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GBPJPY → Bearish reaction to trend resistance FX:GBPJPY is forming a retest of the descending channel resistance, forming a post facto logical reaction to the mentioned zone. At the moment, the downtrend is playing a relevant role Fundamentally, we are living a very unstable time. Geopolitics has been sounding too much lately. Fund after a small bullish correction gives signals to further weakening on the background of strengthening of the TVC:DXY , which also negatively affects the currency pair analyzed by us. The rebound from the resistance zone is formed and the price returns under the level of 181.96. Consolidation of the price below this area will form a bearish potential, which can quickly bring the price down to 179.46 or 177.4. Bears are showing strength at the moment. The price is between the moving averages, consolidation may last for some time, but in the long term continue the realization of the previously formed bearish signal. Support levels: 180.9, 179,46 Resistance levels: 181.96 In the long term, I expect the rate to continue to decline towards these targets. Regards R. Linda!
Short
by RLinda
16
Bitcoin Weekly Analysis- Sell Signal Below Resistance Trend Line - Squeeze between EMA 144 and 233 - RSI Picking Up - MACD Neutral/Descending Looking back to 2020 we can see a similar pattern. What this mean?!?.... Well, it can repeat the same pattern that seems more sensible to me or in case of breaking the EMA 233 we will see a continuation of the downtrend towards the $10,000 region. It was like this throughout September, squeeze between the two EMAs. We will definitely have a lot of volatility this month and perhaps until the end of the year.
INDEX:BTCUSD
by sailortrades
🚀 BTCUSD #Bullish Signs: Prepping for Lift-Off? 🚀Understanding the BTCUSD Market (#Bitstamp) - Date: September 12, 2023, 22:47 The Big Picture: Hey there! I've been looking into the BTC market, and I've found some interesting things. Before we dive deep, here's a quick summary: BTC's buying and selling activity is quite calm right now, but other signs suggest some upward energy. Let's break it down. How Busy is the Market? There aren’t many BTC trades happening right now. When the market is quiet like this, sudden spikes in buying or selling can shift prices quickly. So, keep an eye out! Checking the Market's Pulse with Moving Averages: Short-term (MA50 at 25,822.5): This tells us how BTC has been doing over the last 50 days. Right now, it's showing some positive vibes, but it's being a bit shy about aiming higher. Mid-term (EMA144 at 26,379.7): BTC's price is playing it cool below this level. If it breaks past this, it's a good sign! Long-term (MA200): Seems there's a mix-up with this number. Just a reminder to always double-check data! Are We Overdoing It or Taking It Easy? (RSI): The RSI tells us if BTC is being traded too much or too little. Right now, it's chill, not too high or low, hinting that there's still some room to grow. Feeling the Market's Energy (MACD): The MACD is like our market mood ring. Currently, it's glowing with a positive vibe, suggesting that BTC might want to dance upwards. Setting Targets with Fibonacci: Imagine if the market had steps it liked to climb or descend. That's what the Fibonacci levels help us with: If BTC decides to go on a hike, first it will aim for 26,396.2. Past that, the next steps are 27,437.4 and then 28,279. But if BTC wants to take a break and rest, the 25,822.5 step (our MA50) might be where it chills. Here’s My Game Plan: If we're hoping for a profit, we should aim for 26,396.2, then 27,437.4, and then 28,279. But if things don't go our way, consider stopping around 25,500 to avoid more dips. A Final Note: Even though things look promising for BTC right now, the crypto world can be full of surprises. Always stay updated with the latest news, and remember: knowledge is your best tool in this game. 🌟 Found this breakdown helpful? Join our community for more insights and elevate your trading game! ✅ #TradeWithConfidence Happy trading! 🚀
BITFINEX:BTCUSDLong
by FrancoBlanco
2
BluetonaFX - EURGBP Ascending Triangle LONG IdeaHi Traders! There is an ascending triangle formation on EURGBP, and there is a possibility of a breakout to the upside. Price Action 📊 The market is in an ascending price channel with higher highs and higher lows since breaking above the 20 EMA, creating an ascending triangle pattern on the chart. We are looking for a resistance break and a close above the 0.87014 level. Fundamental Analysis 📰 The market's outlook on GBP is currently negative due to weak economic data recently released. The outlook on the GBP looks very negative at the moment, and the demand for the currency is very low, whereas the market's outlook on the EUR has been recently positive, with the ECB recently raising interest rates by 25 basis points to 4.00%.   Support 📉 0.86604: PREVIOUS DAY'S LOW Resistance 📈 0.87014: TWO-MONTH HIGH Risk ⚠️ No more than 2% of your capital. Reward 💰 At least 4% of your capital. Please make sure to click on the like/boost button 🚀 as your support greatly helps. Trade safely and responsibly. BluetonaFX
Long
by BluetonaFX
2
Binance (BNB) Price Analysis: Exploring Possible Targets💥 Target 1: $190 - A Stepping Stone on BNB's Path As Binance Coin faces potential price retracements, our first target lands at $190. This level represents a crucial support zone where #BNB may find stability and attract buying interest. Traders and investors will closely monitor BNB's price action as it approaches this level, seeking opportunities to accumulate or ride the upward momentum. 💥 Target 2: $150 - Seeking Consolidation and Rebounding Should BNB experience a deeper pullback, our second target awaits at the $150 level. This zone has historically acted as a consolidation area, providing a springboard for potential rebounds. Traders will keep a close eye on BNB's market dynamics and indicators for signs of a reversal, aiming to capitalize on a potential bounce from this level. 💥 Target 3: Between $98 and $110 - Unlocking the Golden Pocket Now, let's dive into the exciting concept of the Golden Pocket. This range, extending from $98 to $110, holds immense significance as a potential support zone for BNB. The Golden Pocket, derived from Fibonacci retracement levels, often serves as a turning point that attracts considerable buying interest. If BNB's price retraces to this zone, it presents an enticing opportunity for traders to enter or add to their positions. The Golden Pocket captures the attention of many market participants, as it historically offers a compelling risk-to-reward ratio for long-term gains.
