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Overbought

BEST MOMENTUM TRADING STRATEGYBCHUSD 15M WILLIAMS %R INDICATOR STRATEGY My 15m scalping technique - 14 length Our team at Trading Strategy Guides believes that a momentum indicator strategy can reduce risk and enhance your overall returns. One of the core market principles is that momentum precedes price so in this sense a momentum indicator strategy is more like a trend following strategy. Essentially trends tend to continue and we can use momentum to determine when to buy and when to sell. There are various explanations for why momentum occurs. The simplest explanation would be that rising prices attract buyers and falling prices attracts sellers. Using a momentum indicator strategy, it means we’re only going to hold the trade for a very short period of time, anywhere between a few minutes and up to a few days. Basically, the best momentum trading strategy runs until the momentum drys out. So, we only want to concentrate on the relative strength of any instrument. The best momentum indicator is by far the Williams %R indicator. This momentum indicator will help us identify profitable trading opportunities. Works with all market and time frames. The preferred settings for the best forex momentum indicator is 40 periods The Williams %R runs on a scale from -100 to zero. A reading in the vicinity of -100 is an indication that the instrument is oversold and it’s a potential buying opportunity and once it reaches zero, that’s an indication of overbought and maybe the time to sell. Step #1: Define the Trend. An Uptrend is defined by a Series of HH Followed by a Series of HL. The definition of an uptrend is pretty much standard. In an uptrend, we look for a series of higher highs followed by a series of higher lows. Two HH followed by at least another two HL is enough to define an uptrend. A higher high is simply a swing high point that is higher than the previous swing high. While a higher low is simply a swing low that is higher than the previous swing low. In order to gauge momentum besides reading the best momentum indicator we also look at the actual price action. Step #2: In an Uptrend Look for Bold Candlesticks that Close Near the Higher End of the Candlestick. A common concept in technical analysis is that you want to use multiple confirmation signs when buying and selling. This will increase the likelihood that’s a high probability trading setup. In this regard, the momentum trading strategy besides using the best momentum indicator also incorporates the price action. A practical way to read momentum from a price chart is to simply look at the candlestick length. What we want to see in an uptrend is big, bold bullish candlesticks that close near the higher end of the candlestick. Step #3: Wait for the best Forex Momentum Indicator to get oversold (below -80) and then rallies above the -50 level before Buying In an uptrend, we buy after the best momentum indicator has reached oversold conditions (below -80) and then rallied back above the -50 level. Now, we have confirmation from both the price and the best momentum indicator that real momentum is behind this trend and the probabilities are in favor of more upside prices from here on. Note* If the best momentum indicator continually stays in overbought territory (above -20 level) it signals a strong momentum and conversely a strong trend. Inversely the same is true in a downtrend. Step #4: Place Your Protective Stop Loss below the Recent Higher Low We want to hide our protective stop loss below the most recent higher low level that formed right before the best momentum trading strategy issue the buy signal. Alternatively, you can also trail your stop loss below each most recent higher low. This strategy will allow you to lock-in the potential profits in case of a sudden market reversal. Step #5: Take Profit once we break below the Previous Higher Low Alternatively, you can take profit once the best momentum indicator breaks below the -50 level.
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by Tradingstrategyguides
1
$ADA ready for takeoff. With Targets.Like many alts right now $ADA also seems to have broken out of its, now past, trend. We should see a nice pump as soon as Bitcoin is more stable, or as soon as Volume follows. 3.1k is a potential resistance zone, but after that, we shouldn't have much resistance until the Major Fib levels (0.382, 0.5, 0.618). As marked on the chart, I suggest you take some profits at each of them, and keep a lot out on the RSI for whether or not it's overbought (it's currently oversold), and also at volume to see if the breakout is confirmed.
Long
by A157901
GBPUSD - Descending ChannelThe previous chart showing this trade setup (along with the majority of my other charts) were hidden/deleted due to accidentally breaking the rules with my descriptions. Sorry guys! I'm re-posting it since it was still on my screen... Black line is entry, green line is initial TP level, red line is SL. I don't know how much of a demand there is for me posting here. I'm not sure if anybody other than those who are connected to me via other channels are even able to view these charts as visibility is skewed towards those with thousands of followers on the home page... So I'm unsure if I will continue posting. Maybe occasionally, I'm not sure yet... You guys know you can always PM me to discuss trade ideas though or ask for friendly advice. But anyway, this is fairly safe, low risk trade. Enjoy.
Short
by Renforex
10
EURNZD 4H Trade Setup-30m Timing-5m Entry PointThese 3 charts helps us understand how to use a 4H chart to find a trade, how to use a 30 m chart to find the market timing as not to enter too early into the trade, and the 5m chart to find the best entry point to give us the best risk to reward entry. Macd helps us to find direction and reversal points from the Macd being over sold/bought from the stochastic 20/80 blue dotted level lines. The Macd red 0 level line helps to know trend bias (price above red 0 level possible bullish bias) Take profit levels will be covered in an update. Any question you have on the dual macd/stochastic send me a PM and I will be glad to help you setup this indicator.
Long
by Tradingstrategyguides
BTCUSDT 3 Chart Case StudyWe are going to study over the weekend how this pair moves. We have a 4H - 30m - 5m chart opened. We are going to study how price moves around our 50/100 sma We are going to watch how the macd moves around the macd 0 level line and the stoch 20/80 levels - blue dotted lines The 4H is in-between the 50 and 100 sma. This I call an inner range. it has no real direction or momentum. When price breaks out of the inner range it will have direction and momentum. Watch this pair over the weekend and make copies of your chart with the camera in the lower right corner. The 4H macd is above the 80 level. Price can go half way across to the 100 sma and fall back to the 50 sma because the macd is above the 80 level. Let's watch and see if it does. Price may just go across to the 100 sma so let's watch if that happens and what the macd looks like during that. If price does come back to the 50 sma two things can happen. It can break below the 50 sma and retest the swing low on the 4H. or price will try a second time to make it across to the 100 sma. Watch how the macd looks like during all of this and make sceenshots. We are not trading here we are just studing and educating ourselves how to use this indicator. As the 4H is doing all of this you want to be watching and documenting how the 1H and 5m charts look and how they are acting in these different situations. This is a great pair to teach you all of the ebb and flow of price and how the indicator reacts to it. You are watching on the 30m and 5m how price moves around the 50/100 sma and how the macd is moving around the 80/20 levels and the 0 level line.
by Tradingstrategyguides