Get started

Trend Analysis

The Two Archetypes of TradersIn the trading world, markets move in cycles, and bearish conditions are no exception. Here's an educational breakdown of how traders can navigate these challenging times: 1. The Long-Term Holders (Investors) Mindset: Patience is their superpower. Goal: Accumulate assets during bearish trends by buying at key support levels and holding for future gains. Approach: Use the WiseOwl Indicator to identify areas of strong support and potential accumulation zones for strategic entries. 2. The Intraday Traders (Short-Term) Mindset: Adaptability and precision are crucial. Goal: Profit from short-term price movements, capitalizing on market volatility. Approach: Utilize the WiseOwl Indicator to pinpoint bearish momentum for short entries and clear exit levels, ensuring optimal risk management. Educational Example: WiseOwl Strategy in Action Let’s analyze Solana (SOL) on the 15-minute timeframe during a bearish market: Trend Identification: The WiseOwl Indicator highlights a confirmed downtrend with clear bearish signals. Entry Points: Short trade signals are generated at moments of significant bearish momentum. Risk Management: Stop loss and take profit levels, calculated using ATR-based logic, ensure disciplined trading. Takeaways for Traders 📉 Bearish Markets: Holders focus on identifying value areas for accumulation. Intraday traders capitalize on market volatility with precise entries and exits. Happy trading! 🚀 #WiseOwlIndicator #TradingEducation #BearMarket #SOLAnalysis #CryptoTrading
Education
by TraderOuss_LumaNex
The Ultimate Day Trading Framework: Rules for Consistent SuccessThese are general trading rules that serve as a foundation for your strategy. You must work on them further to develop a precise plan tailored to your preferences, the markets you trade, your time zone, and other related variables. The goal is to create a clear, actionable framework that you can follow consistently every single trading day. 🔍📈📊 General Trading Rules Categorize Observations into Binary Decisions Simplify decisions into two options (e.g., Risk On vs. Risk Off). Decision determines the trade approach. ⚖️ Follow a Rule-Based System Rules are essential for processing setups quickly and accurately. 🛠️ Focus on keeping the process simple and systematic. Market Conditions Trend vs. Trading Range Trend: Look to swing more of your position. Uptrend: Prioritize buying. 📈 Downtrend: Prioritize selling. 📉 Trading Range: Buy low and sell high (scalping focus). 💱 Risk Management Evaluate Risk On vs. Risk Off for each setup. 🚦 Probability Assessment Categorize setups as High Probability vs. Low Probability. ✅❌ Execution Stay Agile Constantly assess market conditions and adapt strategies accordingly. 🔄 Focus on Key Setups On average, expect about 40 setups per day. Be selective and only act on setups that meet your criteria. 🎯 By personalizing these rules and following them diligently, you can bring clarity and consistency to your trading process.
CME_MINI:NQZ2024Education
by AlphaBull-Trading
Using Trendlines on ATR for Trading Strategy:Average True Range: Volatility Resistance: The ATR oscillating at a resistance line suggests that the market volatility has reached a point where it has been repeatedly unable to break through to higher levels. This can mean that despite attempts, the volatility hasn't sustained at higher levels, potentially indicating a stabilization or a ceiling on how volatile the market might get in the short term. Market Sentiment: This oscillation can also reflect a market where there's a tug-of-war between buyers and sellers, leading to a stabilization of price movement range. When volatility hits a resistance level, it might indicate that the market is preparing for a significant move or a breakout, or conversely, that it might revert back to lower volatility after some consolidation. Breakout Strategy: Signal for Breakout: If the ATR breaks above the resistance line where it has been oscillating, it could signal an upcoming increase in volatility, potentially leading to a significant price movement. Traders might consider this a signal to prepare for a breakout trade, either buying or selling depending on the price trend. Trade Entry: Following a breakout, traders could use this ATR trendline break as a cue to enter a trade in the direction of the breakout, expecting that increased volatility will lead to a more substantial price move. Stop Loss and Profit Taking: Stop Loss: The resistance line where ATR oscillates can be used to set dynamic stop losses. If the ATR moves above this line, indicating higher volatility, a trader might adjust their stop loss to be a multiple of the ATR away from the current price to account for the increased risk. Profit Targets: Similarly, profit targets can be set based on ATR levels. For instance, if the ATR is oscillating near resistance, traders might aim for a profit target that's one or two ATRs away from the entry point, anticipating where volatility might push the price. Trend Confirmation: Confirming Trends: ATR's behavior at resistance can confirm trends. If the price is trending upward but the ATR fails to move above its resistance, it might indicate that the trend lacks strong momentum or that a reversal could be on the horizon. Risk Management: Adjusting Position Size: High ATR levels near resistance could suggest increasing market noise, prompting traders to reduce position sizes or adjust their risk management strategies to account for potential whipsaws or false breakouts. Counter-Trend Strategy: Reversal Signals: If the ATR repeatedly fails to break through resistance, it might signal that the market is overstretched, potentially leading to a decrease in volatility or even a trend reversal. Traders could look for bearish signals if this happens in an uptrend or bullish if in a downtrend. Incorporating these strategies requires careful observation and should ideally be combined with other forms of technical analysis or indicators for confirmation. Remember, while ATR provides insights into volatility, it does not indicate the direction of price movement, so it should be part of a broader trading strategy.
