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📊HOW TO CREATE A TRADING PLAN📊 📖What is a trading plan? A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours. 📚Why do you need a trading plan? You need a trading plan because it can help you make logical trading decisions and define the parameters of your ideal trade. A good trading plan will help you to avoid making emotional decisions in the heat of the moment. ✳️TRADING PLAN CREATION STEPS: 1️⃣Outline your motivation Figuring out your motivation for trading and the time you’re willing to commit is an important step in creating your trading plan. Ask yourself why you want to become a trader and then write down what you want to achieve from trading. 2️⃣Decide how much time you can commit to trading Work out how much time you can commit to your trading activities. Can you trade while you’re at work, or do you have to manage your trades early in the mornings or late at night? If you want to make a lot of trades a day, you’ll need more time. If you’re going long on assets that will mature over a significant period of time – and plan to use stops, limits and alerts to manage your risk – you may not need many hours a day. It's also important to spend enough time preparing yourself for trading, which includes education, practising your strategies and analysing the markets. 3️⃣Define your goals Any trading goal shouldn’t just be a simple statement, it should be specific, measurable, attainable, relevant and time-bound (SMART). For example, ‘I want to increase the value of my entire portfolio by 15% in the next 12 months’. This goal is SMART because the figures are specific, you can measure your success, it’s attainable, it’s about trading, and there’s a time-frame attached to it.You should also decide what type of trader you are. Your trading style should be based on your personality, your attitude to risk, as well as the amount of time you’re willing to commit to trading. 4️⃣Choose a risk-reward ratio Before you start trading, work out how much risk you're prepared to take on – both for individual trades and your trading strategy as a whole. Deciding your risk limit is very important. Market prices are always changing and even the safest financial instruments carry some degree of risk. Some new traders prefer to take on a lower risk to test the waters, while some take on more risk in the hopes of making larger profits – this is completely up to you. It is possible to lose more times than you win and still be consistently profitable. It's all down to risk vs reward. 5️⃣Decide how much capital you have for trading Look at how much money you can afford to dedicate to trading. You should never risk more than you can afford to lose. Trading involves plenty of risk, and you could end up losing all your trading capital (or more, if you are a professional trader). Do the maths before you start and make sure you can afford the maximum potential loss on every trade. If you don't have enough trading capital to start right now, practise trading on a demo account until you do. 6️⃣Start a trading diary For a trading plan to work it needs to be backed up by a trading diary. You should use your trading diary to document your trades as this can help you find out what’s working and what isn’t.You don’t only have to include the technical details, such as the entry and exit points of the trade, but also the rationale behind your trading decisions and emotions. If you deviate from your plan, write down why you did it and what the outcome was. The more detail in your diary, the better. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
4
🔳TOP 7 INDICATORS TO USE🔳 ◻️MACD(Moving Average Convergence/Divergence) Traders use MACD to identify changes in the direction or strength of the asset’s price trend. MACD can seem complicated at first glance, because it relies on additional statistical concepts such as the exponential moving average (EMA). But fundamentally, MACD helps traders detect when the recent momentum in an asset’s price may signal a change in its underlying trend. This can help traders decide when to enter, add to, or exit a position.MACD is a lagging indicator. After all, all the data used in MACD is based on the historical price action of the asset. Because it is based on historical data, it must necessarily lag the price. However, some traders use MACD histograms to predict when a change in trend will occur. ◻️VWAP(Volume-Weighted Average Price) The volume-weighted average price (VWAP) is a measurement that shows the average price of a security, adjusted for its volume. It is calculated during a specific trading session by taking the total dollar value of trading in the security and dividing it by the volume of trades. The formula for calculating VWAP is cumulative typical price x volume divided by cumulative volume. VWAP gives traders a smoothed-out indication of a security’s price (adjusted for volume) over time. It is used by institutional traders to ensure that their trades do not move the price of the security they are trying to buy or sell too extremely. ◻️EMA(Exponential Moving Average) An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average simple moving average (SMA), which applies an equal weight to all observations in the period. ◻️THE FOUR TYPES OF EMA: ▪️9-EMA is use for short term trading ▪️21-EMA is used for day trading ▪️50-EMA is used for analysis ▪️200-EMA is used for long term view ◻️RSI(Relative Strength