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M-oscillator

The DEFINITION of STOCHASTIC oscillator !*Stochastic oscillator The stochastic oscillator is a useful indicator when it comes to assessing momentum or trend strength. The stochastic oscillator, and oscillators in general, are presented in an easy to understand manner with clear buy and sell signals. However, an overreliance on these signals, without a deeper understanding of stochastic oscillators, is likely to end in frustration. To avoid such frustration, new traders ought to have a solid understanding of the underlying mechanics of the stochastic oscillator viewed in relation to present market conditions. **WHAT IS A STOCHASTIC OSCILLATOR? A stochastic oscillator is a momentum indicator that calculates whether the price of a security is overbought or oversold when compared to price movement over a specified period. The oscillator essentially weighs up the most recent price level as a percentage of the range (highest high – lowest low) over a defined period of time. ***HOW DOES A STOCHASTIC OSCILLATOR WORK? The stochastic oscillator presents two moving lines that ‘oscillate’ between two horizontal lines. The solid black line in the image below is called the %K and is while the red dotted line is a 3-period moving average of the %K line and It is called %D. Price is shown to be ‘overbought’ when the two moving lines break above the upper horizontal line and ‘oversold’ once they break below the lower horizontal line. The overbought line represents price levels that fit into the top 80% of the recent price range (high – low) over a defined period – with the default period often being ‘14’. Likewise, the oversold line represents price levels that fit into the bottom 20% of the recent price range. ****Timing entries: Furthermore, the stochastic indicator provides great insight when timing entries. When both lines are above the ‘overbought’ line (80) and the %K line crosses below the dotted %D line, this is viewed as a possible entry signal to go short and the other way around is when the %K line crosses above the %D line when both lines are below the oversold line (20). Additionally, you should not blindly trade based on overbought/oversold conditions alone. Traders need to understand the direction of the overall trend and filter trades accordingly. For example, when looking at the BTC/USD chart below, since the overall trend is down, traders should only look for short entry signals Further more, the stochastic indicator provides great insight when timing entries. When both lines are above the ‘overbought’ line (80) and the %K line crosses below the dotted %D line, this is viewed as a possible entry signal to go short and the other way around is when the %K line crosses above the %D line when both lines are below the oversold line (20). Additionally, you should not blindly trade based on overbought/oversold conditions alone. Traders need to understand the direction of the overall trend and filter trades accordingly. For example, when looking at the USD/SGD chart below, since the overall trend is down, traders should only look for short entry signals at overbought levels. Only when the trend reverses or a trading range is well-established, should you look for long entries in oversold conditions.at overbought levels. Only when the trend reverses or a trading range is well-established, should you look for long entries in oversold conditions. ****STOCHASTIC OSCILLATORS: A SUMMARY The stochastic indicator is a great tool for identifying overbought and oversold conditions over a specific time period. The stochastic oscillator is preferred by many traders when price is trading in a range because price itself is ‘oscillating’, leading to more reliable signals from the stochastic indicator. However, you need to avoid blindly shorting at overbought levels in upward trending markets; and going long in down trending markets purely based on oversold conditions shown by the indicator. Note that sometimes the accuracy of BB is low (like the one shown with white flash) but most of the times it works fine. We hope that you've learn something with this post . Have a nice day and Good luck.