by sailortrades
6
SP500 - A New Bullish Trend!Hi everyone, After a LONG LONG LONG bear market, the time is now to share with you some positive news! Lets see one of my favorite indicator : MA 50 and 200 timeframe 3 days (Usually I use 4 : RSI, Fibonacci, Hash Ribbon timeframe Weekly and MA 50 and 200 timeframe 3 days). I noticed a new GOLDEN CROSS that appeared very recently... Each time we get this Golden Cross, we has started a great bullish trend. And for more conviction, I'm waiting for a new higher high. I stay careful until we break the last ATH... Let's get the ball rolling! Stay safe! Take a look to the NASDAQ analysis : PS: it's not a Financial Advice.
SP:SPXLong
by Horus83
2
NASDAQ - Moon SignalHi everyone, After a LONG LONG LONG bear market, the time is now to share with you some positive news! You can hear everywhere the US recession and Im agree with that (too much money has been created since the COVID). So, I expect about a correction during the next months, probably before spring 2024, but it will not a "death" correction until you hit the bottom of the abyss.. it would be probably something like in 2020, March (hard and fast correction)... BUT The trend show us that we probably started a new BULLISH Trend ! Is that true?! Lets see one of my favorite indicator : MA 50 and 200 timeframe 3 days (Usually I use 4 : RSI, Fibonacci, Hash Ribbon timeframe Weekly and MA 50 and 200 timeframe 3 days). I noticed a new GOLDEN CROSS that appeared very recently... Each time we get this Golden Cross, we has started a great bullish trend. And for more conviction, I'm waiting for a new higher high. I stay careful until we break the last ATH... Let's get the ball rolling! Stay safe! PS: it's not a Financial Advice.
NASDAQ:NDXLong
by Horus83
1
Bitcoin:Monthly chart ViewHi guys. Hope you have had perfect trades. In this idea i will share you some TA perspectives about Bitcoin Longterm reactions according to historical datas. As you can see each time the price reached the MA50 , made a trough below it and then come back above. Now we can se in Monthly chart that after price shaped a Bottom under MA50 , it tries to come back above with a Bullish Engulfing pattern. after that we surpass MA50 with another white candle and now , Unfortunately we have some frauds in market. (China Evergrande Group bankruptcy and Tesla sold millions of BTC). So in my opinion after a few weeks , Bitcoin start to continue its smoothed run and go towards 36000. its the level we will see at the end of 2023. after that... Lets see what will happen and dont predict far futures :) If you like my opinion please tell me yours in comment. Thank you all my friends
BNC:BLXLong
by TraderAmin-KZ
6
Bitcoins weekly EMA'sWhen looking at bitcoins weekly EMA's we have a few interesting things develop. First,we have the 20 EMA crossing under the 200 EMA, coincidentally, its also the first time the 50 EMA has crossed under the 200 EMA. ( side note , the 100 has never crossed under the 200 and i dont expect it to this bear cycle.) To me both of these occurrences mark the bottom especially when looking at the longer time frames. The price rarely wants to stay under the 200 Weekly EMA which we're currently testing at around 25668. in the coming weeks i foresee the 20 crossing back above the longer time frames and we rally towards 35k to 42k before retesting 28.8 k as support.
BITSTAMP:BTCUSDLong
by riskit101
GOLD → The bears are taking the gold to the den OANDA:XAUUSD amid numerous resistance retests is not yet able to break it. Fundamental data is still on the side of the dollar. The gold price continues to fall and update the lows The price bounces off the channel resistance and falls, testing 1890. A false breakout is formed against the mentioned support and the price starts a local rebound. Most likely, gold may test 1900 in the near future before falling further. There is still a strong bearish trend in the market. Yesterday's fundamental data is positive for USD. As the dollar index strengthens, we see the gold price falling. In the medium term, we should expect the metal price to continue falling. Support levels: 1890 Resistance levels: 1900 I expect a retest of the resistance area before a further fall. Regards R. Linda!