Index) The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100.Generally, when the RSI indicator crosses 30 on the RSI chart, it is a bullish sign and when it crosses 70, it is a bearish sign. Put another way, one can interpret that RSI values of 70 or above indicate that a security is becoming overbought or overvalued. It may be primed for a trend reversal or corrective price pullback. An RSI reading of 30 or below indicates an oversold or undervalued condition. Overbought refers to a security that trades at a price level above its true (or intrinsic) value. That means that it's priced above where it should be, according to practitioners of either technical analysis or fundamental analysis. Traders who see indications that a security is overbought may expect a price correction or trend reversal. Therefore, they may sell the security. Thanks for reading bro, you are the best☺️ ✅Gimme a like and the Gods of Trading will favour you this week👍 Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
6
✅UNDERSTAND THE RISING WEDGE PATTERN✅ ☑️WHAT IS THE RISING WEDGE PATTERN? The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish). A rising wedge can be both a continuation and reversal pattern, although the former is more common and more efficient as it follows the direction of an overall trend. The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. ☑️KEY FEATURES • The price action temporarily trades in an uptrend (the higher highs and higher lows) • Two trend lines (support and resistance) that are converging • The decrease in volume as the wedge progresses towards the breakout The third point is seen more as a boost to the validity and effectiveness of the pattern, rather than a mandatory element. And it is applicable either for stocks trading mostly. ☑️SPOTTING THE RISING WEDGE Identifying a rising wedge is not so difficult. As a first step, you should eliminate all types of wedges that are present in the sideways-trading environment. The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. ☑️TRADING THE RISING WEDGE Trading the rising wedge pattern is pretty easy. After we correctly identified the pattern all we need to do is wait patiently for the breakout of the wedge to the downside. After the breakout is confirmed(usually at least a 4H candle needs to close below the broken level) we can place a limit order to short the pair on a pullback giving us a better risk to reward ratio. The correct Stop Loss should be placed above the last higher high established by the wedge before the breakout. What concerns the Take Profit level, it must be based on the technical levels below( If there are any). If not, then we might use Trailing Stop or just choose a minimal acceptable RR of 1:1,5 I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
11
✳️TOP 3 RARE CHART PATTERNS✳️ 📉CUP AND HANDLE PATTERN A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.A cup and handle is considered a bullish signal extending an uptrend, and it is used to spot opportunities to go long. Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern. There can be both bullish and bearish Cups and Handles. 📊DIAMOND PATTERN The diamond pattern is a reversal indicator that signals the end of a bullish or bearish trend. It is most commonly found at the top of uptrends but may also form near the bottom of bearish trends. The bullish diamond pattern occurs after a strong downward move in price. It consists of two resistance levels that constrain previous retracements and two support levels that have constrained the downtrend. Also known as the diamond bottom pattern, the bullish diamond pattern signals a buying opportunity. Often it is the precursor for a bullish breakout. The Bearish Diamond Pattern, is the mirror opposite of the bullish one, even though it works on the same logic and it indicates the end of the uptrend. 📈SCALLOP PATTERN A scallop chart pattern is a technical analysis pattern that signals a short-term continuation of a bullish trend. It is created when prices make an upward-sloping curve that resembles the letter J on a price chart. That's why it's sometimes referred to as a J-shaped or J hook pattern. During the scallop formation, prices move higher, retrace, and trade lower for a short period before reaching a new peak. This indicates a short-term weakness of the ongoing uptrend and indecision in the market as to whether the trend will continue or not. But if prices are able to hold above the retracement zone for a while, it implies a strong momentum behind the uptrend and a potential breakout of the resistance level. The pattern is considered complete when you see prices break out above the key resistance level and rally to a new high. Once the upward breakout occurs, it confirms the continuation of the prevailing uptrend and a positive outlook on the market for the near future. There are both bearish and bullish Scallop Patterns and both can be used successfully. 📚FINAL REMARKS: Though these patterns are somewhat rare, it is essential for an advanced trader to know about them and to know how to use them, because that knowledge might provide you the missing piece of the puzzle in a difficult market making the difference between a good day and bad day. Which is all that matters after all. So I recommend you to spend some time and learn about the obscure patterns and to make it your goal to find them or at least look for them to give your brain enough data to let it do it’s pattern recognition learning magic. Thanks for reading bro, you are the best☺️ ✅Gimme a like and the Gods of Trading will favour you this week👍 Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