COINBASE:BTCUSDEducation
by CobraVanguard
9
Everything about the Stochastic oscillator !!!!Hello everyone , as we all know the market action discounts everything :) A lot of people asked me about the Stochastic oscillator so i prepared this video for you guys explaining it please enjoy . or if you prefer to reading : First thing you need to know is that the stochastic oscillator is a momentum index just like the RSI it looks at the price momentum. A DR.George Lane developed it in the 1950s. So let us talk about the stochastic oscillator now it has 2 lines %K (blue color) and %D (Red color) this is how we use it : 1_ the Stochastic oscillator indicates overbought and oversold state of the market cuz the stochastic is a bounded indicator that means its bounded between 0 and 100 range ( above 80 overbought , bellow 20 oversold ) 2_we use it to identify buy and sell signals using crossovers: • If %K crosses below %D then it’s a sell signal • If %k crosses above %D then it’s a buy signal 3_Divergance between the price and the Oscillator We have 2 types of the Stochastic Oscillator: Fast and slow The difference between the Fast and Slow stochastic is: 1. The Fast stochastic is more sensitive than the Slow stochastic ( the most common problem for oscillators is the number of false signals that they give so the Slow stochastic tries to solve that problem ) 2. Slow stochastic smooths out the %K line by averaging over (d) period so let me make it simple the %K line in the Slow Stochastic is like the %D in the fast stochastic Now let us talk about the Formula %K=100. (C-Ln/Hn-Ln) Where C is the current closing price Ln is low in (n) period Hn is high in (n) period (n) Is the number of period and the default value for (n) is 15 Now the %D is calculated like this %D=average %K/ (d) period (d) Is the number for period and the default value for (d) is 3 Make sure to Follow and Like for more content If you have any questions please ask Thank you for reading & watching .
XETR:DAXEducation
by GabiDahduh
4
Chaikin Oscillator From ScratchHi, traders! Today we'll speak about one of the most pretty instrument of divergence detection. The Chaikin oscillator is named for its creator Marc Chaikin.1 The oscillator measures the accumulation-distribution line of moving average convergence-divergence (MACD). To calculate the Chaikin oscillator, subtract a 10-day exponential moving average (EMA) of the accumulation-distribution line from a 3-day EMA of the accumulation-distribution line. This measures momentum predicted by oscillations around the accumulation-distribution line. The purpose of the Chaikin oscillator is to identify underlying momentum during fluctuations in accumulation-distribution. Specifically, it applies the MACD indicator to accumulation-distribution rather than closing prices. For example, a trader wants to determine whether a coin price is more likely to go up or to fall and MACD is trending higher. The Chaikin oscillator generates a bullish divergence when it crosses above a baseline. The baseline is called the accumulation-distribution line. A cross above that line indicates that traders are accumulating, which is typically bullish. The Chaikin oscillator utilizes two primary buy and sell signals. First, a positive divergence is confirmed with a center-line crossover above the accumulation-distribution line, signaling a potential buying opportunity. Second, a negative divergence is confirmed with a center-line crossover below the accumulation-distribution line, signaling a potential selling opportunity. A positive divergence signals a coin price is likely to rise, given the increase in accumulation. A negative divergence signals a coin price is likely to fall, given the increase in distribution. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
3
So you say you wanna range trade? Here's how you survive...DISCLAIMER: Trading Forex/Cryptocurrency involves risk and you may lose more money than you started with! These posts are not to be taken as financial advice and I offer NO guarantee that any of these ideas will result in profit. Also, trade ideas may change, depending on ever-changing market conditions. You are trading at your own risk and past performance is NOT indicative of future results. Please, know how much you are willing to risk on EVERY trade that you take and be SMART! Simplify your trading. Always measure your risk and be okay with being wrong ; ) Wait patiently and get the price that you want. Use the market. Don't let the market use you!
