity in price needed a Mid Value Common Line at $0.28, started on 3/20; this is a great line that shows, through many many days, where the mid price of this stock stayed. Over and over again, the $0.28 Mid Line price became the Support Line and held true to this day. Then on 06/01, the $0.28 Support Line was tested again by touching it on the LOW of that day and off it went reaching up to $0.61, before settling with a new resistance level at $0.37! Thus, my Horizontal Arrow was drawn there in green, signifying the money potential. (I did not draw my line on the following day's bear candle because it opened there and did not hold.) 06/14 then saw a virtual repeat of 06/01 and a new resistance level! Plus, it retested the $0.28 price again! From here, you can see where the stock wants to go because your drawn support and resistance lines paint the chart to help determine future price. Add the volume equation; is the volume overwhelmingly bear or bull? This aids in determining the bear or bull trend. What will the stock price be for a possible buy once the bear volume subsides? Never buy until there is a trend reversal with a confirmation Buying Signal. Buying Signal - green bull candle, followed by another green bull candle with higher close + Increasing bull volume ***IMPORTANT Remember, investors will always look to the past to determine the price they are willing to pay!!! IMPORTANT*** REGARDING the RSI - I will defer to a more knowledgeable investor to help explain/understand the RSI indicator (Relative Strength Indicator) If you've read this far, I really appreciate your time and I really hope you find this useful as you navigate through your own stocks. This stuff is fun, and serious money is made utilizing these tools! Major investors follow charts and make their plays accordingly!
G
by mrmaximo74
Why 90% of Retail Traders Fail - "Fear of Missing Out!"There are so many reasons why 90% of retail traders fail. One of the main reasons is because retail traders over trade. They fear missing an opportunity and because of this they think there is always an opportunity when in reality there isn't. As traders, it is our job to find high probable setups. Probable setups are limited though... so you need to have patience to wait for them to unfold. All too often I see traders here chasing price , and this EURUSD today is a perfect example of this. I can't even imagine how many traders got short on the break out of this short term up trend line. Many probably waited for the hourly candle to close to enter, but what happened? Immediately after they entered price reversed sharply and is on the way to stopping those traders out who most likely have their stop loss just above the high around 1.047. If we look at the price action over the month of December on this pair, we can clearly see the 1.05-1.052 area have been strong support where buyers continuously stepped in every time price approached it. Once that support was broken you can see that the role of the level reversed and it became resistance. Sellers came in on the back side of the level, however only intraday did it retest the level. It is likely that there will be an official retest of the figure and another major attempt to the downside, even if it is just to the previous low. IF price comes back to a major area that was support it will VERY LIKELY become resistance. A setup like this is a high probable setup, but it takes a while to unfold. It has been 6 days so far since the level has been broken. Maybe it will hit the level today... maybe not. Maybe it will hit the level tomorrow... maybe not. Maybe it will hit the level next week. Maybe it will NEVER come back to the level... Who knows... but as traders we must be patient if we want to get the most probable setups. It is better to miss a trade than to take a poor trade! If you want to get setups that have low odds of working out, that is fine. You do you, but if this resonates with even one trader and helps them trade better than my job here is done.
Education
by UnknownUnicorn261897
11
Understanding Structure, Support and ResistanceAs shown on the graph, structure analysis could be very useful. Resistance line: Use maximums and connect them to draw a resistance line which means that whenever price comes to this line it cannot break it, ther is a strong resistance, forming a trend. Once broken, though, it is a good opportunity to BUY and profit from price increase. Support line: Similar logic to resistance, however, this time all minimums are connected in order to establish a lower bound for price fluctuations. Once broken, it suggests that price has a strong downward momentum and traders can benefit by SELLING.