Education
by stocktechbot
Rate cuts and their impact on the marketsRate cuts and their impact on the markets The Fed's decisions to cut interest rates, while seeking to stimulate the economy, have had a mixed effect on financial markets. On the one hand, these measures tend to favor equity assets by reducing funding costs and encouraging investment. On the other hand, in an environment of global uncertainty and expectations of recession, rate cuts have been interpreted by some investors as a sign of economic weakness, which has contributed to the fall in stock market indices. In this context, investors have migrated towards assets considered safer, such as Treasury bonds, which has generated significant movements in sovereign debt yields. This behavior directly affects traders' strategies during the Quadruple Witching Hour, when position adjustment is usually more intense. Quadruple Witching Hour amid market declines With markets facing recent declines, the Quadruple Witching Hour could amplify volatility due to several factors: 1. Massive position adjustments: Investors looking to protect their portfolios or close open positions could generate sharp movements in stock and index prices. 2. Impact on liquidity: In an environment of uncertainty, liquidity could be reduced, making price movements even more pronounced. 3. Impact on specific sectors: Companies that are more sensitive to interest rates, such as technology and real estate, could experience greater pressure due to changing investor expectations. Outlook and strategies In this environment, investors should be particularly attentive to: 1. Evolving expectations about monetary policy: Any changes in Fed language or economic data could influence market participants' decisions during the Quadruple Witching Hour. 2. Risk management: Using hedging strategies, such as options or inverse ETFs, can be key to mitigating the impact of volatility. 3. Opportunities in volatility: For more experienced traders, sharp price movements may offer opportunities to generate short-term profits. In conclusion, the Quadruple Witching Hour in the current environment of Fed rate cuts and market declines represents both a challenge and an opportunity. Careful planning and a clear understanding of the factors at play will be essential to navigate this period successfully. Ion Jauregui – ActivTrades Analyst ******************************************************************************************* The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication. All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
CME_MINI:ES1!Education
by ActivTrades
USD/CAD -Volume Spread AnalysisHere is a perfect example of Pushing Up through Supply. As shown, when up-trending markets experience the phenomenon created by Market Makers in which supply us introduced to the market. (Notice the Pivot Highs at 1.41942 and 1.41968 which are 4 pips apart) These levels of supply are known by the market makers and are used to lock in bullish traders. As the market moves against the locked in traders we notice Ultra High Volume (UHV) shows up. As we analyze the volume it suggests professional supply has entered the market and is confirmed by the following Wide Spread and Excessively UHV. This confirms the intention of the professionals to lock in bullish traders and create an over head supply zone. The following price movement has UHV as well but less than the previous bar and it also closes bullish but inside the larger UHV bar. Peculiar for a market that is doomed to fall to the abyss don't you think? Looking back to the previous 40 price bars we notice price held support above the level of the previous pivot low at 1.40926. The supply diminishes from this point as price creates a Lower High (LH) then a Higher Low (HL). We also notice the spread bodies of the bars leading to the pivot low at 1.41304 are smaller than any other downward push since the consolidation period on the 10th of December. This implies supply has diminished until we come back in contact with the supply created by the Market Makers. The UHV suggests supply is present. However, the next bar shows demand is also present and supply has suddenly diminished at the resistance as well. Prices then proceed to "Push up Through Supply" volume diminishes and prices rise through the supply which is termed and "ease of movement". This is an aggressive BUY SIGNAL which implies prices will not come back to retest the previous area of resistance turned support known as the backup to the edge of the creek. You have to be aggressive at these moments because prices will not return to the retest the structure as the handling maneuver is completed a as it leaves the re-accumulation area.