Education
by Simple_Renko
3
Awesome Oscillator From ScratchHi, traders! Today we’ll speak about one of the most pretty and easy-to-interpret oscillator - Awesome oscillator.The Awesome Oscillator Indicator (AO) is a technical analysis indicator created by Bill Williams as a tool to determine whether bullish or bearish forces dominate the market. It measures the market momentum with the aim to detect potential trend direction or trend reversals. The market momentum is evaluated using a combination of a shorter time frame and longer time frame simple moving averages or stated differently, it considers the recent momentum in comparison with a higher frame momentum. The Awesome Oscillator is calculated as the difference between the newest 5 periods (bars) simple moving average (SMA) and the 34 bars simple moving average. But instead of the closing price, the indicator uses the bar midpoint value. The indicator is plotted as a histogram in a box at the bottom of the chart and the histogram bars are found in either of the two colors red or green (with some trading platforms the lines can be red or blue). When the midpoint value of the last price is higher than the previous bar midpoint, the histogram will be green (blue) and if the midpoint of the last bar is lower compared to the previous bar, it will be red. How to use Awesome Oscillator? There are a variety of strategies which could be used by traders to identify potential trading opportunities. Some of the well-known and basic trading setups are the zero-line and divergence. Awesome Oscillator and zero-line crossovers The basic alerts which are generated by the Awesome Oscillator are identified on the basis of the zero-line cross overs. * A bullish buying opportunity alerts occur when the AO indicator crosses above the zero-line, indicating that the short-term momentum is increasing faster compared to the long term. * A sell opportunity is detected when the indicator crosses below the zero-line mark displaying that the short-term momentum decreases more rapidly than the long-term. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio
Top 10 Patterns (Harami) #9Harami and Harami Cross Candlestick Patterns. This reversal pattern is on my top 3 best, on 1 hour or higher time frames. Harami in Japanese language means pregnant. This pattern forms by two candlesticks, the first one is bigger and the other one is smaller. The smaller candlestick is completely engulfed by the body of the first candlestick. It looks like a pregnant woman looking from the side: There are two kinds of Harami. The one that forms at the bottom of a bearish market is a Bullish Harami. And the pattern that forms at the top of an uptrend is a Bearish Harami. Harami is a reversal pattern. Although Harami is known as a reversal pattern, you have to be careful not to take any positions as soon as you see a Harami pattern forms on the chart, because this pattern is not that strong. Only on the longer time frames like weekly and monthly it can be considered as a reliable reversal pattern. I do not trust it on the smaller time frames at all. Even if you trade this pattern on the longer time frame, having a reasonable stop loss is a must. Only under one condition the Harami Pattern can be known as a strong reversal pattern. It is when it crosses Bollinger Upper or Lower Band. Some traders know this pattern as Inside Day Candlestick while its combination with Bollinger Bands makes it a profitable and strong reversal candlestick pattern. Chart example is a Bearish Harami on a one hour chart that broke the upper band of the Bollinger band- that is why you could take the trade with confidence.
Education
by Anbat
📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Editors' picks
Education
by VasilyTrader
30
Interesting observation with the Volume Profile...DISCLAIMER: Trading Forex/Cryptocurrency involves risk and you may lose more money than you started with! These posts are not to be taken as financial advice and I offer NO guarantee that any of these ideas will result in profit. Also, trade ideas may change, depending on ever-changing market conditions. You are trading at your own risk and past performance is NOT indicative of future results. Please, know how much you are willing to risk on EVERY trade that you take and be SMART! Simplify your trading. Always measure your risk and be okay with being wrong ; ) Wait patiently and get the price that you want. Use the market. Don't let the market use you!