6
🕵️‍♂️BASICS: WHAT IS A PIP❓ 👉What is a Pip? The unit of measurement to express the change in value between two currencies is called a “pip.” If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP. A pip is usually the last decimal place of a price quote. Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out to two decimal places). For example, for EUR/USD, it is 0.0001, and for USD/JPY, it is 0.01. 👉What is a Pipette? There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places. They are quoting FRACTIONAL PIPS, also called “points” or “pipettes” which equal a 10th of a pip. 👉How to Calculate Pip Value: 👉The value of pip depends on the following three factors: ✔️The quoted currency ✔️The volume of the trade ✔️And the exchange rate Based on these factors the fluctuation of even a single pip can have a significant impact on the value of the open position. The value of 1 pip is calculated by the following formula: The value of 1 pip = (Pip in decimal places * Trade Volume) 👉Example: 1 pip volume in EUR/USD is equal to 0.0001 Then 1 PIP VALUE equals: 100,000 EUR—> 100,000*0.0001= 10 USD 10,000 EUR—> 10,000*0.0001= 1 USD 1,000 EUR—> 1,000*0.0001= 0.1 USD 100 EUR—> 100*0.0001= 0.01 USD ✅Tell us about issues you had with pips value calculation/understanding in the beginning of your trader’s journey in the comments✅ 😊And See you next time😊 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
☀️MAKING SENSE OF FOREX TRADING SESSIONS🌝 ⭐️The Basics The forex market is open 24 hours a day during the weekdays which allows traders to potentially trade all day and all night.Knowing the forex market’s operating hours is essential for a trader. You need to know when the forex market opens and closes as well as the four main trading sessions. ⭐️Forex Trading Sessions Just because you can trade the market any time of the day or night doesn't necessarily mean that you should. The best time to trade is when the market is active with lots of forex traders opening and closing positions, which creates a large volume of trades. The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. • Sydney is open from 9:00 pm to 6:00 am UTC • Tokyo is open from 12:00 am to 9:00 am UTC • London is open from 7:00 am to 4:00 pm UTC • New York is open from 1:00 pm to 10:00 pm UTC ⭐️Forex Trading Volume You can make money trading when the market moves up, and you can make money when the market moves down. But you will have a very difficult time trying to make money when the market doesn't move at all. In order for the market to move, lots of trades need to occur. And this is why you should focus your energy during specific trading sessions. The forex trading sessions are named after major financial centers and are loosely based on the local “work day” of traders working in those cities.The more traders…trading, the higher the trading volume, and the more active the market. The more active the market, the tighter the spreads you'll get and the less slippage you'll experience. In a nutshell, you'll get better order execution. ⭐️When is the best time to trade forex? During the weekdays, there’s always at least one forex trading session open although there are periods of downtime when the market is really quiet and trading volume is low or “thin”. You usually want to avoid trading when only one trading session is open and instead, wait for trading sessions to overlap. When two major financial centers are open, the number of traders actively buying and selling a given currency greatly increases. The highest trading volume occurs during the overlap of the London and New York trading sessions. More than 50% of trading volume occurs at these two financial centers. ⭐️Currency specific sessions The best time for you to trade forex will depend on which currency pair you’re looking to trade. Most of the trading activity for a specific currency pair will occur when the trading sessions of the individual currencies overlap. For example, AUD/JPY will experience a higher trading volume when both Sydney and Tokyo sessions are open. And EUR/USD will experience a higher trading volume when both London and New York sessions are open. Thanks for reading bro, you are the best☺️ ✅Gimme a like and the Gods of Trading will favour you this week👍 Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
1
🟢STOP AND LIMIT ORDERS EXPLAINED🟢 ✴️Types of orders in trading There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level. ✴️Stops vs limits A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price. On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price. ✴️Stop orders explained You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order. ✴️Stop-loss orders A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price. ✴️Stop-entry orders A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price. If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price. Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum. ✴️Limit orders explained Like stop orders, limit orders can be used to open and close trades. ✴️Limit-entry orders A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above. ✴️Limit-close orders A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position. The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically. 😊Thank you for reading, guys😊 ✅Like and Subscribe for more education✅ Do you like this post? Do you want more articles like that?
