Best Times To Play The Markets, Swing Trader Perspective.Here we have a chart of Nikkei 225 index on a 3 day chart.
Nothing is more powerful than identifying potential trend reversals, notice that I said "potential".
Nothing is guaranteed when it comes to trading, you will never be 100% winning in the markets.
The only edge that you have when it comes to trading is identifying trend accumulation, distribution and risk management following an overall trend. If you apply S&R to a 5 min chart vs 1 week chart, which ones levels do you think will play a more valid role in the markets? The weekly will 100%! You better be a trained professional and have a good track record of experience if you think you're just going to show up to work everyday and try to scalp every single little move sitting in front of the monitor 24/7. I personally 100% believe the big picture is where it all counts. I believe the proper way to trade the markets is to use it as an investment vehicle to work for you over time. This is why on most of my charts you will see I'm a fan favorite of the daily chart and up. These timeframes are critical to identifying the major trends in the markets. You will be chasing your tail more than anything in a 5 minute timeframe and most likely realize why trading has such a high failure rate. Let the trade come to you!
If you can learn how to manage risk and not let a bad trade get away from you, then you are already one major step ahead of the pack of failing retail traders. You see... this understanding to cut loss quick is more important than anything you will ever learn from the markets.
The mentality of most retail traders is the famous "I want to get rich fast" mentality. When a trade goes against them, most have a tendency to hold onto that position with hope's to recover... this is how most blow their accounts. A lot of traders with this mentality tend to think they need to borrow money that they don't have from their broker, as if having more working capital will get them richer faster. If you can't trade with $25 in your account, chances are you probably don't need to use $25,000 to trade with. Most traders learn to become impatient with the market and use the lowest of timeframes where most of the noise in the markets occurs.
Are their success stories of traders that made it as daytraders? ABSOLUTELY!
I'm sure they went through years of training and learned to correct their failures. You can't let the markets beat you up if it goes against you and call it quits. You have to stay consistent and let every failure become a valuable learning lesson. It's going to take time, this is one of the hardest jobs on the planet if you choose to make it hard.
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So what do I look for? Like I said above I focus on trend trading from a technical analysis stand point. Observe the candles on the chart above. Green is buy pressure and red is sell pressure. Big bricks stronger pressure and compression doji bricks are weakened pressure. My goal at the end of the day is to look for the trend transitions at points of exhaustion. Notice how at the bottom of the crash the bricks began to compress to form a doji that shifted green, That's my transition. Look below and see the ema dots then also shot green and the custom rsi left oversold territory. That is your opportunity. You will manage your risk at these turning points. If you take a small hit and get stopped out, oh well. You managed risk and didnt let a trade get away from you. You can't control the market, you can only walk with it and not let your ego get in the way of trading.
Now you see that we have tight compression forming up top of this major trend reversal from the bottom. Ema dots going red and the custom rsi is shifting down from overbought territory. These are the ideal times I look to trade. If I drop down to a daily I see that we have a valid Resistance level as price rejects off of it based off previous level. Will this Resistance hold strong to selloff? Who knows! The market makers will create the next move, not you. You have to play both sides when the time occurs. That Resistance is my edge.
Price goes up and price goes down. In order for the price to go up or to go down it needs to transition in a sideways manner to accumulate or distribute in any market. My best chance of trading is finding these major potential reversal points, especially ones like this with such a tight compression and managing my risk. I will risk a small amount on a stop and diversify my portfolio. The market will not trend sideways and flatline forever. All you need to do is find these trend reversals, manage tight risk in anticipation to capture the next major trend.
*This material is for educational purposes only
Japan 225
Bitcoin Pops Above $9,400 as Stocks Make Gains“Bitcoin might be waking up,” said Rupert Douglas, head of institutional sales at London-based crypto brokerage Koine. “A close above $9,600 would be a strong sign.”
Gains in the equity markets appear to have been the catalyst for bitcoin’s positive trading day. “Bitcoin seems pretty correlated to equities at the moment,” Koine’s Douglas told CoinDesk. “The test will be whether BTC can hold up if equities sell off.”
Stocks Make Gains While Bitcoin Sticks to $9,200“In recent trading sessions, bitcoin traded in a narrow range of $9,100-$9,200,” said Constantin Kogan, partner at cryptocurrency fund BitBull Capital. “After a short-term bullish impulse, the asset managed to peak at $9,300, followed by a downward correction.”
Over the past few days, bitcoin has approached $9,320, only to see the price drop, Kogan noted.
“The first resistance for bitcoin is at $9,320, the next important zone, the passage of which will give strength to the bulls at $9,400.”
!TSLA Short Squeeze; -7% from ATH's & new record ROCOff -7% from the all time highs earlier, the stock continues to get chased by money speculated from contractual derivative markets, with call-prices being offered as high as $3k for next week, which has faded in a way that signals the momentum has slowed, which is a danger for all of those holding calls or who wrote puts.
17:10:49 (UTC)
Mon Jul 13, 2020
Interesting Stock Index Comparison - NASDAQ Sores!Here's an interesting stock index comparison. Notable NASDAQ is the out-performer amongst this group of indices.
On Friday the NASDAQ printed it's all time record highs closing the day at 10,836. Last week this index smashed through the 10,000 handle completely disregarding it for any level of psychological resistance.
Meanwhile the COVID19 reported another record high of +71,787 new cases in America on Friday.
Japan's NIKKEI225Nothing too surprising here, crash, flag off the lows. It, too, like some of the other indices, looks ready to roll over. It's out of that flag and is presently pressed hard into a coil. To interpret that as a move up would require us to believe that it can break the multi-decade trend line above it (red). I find that to be incredible, frankly, largely because of the fundamentals right now, and the long-term technical picture.