Education
by Simple_Renko
5
📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
17
Ultimate Oscillator From ScratchHi, traders! Oscillators are very important part of any trading strategy. It helps to find the momentum and gives rather reliable signals in conjunction with other indicators. Today we’ll speak about one of the most powerful oscillators – Ultimate Oscillator. Ultimate Oscillator uses the weighted average of three different timeframes and has less volatility and fewer trade signals compared to other oscillators that rely on a single timeframe. Buy and sell signals are generated following divergences. The Ultimately Oscillator generates fewer divergence signals than other oscillators due to its multi-timeframe construction. By using the weighted average of three different timeframes the indicator has less volatility and fewer trade signals compared to other oscillators that rely on a single timeframe. Buy and sell signals are generated following divergences. The Ultimately Oscillator generates fewer divergence signals than other oscillators due to its multi-timeframe construction. How to Calculate the Ultimate Oscillator -Calculate the Buying Pressure (BP) which is the close price of the period less the low of that period or prior close, whichever is lower. Record these values for each period as they will be summed up over the last seven, 14, and 28 periods to create BP Sum. -Calculate the True Range (TR) which is the current period's high or the prior close, whichever is higher, minus the lowest value of the current period's low or the prior close. Record these values for each period as they will be summed up over the last seven, 14, and 28 periods to create TR Sum. -Calculate Average7, 14, and 28 using the BP and TR Sums calculations from steps one and two. For example, the Average7 BP Sum is the calculated BP values added together for the last seven periods. -Calculate the Ultimate Oscillator using the Average7, 14, and 28 values. Average7 has a weight of four, Average14 has a weight of two, and Average28 has a weight of one. Sum the weights in the denominator (in this case, the sum is seven, or 4+2+1). -Multiply by 100 when other calculations are complete. UO= ×100 UO=Ultimate Oscillator How to use it? In order for the indicator to generate a buy signal, it's recommended a three-step approach. -First, a bullish divergence must form. This is when the price makes a lower low but the indicator is at a higher low. -Second, the first low in the divergence (the lower one) must have been below 30. This means the divergence started from oversold territory and is more likely to result in an upside price reversal. -Third, the Ultimate oscillator must rise above the divergence high. The divergence high is the high point between the two lows of the divergence. Three-step method for sell signals. -First, a bearish divergence must form. This is when the price makes a higher high but the indicator is at a lower high. -Second, the first high in the divergence (the higher one) must be above 70. This means the divergence started from overbought territory and is more likely to result in a downside price reversal. -Third, the Ultimate oscillator must drop below the divergence low. The divergence low is the low point between the two highs of the divergence.
Education
by Skyrexio
How to use RSI and MACD In trading?Hi every one *Definition of RSI: This indicator Is momentum base indicator. The biggest difference with momentum is that there are two line which indicate that: Is the price in the oversold or overbought area or not? We can easily compare the tops and bottoms of every instrument that we like! There is not much difference between RSI and Stochastic oscillator only that there is one line in RSI! Remember every Indicators shows the future of the market! **Full explanation of MACD: Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. you may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line. Moving average convergence divergence (MACD) indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls. Moving average convergence divergence (MACD) is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line. The speed of crossovers is also taken as a signal of a market is overbought or oversold. MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening. The MACD has a positive value (shown as the blue line) whenever the 12-period EMA (indicated by the red line) is above the 26-period EMA (the blue line) and a negative value when the 12-period EMA is below the 26-period EMA. The more distant the MACD is above or below its baseline indicates that the distance between the two EMAs is growing. The MACD has a positive value (shown as the blue line) whenever the 12-period EMA (indicated by the red line) is above the 26-period EMA (the blue line ) and a negative value when the 12-period EMA is below the 26-period EMA. The more distant the MACD is above or below its baseline indicates that the distance between the two EMAs is growing. MACD is often displayed with a histogram which graphs the distance between the MACD and its signal line. If the MACD is above the signal line, the histogram will be above the MACD’s baseline. If the MACD is below its signal line, the histogram will be below the MACD’s baseline. Traders use the MACD’s histogram to identify when bullish or bearish momentum is high. ***RSI VS MACD: The relative strength indicator (RSI) aims to signal whether a market is considered to be overbought or oversold in relation to recent price levels. The RSI is an oscillator that calculates average price gains and losses over a given period of time. The default time period is 14 periods with values bounded from 0 to 100. MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows. These two indicators are often used together to provide analysts a more complete technical picture of a market. These indicators both measure momentum in a market, but, because they measure different factors, they sometimes give contrary indications. For example, the RSI may show a reading above 70 for a sustained period of time, indicating a market is overextended to the buy side in relation to recent prices, while the MACD indicates the market is still increasing in buying momentum. Either indicator may signal an upcoming trend change by showing divergence from price (price continues higher while the indicator turns lower, or the other way around. The DEFINITION of Divergences! We hope that you've learn something with this post . Have a nice day and Good luck.