Education
by JHair20
Super Simple Buying and Selling Stocks within TradingView.With the market pulling back nearly 14% over the past few days, I decided to take a punt on a potential recovery. I've opened a position in TQQQ , a 3x leveraged ETF tracking the Nasdaq 100 (top 100 tech stocks). In this post, I show how easy it is to place an order using a connected TradingView broker—in my case, TradeStation—and set up a bracket order with a take-profit and stop-loss. If the trade moves against me, the stop-loss automatically manages my risk by closing the position. If it moves in my favor, the take-profit ensures I lock in gains and exit automatically. Of course, these levels can be really easily adjusted manually as the trade progresses, providing flexibility as the stock moves. You could choose to set your levels based on your favorite indicators signals or some other means. This isn’t trading advice—just an example of how you can leverage TradingView’s functionality. It’s real money on the line—my money—so wish me luck! That said, the market could still head lower with ongoing Fed FUD, but I’m holding out hope for a little help from Santa. 🎅
NASDAQ:TQQQEducation
by zAngus
2
Beyond Basic Candlestick Pattern AnalysisLearning to Recognize Who Is Controlling the Stock Price There is a plethora of training on Candlestick Pattern Analysis and interpretation, and yet this remains one of the most problematic areas for Technical Traders who want to trade at the expert level. Once the basics of Japanese Candlestick Patterns are understood, it is time to move up to the next tier of analysis. That is being able to recognize not only where a pattern is, but also who forms that pattern, why they are capable of creating that pattern, what automated orders generate that pattern, and which Market Participant Groups react or chase that pattern. Nowadays it has become critical to include Volume with Candlestick Analysis, because this provides the basis for recognizing which Market Participant Group created that candle pattern. Candlestick Pattern Analysis at the expert level involves more than just one to three candles. Instead it includes a larger group of candles in the near term. This is what I call "Relational Analysis." This is especially useful for Swing Traders, Momentum Traders, Velocity Traders, Swing Options Traders, and Day Traders using Swing Style Intraday action. The NYSE:RAMP chart is an excellent example of a Candlestick Pattern for Swing Style Trading. See where High Frequency Traders (HFTs) took control of price, and gapped the stock down for one day on extreme volume. Selling did not continue the following two days, and Volume was above the Moving Average, but much lower than the High Frequency Traders' spiking Volume pattern. This was the first accumulation level for this stock. Dark Pools started buying the stock even though High Frequency Traders were selling, since they typically miss this initial buy mode of the giant Institutions. High Frequency Traders typically create the final gap down to the low which, if it reverses quickly, indicates a Buy Zone area for the Dark Pools. These patterns are what I call "Shifts of Sentiment." They happen in bottom formations where buying is generally dominated by the Largest Institutions' quiet accumulation. The next phase will be when Professional Traders and then High Frequency Traders discover the Dark Pool accumulation. The bottom is not complete, but it shifts sideways if more Dark Pools decide to buy.
NYSE:RAMPEducation
by MarthaStokesCMT-TechniTrader
1
Breakout-reversal level entryAs you can see from the analysis we had a range that was broken below which created a double bottom( neckline as our Resistance), then price broke above and respected our resistance which caused us to have a New Support, which means we have a new level we can trade at. Price broke out and reversed towards the New Support, which is where I entered my trade and made some profits. So all in all, it's important to use your levels to look for entries, don't use levels that are not respected by the market also wait for the market to reached your setup and don't chase it. If you would like more detailed tutorials like these comment below so I can post more
Education
by StarleXtheTrader
1-Minute Scalping Trading Strategies With Examples1-Minute Scalping Trading Strategies With Examples Scalping is a popular trading style capitalising on rapid, small price movements within minutes. 1-minute scalping strategies are often used by traders but require precise execution and solid understanding of technical indicators. This article explores four 1-min scalping strategies, detailing the indicators used alongside specific entries and exits. Understanding 1-Minute Scalping 1-minute scalping is a fast-paced trading style focusing on taking advantage of small price movements within a minute timeframe. Traders using this approach rely on 1-minute charts to make quick, multiple trades throughout the trading session. The primary goal is to accumulate potential small gains that might add up to larger returns over time. A scalp trading strategy requires a solid understanding of technical analysis and market conditions. Scalpers typically use indicators, price action patterns, and trend analysis to identify short-term market movements and potential entry and exit points. The rapid nature of 1-minute scalping demands precision and discipline, as even a slight delay can impact the trade outcome. One of the key advantages of 1-minute scalping is the ability to