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Education
by ProSignalsFx
38
✳️FIBONACCI RETRACEMENT LEVELS BASICS(Must Read)✳️ ☸️WHAT ARE FIB RETRACEMENT LEVELS Fibonacci retracement levels are horizontal lines that indicate the possible support and resistance levels where price could potentially reverse direction. The first thing you should know about the Fibonacci tool is that it works best when the market is trending. The idea is to go long on a retracement at a Fibonacci support level when the market is trending UP. And to go short on a retracement at a Fibonacci resistance level when the market is trending DOWN. Fibonacci retracement levels are considered a predictive technical indicator since they attempt to identify where price may be in the future. ☸️FINDING FIB RETRACEMENT LEVELS In order to find these Fibonacci retracement levels, you have to find the recent significant Swing Highs and Swings Lows. Then, for downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. For uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High. ☸️HOW TO USE Once you’ve done that, you will see the following levels appear: 23.6% , 38.2%, 50.0%, 61.8% and 76.4%. (The 50% one is not technically a Fib level but its still used by everyone)The idea is that the price will make a correction that will reverse at one of these levels. So all we need to do is watch the price action near these levels and look for the reversal patterns, like triple bottom, head and shoulders, narrowing wedge breakouts, etc… Once the we see a confluence of the Fib level and the reversal pattern, we can just wait for the confirmation breakout and enter the trade on the pullback. EASY!👻 ☸️WHY IT WORKS Because of all the people who use the Fibonacci tool, those levels become self-fulfilling support and resistance levels. If enough market participants believe that a retracement will occur near a Fibonacci retracement level and are waiting to open a position when the price reaches that level, then all those pending orders will impact the market price. ☸️IMPORANT REMINDER One thing you should take note of is that price won’t always bounce from these levels. They should be looked at as areas of interest so as I wrote above, one can’t simply trade off these levels, but needs to employ reversal patterns with confirmation to increase the probability rate of one’s calls. 💹Thank you for reading, please Like and Comment to support me☺️ Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
9
♻️UNDERSTANDING THE BULLISH ENGULFING CANDLE PATTERN♻️ ☑️WHAT IS A BULLISH ENGULFING CANDLE? The bullish engulfing candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in trend as more buyers enter the market to drive prices up further. The pattern involves two candles with the second candle completely engulfing the body of the previous red candle. ☑️HOW TO SPOT A BULLISH ENGULFING PATTERN AND WHAT DOES IT MEAN? ▪️Characteristics of a bullish engulfing pattern: • Strong green candle that ‘engulfs’ the prior red candle body (disregard the wicks) • Occurs at the bottom of a downward trend • Stronger signals are provided when the red candle is a doji, or when subsequent candles close above the high of the bullish candle. ▪️What does it tell traders? • Trend reversal to the upside (bullish reversal) • Selling pressure losing momentum at this key level. ▪️Advantages of trading with the bullish engulfing candle: • Easy to identify • Attractive entry levels can be obtained after receiving confirmation of the bullish reversal. ☑️KNOW THE DIFFERENCE BETWEEN A BULLISH AND A BEARISH ENGULFING PATTERN Engulfing patterns can be bullish and bearish. The bearish engulfing pattern is essentially the opposite of the bullish engulfing pattern discussed above. Instead of appearing in a downtrend, it appears at the top of an uptrend and presents traders with a signal to go short. It is characterized by a green candle being engulfed by a larger red candle. ☑️CONCLUSION A Bullish Engulfing Candle becomes an excellent tool for the trader, once he masters how to use it properly! ✅Thank you for reading! Please, like and comment if you liked the article☺️ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
⭕️WHAT IS A FALSE BREAKOUT❓ ⭕️False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. ⭕️A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way ⭕️A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. ⭕️Generally speaking, a false-breakout happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. ⭕️It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them. 🛑Which we will discuss in the next article, If you like this one❗️ Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
8
CHOOSE YOUR STYLE💹 🔘What is Scalping? Scalping is considered the most profitable but, at the same time, the most challenging trading strategy in any type of market. Alternatively, scalping is also known as high-frequency intraday trading because a large number of deals and the high speed of making them allow a scalper to earn on almost any market movement due to small but frequent profits. Traders who use scalping tactics, often called scalpers, profit by buying at low prices and selling at high prices. It's as simple as that. They make money on even the smallest divergence in the current price of an asset, so even the slightest fluctuations in the price of financial assets are seen as opportunities to make a profit. However, the downside of such an "easy" earning process is potentially minimal profit from a single trade. That is why scalpers often spend 24 hours at the monitor: many small transactions are made in parallel with very short holding periods (often in just a few minutes) to make more or less a weighty profit. Scalpers act quickly and constantly watch the intraday trading indicators. They take short positions in one trade and long positions in the next, looking for frequent, albeit tiny, chances. Basically, scalpers make money using the difference in the buy and sell price. These windows of opportunity are more common than massive price changes since even relatively calm markets are subject to regular fluctuations. Most traders using the scalping technique use charts with a time frame of one minute. Scalpers benefit from charts that show even the smallest price "pips." 