OANDA:XAUUSDShort
by RLinda
29
ETHUSDT → Retest of MA200 and trend supportBINANCE:ETHUSDT is testing a strong support area in the correction phase amid a bullish global trend. Bitcoin is falling and dragging the whole market with it The price of Efirium is testing the support of the ascending triangle - this set-up is now global. At the same time, the price is testing the MA-200 (daily), which supports the trend. In our case, if this retest turns out to be false and the price forms a false breakout and is able to consolidate above the MA-200 and above the 1800 level, then the market may switch to a bullish direction again. In this case, the scenario will start to develop, which includes price growth to 2020 and in the medium term to 2457. While bitcoin is dragging the whole market down, it will be hard for altcoins to break out upwards. At the moment, the moving averages are clamping down on the price, with the coin trading in a narrow range. Support levels: 1800, MA200 Resistance levels: 1872, MA50, 1900 In priority I am waiting for a false breakdown and continuation of the ascending triangle formation. Regards R. Linda!
Long
by RLinda
9
Using Heikin Ashi and MS-Signal Indicatorshello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (1h chart) The biggest disadvantage of trading using moving averages is that it is not easy to identify support and resistance points. To compensate for this to some extent, we looked at how to add and utilize Bollinger bands and StochRSI indicators. The 150 moving average is an important moving average in utilizing the moving average. This 150 Moving Average can be applied and utilized on any time frame chart. The next possible moving average combinations are 5 and 26, 26 and 50. Time frame charts suitable for utilizing the 26 and 50 moving averages can be utilized on charts under the 15m chart. The reason is that it is a time frame chart with too fast volatility. For other time frame charts, i.e. 15m charts and above, you can use a combination of 5 and 26 moving averages. I have written down the names of the indicators displayed on this chart. 5 The indicator corresponding to the moving average corresponds to the Heikin Ashi indicator. 26 The indicator corresponding to the moving average corresponds to the MS-Signal indicator. Therefore, when the 5 moving average crosses upward from the 26 moving average, that is, when a regular arrangement is made, it is time to buy. As such, when the Heikin Ashi indicator breaks above the MS-Signal indicator, it is time to buy. The good thing about using the MS-Signal indicator and the Heikin Ashi indicator is that you can see the breadth along the trend. The thicker the width, the stronger the role of support and resistance. Thus, it provides more confidence in direction than a single line, such as the 5EMA indicator on a 1D chart. And, you can also tell if a trend reversal is taking place or not. This change is indicated by the color change of the MS-Signal indicator and the width of the Heikin Ashi indicator. The transition of the MS-Signal indicator from downtrend to uptrend is indicated by the transition from red to blue. Conversely, a transition from an uptrend to a downtrend is indicated by the transition from blue to red. The Heikin Ashi indicator transitions from blue to orange for a downtrend to uptrend and orange to blue for an uptrend to bearish transition. This change in appearance can be useful when conducting transactions. The M-Signal indicator on the 1D, 1W, and 1M charts and the 5EMA indicator on the 1D chart are very useful when conducting day trading. Therefore, it is recommended to activate it and check the movement during day trading. The M-Signal indicator on the 1D chart works similarly to the 26 Moving Average. Therefore, the short-term trend of the 1D chart can be intuitively identified by the 5EMA indicator on the 1D chart and the M-Signal indicator on the 1D chart. Therefore, it can be very useful if you trade using tradingview brokers. (1D chart) Also, if you mark the M-Signal indicators of the 1W and 1M charts on the chart, you can intuitively know the mid- to long-term trend, so you can complete the chart analysis faster. -------------------------------------------------- -------- With this, we learned how to trade using moving averages and indicators that are more valuable than this. Chart analysis is only one part of the process to trade after all. No matter how good your chart analysis is, if you don't come up with a good trading strategy, you will end up with losses or small profits. --------------------------------------------------------------------------------------------- ** 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
Day trading using moving averagesHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- The first time you studied moving averages, you must have had a new and surprising experience. However, if you trade using the moving average, you will also have experienced that it does not work properly. This is the limit of moving averages. This is a problem because it is not easy to quickly determine whether the moving average line is supported or resisted because it is made up of curved lines. Moving averages, which are explained in many textbooks, usually have a lot of descriptions of 20 and 60 setting values. This can be said to be the result of the utilization value in the stock market, which has been utilized for a long time. However, charts in the coin market use a default value of 150, which is greater than the 20 and 60 settings. Therefore, if the price is above the 150 moving average based on the 150 moving average, it is an uptrend, that