generate frequent trading opportunities, which can be particularly appealing during volatile market conditions. However, it also comes with higher risks due to the speed and frequency of trades, meaning risk management plays a significant role. Scalpers must also be aware of transaction costs, as frequent trading can lead to significant fees, which can erode potential returns. Choosing a broker with low commissions, tight spreads, and fast execution speeds is essential to maximise a scalping forex strategy’s potential. FXOpen provides an ideal environment for scalping trading strategies, with commissions from $1.50 per lot, spreads from 0.0 pips, and ultra-fast execution. Open an account! Four 1-Minute Scalping Strategies Now, let’s take a closer look at four 1-minute trading strategies. To apply these strategies, see how they work in practice, and access each of these 1-minute scalping indicators, consider following along in FXOpen’s free TickTrader trading platform. Strategy 1: VWAP + MACD Indicators Used - VWAP (Volume Weighted Average Price): VWAP calculates the average price a security has traded at throughout the day, based on both volume and price. It helps traders understand the trend and identify potential support and resistance levels. - MACD (Moving Average Convergence Divergence): MACD is an indicator that visualises the relationship between two moving averages. MACD settings for a 1-minute chart are standard: the MACD line is derived from the difference between the 12-period and 26-period exponential moving averages (EMA), while the signal line is a 9-period EMA of the MACD line. VWAP and MACD work well together by providing both trend and momentum analysis. VWAP helps identify the overall trend and significant price levels, while MACD offers insights into momentum changes. This combination can help traders determine entries by confirming trends and potential reversals. Entry - Traders typically look for the price to close through the VWAP, with the MACD turning from positive to negative or vice versa. This coincides with the signal line crossing over the MACD line. - Alternatively, another common entry point is when the price uses the VWAP as a level of support or resistance, confirmed by the MACD turning from positive to negative or vice versa. These triggers will likely occur within a few candles of each other, typically within 4 or 5 candles. Stop Loss - Stop losses are often set just beyond a recent high or low swing point, which helps potentially protect against losses if the market moves unexpectedly. Take Profit - Traders commonly take profits when the signal line crosses the MACD line in the opposite direction, and the histogram switches from positive to negative or vice versa. This approach allows traders to take advantage of momentum shifts and potentially lock in gains as the trend changes. - However, some may prefer to exit at a significant support or resistance level in order to maximise potential gains. Strategy 2: Keltner Channels + RSI Indicators Used - Keltner Channels: A volatility-based envelope set above and below an exponential moving average. The channels are typically set to two average true range (ATR) values away from the EMA. They help identify overbought and oversold conditions and potential breakouts. - RSI (Relative Strength Index): A momentum oscillator that gauges the rate and extent of price changes. It ranges between 0 and 100, where readings above 70 signal overbought conditions, and readings below 30 indicate oversold conditions. RSI can also indicate bullishness when it crosses above 50 and vice versa. The Keltner Channels and RSI strategy leverages volatility and momentum to identify effective trading opportunities. By combining the channels, which offer insights into breakouts, with the RSI, which gauges momentum, traders can uncover trading opportunities on the 1-minute chart. Entry - Traders often look for two or more closes outside of the Keltner Channel and ideally strong and/or consecutive green (bullish) or red (bearish) candles. - This is confirmed by the RSI recently breaking above 50 for bullish signals or below 50 for bearish signals. The combination of strong price action and momentum change helps traders identify potential trend continuations. Stop Loss - Stop losses are commonly set beyond the opposite side of the Keltner Channel to potentially protect against adverse price movements. - For a higher risk-reward ratio, traders might place stop losses beyond a nearby swing candle. Take Profit - Traders typically take profits when the price crosses back beyond the Keltner Channel's midpoint or reaches the opposite side of the channel, indicating a potential exhaustion of the current move. - Alternatively, profits may be taken when RSI moves beyond 70 (overbought) or below 30 (oversold), signalling potential reversals in price direction. Strategy 3: ALMA + Stochastic Indicators Used - ALMA (Arnaud Legoux Moving Average): ALMA is a moving average that aims to smooth price data while reducing lag. The settings used are 21 for the window size, 0.85 for the offset, and 6 for the sigma. This combination helps in identifying the trend with greater precision. - Stochastic Oscillator: The Stochastic measures the location of the close relative to the high-low range over a set period. Settings of 21, 1, 3 are used to capture momentum and potential reversal points. A figure above 80 signals overbought conditions, while below 20 indicates the opposite. Combining ALMA with the Stochastic Oscillator allows traders to