COINBASE:BTCUSDEducation
by CobraVanguard
10
Tools of the Trade: All about trendline'sI get a lot of questions on how do I seem to make such accurate trendline's, channels and support's and resistance. People seem to be impressed how often the lines on my chart are right where price seems to always react. Well this is as it should be, as your lines are markers where price action might do something interesting. But what is my trendline or support/resistance is probably different from yours. I will try to show my thought process on how I draw these lines. These tips work for me and they might work for you. But sometimes you have to fuss around some to find what works for you. This is because we all see different things. I will start with a trendline and I will use the GC (gold futures) chart. These methods work on all charts and all timeframes. We first want to find and connect at least 2 points in any given trend. Now in this case I connected the tips of the wick, but really for me anywhere between the open and the tip of the wick or the close and the tip of the wick is a valid area for a trendline. Now you may say, "great! but any 2 points make a trendline so what's the big deal?". You are right, 2 points do not make a trendline but this will be a start. So I can fuss around and pull my trendline down and to the left manually and try to find other areas that fit my trendline. But this will cause bias and we want to eliminate bias as much as we can. So what do we do to minimize bias? 1. Open up the settings for your trendline (click on the trendline and then click on the gear icon in the selection box). 2. Click the "extend trendline left" box. This is what you should see now for this example: Now you look at it and say, well that doesn't look valid because it goes through a bunch of candles in the yellow and orange ellipses. But now let's take a closer look at the orange ellipse area: look at all the blue arrows and that the trendline goes right through the wicks. This adds validity to our trendline. Now you may ask, what about all the bodies that the trendline goes through (see yellow arrows)? Does this matter? A different question though is does the trendline really go through the body pointed out by the yellow arrows? Let's take an even closer look! This looks pretty good to me. But what happened? I moved to a higher timeframe. I like to move at least 3x timeframes higher. Now you can see that the trendline goes through the wicks of the candle or at least pretty dang close. And because it is well known that looking at a higher time frame is always a good idea when entering a trade for confirmation this also applies to trendlines. A trendline that is still a valid trendline on a higher timeframe is an even stronger trendline. Now look at the yellow ellipse in a 3x higher time frame: Nope, that doesn't look good. Let's move to a 6x higher timeframe (12 hour) Nope, still doesn't cut it! But it does fit okay, not great on our initial 2 hour timeframe chart, we just can't confirm it on a higher time frame. So I say the trendline get's weaker around here: Another way to confirm an appropriate trendline is to use RSI (or any oscillator of your choice that shows overbought or oversold) The vertical red lines show that RSI is in the oversold area as price approaches or dips below the trendline. This is what you would expect right? especially since in these areas the price is coming from a downtrend. The blue vertical lines show that RSI is between 70 and 30 as we would expect as price seems to be consolidating around the trendline and actually tickles the overbought area at the price peak between the 2 blue vertical lines. This is also as you would expect. So these are my tips on trendline's and how I use them. I hope this is useful. Next tutorial I am going to go into how I do support, resistance and parallel channels. I hope this was helpful and I hope everybody makes money off these tips. Otherwise, play around with trendline's in your own way and you might find something that works better for you! Thank you! Miss Bunny
