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ETHUSD 1D BEST SHORT TERM TRADING STRATEGYStep #1: Wait For the Market to Make a New 20-Day High The way you should count the highs is simple. Each time the market is making a daily high, you can start counting. The rule of thumb is you only count daily highs that are higher than the previous counted daily high. Step #2: Wait For The Market to Break Below the 20-day EMA For the success of our short term trading strategy, this step is very important. We don’t want to pick tops and bottoms. We feel more comfortable entering the market once the price confirms it’s ready to reverse. Step #3: Enter A Short Position When We Break Below 20-Day EMA As soon as you break below the 20-day exp. moving average, sell at the market. The combination of the 20-day high pattern and the 20-day exp. moving average is the secret to our powerful short term trading strategy. Incorporating the 20-day EMA in your day trading system is one of the best short-term trading tips you can receive. Step #4: Place the Protective Stop Loss Above the Swing High Prior to the 20-day EMA Breakout The best short-term trading strategy employs a very rigid stop loss method. The obvious place to “hide” your protective stop loss should be right above the most recent swing high prior to the 20-day EMA breakout. If the market breaks below the 20-day EMA, and it reverses and breaks above that swing high, this means trouble. It is reason enough to close the trade at a small loss. Why? Because it signals the prevailing trend is still maturing and will resume. This is why you don’t want to be in the trade anymore. If you listen to the price action, this is the best short term trading tips the market can give you. Step #5: Take Profit at The 50% Fibonacci Retracement of the Prevailing Up Trend The logical place to take profits is at the 50% Fibonacci retracement. Normally, that’s the first real target from where the market can reverse. We don’t want to take our chances and risk losing more of our profits. So, we’ll liquidate the entire position here for a nice profit. Note** The above was an example of a sell trade… Use the same rules – but in reverse – for a buy trade.
COINBASE:ETHUSDShort
by Tradingstrategyguides
BEYOND MEAT 1D RANGE TRADESRanges are repeatable trading chart patterns. ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NASDAQ:BYND
by Tradingstrategyguides
BTCUSDT 4H DOUBLE DEATH CROSS LONG TRADE STRATEGYThe double death cross strategy employs one more moving average that will help you anticipate when the death cross signal will occur. The third moving average is the 100-day MA, which is a medium-term MA situated between the other two moving averages. Step #1: Wait for the 50-day EMA to cross below the 100-day EMA. The two moving averages also need to converge with the price action. You can read more about day trading price action here. If we get the crossover of the 50-day MA (blue line) and 100-day MA (orange line) at the same time the price is testing those moving averages like it’s doing on the GBP/USD chart below, that’s the best-case situation for trade because we can define the risk. The rule you need to keep in mind is that when the MAs converge with the price you have to get ready for the ride because it is going to get BUMPY! Step #2: Multiple entry strategy: Sell1 when we close below 50-day MA and 100-day MA. Sell2 when we break and close below 200-day MA. Using multiple entries to improve your average entry price can be the best way to approach the death cross signal. Scaling into a position is our preferred trading method when looking to capture a large price move in a currency pair. The fact that the price was near the death cross signal, it created tension in the market that eventually will lead to a sharp move to the downside. We pull the trigger on the first half of the trade once we close below the 50-day and 100-day moving averages. If at the moment when the death cross developed we’re already trading slightly below the two moving averages, sell at the market the moment we close below. The second half of our position is entered once we break and close below the 200-day moving average. **Note: It’s important to remember that the success of the death cross signal relays on this simple trade secret that price and the two moving averages need to converge. Keep it 'simple stupid' is not just a simple aphorism, but it’s an old truth that can make the difference between losing and making money trading. Step #3: Hide your protective Stop Loss above 50-day MA and 100-day MA The most important thing we need to define when trading is our risk. If you want to be a profitable trader you really need a limited risk. This is the type of death cross trades that we want to pull the trigger on. If the price were to move back above those moving averages, we can safely assume this is yet another false trade signal. In this trade case scenario, we’re risking a little and our reward is potentially much bigger. So, the best place to hide your protective stop loss is above the 50-day MA and 100-day MA. Step #4: Choose your own Take Profit strategy or use this Two-step process for the take profit strategy: Mark on your chart the high of the candle when the 50-day MA crossed below 200-day EMA. Take profit when this high is broken. Our take profit strategy might seem a little bit complex, but once we break down the steps you need to follow, it will make more sense why we’ve chosen this approach. The first thing you have to do is to remember what we said at the beginning of the article which is that when the price doesn’t converge with the two MAs this is a death cross false signal. In the example below, we can observe this type of price action. Now all you have to do is to mark the high of the candle when the death cross happened and take profit as soon as the high gets broken. **Note: The above was an example of a SELL trade using the death cross strategy. Use the same rules for a BUY trade – but in reverse, in which case we have the golden cross trading strategy. Conclusion - Death Cross Stocks Following the death cross trade signal can be a very efficient approach to identify bearish sentiment in the market. If you want to switch from short-term trading and try capturing larger trends the double death cross trading strategy can help you achieve your goals. You must know that the death cross definition is universally applicable to any other asset classes. We can have a death cross crypto or a death cross gold the same way we can have a death cross S&P 500. Capturing and detecting bearish trends can be a hard task because downtrends are typically different than bullish trends. However, the double death cross strategy gives you a systematic way to tackle bearish trends.