identify potential reversals in trends. ALMA provides a smoothed view of the price trend, while the Stochastic Oscillator offers momentum-based signals, helping to confirm the strength of a move. Entry - Traders look for the price to close through the ALMA, ideally with a strong close, which suggests a potential trend change. - This is confirmed by the Stochastic Oscillator crossing below 80 for a bearish signal or above 20 for a bullish signal, indicating momentum alignment with the trend. Note that price may fluctuate above and below the ALMA in ranging conditions and produce false signals. Stop Loss - Stop losses are typically set beyond the nearest swing point, which helps to potentially protect against adverse price movements. Take Profit - Traders typically take profits when the Stochastic reaches the opposite territory (e.g., from above 80 to below 20 for a bearish move), indicating a potential exhaustion of the current trend. - Alternatively, profits may be taken at identified areas of support or resistance, where price action historically reacts, providing a logical exit point. Strategy 4: RSI + Bollinger Bands Indicators Used - RSI (Relative Strength Index): For this strategy, RSI setting for a 1-minute chart is a length of 4, with overbought and oversold boundaries at 80 and 20, respectively. These RSI settings for the 1-minute chart help in identifying short-term overbought and oversold conditions. - Bollinger Bands: Bollinger Bands settings for a 1-minute chart are a 20-period simple moving average (middle band) and two outer bands set at a standard deviation level of 2 from the middle band. They help identify periods of high and low volatility as well as potential reversal points. The combination of RSI and Bollinger Bands allows traders to identify potential short-term reversals in the market. The Bollinger Bands provide a dynamic range for price action, while the RSI helps confirm overbought or oversold conditions, improving the accuracy of entry and exit points. Entry - Traders often enter when the RSI crosses below 80 from above or above 20 from below, signalling an exit from potential overbought or oversold conditions. - This entry is confirmed when the price is also touching or breaching the Bollinger Band, indicating the likelihood of a short-term reversal. Stop Loss - Stop losses are typically set beyond a nearby swing point or just outside the Bollinger Band, providing potential protection against significant adverse price movements and giving the trade room to develop. Take Profit - Traders commonly take profits when the price touches the opposing Bollinger Band, suggesting a potential end to the current price move. - Alternatively, some may take profits when the RSI crosses into the opposing overbought or oversold territory, indicating a shift in momentum. The Bottom Line Mastering a 1-minute scalping strategy can potentially enhance your trading performance. To take advantage of these techniques, consider opening an FXOpen account. As a regulated broker, FXOpen offers access to over 600 markets for scalping, supported by commissions as low as $1.50 and spreads from 0.0 pips. With the right tools and strategies, you can navigate today’s fast-paced trading environment effectively. FAQ What Is the 1-Minute Timeframe Trading Strategy? The 1-minute timeframe trading strategy involves making multiple trades within a single minute, aiming to capture small price movements. Traders use a 1-min scalping strategy to identify quick trading opportunities and rely heavily on technical indicators for entry and exit points. Which Indicator Is Best for 1-Minute Scalping? There is no single best 1-minute scalping strategy indicator; it comes down to preference and experience. However, popular choices include the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands, and the Volume Weighted Average Price (VWAP). Combining several indicators can potentially provide more reliable signals. What Is the Best Timeframe for Scalping Crypto*? The best timeframe for scalping crypto* depends on the trader's preference and strategy. While a 1-minute crypto* scalping strategy offers rapid trades and numerous opportunities, some traders prefer slightly longer frames like the 5-minute or 15-minute charts to balance speed and cryptocurrency* market noise. What Is the Stochastic Setting for 1-Minute Scalping? For 1-minute scalping, the Stochastic Oscillator is typically set to the standard settings of 14, 1, 3. These settings help capture short-term momentum changes, providing timely signals for entry and exit points. Adjustments can be made based on the trader's specific strategy and market conditions. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. 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
11