🔘What is Day Trading? As the name suggests, day trading involves making multiple trades in a single day. Day traders rely heavily on technical analysis and sophisticated charting systems to detect trading patterns and identify strategic enter and exit opportunities. The day trader's objective is to make a living by making small profits on numerous trades and capping losses on unprofitable trades. Day traders typically do not keep any positions or own any securities overnight. Know for its fast pace and adrenaline-inducing approach, not all investors are suited for this approach to financial markets. However, day trading is arguable more than the pursue of profits: it is a lifestyle of pitting your wits against the market and living in a thrilling, high-risk environment. 🔘What is Swing Trading? So, what is swing trading? In the most general terms, it is a style of trading in the financial markets that focuses on identifying the cyclical nature of price movements. This approach assumes that each trend consists of several up and down phases. Swing traders try to take advantage of these short-term impulses and corrections. Traders working with this strategy tend to keep positions open for several days to take advantage of large market trends. Most swing traders follow the direction of the market trend. Their actions are dynamic. They may open long positions during an uptrend and short positions when a downtrend begins. When one bets on market trends, they often open a position and hold it for days or weeks (even months), depending on the opportunity presented by the trend. Like scalpers, swing traders capitalize on market volatility because it creates opportunities for them. In swing trading, there is no need to make decisions in real-time or quickly. That's why this method is popular with part-time traders; they can use their lunch hour to check the markets, for example. But an effective swing trading strategy requires patience, as the timing of holding an asset can fluctuate considerably. Therefore, it is not the best choice for people who are nervous in stressful situations. 🔘What is Investing? Investing involves putting money into a financial asset (stocks, bonds, mutual or exchange-traded fund, etc). that you expect will rise in value over time. Investors generally have a long time horizon and predominantly look to build wealth through gradual appreciation and compound interest rather than short-term gains. The shorter the time horizon, the higher the risk that you could lose money on an investment. That's why the Securities and Exchange Commission (SEC)'s Office of Investor Education and Advocacy recommends putting money in a savings account if you'll need to access it within three years. For all other goals, investing could yield much better returns. Some investors may even plan to hold onto their investments for multiple decades. ☘️Here are some basic details about scalping, day trading, swing trading and investing, and I hope that information will help our new members to decide what’s best for them. Thank you for reading folks! Till next Time!🌹 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
HOW TO USE RSI⁉️ ✳️What is the RSI Indicator What is the RSI Indicator? The relative strength index is a market indicator that signals when the asset is over-bought or over-sold. This is a momentum-following indicator that measures how fast the price is moving and changing. The RSI uses different types of averages, but its primary purpose is to show whether a trend is strong or weak within a series of prices. In general, a strong trend is indicated by values close to 100 while a bearish trend is often indicated by a value near 0. ✳️RSI Indicator Settings The RSI has the standard setting. When you activate the indicator in any platform the defualt setting are 3 values. They are 6, 14 and 24. These are averages. The 30 and 70 value lines are calculated based on the lower and upper values and the middle lines is the oscillar which is a 14 period average. When the 14 period oscillator is above the 24 period is overbought and when the 14 period is below the 6 period is oversold. ✳️Opening Positions on RSI Signals The main signal the RSI oscillator generates allows defining overbought and oversold price ranges. Although it is frequently used as a filter in systems where the main indicator is a trend one, it might be possible to try trading using RSI signals only. When indicator’s line goes above the level 70 or below the level 30, it signals that market is overbought/oversold, and it is necessary to wait for the next signal confirming a trend reversal. ✳️RSI Trendlines Contrary to popular belief, the Relative Strength Index (RSI) is a leading indicator. This quality can be observed by using trendlines on the RSI chart and trading its break. When the RSI is rising, an upward trendline is drawn by connecting two or more lows and projecting the line into the future. Similarly, when the RSI is falling, a downward trendline is drawn by connecting two or more highs and projecting the line into the future. A break of an RSI trendline precedes an actual price reversal or continuation in the market. For instance, if the asset price breaks above a downward trendline, it is a signal that the price is about to edge upwards, either as a continuation of an uptrend or as a reversal of an existing downtrend in the market. ✳️RSI and Chart Patterns The Relative Strength Index is one of the best technical indicators to complement raw price action signals delivered by candlestick patterns or line chart patterns. For instance, when a bullish candlestick, such as a pin bar, or