Education
by Tradingstrategyguides
2
DOMINOs PIZZA 1W BLUG FLAG LONG TRADEBull Flags are repeatable Range trading chart patterns. Bull Flag chart pattern will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
NYSE:DPZLong
by Tradingstrategyguides
CFDs on WTI CRUDE OIL 1HHOW TO USE 200 EMA TO BUY COMMODITIES. 1 - 200 EMA standard measurement of bullish or bearish trends in commodity market. 2 - MA breakouts have multiple false breakouts. 3 - Wait for a breakout and then a retest of EMA. 4 - Buy at breakout of high of breakout candle. If you want to predict which commodity trading levels are worth to base your trade-off, then look no further than the 200-day moving average. The 200-day EMA is regarded as being the standard measurement of bullish and bearish trends in the commodity market. However, a breakout of the 200-day EMA is not always a reliable signal. The reason is that like with all technical indicators it’s prone to give multiple false signals. A simple solution to this very common problem is to wait for the breakout of the 200-day EMA and a retest. This means that you can buy/sell commodities at the first retest of the 200-day EMA. Now, we know that not many traders have the right amount of capital to invest in the long-term. Holding a position for a yearlong period is not suitable for everyone. If you don’t have a big account balance and the patience to ride the cyclical commodity trends, you’re better off if you stick with short term commodity trading
TVC:USOILEducation
by Tradingstrategyguides
9
BTCUSD 1D THE BEST GANN FAN TRADING STRATEGY(Rules for BUY Trade) Step #1: Pick a significant High, Draw Gann Fan Angles and Wait For the 1/1 Line to Break to the Upside. The best Gann fan trading strategy works the same on every time frame. But we recommend not going lower than the 1h chart, as you want to be able to pick significant swing high points. This can’t be seen on the lower time frames. Step #2: Wait for a Break Above 2/1 Gann angle Before Buying at the market This step is significantly important because a reversal of the previous trend is only confirmed once the 2/1 Gann angle is broken to the upside. You want to buy at the market as soon as we break above 1/1 line. Step #3: Apply again the Gann Fan Indicator on the Swing low Prior to the Breakout above 2/1 Gann Fan Angle How to use the Gann fan indicator? Simply follow the instruction presented in the above sections. At this point, you can also get rid of the previous Gann fan angles drawn from the swing high. This will make sure your chart will not get cluttered and the price is still visible. One of the reasons why this is the best Gann fan strategy is because we use the Gann fan indicator to track every swing in the market. At this point, your trade is opened, but we still need to determine where to place our protective stop loss and take profit orders, which brings us to the next step of best Gann fan trading strategy. Step #4: Place Your Protective Stop Loss below the Most Recent Swing Low Which Should Align With the Point from Where You Draw the Second Set of Gann Fan Angles. The best Gann fan strategy has a very clear level where we should place our protective stop-loss order which is right below the swing low located prior to the 1/2 Gann angle breakout. Next, will learn where to take profits: Step #5: Take Profit One we Break and Close Below the 1/1 line. We Need the Close Below 1/1 line to be by at Least 20 Pips to Consider it a Valid Breakout We want to ride the new trend for as long as possible and with the help of the Gann fan indicator, we can pinpoint the ideal time to take profits. We take profit at the earliest symptom of market weakness which is a break below the 1/1 line that signals a possible start of a bearish move. Note** The above was an example of a buy trade using the best Gann fan strategy. Use the same rules – but in reverse – for a sell trade.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