is, a buying season. Conversely, if the price is below the 150 moving average, it is in a downtrend, i.e. selling period. Therefore, the time to buy corresponds to LONG and the time to sell corresponds to SHORT. The setting value of 150 for this moving average is a value that can be applied to all time frame charts. Therefore, even in day trading, you can trade based on the 150 moving average. However, as mentioned above, it is not easy to trade only with the moving average, so to overcome this, Bollinger bands and StochRSI indicators are added and utilized. Because the moving average line is made up of curves, you proceed with trading by your own sensory decision. Therefore, market transactions are mainly conducted rather than limit transactions. Therefore, it is necessary to be careful when trading because it is often bought at a higher price than expected and sold at a lower price than expected. Depending on the size of the trading volume, it is necessary to decide whether to proceed with the transaction based on the limit or market price. Coins (tokens) with a high trading volume can be traded at market prices, but caution is required when trading coins (tokens) with a low trading volume. Therefore, when conducting day trading, you should check the size of the trading volume rather than the increase in the price. Although the above explanation may seem difficult, you should make good use of the search function supported by the exchange as it is a must-have for day trading. (Search by trading volume) Once you have decided which coin (token) to trade, you now need to decide which time frame chart and which moving average line to use. Time frame charts that fall under scalping usually refer to trades under the 3m chart. Therefore, you should set 5 moving averages on the chart and practice trading from the 1m chart. Buy when the price crosses above the 5 Moving Average, and sell when it crosses below the 5 Moving Average. After several trades like this, you can find a time frame chart that suits you. Finding a time frame chart that suits you depends on whether you traded near the price you thought when you traded when the 5 moving average line was broken up or down. If the trades are continuously made near the price you thought, the time frame chart you traded now becomes a day trading chart that suits you. If the time frame chart found is a chart below the 5m chart, set a 26, 50 moving average line on the chart. Otherwise, if it exceeds the 5m chart, set 5, 26 moving averages on the chart. (1m chart) (15m chart) Note that, Settings for the bowlinger bands are 60, 1.8. The StochRSI indicator is 3, 3, 14, 7. Here 7 is the Stochastic Length value. You have also found a coin (token) to trade, and have completed setting up a time frame chart and indicator to use. If you are trading spot, buy when the 150 moving average, the most basic moving average, is crossed upward, and when the price is above the 150 moving average, 5 and 26, and also when the 26 and 50 moving averages are in regular alignment. At this time, what you need to check is whether it is located near the top of the Bollinger Band and whether the StochRSI indicator is in the overbought zone. If it is near the top of the Bollinger Bands or if the StochRSI indicator is in the overbought zone, do not buy. Therefore, in order to buy, the price must be located in the middle or below the Bollinger Band, and the StochRSI indicator must also be located near or below 50. To recap, In spot trading, 1. When the 150 moving average crosses upward, it is a buying time. 2. When the price is located above the 150 moving average, when the 5 and 26 and 26 and 50 moving averages form a regular array, when the Bollinger Band is below the middle and the StochRSI indicator is below 50, it is a buying time. when to sell 1. When it falls below the 150 Moving Average 2. When the 5 and 26 and 26 and 50 moving averages create an inverted array 3. When the StochRSI indicator breaks out of the overbought zone SHORT trading in futures trading is the opposite of the spot trading above. This concludes the study of moving averages. Moving averages are an important part of chart study. In order to perform lower chart analysis or trading, you must learn the concept and movement of moving averages. Therefore, you should awaken your senses by using various indicators using moving averages. --------------------------------------------------------------------------------------------- ** 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
SOLUSDT → A breakout resistance could give momentum to 25.00BINANCE:SOLUSDT forms the bottom at 9.39. After the formation of the global low, the price forms a prolonged consolidation near resistance and now the phase of realization of the accumulated potential begins. What to expect from the price in the medium term? Moving averages are showing a strong consolidation. A descending wedge is forming. On the chart I marked the key level of 20.00, which plays a rather important role after the price breaks out of the range. Buyers will have to try hard to hold this area. If the price consolidates above the 20.00 level, the potential for a medium-term long trade to 25.82 will open. Against the background of bitcoin strengthening SOL continued to consolidate and shows weakness in the market, but while bitcoin stands still we see a bullish reaction from SOL. Support levels: earlier broken channel boundary, 18.22, 16.00 Resistance levels: 20.00, 22.4 I expect a bullish price reaction to break resistance of the multi-month price channel. A breakout of the level of 20.00 may form a strong momentum towards 25.82 Regards R.Linda!