by DzhuneytYusein
Text Book 2618 - Lesson This is not a trading Idea as the reasons for entry have already been and gone. Text Book 2618 bullish trade 1. Double Bottom against major structure support/resistance 2. RSI Divergence 3. Higher High established 4. Retracement to the 61.8 Fibonacci level How to trade 1. Stop loss below double bottom (according to your rules) must have 1:1 Risk to reward minimum 2. Target 1 Level with higher high 3. Target 2 next level of resistance - if too far then 1.27 fib extension 4. Take target 1 (if hit) and trail stops for target 2 5. Keep riding the wave for as long as you feel comfortable Hope this helps anyone who is here trying to learn Please leave a "Like" if you please Good Luck Steve
Long
by SteveNixon
Why Most Forex Traders Fail... LEVERAGEWay too many traders trade with very little capital and they do this because their brokers allow them to by offering them insane amounts of leverage. We really don't understand it because you would think that these brokers would want their clients to succeed in order to continue placing trades which yields the broker revenue from commissions and spreads. It is inevitable that with such little capital ($50-$100) these traders will go bust and blow their accounts, especially if they are allowed to take position sizes of upwards of 500 times their account value. These retail traders have been conditioned to believe that this is the way Forex trading is and quite frankly it isn't. The most successful Forex traders in the game use little to NO leverage at all and they only return a small consistent return of 1-3% per month. It seems impossible to make money with such small returns but if you actually take the time to break out a calculator and calculate how much such a return yields over extended periods of time like 5 years or 10 years you will see it is immense. Take $10,000... in 8 years with a consistent 5% a month return... that $10,000 will become $1,000,000. So please guys read through the information on the chart. It is long but it is very valuable! Tune in LIVE on YouTube goo.gl every Monday, Wednesday, and Friday at 7 P.M. Eastern Standard Time to learn how to trade the Forex market like a professional! Follow us on our social media: Website: goo.gl Google+: goo.gl Twitter: goo.gl Instagram: goo.gl Snapchat: Unique4xPro TradingView: goo.gl
Education
by UnknownUnicorn261897
32
How to Infer Currency Strength Without ANY IndicatorsToday I received a question regarding what indicators or websites to use to infer and compare the strength between related currencies. I responded with a long winded explanation as to why it is not necessary to use indicators or websites to infer such information because it can be realized solely through price action. If we look at the daily range today on GBPUSD, EURUSD, and EURGBP which resulted from the huge miss on the NFP numbers, we can gauge the strength between the EUR and the GBP versus the dollar as well as the EUR vs the GBP. In looking at the daily ranges of these pairs we will first notice that they all had a strong move to the upside. This of course being due to the weakness and downside movement on the dollar ultimately resulting form the miss on the NFP number. Therefore right off the bat we can infer that foreign leading currency pairs should be strong against the dollar today and we can expect to see pairs like the GBPUSD and EURUSD moving to the upside. That is exactly what we see here... price moved as expected. Now... what if you want to compare the relative strength of the GBP vs the EUR as it relates to the dollar weakness. Well then we will need to bring the cross pair EURGBP into the picture. The EURGBP cross pair will tell you how strong the EUR is vs the GBP. We see that the daily range of the EURGBP cross pair is roughly 90 pips and as of right now this pair has held that range indicating the EUR strength that we see clearly on the EURUSD. The daily range of the EURUSD is roughly 215 pips and it too has held this range indicating its strength. Since most of the day's trading is done for being that it is a Friday we can expect to see these prices hold through to the close of the day. So we have concluded now that the EUR is for sure strong right now against the dollar and we are thinking since EURGBP is so strong as well that this rally in the GBPUSD might be misleading and the GBP might not be all that strong right now. By looking at the GBPUSD we can see that it's daily range was roughly 160 pips but as of right now it has already give up roughly 1/3 of that range and price is showing signs of continued downside movement. Seeing this we can conclude that the EUR is certainly stronger than the GBP right now and going into next week if we continue to see upside movement on EURUSD and EURGBP we can expect to see downside movement on GBPUSD. We hope you found this to be insightful and if you did you should definitely check out our YouTube channel goo.gl/g8sWn3 where we do live streams every Monday Wednesday and Friday at 7 p.m. eastern standard time. Enjoy your weekend!
Education
by UnknownUnicorn261897
5