COPPER 15M INTRADAY TRADING STRATEGYMCX Copper Intraday Trading Strategy Now, the first thing you must understand is how the CCI works in relation to the price and the moving average: CCI is measuring how fast the price moves away from an average price (20-period MA). The further the price moves away from the 20-period MA, the stronger the momentum. When the price is hugging the 20 MA means that it’s lacking momentum. When the price is pulling from the MA it signals momentum. Now, we still haven’t used the CCI readings, which is the missing component you’ll learn next. The relationship between the price and the moving average is just not enough to trade copper profitably. So read on… The CCI indicator will help you measure the strength of Copper momentum. This will help us decide if it’s worth to pull the trigger and trade Copper. Here is what you must know: If you want to buy Copper the price has to cross and close above the 20-period moving average. At the same time, the CCI must cross above the zero line. for this particular copper trade setup, futures traders can hide their stop-loss below the candlestick that triggers the trade for a long position. At the same time, the profit target needs to be multiple times as much as your stop-loss to help you balance the risk. Note* A break below the 20 MA can be a good profit-taking strategy. Moving average breakouts are known for signaling a trend reversal.
OANDA:XCUUSDLong
by Tradingstrategyguides
2
GOLD/SILVER RATIO STRATEGY #2 BETTER SILVER FUTURES LONG TRADEDETERMINE WHICH IS THE STRONGEST METAL BETWEEN GOLD AND SILVER ** If the gold silver ratio is in Uptrend and gold & silver in Downtrend: Buy Silver. If the gold silver ratio is in Uptrend and gold&silver in Uptrend: Buy Gold. If the gold silver ratio is in Downtrend and gold&silver in Uptrend: Buy Silver. If the gold silver ratio is in Downtrend and gold&silver in Downtrend: Sell Gold. The Intermarket relationship between the gold and silver price can reveal a better way to time the metal market. There may be times when the price of silver makes a new low, but the price of gold doesn’t track that movement. When something like that happens a possible trading opportunity can emerge. We can note that the silver price has broken to a new low while the gold price has made a higher low. This is a break in the gold and silver correlation. It means that one or the other is lying. To find out which one, we simply use the gold silver trading strategy rules revealed at step #3. Based on those rules when the gold silver ratio is up and both gold and silver are moving down, the signal is to buy silver. For timing the market, we have applied a 20 period MA over the silver chart. A break above the 20 MA will trigger our entry. Simple as that! Final Words – Gold Silver Trading Strategy When we use the gold silver chart ratio in conjunction with the individual price trends of gold and silver we can determine strong buying and selling opportunities. You can also ride massive trends with the gold silver ratio, especially when we have historical readings. However, since these only happen once or twice in a lifetime you can use our gold silver trading strategy to navigate the day-to-date price action. The ratio can also be used to determine the overall market sentiment, which is a precious thing that can be used to trade other markets. Usually, a high gold to silver ratio is signaling a slowdown in the global activity, while a low gold to silver ratio is signaling improving risk sentiment.
GLong
by Tradingstrategyguides
EURCHF 1W DESCENDING TRIANGLE SHORT TRADEDescending Triangles are repeatable trading chart patterns. Descending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
1
BTCUSD 1D MACD CROSSOVER SHORT TRADE1 - Wait for the MACD lines to develop a higher high followed by a higher high swing point. 2 - Connect the MACD line swing points that you have identified in Step #1 with a trendline. 3 - Wait for the MACD line to break below the trendline. (Enter at the Market Price as soon as the MACD line breaks below). 4 - Use Protective Stop Loss Order. (Place the SL above the most recent seing high). 5 - Take Profit when the MACD crossover happens in the opposite direction of our entry.