Long
by RLinda
11
AUDUSD I Potential move upward of 80 + pipsWelcome back! Let me know your thoughts in the comments! ** AUDUSD Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Long
by BKTradingAcademy
1
What Is Swing Trading?Are you looking for a way to take advantage of short-term market movements without the stress of day trading? Look no further than swing trading. In this article, we’ll dive deep into the world of swing trading, exploring how it differs from day trading, discussing its advantages and disadvantages, and taking a look at some of the most popular swing trading tools and indicators. The Basics of Swing Trading Swing trading involves holding a position for a short to medium period of time - usually a couple of days to a few weeks - with the aim of profiting from the “swings” in the market. A swing trader’s definition is simple: swing traders are those who typically enter and exit at significant support and resistance levels, hoping to capture the bulk of an expected move and take profits at potential reversal points in the market. The swings are marked with numbers in the chart below. These traders tend to look at hourly to weekly charts to guide their entries, although the specific timeframe used will depend on the swing trader’s individual style and the asset being traded. It can be used across all asset classes, from stocks and forex to crypto* and commodities. Swing plays in the stock market can be especially effective, as stocks tend to experience plenty of volatility and are subject to frequent news and events that can drive prices to traders’ targets. Swing traders predominantly use technical analysis to determine their entries and exits, but fundamental analysis can also play a significant role compared to shorter-term styles, like day trading. Fundamental analysis, like comparing the interest rates of two economies, can help to set a swing trader’s directional bias over the course of days or weeks. Swing Trading vs Day Trading On the face of it, swing trading and day trading may look similar. After all, both types of traders may look to profit from one key support/resistance level to another. However, there are significant differences between them. The most distinct difference is the holding period. Day traders aim to close all of their positions by the end of the day and tend to exit a trade within a few hours. It’s rare for swing traders to hold a position for less than a day, although it can happen if their target is met during extreme market volatility. Long-term swing trading can involve holding a position for months - something you won’t see any day trader doing. This difference in holding period has important implications for risk management. Day trading can be riskier than swing trading, as day traders are exposed to more volatility and are more susceptible to sudden price movements. Swing traders, on the other hand, have more time to react to changes in the market and ignore intraday noise in favour of focusing on their longer-term target. However, because day traders don’t hold their positions overnight, they also avoid the risk of any adverse events affecting their position while they’re asleep. Swing traders don’t have this luxury. The frequent in-out nature of day trading means active traders can incur more commission fees than swing traders. Spreads are also less of a concern when swing trading, as wide intraday spreads impact a swing trader’s position less than they impact the position of a day trader. Finally, the psychological and time pressures are reduced when swing trading. Day trading can be a highly stressful activity, and it requires near-constant attention to the charts. Swing trading can be a much more relaxed approach, avoiding the stresses of intraday price movements and allowing for much less active management. Swing Trading Advantages and Disadvantages Swing trading has several advantages that make it a popular choice for many traders. That said, it comes with a few disadvantages traders should be aware of. Let’s consider them. Advantages - Lower Time Commitment One of the biggest benefits for swing traders is the reduced time commitment. Many of us have other things going on that mean we can’t commit several hours a day to trading. Swing trading can be adapted to suit a trader’s individual schedule and may only require a few hours each week to be successful. - Flexibility Swing trading is often more flexible than other styles of trading. Not only does it offer time flexibility, but it allows for a wider range of instruments to be traded. For example, you might have trouble performing technical analysis on the 1-minute chart for an illiquid stock, while the 1-hour chart has plenty of price action for you to analyse. In the stock market, swing trading may even be preferred because of the greater number of opportunities it can present. - Potential Higher Returns Than Long-Term Trading Because swing traders usually hold positions for a few days to a few weeks, they have the ability to take advantage of shorter-term market movements that might not be reflected in longer-term price trends. For instance, if a stock experiences a temporary dip in price due to a short-term event, swing traders can take advantage of this dip and make a quick profit when the stock rebounds. Disadvantages - Less Time to React to Market Changes What is a swing trader’s biggest disadvantage? The amount of time they have to react to sudden price movements. Short-term traders that are actively managing their positions may be able to stay out of a position entirely until volatility subsides. In contrast, swing traders may not be available to adjust their position if they’re at work or asleep, leading to potentially significant losses. - Overnight Holding Risks Part of the issue with holding trades overnight is that they can gap up or down - opening much higher or lower than the previous day’s closing price, which could mean a stop loss isn’t triggered. This can result in large losses beyond what the trader was initially willing to risk. - Requires Discipline to Hold Trades Holding a position for several days or weeks can be tough for some traders. Intraday market movements may lead to impulsive decision-making, like closing a trade prematurely or taking a loss because of a perceived change in market direction. To weather these short-term price