Options Indicator Explained - so you can SEE what you tradeEver since we created this indicator back around 2020 on the TradingView platform it is so far the best platform for our analysis, research, coding, and development of different trading tools. This was 4 years ago, but we have been with TradingView almost for a decade ! The whole concept of this indicator came when a long time ago we read the big big book of options, and could not understand how come the stock price moved up but our calls are losing money ! Yes, we have been there too. And then came this indicator to life. We don't make a trade without it ever since. If you saw the video, you clearly know why. Let's delve into some key concepts that can elevate your trading game: ### 1. Visualizing Profit and Loss One of the most powerful tools in an options trader's arsenal is the ability to plot profit and loss lines on a chart. This visualization helps you understand the time decay of the options you buy or sell. By seeing how your potential profits or losses change over time, you can make more informed decisions about when to enter or exit trades. ### 2. Moving Beyond the Greeks The Greeks—Delta, Gamma, Theta, and Vega—are often emphasized in options trading, but their standalone value can be limited. What truly matters is how these metrics impact your profit and loss curvature. Think of it like driving a car: while an acceleration meter provides some information, what you really need is the speedometer and a clear view of the road. Focusing on the profit and loss curves allows you to grasp the real impact of these factors on your trades. ### 3. Identifying Pivot Points By observing profit and loss lines, you gain insights into optimal entry and exit points. Placing trades at pivot points can enhance your reward-to-risk ratios. Certain options offer generous room for stop-loss placement and quick profits if you choose pivot points where price rejections are likely. Seeing these lines helps confirm that your trading idea has a high probability of success. ### 4. Conducting Volatility Simulations Professional volatility testing with your indicator is crucial. It allows you to anticipate how changes in volatility will affect your options' profit and loss. Each case is unique and dependent on the underlying stock, so it's vital to have contingency plans and avoid trading blindly. You must always take into account that the volatility can drop or rise against you, and you need to see that even if it happens, you will still be okay, and not be a dreamer. Reality is everything, trade realistically. ### 5. Timing Your Trades Boost your performance by understanding how much profit you can lose (when buying options) or gain (when selling options) over the duration of your trade. This knowledge helps you make better timing decisions and manage your trades more effectively while you are inside the trade. In some trades you can clearly see that you just don't have the time to survive a correction and then wait for the next pulse wave to come and save you, you can see clearly that it is better to take profit today, since you just do not have enough time for a correction and a bounce back to the current profitable price. In options, what it is profitable today is NOT profitable tomorrow. I show you this in the video. ### 6. Simplifying with Profit Lines You don't need to rely heavily on the Greeks anymore. Profit lines already account for these metrics, freeing your mind to focus on price action. This approach eliminates the confusion often associated with the non-linear behavior of options, rooted in complex models like Black-Scholes. ### 7. The Black-Scholes Model and Implied Volatility Understanding the Black-Scholes model and implied volatility is fundamental. These concepts help you grasp how options are priced and how market conditions can impact their value. Using the indicator, you don't need even to know who or what is the Black-Scholes Model, since it does all the work and heavy lifting for you, by plotting you exactly what you truly need... Where you make a profit, where you will make a loss, and how much (profit lines). ### 8. In the Money vs. Out of the Money Knowing the difference between "in the money" and "out of the money" options is crucial. In-the-money options have intrinsic value, while out-of-the-money options are more speculative and rely on price movements to become profitable. ### 9. Short-Term vs. Long-Term Options Short-term call options offer quick potential gains but come with higher risks due to time decay. Long-term call options, on the other hand, provide more time for your trade to work out, reducing the impact of time decay but often requiring a larger capital investment. I show a clear example in the video. ### 10. Maintaining Reward-to-Risk Ratios You should make sure you always maintain the reward-to-risk ratios in your favor BEFORE you enter the trade, this is what keeps you in the game and makes you thrive and not just survive. Do you think they let a pilot to land an airplane, just with his "gut feeling" or do they give them an indicator to SEE the runway? If you don't see your profit and loss lines, you don't see the runway when you land your plane. We've all seen those wallstreetbets BLIND crash landings in options and know how they end before they started. This can and should be avoided, always know your risk, and your potential reward. ### 11. Proof of Accuracy Finally, reliable indicators provide proof of accuracy, showing you the same profit or loss you'd experience given stock movements and implied volatility changes. This consistency gives you confidence in your trades, eliminating confusion and preventing unexpected losses. In the end of the video, there is proof of the accuracy, that the indicator in did shows you the same profit or loss you will have in the position, given the stock movement and implied volatility changes, so you can rest assured that your landing indicator will not surprise you no matter the weather, you will have full control on your options trade. No more the feeling of confusion and then your fast profit crushes to zero or even a loss and you don't know why. Master these concepts, and you'll have a robust framework for navigating the complexities of options trading with precision and confidence.