a price chart pattern, such as a double bottom, occurs in a downtrend, a buy position can be opened when the RSI displays a reading of below 30 to imply oversold conditions. ✳️RSI Divergence The Relative Strength Index also delivers divergence signals that could be a viable trading opportunity. A divergence occurs when the asset price and RSI do not move in the same direction. A positive (bullish) divergence occurs when the price is drifting lower, but the RSI is edging higher. This is a signal that the price may be heading towards a bottom and an upward reversal is about to happen. On the other hand, a negative (bearish) divergence occurs when the price is drifting higher, but the RSI is going lower. This is a signal that price may be heading towards a top and a downward reversal is about to happen. ✳️RSI and RVI Both the RSI and the RVI(Relative Vigor Index) are oscillators, but their different qualities can help traders to pick out high-quality RSI trading opportunities in the market. Whereas the RSI focuses on price extremes (high and low), the computation of RVI seeks to relate closing prices to open prices. This means that the RVI has both positive and negative numbers, with the centreline being 0. The RVI gives information on the strength of price movement, with positive values indicating increasing momentum, whereas negative values denote decreasing momentum. The RSI is the best indicator to complement or qualify the signals delivered by the RVI, especially in trending markets. For instance, if the market is in an uptrend and the RVI delivers a bearish divergence signal (prices go higher whereas RVI goes lower). In this case, a retracement or a trend reversal will be confirmed if the RSI reading is above 70, which implies overbought trading conditions. ✳️Here is the list, though now at all exhausting of the ways to use RSI in your trading. I will add that I use it myself, even though you don’t see it on my charts for aesthetic reasons. I hope you liked my article, so please like and comment bros, so that more people could see it!👍 See ya next time♻️
OANDA:BTCUSDEducation
by SignalProvider
7
❗️THE BIGGEST LIE ABOUT RISK REWARD RATIO❗️ What is risk-reward ratio — and the biggest lie you’ve been told: 📚The risk-reward ratio (or risk return ratio) measures how much your potential reward (or return) is, for every dollar you risk. 📚For example: If you have a risk-reward ratio of 1:3, it means you’re risking $1 to potentially make $3. If you have a risk-reward ratio of 1:5, it means you’re risking $1 to potentially make $5. You get my point. ⚠️Now, here’s the biggest lie you’ve been told about the risk reward ratio: “You need a minimum of 1:2 risk reward ratio.” This statement is incorrect! Because the risk-reward ratio is meaningless on its own. 📚Here’s an example: Let’s say you have a risk reward ratio of 1:2 (for every trade you win, you make $2). But, your winning rate is 20%. So out of 10 trades, you have 8 losing trades and 2 winners. Let’s do the math… Total Loss = $1 * 8 = -$8 Total Gain = $2 * 2 = $4 Net loss = -$4 By now I hope you understand the risk reward ratio by itself is a meaningless metric. Instead, you must combine your risk-reward ratio with your winning rate to know whether you’ll make money in the long run (otherwise known as your expectancy). 📍THEREFORE: The key to success is the combination of the RR and Win Rate in such a fashion that yields a positive return. 📙Example: 🔘If your RR is 1:1 then you start making money with 51% win rate and above. 🔘If your RR is 1:1,5 then you start making money with 41% Win rate and above. 🔘If your RR is 1:2 then you start making money with 34% win rate and above. 🔴The higher the RR the lower is the breakeven Win Rate! Hope You get the idea, guys. Thanks for your time, see you in the next article😉
BITSTAMP:BTCUSDEducation
by SignalProvider
4
THE ROAD TO SUCCESS The article is aptly named for it is the road that matters not the destination. And here is why: Our brain, though incredibly complex, runs its basic functions on ancient and primitive brain circuits using the carrot and stick principle to motivate us to do some things and to demotivate us from doing other things. That carrot and stick stimuli come in the form of pleasure and pain of varying strength, and the brain creates a dynamic map of the positive and negative stimuli and then our prefrontal lobes develop the best path to navigate this map. The map to success right? Well, kinda… The thing is that if the map and the assigned values of the stimuli were fixed we would have all soon achieved whatever we desired in the moment and would have been ecstatic for the rest of our lives, but our brain is there to ensure survival and reproduction therefore, the stimuli value map is dynamic with the brain reducing the reward we get each time we do the same thing that we previously craved, with the exception of the few basic things vital for survival like food and reproductive activities. Anyhow, just as with drugs the high is less and less potent form the same dose as the time goes by. So is the “high” form a certain level of success we reached. Happy at first, we will soon notice that the “kick” is no longer there, meaning that the values on the map have been reassigned and the brain is demanding that you set off on another quest to achieve yet even greater success. That way you keep moving, and the final success is always just one step away, but just like the horizon with each step towards it, it makes one step away from you. That is why we, as traders, need to appreciate the road itself too. Get joy from looking at the charts, finding patterns, learning new things and creating strategies. Without that, the life of a trader with its ups and downs, and constant stress will drive you nuts pretty soon… Cheers to all of you, who enjoy the charts as much as I do, and thanks to Tradingview, for giving such a great platform for savouring each and every moment of it!