COINBASE:BTCUSDShort
by Tradingstrategyguides
EURUSD 1W WOLFE WAVE STRATEGY - Rising Wedge is a Bearish Bias When trading the best wolfe strategy you will find that after the entry is triggered your position should show you an immediate profit. This is because the reversal pattern that emerges from the wolfe wave chart pattern is very violent. Once we’ve got the first five waves we have the general setup of the wolf wave. After the last wave has broken above the ascending wedge channel it’s the time to get ready for some action. Step #1: Prior to the Bearish Wolfe Wave Formation look to have a clear Bullish Trend. Firstly, before the first wave to develop we need to have a clear trend that needs to be reversed. For high probability trades, we want to see a prior bullrish trend before the bearish wolfe wave develops. This step is quite essential if you want to correctly trade the wolfe pattern. Now that we’ve identified a trend, it's time to apply the wolfe wave rules to the price chart. This brings us to the next step of our reversal strategy. Step #2: Try finding a 5 wave move that can be contained in a channel. The last wave 5 must break above the wedge channel. A valid wolfe wave is composed of 5 waves that follow some simple rules. However, the most important rules are that wave 2 and 4 must be contained within the channel created by Wave 1 and Wave 2. Secondly, wave 5 breaks above the trendline created by wave 1 and wave 3. Step #3: Sell after we break above and then a candle close back inside the Wedge Price Channel. At the moment when the price enters and closes back into the price channel, we want to enter a short position. We like to wait for the close inside in order to eliminate possible fake breakouts. Note*: If we don’t get a close back into the wedge price channel we don’t have a valid trade signal. Another sign to look for is how quickly it goes back into the channel. We prefer to only trade the wolfe patterns that retrace very quickly back into the range. This is a sign that a smart money reversal is at work. Remember, in trading, you only want to trade the high probability trade setups. Step #4: Draw a trendline that connects the wave 1 high and wave 4 low and extend it in the future. Take profit when the EPA line is hit or candle close below it.. The line that connects the wave 1 high and wave 4 low is called the wolfe wave EPA line. The EPA line stands for Estimated Price at Arrival and it’s an effective take profit strategy. The EPA line main purpose is to show at what price the market will extend after it reversed the previous trend. Note*: If the EPA line is too steep, often time it means that the price will never reach it. In this case, you want to take profits early. Step #5: Hide Protective Stop Loss above Wave 5. The protective stop loss can be located above the last wave or wave 5. This strategy gives us a very tight stop loss which is good for our risk management strategy. Obviously that a break above wave 5 means we also break first above the channel and this will invalidate the validity of the wolfe wave chart pattern. Note** the above was an example of a SELL trade using the best wolfe wave strategy. Use the same rules for a BUY trade. Conclusion - Best Wolfe Wave Strategy The wolfe wave strategy is a trading strategy built around waves the same like Elliott Wave trading. We use other trading concepts like channeling and price symmetry to find the best possible trade signals. If the trade works in our favor then we have a really good chance to have a good trade in terms of risk to reward ratio. With trading experience, it will become much easier to spot the wolfe wave patterns.