NASDAQ:TSLAEducation
by ZoharCho
How to Identify Market Downtrends Without Fundamentals🔍 A Fundamental Perspective On December 18, 2024, the Federal Reserve cut interest rates by 25 basis points, bringing them to a range of 4.25%–4.5%. However, their guidance suggested a slower pace of rate cuts in 2025, with projections of only two reductions instead of four as previously expected. This cautious stance, driven by lingering inflation concerns and a resilient labor market, triggered a sharp market sell-off. The Dow Jones Industrial Average (DJIA) plummeted over 1,100 points, recording its steepest single-day drop since 1974. 🔍 Market Breadth: A Technical Perspective If you’re not tracking fundamental events, Market Breadth indicators can offer valuable insights into market trends and the health of the index. 1️⃣ US30 Market Breadth EMA 20 The histogram bars in yellow reflect the number range of stocks in the DJIA with strong uptrends. Recently, the height of these bars has been steadily declining, signaling that fewer stocks are maintaining bullish trends. 2️⃣ Market Breadth MACD Conversely, the red line of the MACD indicator, which represents stocks in a strong downtrend, has been rising. This divergence indicates that bearish momentum is building across the market. 3️⃣ Market Breadth EMA Alignment The red line crossing above the green line in this indicator confirms a strong downtrend, providing additional evidence of bearish dominance. 📈 Price Action Analysis The price has broken below the ascending channel, which further supports the bearish case. Combining this with signals from the Market Breadth indicators strengthens the probability of a sustained downtrend in the DJIA. ✅ Key Takeaway By analyzing Market Breadth and combining technical indicators, you can gauge the market's strength even if you're not following the fundamentals. As DJIA breaks below critical technical levels, traders should exercise caution and watch for further confirmation of bearish trends.
TVC:DJIEducation
by Investic_analytics
Save Millions by Monitoring Your Portfolio with the VIXGreetings Everyone, Let’s face it: trading is hard. You’ve done your research—checked and triple-checked everything. The fundamentals of the company? Solid. The option chain? Looks great. The volume? Perfect. You’ve been patient, waiting for that perfect breakout, confirming the validity of the support level on the retest. Confidently, you hit “buy,” and for a moment, you breathe a sigh of relief. This trade will work out… right? But just a few days later, horror sets in. One single wick—just one—obliterates your positions. Thousands of dollars gone. Your carefully constructed trades set ablaze by volatility you didn’t see coming. Enter the Volatility Index (VIX) The VIX, often called the “Fear Index,” is a real-time pulse of the broader market, derived from the S&P 500 options market. Unlike your standard indicators, the VIX offers insights into market volatility and trader sentiment. It tends to move inversely to the market—when fear is high, the VIX spikes, and when confidence reigns, the VIX calms down, often reverting to its historical average (a concept known as mean reversion). What Makes the VIX So Powerful? 1. A Market Barometer The VIX is like a weather forecast for traders. Here’s what the levels mean: • VIX Below 20: Markets are stable, with low volatility expected. Ideal conditions for trend-following strategies. • VIX Above 30: High volatility is brewing. Risk-on positions could be in jeopardy, and hedging becomes critical. 2. Real-Time Sentiment The VIX is calculated minute-by-minute from SPX options, capturing real-time expectations of market volatility over the next 30 days. This means you don’t just rely on hindsight—you get a forward-looking view. How to Use the VIX in Your Trading Strategy 1. Portfolio Risk Management Use the VIX as an early warning system. Spikes in the VIX can signal when to reduce your exposure to equities or risky positions. For example: • High VIX (>30): Consider hedging with options, selling high-beta stocks, or adding defensive assets. • Low VIX (<20): A good environment for taking calculated risks or riding existing trends. 2. Timing Your Trades • Mean Reversion Opportunities: If the VIX spikes to extremes, it often reverts to its average (~20). This can signal an opportunity to go long on stocks after the panic subsides. • Avoid Complacency: When the VIX is at historic lows, the market may be overly complacent. Watch for potential pullbacks or corrections. Why Does This Matter? Because volatility can destroy your portfolio if you’re not prepared. The VIX allows you to anticipate market conditions, adjust your risk exposure, and stay one step ahead of the next move. It’s not just about finding the perfect trade setup—it’s about understanding the environment in which you’re trading. The VIX gives you that critical context, turning the market from a chaotic gamble into a manageable system. My Strategy: As of late, I have been taking a trend trading approach to monitoring the VIX (fear index) Is the price ranging or Is it trending? If it’s trending I ask myself what direction is it trending in —- is it a bullish trend or a bearish trend? From there I can monitor closely daily or every couple days to see how it’s developing. This indicator helps 1. Reduce Trading Anxiety 2. Helps me deleverage sometimes just at the nick of time 3. Keeps me objective. Final Thoughts The next time you are making a decision about a trade, realize that your ticker does not exist in a vacuum. Thanks for checking out my post please leave a like! Thanks, CL