COMEX:GC1!Education
by UnknownUnicorn11430563
7
How to detect the active cycle length?This is a short tutorial on how to use the Detrended Rhythm Oscillator (DRO) to identify the current dominant cycle. The Detrended Rhythm Oscillator is an advanced Detrended Price Oscillator DPO which helps to spot the key market rhythm or beat for any symbol on any timeframe. It automatically labels the length of current market high-high and low-low pivots which helps to see cycle harmonics and relations. The output should be used as input setting for almost all technical indicators which require and "length" settings for the calculation. Using this length setting based on the dominant market rhythm will help to ensure better accuracy to your indicators at turning points. The indicators get synced to the beat of the market. The indicator is available as Public Open Source Script for your own usage:
Editors' picks
BEducation
by StockMarketCycles
89
How to use the Crypto Sniper indicatorJust a simple tutorial on how to use the Crypto Sniper indicator. Rules 1. Wait for the entry Long/Short signal appears 2. Use the ATR take profit or stop loss as a trailing stop or to close your position 3. Use the exits signals to close partially or entirely your position 4. You can enable the additional entries where you can add more to your position following the trend 5. Any market or timeframe will work 6. Specially designed to scalp trade on cryptocurrency futures
Education
by ThiagoSchmitz
2
Aroon From ScratchHi traders! Today we gonna tell you about one of the most interesting indicators. As you know, trend is based on price action. Everything on the market based on price action, LMAO. Thus, it’s considerably important to define and extract some hidden states, that can play a huge role in trend predicting. Aroon is one of this hidden-state finders. The Aroon indicator is a technical indicator that is used to identify trend changes in the pric, as well as the strength of that trend. In essence, the indicator measures the time between highs and the time between lows over a time period. The idea is that strong uptrends will regularly see new highs, and strong downtrends will regularly see new lows. The indicator signals when this is happening, and when it isn't. The indicator consists of the "Aroon up" line, which measures the strength of the uptrend, and the "Aroon down" line, which measures the strength of the downtrend. Formulas for the Aroon Indicator Aroon Up(orange)= (x-periods since last high in x period) /x*100 where x – number of periods. Aroon Down(blue)= (x-periods since last low in x period)/x*100 where x – number of periods. How to use it? We use it in two ways: crossovers and parallel state. When Aroon Up and Aroon Down draw a parallel channel, we can make a conclusion that market is choppy and it would be better to avoid entering. Crossovers can signal entry or exit points. Up crossing above Down can be a signal to buy. Down crossing below Up may be a signal to sell. When both indicators are below 50 it can signal that the price is consolidating. New highs or lows are not being created. Traders can watch for breakouts as well as the next Aroon crossover to signal which direction price is going. As for the parameters, we use on 15M timeframe Aroon with the length 10 on 4H. It gives us less signals, but they are very strong. You can tune it in depending on your purposes and goals of strategy.
Education
by Skyrexio
EMA/MA ARE YOUR EYES THEY "FOLLOW" THE PRICE. ( SNAKE EYES )LISTEN - To your MA's they're your snake eyes. They move like snakes following the money. ( check out post " benefits of scale on the left ". They know where the price been and they're letting you know where it's going. NOW, IF ALL MA'S MEET AT ONCE, WHAT THAT MEAN? --- I HAVE NO IDEA. EXACTLY. WE HAVE NO IDEA IF THE Great Wall OF CHINA IS GOING TO SUPPORT PRICE TO THE GODS OR CRUSH IT LIKE THE COCKROACH IT ONCE WAS. GET THE HELL OUT!!!!! THEY'RE SNAKES, THEY HAVE TO SLITHER TO A SIDE AND CHOOSE THAT DIRECTION.WHERE WE'LL EITHER BUY ( LONG ) SELL ( SHORT ).