movements, swing traders must have the discipline to manage their emotions and only check the charts infrequently. Popular Tools to Use When Swing Trading A swing trader’s strategy will ultimately depend on their unique system for entering and exiting trades. There’s no right or wrong way to swing trade; the most important aspect is finding an edge over the market and achieving long-term profitability. Here are three common tools and indicators that can be used as part of a swing trading strategy. Channels Traders can use channels to take advantage of long-term price trends that play out over days and weeks. To plot a channel, you first need to identify a trending asset that’s moving in a relative zig-zag pattern rather than one with large jumps in price. Swing traders will often use the channel to trade in the direction of the trend; in the example above, they might look to buy when the price tests the lower line and take profit when the price touches the upper line of the channel. Moving Averages Moving averages are one of the simplest indicators, but they can help swing traders determine the direction of the trend at-a-glance. The options here are endless: - You could pair fast and slow moving averages (MAs) and wait for the two to cross; this is known as a moving average crossover. When a shorter MA crosses above a longer one, the price is expected to rise. Conversely, when a shorter MA breaks below a longer one, the price is supposed to decline. - You could stick with one and observe whether the price is above or below its average to gauge the trend. When the price is above the MA, it’s an uptrend; when it’s below the MA, it’s a downtrend. - You could use an MA as a support or resistance level, placing a buy order when the price falls to the MA in an uptrend and a sell order when it rises to the MA in a downtrend. In this equity swing trading example, we’ve applied the Exponential Moving Average (EMA) Cross indicator with a 50 and 200-period length in TickTrader. As you can see, it was valuable for identifying the direction of the S&P 500 over the course of several weeks and could have resulted in a profitable swing call. Fibonacci Retracements Lastly, many swing traders look to enter pullbacks in a larger trend. One of the most popular ways to identify optimum entry levels during these pullbacks is with the Fibonacci Retracement tool. Traders typically wait for a shift in price direction, then apply the tool to a swing high and swing low. Then, they enter at a pullback, usually to the 0.5 or 0.618 levels, to profit from the continuation of the trend. As seen above, this strategy can offer ideal entry points for swing traders looking to get in early before a trend continues. The Bottom Line In summary, swing trading can be an ideal style for many would-be traders out there. Rather than spending hours in front of the screen each day, swing traders can take a more laid-back approach. However, while solid risk management skills and iron-clad discipline are necessary characteristics for any trader, they’re even more important for swing traders. Ready to embark on your swing trading journey? You can try a free demo account with us at FXOpen to practise your skills and start building a strategy. Good luck! *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
10
What Is Ichimoku Cloud and How Can It Be Used in Crypto Trading?When non-traders think of trading, they often envision an indicator like the Ichimoku Cloud: a seemingly indecipherable mess of lines and colours. But in reality, the Ichimoku Cloud is logical, once you understand it, and quite an effective tool. In this article, we’ll take a look at what the Ichimoku Cloud is, its interpretation, and how you could use it as part of a crypto trading strategy. What Is the Ichimoku Cloud? While the Ichimoku Cloud may look like a complicated indicator, it's a highly versatile tool that can offer traders a quick snapshot of the market. The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, was developed by Japanese trader Goichi Hosada. He spent around 40 years working on and refining it, finally publishing his findings in the 1960s. At a glance, the Ichimoku Cloud can help traders gauge trends, forecast support and resistance levels, and determine potential entry and exit points. It combines multiple technical indicators into a package that can be incredibly effective if used correctly. While not initially built for crypto, the Ichimoku has gained popularity amongst crypto traders for its ability to adapt to the fast-paced and volatile nature of cryptocurrencies. Understanding the Components of the Ichimoku Cloud To get the most out of the Ichimoku Cloud, it's essential to understand its six primary components. Conversion Line (Tenkan-Sen): This line (blue) is calculated by averaging the highest high and the lowest low over a specified period, typically 9 periods. It serves as a dynamic support and resistance level and helps identify short-term trends. Base Line (Kijun-Sen): The Base Line (orange) is the average of the highest high and the lowest low over a set period, usually 26. It functions as a relatively stable support and resistance level and can be used to determine medium-term trends. Leading Span A (Senkou Span A): The Leading Span A (green) is calculated by averaging the Base and Conversion Lines and plotting them 26 periods ahead. It forms one of the Kumo’s edges and indicates potential future support or resistance levels. Leading Span B (Senkou Span B): Calculated by averaging the highest high and the lowest low over a longer period (usually 52 periods), the Leading Span B (red) is also displaced 26 periods ahead. It forms the other edge of the Kumo and, like Leading Span A, represents potential future support or resistance levels. Lagging Span (Chikou Span): The Lagging Span (purple) simply shows the current closing price, plotted 26 periods in the past. Kumo (Cloud): The space between the Leading Span A and B. If Leading Span A is greater than B, then the Kumo will turn green. If A is less than B, the Kumo will be red. The Kumo is a leading indicator and can show whether the market is in a downtrend or an uptrend, depending on its colour and the relative position of the price. To avoid confusion with the indicator and the Cloud, we’ll refer to it as the Kumo in this article. Ichimoku Cloud Crypto Settings