Short
by Tradingstrategyguides
1
ETHUSD 1D ADX LONG STRATEGYThe ADX indicator simply measures the strength of a trend and whether we’re in a trading or non-trading period. In other words, the ADX is a trend strength indicator. This method of technical analysis is used to identify the emergence of strong downtrends and buy signals. We need to be very careful about how we read and interpret the ADX indicator. It is not a bullish and bearish indicator. ADX’s moving average only measures the strength of the trend. So, if the price is going UP, and the ADX indicator is also going UP, then we have the case for a strong bullish case. The same is true if the price is going DOWN and the ADX indicator is going UP. Then we have the case for a strong bearish case. Add horizontal 25 line to ADX. Adjust RSI & ADX to use a 20-period indicator setting. Step #1: Wait for the ADX indicator to show a reading above 25. Before we even look to see if the market goes up or down, we must first wait for the ADX indicator to show a reading above 25. Based on the ADX indicator trading rules, a reading above 25 is signaling a strong trend and the likelihood of a trend developing. We all know that the trend is our friend, but without real strength behind the trend, the newly trend formed can quickly fade away. In order to gauge the direction of the trend, we also need to look at the actual price action. This brings us to the next step of the best ADX strategy. Step #2: Use the last 50 candlesticks to determine the trend. For buy signals, look for price to develop a bullish trend. No matter of your time frame, we need a practical way to determine the direction of the trend. By using a sample size of 50 candlesticks to determine the trend we ensure that we trade in the moment of now. We like to keep things simple, so if the price is heading higher during the last 50 candlesticks we’re in a bullish trend. Step #3: Buy when the RSI indicator breaks and show a reading above 70. For our entry signal, we’ll be using the RSI indicator that uses the same settings as the ADX indicator settings (20). Normally the RSI reading above 70 shows an overbought market and a reversal zone. However, smart trading means looking beyond what the textbook is saying. In a strong trend as it’s defined by the ADX indicator that’s precisely what we want to see. We want more buyers coming into the market. So, we want to buy when the RSI indicator breaks and shows a reading above 70. Step #4: Protective Stop Loss should be placed at the last ADX low. In order to determine the stop-loss location for the best ADX strategy, first identify the point where the ADX made the last low prior to our entry. Secondly, find the corresponding low on the price chart from the ADX low and there you have it your SL level. Step #5: You determine Take Profit or when the ADX indicator breaks back below 25. The best ADX strategy seeks to only capture those profits resulted from the presence of a strong trend. Once the prospects of a strong trend fade away we look to take profits and wait for another trading opportunity. To accomplish this we take profits as soon as the ADX indicator breaks back below 25. An ADX reading back below 25 suggests the prevailing trend is running out of strength. Note** The above was an example of a BUY trade using the ADX indicator trading rules. Use the same rules but in reverse, for a SELL trade. Conclusion - ADX Indicator The best ADX strategy gives us very useful information because a lot of the time, we as traders don’t want to get into something that’s moving nowhere and not trending in a strong fashion. By applying the ADX indicator trading rules one can take advantage of the strength of the trend and cash in quick profits. The bottom line is that the best profits come from catching strong trends and the best ADX strategy can help you accomplish your trading goals.
COINBASE:ETHUSDLong
by Tradingstrategyguides
2
AUDCAD 1D RANGE TRADESRanges are repeatable trading chart patterns. Ranges are consolidation chart patterns that can breakout either direction. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
by Tradingstrategyguides
ETHUSD 1H BUMP & RUN SHORT STRATEGYBump and Run Trading Strategy – Sell Rules The Bump and Run trading strategy is one of the best reversal trading strategies that you’ll probably ever need to learn. The psychological reason why the Bump and Run reversal is such a powerful pattern is because it takes advantage of the result of excessive speculation. This propels the price too swiftly to the extreme which leads to a reversal. Moving forward, we present the sell-side rules of the Bump and Run trading strategy: Step #1: Wait until you can identify an uptrend (lead-in) and then an acceleration of that uptrend (Bump) We’re breaking down the Bump and Run chart pattern into several steps. The first step is to identify an uptrend and then an acceleration of that uptrend. These two components of a trend constitute the first part of the Bump and Run Reversal. *Note: A valid Bump and Run chart pattern has the first section of the trend drifting upwards very slowly and in the second part of the trend we need to see momentum picking up and the uptrend moving to the extreme. Step #2: Draw the lead-in trendline that connects the lows during the first stage of the trend and draws a second trendline connecting the lows during the uptrend acceleration stage The way you draw the trendline can be a subjective matter because there are several ways to do it and neither of them is better than the other. Ultimately, it all comes down to your experience and understanding of the price action. Step #3: Sell Entry 1 at the break and close below the first Trendline, Sell Entry 2 at the break and close below Lead-in Trendline. In order to maximize our potential profits we like to implement a two entries technique as follows: Sell Entry 1 once the first trendline is broken. For confirmation of a valid breakout, we like to wait for the candle close below the trendline. Sell Entry 2 once the Lead-in trendline is broken. Wait for confirmation of a valid breakout we like to wait for the candle close below the trendline. During this stage, the market is in the process of reversal and the “Run” component of the Bump and Run chart pattern is formed. The Run phase is identified when the price falls and breaks below the Lead-in trendline which also confirms that we’re in the process of reversing the previous trend. The next logical thing we need to establish for the Bump and Run trading strategy is where to take profits. Step #4: Take profit at the Lead-in trendline starting point The ideal profit target for the Bump and Run trading strategy is at the Lead-in trendline starting point. In other words, take profits at the exact same level you use to draw your Lead-in trendline. We encourage you to experiment different take profit strategies because the Bump and Run chart pattern can also lead to a severe reversal that can be the starting point of a big bearish trend. Step #5: Place initial SL above the swing high created by the uptrend acceleration. Second SL placed above the Lead-in trendline breakout candle Since we’re splitting our trade into two trades, we’re going to have two protective stop losses. The initial stop loss is placed just above the swing high created by the uptrend acceleration phase. The second protective stop loss is placed above the candle that breaks the Lead-in trendline. We’re adopting a very conservative approach here because if we truly have a reversal we consider that the market should not look back. In this regard, we keep our SL very tight. We also recommend that once your second entry gets triggered to move your initial stop loss in the exact location as the SL2. This will guarantee you that even if you get stopped out on your second entry you’ll still be left with some profits. *Note: The above was an example of a SELL trade… Use the same rules – but in reverse – for a BUY trade, but this time we’re going to use the inverse Bump and Run reversal.
COINBASE:ETHUSDShort
by Tradingstrategyguides
EURUSD 15M BEAR FLAG BREAKOUT SHORT CONTINUATION TRADE HOW TO USE THE STE PULSE COLORED BARS TO TRADE A BEARISH FLAG SHORT CONTINUATION TRADE. Price Consolidation caused STE Bars to change to a Dark Red color and to rise up towards zero line. STE Bars did not cross above zero line but bounced short again and changed to a light red color and increased in length. Short Stop Order placed @ 1.0990. Stop Loss placed above top of consolidation range. You determine Take Profit
Education
by Tradingstrategyguides
ETHEREUM CLASSIC 4H ASCENDING TRIANGLE LONG TRADEAscending Triangles are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
COINBASE:ETCUSDLong
by Tradingstrategyguides
BTCUSD 1H WILLIAMS %R MOMENTUM STRATEGYStep #1: Wait for the best Forex Momentum Indicator to get oversold (below -80). Then rallies above the -50 level before Buying . Step #2: We’re going to use Williams %R, the best forex momentum indicator in a smart way. In an uptrend, we buy after the best forex momentum indicator has reached oversold conditions (below -80). And then rallied back above the -50 level. Note* If the %R momentum indicator continually stays in oversold territory (below -80 level), it signals a strong momentum and conversely a strong trend. Inversely the same is true in a uptrend. Step #3: Place Your Protective Stop Loss below the Recent Higher Low. We want to hide our protective stop loss. It is 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 #4: Take Profit once we break below the Previous Higher Low A trend in motion can stay in that state longer than anyone can anticipate. And since we want to maximize our potential profits we let the market tips it hands before liquidating our trades. In this regard, we look for a break in the trend structure. Respectively a break below the most recent higher low. Alternatively, you can take profit once the best forex momentum indicator breaks below the -50 level. Note** The above was an example of a BUY trade using the Best Momentum Trading Strategy. Use the same rules for a SELL trade. Summary The best momentum trading strategy (%R) leverages the tendency of a market’s price to continue moving in a single direction. This is where the momentum might be upwards or downwards. In essence, market timing is crucial for a momentum indicator strategy. And in this regard, we incorporated the best Forex momentum indicator (Williams %R) in our momentum strategy. Here are some of the trading conditions you want to avoid in the forex market. Timing the market can be a daunting task. But our team at Trading Strategy Guides believes that using a pure price action can get you a long way. Check out our Price Action Pin Bar Trading Strategy.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
4
USDJPY 1D BEAR FLAG SHORT TRADEBear Flags are in the Range chart pattern family group. Bear Flags are repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
DISH NETWORK 1D ASCENDING BULLISH TRIANGLE BREAKOUTAscending Triangle are repeatable trading chart patterns. Ascending chart patterns will have a directional bias depending on the previous incoming trend. Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
DLong
by Tradingstrategyguides
3