COINBASE:BTCUSDEducation
by CHarrison2021
Hash Ribbons buy signal breakdown and verbose explanationThere are two decision branches the indicator may take to trigger a buy signal. I've copied the most relevant lines of code below and added comments. I added a visual representation for every single element that exists in those lines of code. The different indicators I add here have educational purposes only. The original script already does an excellent job presenting the most relevant information. The coloured spring (circles) leading to a buy signal has everything I want to know. Publishing this idea has the main objective of serving as a cheatsheet for myself if I forget all the underlying context later. first buy condition (blue circle and dotted line) price momentum just turned positive, and hash rate growth has recovered after price momentum turned negative and miners capitulated crossover(s10,s20) and // simple moving average checkmark barssince(recovered) < barssince(crossunder(s10,s20)) and // red range on the price chart barssince(recovered) < barssince(capitulation) // red range on the price chart or second buy condition (purple circle and dotted line) price momentum is currently positive, and shorter term hash rate growth is higher than the longer term hash rate growth s10>s20 and // green range on the price chart crossover(HR_short,HR_long) // hash rate growth checkmark
BITSTAMP:BTCUSDEducation
by yalla-yalla-habibi
1
How to Select the Most Suitable Trading Indicators? One of the most commonly asked question by novice traders is "what indicators should I use?" which is unsurprising given the vast array of available tools on a typical trading platform. Some traders prefer to crowd their charts with all sorts of indicators, whereas others prefer a more minimalistic approach. While there is no perfect solution, one thing should be abundantly clear- the indicators you select should help you make sense of the price action rather than distract you. When it comes to the number of indicators one should use, the more does not necessarily mean the better. In order to narrow down your options, you can use the following guidelines we have compiled for you so that you can diversify your options depending on the underlying market sentiment. Is the market trending or ranging? The first thing that needs to be determined is what the underlying sentiment is - is the market trending or range-trading. While a keen eye can catch the subtle difference between the two without the use of any indicators, the ADX (Average Directional Index) can be used to determine the strength of the trend. Whenever the ADX is threading above the 25-point benchmark, this underpins a robust trending environment. Conversely, a reading of the index below this threshold indicates undetermined (ranging) market sentiment. If the market is trending, focus on the underlying momentum Price trends are by definition probing either lower or higher, which is why you need to track their changing strength as they develop. This is crucial for the implementation of trend-continuation or trend-reversal strategies. Filling the chart with multiple moving averages with different periods does a perfect job of underlining the changing market bias over time. That is so because MAs can be used as floating supports and resistances, and the behaviour of the price action each time it probes a given MA highlights the changing nature of the trend. The inability of the price to break down below one or several MAs in an uptrend can be perceived as an indication of persisting bullish commitment in the market. Hence, traders can use trend-continuation trading strategies and place long orders while the price probes the MAs. The opposite is true for downtrends. The eventual probing and subsequent penetration of the price above (in uptrends) or below (in downtrends) MAs with higher periods signifies waning commitment in the market. The gradual narrowing down of the space between various MAs followed by an eventual breakout/down underpins the possibility for using trend-reversal strategies. Also, keep in mind that MAs with higher periods are usually found at the bottom of the string in uptrends and on top of the bundle in downtrends. If the market is ranging, bet on the Stochastic RSI In ranging markets, in contrast, there is little need for moving averages, as the price action is naturally contained within a horizontal area. Instead of focusing on the direction of the price action, in this case, it makes more sense to study the discrepancies in the underlying buying and selling pressures. The Stochastic RSI is among the best-fitted indicators to do this job, which is why it is most effective in strong ranging environments. It can be used to gauge the likely rebounds of the price action within the two extremes of the underlying price range. If the ADX has been threading below the 25-point benchmark for quite a while and the Stochastic RSI is getting into one of its two extremes (overbought and oversold), this can be perceived by traders as a potential indication of imminent reversals in the direction of the price action.
TVC:SILVEREducation
by Trendsharks
Educational: AB=CD pattern w/ BTC exampleOne fairly easy and useful pattern for determining reversals is the AB=CD pattern. The pattern simply looks for two rising or falling legs up or down respectively. Then one simply measures the retracement level from point B followed by the projection from C (luckily tradingview has a tool to assist with this). If these values equal a 0.618 or 0.786 retracement followed by a 1.272 or 1.618 projection respectively, the pattern is likely to indicate a reversal of the current trend. For example, above we can clearly see the pattern almost perfectly matched the required levels of 0.618 and 1.272. However, no pattern is guaranteed, so it is always recommended to seek out confirmation. As we can see in the above example, there is bearish reversal divergence that can be seen on both RSI and MACD (dotted green lines), whereby price is rising while oscillators are falling, indicating an even greater likelihood for a reversal. Upon confirmation of a reversal, one can then target Fibonacci retracement levels as key points of interest as can be seen above. A nice part about this pattern is how simple it is to spot and draw out particularly with tools available on tradingview. Hopefully you are able to use this pattern as another useful tool in your arsenal!