Education
by ProSignalsFx
7
🟢PRICE ACTION SECRETS 🔴Multi-candle patterns are more reliable The more candles a specific pattern contains, the more reliable it usually is. 3 candle patterns are better than single candle patterns. 30 candle patterns are usually better than 3 candle patterns. Patterns like head and shoulders, double and triple tops are among my favorites, exactly because of this reason. They consistently result in higher probability trades, which is what we’re all after. It doesn’t mean that a good pin bar setup won’t work, it just means there’s a higher probability of having these multi-candle setups resulting in a winning trade. 🟠Know where to place your stop loss Knowing where to place an order is just the beginning. Where do you place your stop loss? Fixed pips stop loss levels are hardly a good approach since the market volatility can change and every trade should be looked at within the context of the recent market history. 🟢Always look for confluence This is absolutely one of the most important secrets you have to know about. Confluence is everything. So you’ve found a sweet price action setup. Great! Now make sure it has confluence, meaning that it coincides with other valid signals that support your trading idea. 🔵Tell a story of what happened Every chart tells a story. It might be a story of clear direction or a story of messy back-and-forth battling between buyers and sellers. In a similar way, we can talk about clean price action vs messy price action. It is up to the trader to find the story and better understand what the market might do. 🟣Context is everything Depending on where a price action setup occurs, you should interpret it differently. The same pin bar could be bullish or bearish, depending on if they show up at the bottom of a downtrend or top of an uptrend, respectively. Not all patterns are also worth taking if they are not preceded by the right price action and happen at the levels that are in one way or the other of significance. 🟤Identify key support & resistance zones Support and resistance (or S&R for short) are terms used to denote areas where price reverses at its lowest point (support) and the highest point (resistance) on a chart. Often, these zones are “tested” multiple times as traders look for an increased buyer and seller activity around these levels. It’s important to note that support and resistance are usually not thin lines, but rather zones. 🔴The Bottom Line The price action strategy is one of the most powerful tools for extracting money from the markets with predictability and manageable risks, but only if used correctly. Thank you! Please give a Thumbs UP and Leave Comment👍🏻
BITSTAMP:BTCUSDEducation
by SignalProvider
9
✅JOURNEY OF A TRADER=HERO'S JOURNEY! 📖I was reflecting on how I became a trader, and suddenly I was reminded of a great book called «A hero with a thousand faces» which then led to the analogy between the journey of a trader and the hero's journey. And while just as any analogy this one is somwhat superficial, I really feel like there is a lot of truth to it. Just think of how many of us have trading histories that look something like this? ♣️A grand call to adventure. Who would not want to make a pile of money working from the comfort of your own computer screen? ♠️Finding a mentor. Good mentors matter! Few of us who have succeeded would have done so without some help. ♣️Crossing over into an “unreal” world. Markets are crazy. When we look deeply into markets, maybe we become a little crazy ourselves, and we certainly become disconnected from ordinary reality. ♠️Facing dire challenges. The emotional highs and lows of trading can be extreme. Is there a trader alive who hasn’t been awake at 4am wondering if they can ever do this, why they ever tried in the first place, how they could be so stupid to make the same mistakes over and over, and what they were going to do tomorrow? (This is probably not the time to mention that we only write stories about the heroes that complete the journey! A lot of dragons feasted very well, for a very long time.) ♣️Failure somehow, perhaps almost miraculously, is transformed to success. ♠️We figure out how to incorporate our trading activities into the everyday world, and discover that things probably weren’t quite as exotic or difficult as we had thought. 📌My point is that trading is not really about learning patterns. It is not about learning some math. It is not about skill development, and it is not even about risk management. All of these things are important, but the real work of trading is work on ourselves. ✅Remember: Before facing the dragon in a cave, one needs to awaken the dragon within. Leave a comment and a like bros👍🏻
Education
by ProSignalsFx
6
📚EDUCATION: THE BASICS OF TRADING EXPLAINED📚 Hello, Traders! The basics of what it takes to be a successful trader are simple and obvious Yet daily, I see traders who fail at one or multiple KEY points that sink their performance and they keep losing accounts even though these people do have the understanding of the market that would have been sufficient enough for them to be profitable if they followed the basic rules. Trading is as much about pattern recognition and capacity for abstract thinking as it is about the personality type, self-discipline, and specific mindset. The lucky few are born fit for trading, but others might train themselves. Below, is the breakdown of the basics behind the day trading! ✅TRADING IS A BUSINESS NOT GAMBLING 99% of the new traders have unrealistic expectations of the kind of returns trading might deliver. To make matters worse, they do not realize that it will take years of trial and error before they can make trading Their only source of income. These delusions make the newbies treat trading like gambling. To AVOID this, please follow these 4 easy steps: 🔥SET AND KEEP YOUR RISK-REWARD. I recommend risking no more than 1% of the deposit per each trade, which also implies using a variable lot size for every trade, so that no matter the SL size in pips, or the pair you are trading, the dollar value of the RIKS remains the same with each trade. That way, you are in full control of the risks you are taking. 