TVC:VIXEducation
by coilemard
Setting Alerts by Watchlist Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- Now, you can receive alerts for various coins (tokens) that meet the conditions with TradingView's alert settings without using an external program. You can add the coin (token) you want to trade to a watchlist and receive alerts that meet the conditions. You can now set alerts by watchlist. If you want to receive an alarm only once per candle when the BW (100) indicator of the 1D chart is broken, set it as shown in the picture. It seems that the time frame chart settings of the alert are supported in various ways. - Thank you for reading to the end. I hope you have a successful trade. --------------------------------------------------
Education
by readCrypto
1
Bullish Market structure Rules *A bullish market structure is defined as a structure that forms a series of Higher highs (HH) and Higher lows (HL) What can we expect on a Bullish market structure? *Price has to break previous HH and respect previous HL *We should be expecting BUYS on discounted prices How can i identify discounted prices? -You can use Gann box -You can use Fib Tool -Anything below 50% is considered "Discounted price" -Order block below 50% level I personally use the FIB tool 71.8%-78.8% levels. that's where i look for trend change. How do you identify valid trend change? * Reply in comment sections The illustration highlights the recent BTC market structure.
COINBASE:BTCUSDEducation
by Ocean98
Two Types of UptrendsSony Group (6758) - Weekly Chart There are two types of uptrends within an overall upward trend. This statement might sound confusing at first. What I mean is that there are "easy-to-understand" uptrends and "difficult" uptrends. The chart shows two blue circles. Which one represents an easy-to-understand chart, and which one represents a difficult chart? Opinions might differ, but I feel the chart on the left is easy to understand, while the one on the right is more difficult. The reason is that on the left, the pullback buying (buying on dips) continues, and there are no clear exit points. On the other hand, the right side ultimately trends upward, but the trend doesn't sustain, making it hard to hold a position. So, how should we deal with such situations? Since this is a weekly chart, one option is to monitor it with a swing trading approach using the daily chart. However, when faced with a difficult chart, you also have the option of walking away from that stock instead of forcing a strategy. Focusing on finding easy-to-read charts and trading only in straightforward situations can often lead to better results. Keep in mind that this is one way to think about trading.
TSE:6758Education
by masao_shindo
How to PROTECT your profits while letting them runIn the trading business you need to let your profits run while also managing your risks that means to cut your losses short. Losses of unrealized profits are real profits that are lost. What if you could save them? Well, there is a way... It is not always available but it is one you want to know since if you can save 3 points of wiggle room and pay 1 point or less, over the long run it adds up to HUGE chunk of profit to your bottom line. The reason I applied this method is because TSLA was doing 3 days in a row a push and gap up, so it seems likely people will want to take profits... but this is TSLA... it can shoot up above 500 and reach who knows where... (she did it before...). So I want to TAKE MY HUGE profit, while giving it the option to continue to the moon, if it will want to do so... You can never take the very top anyway, so if you "give back" 1 point of profit it is considered reasonable, but if in case the price falls down sharply or gapped down I can give back maybe 3 points with this strength of volatility, which is undesireable. So what I did? I sold the PUT option at strike 470 at a price of $15 (my point was $17) so for me it is even less than a point so it is very attractive deal to me... Then... if the price had crushed down it meant for me that I sold my stocks at a price of 470 while paying the hedge cost of the PUT option of 15 so it is equivalent to me that I sold my stock at a price of 455, which is ALMOST the top. Making sure ~90% of the profit stays in my pocket. So I WIN. If the price would continue to shoot up, then I making SUPER HUGE MONEY, while sleeping like a baby, that I already realized my HUGE profit. So I WIN. So either way, I WIN ! Since the price did not crushed the next day and hold, and my stop loss advanced, so there was no longer need to my PUT option hedge since if price will fall I will get out with the stop loss with the same profit. So I sold the PUT hedge for a small loss, so the hedge cost me 0.25 a point overall. SUPER WORTH IT ! FYI, this comes from years of experience, but I give you some of my experience, you could do it too. The moral of the story... when you have HUGE profit, and you feel itchy to take profit, don't ! and try to hedge yourself with options ! this way, if you were wrong and you have GME, AMC on your hand, you don't let them go, and you WIN either way ! Sleeping like a baby.
NASDAQ:TSLAEducation
by ZoharCho
2