BITSTAMP:BTCUSDEducation
by crypto_trends
RSI: Is it any good?RSI is the most popular indicator, according to TradingView. So why does it test like garbage? I show you backtest results using several RSI strategies: Crossunder from overbought/crossover from oversold (the default RSI strategy provided by TradingView and suggested by Wilder) RSI + EMA 200: is RSI profitable with the trend? RSI + ADX: is RSI profitable in sideways markets? RSI + Divergences: can RSI with divergences find turning points in the market? EMA fun fact: we use EMA's today because the previous generations of traders didn't even have calculators. EMA's aren't any better than other moving averages, but they are much easier to calculate by hand. Questions/comments welcome.
NYSE:OISEducation
by gregoirejohnb
MACD From ScratchHi, traders! Today we gonna start the tutorial “Trading from scratch”. These short but very useful articles are intended for beginners who’s just started their way in trading. We hope you’ll enjoy. Today’s article will give the full understanding of one the most popular, easy and very useful indicator - MAC. Moreover, we’ll show you how to apply it efficiently. MACD (Moving Average Convergence/Divergence) is a trend indicator that shows the trend and its momentum. It consists of two lines: MACD line and signal line. Both of them are EMA with different periods. We got MACD line subtracting from EMA with less period (fast) EMA with longer period (slow). The signal line is MACD line smoothed by the very short EMA. How to trade with MACD? Divergence The first very powerful signal is divergence. Divergence means the difference between slope of the trend line on chart and indicator. To learn about it properly you can read our Divergences Cheat Sheet . Catching divergences is a good signal to buy or sell. As you can see on the screen, the first time we got bearish regular divergence. Thus, we are going to short. Then we can see bullish hidden divergence and it’s a good chance to execute a long position. NOTE We can draw divergence lines both on MACD line and histogram.
Education
by Skyrexio
2
The DEFINITION of Divergences!Hi every one So in this post we want to talk about a thing that If you've been following us you would've see a lot of it ! we wanna talk about Divergences! and how to use them to our advantage! there 4 kind of divergences in total which we will describe one by one! 1-regular Bearish Divergence (-RD) 2-regular Bullish Divergence (+RD) 3-Hidden Bearish Divergence(-HD) 4-Hidden Bullish Divergence(+HD) first let's talk about the effects of divergences and than get into each one. divergences are strong signals that will reassure us of the continuation of the trend or the ending of them! so let's get into each one! note that the trend is pretty important in finding divergences! for finding regular divergences on a bullish trend we must look at the tops and in a bearish trend we must look at the bottoms. for Hidden divergences though we must look at the bottoms (in a bullish trend ) and tops (in a bearish trend) so let's get into it! 1.regular bearish divergences (-RD): these divergences accrue when the tops are higher than each other(in a bullish trend),but on RSI or MACD indicators the tops are lower or in the same position next each other (in a bullish trend) in this situation we can be sure that the trend is about to change and start the bearish movement at least for a while! these are examples which clearly show the effect of (-RD) on the trend of the market. 2-regular bullish Divergence (+RD) : this divergence is accrued when the trend is bearish (bottoms are lower than each other ) but on RSI or MACD indicators the Bottoms are higher or next to each other. in this situation we can come to a conclusion that the trend can't be bearish for ever and the trend must change! this is an example for (+RD) which you can see It's effect on the market! 3-Hidden bearish Divergence(-HD):The tops are lower than each other ( in a bearish trend) but the tops on MACD or RSI indicator are higher or in the same position next to each other in this situation we can be sure that the trend can still be bearish . this is an example for(-HD) : 4-Hidden Bullish Divergence(+HD): these divergences accrue when the bottoms of a bullish trend are higher than each other but on the MACD or RSI the bottoms are lower or in the same position next to each other in this situation we can be sure that the bullish trend can still continue! this is a clear example of (+HD) and It's effectiveness! We hope that you've learn something with this post . Have a nice day and Good luck.
BITSTAMP:BTCUSDEducation
by CobraVanguard
37