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Reversaltrading

Best Ichimoku Strategy for Quick ProfitsStep #1 Wait for the Price to Break and close above the Ichimoku Cloud. Ichimoku cloud trading requires the price to trade above the Cloud. This is because it's a bullish signal and potentially the beginning of a new up-trend. The cloud is built to highlight support and resistance levels. It highlights several layers deep because support and resistance is not a single line drawn in the sand. It is several layers deep. So, when we break above or below the Ichimoku Cloud, it signals a deep shift in the market sentiment. A high probability trade setup requires more layers of confluence before pulling the trigger. This brings us to our next requirement for a high probability trade setup. Step #2 Wait for the Crossover: The Conversion Line needs to break above the Base Line. The price breakout above the Cloud needs is followed by the crossover of the Conversion Line above the Base Line. Once these two conditions are fulfilled, we can look to enter a trade. The Ichimoku Cloud indicator is a very complex technical indicator. The indicator is even used as a moving average crossover strategy. Now, we’re going to lay down a very simple entry technique for the Ichimoku Kinko Hyo trading system. Step #3 Buy after the crossover at the opening of the next candle. Ideally, any long trades using the Ichimoku strategy are taken when the price is trading above the Cloud. Our team at TGS website has adopted a more conservative approach. We added an extra factor of confluence before pulling the trigger on a trade. So, after the crossover we buy at the opening of the next candle. Step #4 Place protective stop loss below the breakout candle The ideal location to hide our protective stop loss is below the low of the breakout candle. This trading technique accomplishes two major things. Here is an example of master candle setup. First, it’s significantly lowering the risk of losing big money. Second, it helps us trade with the market order flow. Since this is a swing trading strategy, we’re looking to capture as much as possible from this presumably new trend. We’ll be looking to trail our stop loss level below the Cloud or exit the position once a new crossover happens in the opposite direction. The next logical thing we need to establish for the Ichimoku trading system is where to take profits. Step #5 Take Profit when the Conversion Line crosses below the Base Line We only need one simple condition to be satisfied for our take profit strategy. When the conversion line crosses below the base line we want to take profits and exit our trade. Alternatively, you can wait until the price breaks below the Cloud, but this means risking to lose some parts of your profits. In order to gain more sometimes you have to be willing to lose some. Note** the above was an example of a BUY trade using the advanced Ichimoku trading strategies. Use the same rules for a SELL trade – but in reverse.
BITFINEX:ETHUSDLong
by Tradingstrategyguides
3
EURJPY: Potential Short Trade EURJPY: Prices has once again retrace back up to resistance area on my chart. Prices tried testing the highs since yesterday but bulls aren't strong enough to bring it higher and it seems like sellers are starting to take control of this pair now. The last time price retested the same resistance, it bounced off aggressively and created a very nice risk-reward. The risk-reward on this candle isn't as attractive currently. Will monitor closely and look for opportunity to sell this pair. Edward
Short
by chowkiat
Zcoin (XZC) Cryptocurrency Strategy – 3L-R Trade PatternZcoin XZC 30m The 3L-R reversal is a four-bar pattern and it means three lows (3L) followed by a reversal (R). The main characteristics of this reversal chart pattern are the three consecutive lower low candles. The high price of these three particular candles doesn’t matter; the only thing that matter is that each low is lower than the prior low. The fourth bar of the reversal chart pattern needs to have the high bigger than the highest high of the previous 3 candles. We’re not concerned about the low of the last bar. Step #1: Identify Three Consecutive Lower Low Candles The first component of this reversal pattern is the three consecutive lower low candles. At this point we’re not concerned about the highs of the three candles. However, you’ll notice that most of the time each consecutive high is also lower than the previous high. What is great about the Zcoin (XZC) cryptocurrency strategy is the fact that it’s designed to catch market reversals right at the moment they occur. Step #2: The fourth candle breaks above the first bar high in the reversal pattern The immediate candle after the three lower lows needs to be a bullish candle and secondly it needs to break above the first bar high in the pattern. Normally, the highest high of the first three bars is made by the first bar, however, in the event that this is not the highest high we need to wait until the fourth candle breaks above the highest high of the previous 3 candles. Note* It’s important that the 4th candle breaks above the first candle high, not the 5th or the 6th because that will invalidate the reversal pattern. We need to be very precise when trading reversal patterns like the 3L-R pattern. Even though we said that we’re not concerned with the low of the fourth bar, it does matter if the low is higher than the third bar’s low. Through our backtesating results we have found out that this yields better trading performance. Step #3: How to buy Zcoin: Buy if the fourth candle closes above the last three candles highest high Before we pull the trigger and buy cryptocurrency Zcoin we need for the fourth candle to also close above the first candle high or above the last three candle highest high point, whichever that might be. Now is the time to convert this reversal setup into profit and buy Zcoin when the fourth candle closes above the last three candles highest high. Step #4: Place your protective Stop Loss below the 3L-R pattern low Trading reversals have lots of benefits and among other things it offers us the possibility to really use a very tight stop loss. If the trade doesn’t work the market will tell you very quickly and it will produce only very little damage to your account balances. Like with any reversal pattern, if you want to keep the stop very tight you need to place your protective SL below the reversal pattern aka below the 3L-R pattern low. Step #5: Take profit should be at least two times bigger than your Stop Loss If you trade this reversal pattern on intraday charts, it’s best to simply take profit once the Zcoin price will give you a return that is two times more than your stop loss. In other words, you have a risk to reward ratio of 1:2. Alternatively, if you use higher time frames the exit strategy should be based on a trailing stop. Note** the above was an example of a BUY trade using the best Zcoin XZC cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse. PM me if you would like to read the complete strategy.
XLong
by Tradingstrategyguides