Unlike most other financial markets, the crypto market trades 24/7. The original 9, 26, 52, and 26 periods for the Conversion Line, Base Line, Leading Span B, and displacements, respectively, were designed for the Japanese working week and aren’t suitable for crypto. Thankfully, traders have already worked out the best Ichimoku settings for crypto. To match up with crypto’s trading hours, many change the indicator periods from 9, 26, 52, and 26 to 20, 60, 120, and 30. Put simply, the revised Ichimoku Cloud settings for cryptocurrency are: Conversion Line: 20 instead of 9. Base Line: 60 instead of 26. Leading Span B: 120 instead of 52. Displacements: 30 instead of 26. Ichimoku Cloud for Crypto: How to Use It Now that we have an understanding of each Ichimoku Cloud component and what settings to use, we can start interpreting its signals. Let’s look at four key aspects of using the Ichimoku Cloud. Want to see how it works for yourself? At FXOpen, we offer the free TickTrader terminal, where you’ll find a full suite of technical analysis tools, including the Ichimoku Cloud. Just adjust the settings to the ones given to follow along in real time. Timeframe The first consideration is the timeframe. The Ichimoku Cloud was originally designed to be used on the daily chart. While it has uses on the 4h and 12h charts, it's best to avoid using the indicator on most intraday timeframes, as it has been known to generate false signals. If you’re determined to make it work on lower timeframes, you could try shorter periods than the original settings. However, it’s important to gain a deep understanding of the indicator and how it works in practice. Identifying Trends One of the primary uses of the Ichimoku Cloud is to identify market trends. When the price is above the Kumo, the market is considered bullish. Conversely, if the price is below the Kumo, the market is bearish. If the price moves within the Kumo, the market is in a consolidation phase and shouldn’t be traded. Additionally, the colour of the Kumo can help traders understand the trend's direction: a green Kumo signals a bullish trend, while a red Kumo indicates a bearish trend. The Lagging Span can also be used to confirm a trend. If it sits above the price and the Kumo, then traders have confirmation that the market is bullish. If it is plotted below both price and the Kumo, then the market can be considered bearish. Note that the Lagging Span is a confirmation tool, and traders use it after setting a bias based on other aspects of the indicator. Finally, the distance between Leading Span A and B (forming the Kumo) can help traders gauge the trend’s strength. A narrower Kumo indicates that the trend might be weak, while a large Kumo can mean the trend is strong. Catching Momentum The Ichimoku Cloud can help traders identify and catch market momentum, providing valuable opportunities to enter and exit trades. When the Conversion Line crosses above the Base Line, it may signal a bullish momentum, whereas a crossover below the Base Line can indicate bearish momentum. This is known as a TK Cross. Additionally, a widening gap between the Conversion Line and Base Line can suggest that the momentum is increasing. The Kumo’s position relative to the price also provides vital information about momentum. If the price moves above a rising or below a falling Kumo, it can signify strong bullish or bearish momentum, respectively. Conversely, if the price moves against the Kumo’s direction, it could imply a weakening trend or a potential trend reversal. Support and Resistance Lastly, the Ichimoku Cloud can provide traders with dynamic support and resistance levels. These levels can be used to find entry and exit points that align with a trader’s overall analysis of the indicator. The Kumo’s edges, formed by Leading Span A and Leading Span B, act as the primary support and resistance levels. In an uptrend, the Kumo’s upper edge (usually Leading Span A) serves as support, while in a downtrend, the lower edge (usually Leading Span B) acts as resistance. It’s also possible for the opposing edge to hold as support when bullish and to pose resistance when bearish, but this would put the price inside of the Kumo. As mentioned earlier, it’s best to avoid taking a position inside of the Kumo, but it can help traders prepare for an entry if the level holds and the price reemerges from the Kumo. However, if the price breaches these levels, it could signal a potential trend reversal. In addition to the Kumo, the Conversion and Base Lines also serve as minor support and resistance levels. When the price is above the Conversion and Base Lines, they can act as support, while if the price is below them, they can serve as resistance. Ichimoku Cloud for Bitcoin and Other Cryptocurrencies: A Strategy Using these interpretations, we can now begin to formulate an Ichimoku Cloud crypto trading strategy. We can set specific criteria that must be satisfied before considering a trade; then, we may set actual entry criteria. Consideration requirements: 1. If bullish, the price must be above the Kumo, and the Kumo must be green. If bearish, the price should be below, and the Kumo should be red. 2. In an uptrend, the Lagging Span must be above the price and the Kumo, and vice versa. 3. If bullish, the Conversion Line must be above the Base Line, and vice versa. Once we have the green light on these three requirements, we can identify possible entries: 1. If only waiting for the Conversion to cross the Base, we can enter on the crossover. 2. If all three requirements are already met, we may enter on a retrace to the Conversion or the Base Line. Entering on the Conversion Line can be considered riskier, while waiting to enter the Base Line may mean missing opportunities. 