Long-term chart looks like the last thirty years has been a huge zig zag correction pattern.
I see nothing bullish about this until we get back to the bottom again and there is really just no room up right now. That's a doozy of a move.
And shelve this for anyone who thinks endless central bank balance sheet expansion will turn out well.
When Stocks Go Down, So Does BitcoinBearish sentiment is affecting all markets today as investors appear to be de-risking, selling liquid assets for the safety of instruments like cash, said Neil Van Huis, director of institutional trading at cryptocurrency liquidity provider Blockfills. “Looks a little risk-offish on all risk assets across the board,”
Indeed, major stock indices are all in the red Wednesday. In Asia, the Nikkei 225 of publicly traded companies ended the day flat, down 0.07%. Concern about increased coronavirus infection rates in Japan led to some selling pressure. In Europe, the FTSE 100 index dropped 3.1% Wednesday. The prospect of U.S. tariffs on U.K., French, Spanish and German goods dragged the index lower.
The U.S. S&P 500 stock index lost 2.6%. The round of stock selling has been attributed to concerns of the coronavirus pandemic’s resurgence in some states.
June hasn’t exactly been a winner for bitcoin so far, but it’s not like stocks were hot either.
Land of the Rising SunIt is normal that we tend to look at our neighbours garden and think how pretty the lawn is and the neat rows of flowers they have. Sometimes, we over focus on outside of our own markets and neglect what's nearer to us.
In this case, we made the assumption that just because US is a big market, we should give it more attention and in doing so, we blind ourselves to the opportunities that are nearer to us. Japan has moved way ahead of the US markets as evidenced on the charts.
The amount of economic stimulus that Prime Minister Abe is injecting into Japan is simply staggering. Read article here
It has breaks out of the resistance level at 20,603 and is moving higher towards 24,000 mark. Wait for pullback, goto smaller time frame for better price entry.
Now, there might be little or no co-relation between Nikkei 225 and DJIA but can we say, both countries are injecting trillions of dollars into their economies ?
US may be affected in the short term due to the HK saga with China and the President may have something on his sleeves that nobody knows. I am of the opinion that bringing the market down is not to his favour in view of the upcoming election.
Let's see how this week the market performs.
Bottoms UPSometimes, when your life is too routine and the things you are exposed to are more or less the same, you become complacent. Go to work, come home, cook dinner, play games, sleep. Repeat and rinse.
In trading/investment, it can be the same as well. If you stick to your own local markets, the companies that are very familiar with (strong brand name, you are the customers for years, good review, etc), then you might missed out good opportunities.
Good opportunities such as markets in Thailand, Korea, Japan and Malaysia. For STI (SG market), it has only rebound from the bottom of 23 March around 22%. If you do some research, reading the news, etc you would know that these markets are faring better than STI.
They went up on average 43% from the bottom. Why wouldn't one want to make more money given the same time frame? Risks?
Unless you are venturing into the stocks in these countries which your broker might charge for a higher commission and custody fee, you are better off looking at the ETFs in these countries.
KLSE index (Malaysia) is EWM ETF
Japan index is Nikkei 225 index (futures) which most platforms will have or EWJ ETF
SET index (Thailand) is THD ETF
KOSPI index (Korea) is EWF ETF
Please do your own due diligence as the above is an example only. There are many ETFs that invest in these countries that offer different components mix and expenses. You want to look for one that offers the lowest .
I remain cautiously bullish on Asia markets now that the various countries are slowly reopening their economies and businesses are coming back as well. The consumers would still have to accept some inconvenience like putting on masks, keeping a social distance, no dine in at food outlets,etc. Other than that, being able to resume back to their pre-Covid 19 days is liberating for many who find staying at home stressful and suffocating.
Again, this chart is not exhaustive as comparing all available tradeable Asian countries would make the charts looks confusing. So , feel free to make your own index and/or ETFs comparison and decide if investing outside of your country is worthwhile, offering you a better ROI, etc.
NIKKEI225| BUY TRADE📈| TREND CONTINUATION🌟Hypothetical scenario:
(1) Entry @ 22955.0 (Buy LMT )
(2) Stop Loss @ 22928.0 | 27 points
(3) Target @ 23046.0 | 91 points
(4) R:R = 1:3.37
Stay tuned for the updates.
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*DISCLAIMER*
This post is solely for educational purposes and does not constitute any form of investment / trading advice.
Possible scenario if America adopts NIR policy It was in February 2016 when Japan adopts negative interest rate policy. For the next 6 months or so, the stock market barely moves, consolidating between 15000 to 17000 range.
In Sept 2019, President Trump tweeted about his support for zero or negative interest rates policy and pressured FEDs to do it asap.In May 2020, he renewed his calls once more,claiming other countries are already enjoying the gift.
This is what the Fed's chairman, Jerome Powell said :
“When you have negative rates, you wind up creating downward pressure on bank profitability, which limits credit expansion,” Powell said in a congressional testimony.
President Trump is running out of time, with his reelection coming up in November 2020 and he needs to prop up the stock market to a new level. Could this NIR policy be his saviour ?
If the bear camps are right about this recovery as too sudden and premature, then we could see a retest of the March low again. (yellow)
Alternatively, this V-shape recovery could already be playing out and shooting for a new high. (blue)
NI225 - potential of more than 15% returnsNI225 had a very small correction afgter the end of leading diagonal wave 1 and it its now tracing the eraly stages of intermediate wave 3. If this is the case, the price should continue to trend to the most probable target at 26,576. If price crosses down 20,530 this analysis should be reviewed. FOLLOW SKYLINEPRO TO GET UPDATES.