3. We can make an entry after confirming that Leading Span A (if bullish) or Leading Span B (if bearish) is acting as support/resistance. What about stop losses and take profits? For stop losses, you can try at the opposing edge of the Kumo or use another technical factor altogether for a tighter stop. Take-profit levels are tricky to set with the Ichimoku. You may prefer to simply trail a stop above or below the Kumo, depending on the direction of your trade, or close the position when the Conversion line crosses back over the Base. Let’s take a look at each possible entry in practice. Conversion-Base Crossover Here, we see clear bullishness confirmed by both the Lagging Span and Kumo. The only missing piece is the bullish Conversion-Base crossover. Once we see the crossover occur, we can consider an entry. Conversion/Base Retrace Similarly, we see a very bullish market, with almost every signal of the Ichimoku Cloud pointing to a strong uptrend. When the price pulls back to the Base Line, we can look to enter a position. Kumo Support/Resistance In this example, we see a substantial bearish trend, marked by a large Kumo. With each of our three consideration criteria met, we can wait for a pullback to either the Leading Span A or the Base Line to make an entry. Luckily, both lined up at roughly the same area, giving us extra confirmation that the level was likely to hold as resistance. Limitations of the Ichimoku Cloud While the Ichimoku Cloud is undoubtedly a versatile and insightful tool, it doesn’t come without limitations. One is that its uses are fairly limited intraday; the short-term volatility of cryptocurrencies and many other asset classes can lead to increased false signals and trouble interpreting the indicator. It’s also ineffective in ranging markets. It can excel at offering entries in trending markets but may generate conflicting or ambiguous signals in a range, making it difficult to identify clear entry and exit points. Lastly, the Ichimoku Cloud is more complex than most other indicators, with multiple signals and ways to interpret its readings. This can lead to confusion and a steeper learning curve. Closing Thoughts Now that you have a comprehensive overview of the Ichimoku Cloud, why not try applying it to your favourite market? It doesn’t have to be crypto either - you can just switch back to the original settings if you’re looking to use the Ichimoku Cloud for forex, commodities, or stocks. The same ideas, uses, and strategy rules given here can still be applied to these markets, but you may need to look for your own methods for using the indicator in specific markets. Once you feel like you have a solid understanding of how to apply the Ichimoku Cloud, you can open an FXOpen account. You’ll be able to access dozens of live markets and advanced analysis tools in the free TickTrader platform alongside low costs and tight spreads. Good luck! *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
BINANCE:BTCUSDEducation
by FXOpen
Navigating the Golden Realm❣️"Unveiling Secrets of the Gold Market for Traders" Welcome to the captivating world of the gold market, where you as (new) trader embark on a metaphorical journey filled with price movements , trends , and profitable opportunities . In this comprehensive guide , i will delve into the intricacies of trading gold, empowered with knowledge that will enhance trading strategies. From deciphering patterns to understanding correlations , i will unlock the secrets of the golden realm, equiped with the confidence to make informed decisions. So fasten your seatbelts and get ready to navigate through the twists and turns of this enchanting market. Range Trading - The Breakfast Feast Picture yourself at a lavish breakfast buffet, where a wide array of options tempts your taste buds. Similarly, range trading in the gold market offers a delectable spread of trading opportunities. By identifying key support and resistance levels , you can effectively navigate within a defined price range. Just as you would choose from a buffet, traders can enter buy positions near support and sell positions near resistance. Deciphering Trends - The Path to Success In the golden realm, trends serve as beacons of guidance for traders. Analyzing price movements over time helps uncover valuable insights into the direction of the market. By identifying uptrends, downtrends, or sideways trends , strategies can be aligned accordingly. Utilizing tools like moving averages and trend lines, may create a clearer picture of the market's path, allowing you to ride the waves of success. Breakouts - Seizing the Golden Moments Just as a phoenix rises from the ashes, breakouts in the gold market signify the birth of new opportunities. Breakouts occur when the price breaches a significant resistance or support level, often indicating a shift in market sentiment. Trades will be positioned to take advantage of these golden moments by entering in the direction of the breakout. However, it is crucial to denote confluences and employ proper risk management techniques or wait for confirmation before diving into the fray. Correlations - Unveiling Hidden Connections The gold market is not an isolated realm; it is intricately connected to other financial markets. Understanding correlations between gold and other assets can provide valuable insights. For instance, a negative correlation with the U.S. dollar may indicate that a weaker dollar could lead to increased gold prices. By monitoring these relationships and recognizing their impact, you can make more informed decisions and maximize profit potential. Retesting - A Second Chance In the golden realm, opportunities often come knocking twice. Retesting occurs when a price level that was previously broken acts as a new support or resistance. Traders can capitalize on retests by entering positions in the direction of the original breakout. This phenomenon can provide a second chance to those who missed the initial move or wish to reinforce their existing positions. By identifying and evaluating retesting scenarios, you will enhance your trading strategy and seize these hidden but well-known opportunities. ☆ As we conclude this journey through the golden realm, you could now posses a deeper understanding of the gold market's intricacies. By embracing range trading , deciphering trends , seizing breakout moments , unraveling correlations , and recognizing retesting opportunities , you can navigate this enchanting market with confidence. Armed with technical indicators, pattern analysis, and an awareness of session transitions, you will unlock the potential for profitable opportunities. So, fellow aspiring traders, step into the foreign exchange golden realm armed with knowledge and embark on your path to success, b e ready to make informed decisions and claim your share of the golden treasures. HappyTrading 🤠 J
OANDA:XAUUSDEducation
by ATU_TAD
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