🔥DO NOT GO ALL IN. Sounds obvious, but I’ve seen it so many times. New traders, who lost 70% of the account, GO ALL IN on one trade that they think might help them recover the balance. That is NEITHER a way to trade, nor a way to learn. Slowly losing your account while learning how to trade, is simply a fee that you are paying the market for your education. Accept it or fail. 🔥PROTECT CAPITAL=USE SL I can’t stress this enough and I BEG YOU to use SL. Do NOT enter the trade thinking that if the SL level that you had in mind is hit you will close manually. You will NOT close the position, and the longer you hold it the more is the temptation to wait a bit more because it seems that the reversal is coming soon. 🔥CUT LOSSES Set a daily loss limit. For example, you can Ban yourself from trading for the rest of the day if you lost more than 3 trades in a row. You will enter what is called a tilt most likely, and you will NOT be productive that day. The same goes for a week. Lost more than 10% of the account in a week? Next week NO TRADING for you. Watch the market passively, or trade on the demo! By the way, That can be helpful even for professional traders too! ✅KEEPING A COOL HEAD IS KEY The ideal trader is the one who can set all emotions aside as a robot would, while simultaneously keeping the versatility of the human mind and the intuition, that the machines lack(yet). It is of utmost importance for the new traders to understand that being right about the direction but entering too early or too late is the same as being WRONG because the result will be a LOSS. Here is how to keep cool: 🔥CONTROL YOUR EMOTIONS. Both euphoria and a panic attack are your enemies so the more detached you are, the better. Emotions are for the casino, and we are doing business here, remember? 🔥AVOID FOMO( FEAR OF MISSING OUT) That one applies mostly to the trades that you are not so sure about, but still want to take them, in fear of not making money. And the early entries are determined by FOMO too( what if the price does not reach my limit order, and the trade plays out well, but without ME?) FOMO is Incredibly counterproductive, don't let it control you! 🔥DON’T FOLLOW OTHERS Avoid herd mentality! 99% of traders lose money, so doing what everyone does inevitably lands you in the 99% category. 🔥BUILD A WATCH LIST A LOT of the beginners try to PREDICT behavior of the particular instrument that they decided to trade for some reason, instead of going through the pairs looking for a ready setup that you KNOW works. The former approach leads to finding patterns, key levels, and setups that just aren’t there. Naturally, the result of trading these is an inevitable LOSS.You should Build a watchlist big enough for your to have a choice, and go through it at regular intervals, looking for opportunities but NOT INVENTING them. ✅ CONSISTENCY OVER BOOM-BUST STYLE Consistent trading is the only way to make trading a reliable source of income. Slow but steady gains always beat leap-like boom-bust performance. The psychological pressure of the latter will most likely break you sooner or later, and who needs gray hair in their 30es anyway? That is how you achieve consistency: 🔥FIND A STRATEGY Do the research on multiple trading strategies and pick those that you understand and that are compatible with your personality. 🔥USE PAPER TRADING AND BACKTESTING To select which strategy is right for you, use backtesting to see how the strategy performed in the past. And use paper trading to see how the strategy works in real-time.Once you chose the strategy, go back to paper trading and backtesting to polish it. 🔥TRACK YOUR TRADES Keeping track of your trading! Working with that data is an invaluable tule for the trader, that helps identify your strengths and weaknesses, while also helping you notice patterns in your trading that would have been left unrecognized otherwise. 🔥FORMALIZE YOUR RULES Objectivity is KEY for consistent trading because during the rough patches of the market, being sure of your rules helps you stay in the market, waiting for the tailwind, instead of questioning your strategy or your implementation of it. Create a strict ALGORITHM and follow it step by step. In order to do that, you need to define every element of your strategy as precisely as possible. For example, a level for you is a daily horizontal level with at least 3 touchpoints, a breakout is valid only if the 4H candle closed above the level, etc... The less vague the terms, the fewer emotions will be involved in deciding whether to enter the trade or not. ❗️IN CONCLUSION: If you want to become a trader, remember: 1- It will take YEARS to learn how to trade. 2- You will lose a TON of money in the process 3- You will FAIL with 95% probability. 4-Realistic returns from trading are WAY lower than you think 5-BUT when you succeed, you will set yourself free! Please SUPPORT This Idea By A LIKE and COMMENT!
Education
by TopTradingSignals
2
Trading Basics Part 1:How Candlesticks Work! Hello,Traders! Japanese Candlesticks are thought to have been invented by the Japanese rice traders And then made their way into the West where they were used for stocks, forex and commodity trading. Reading candlesticks is quite easy: the body represents an area that indicates the price distance between the open and close of the candle, while wick’s ends indicate the full magnitude of the movement in-between open and close. Thus, when picking the timeframe for your chart, you are deciding on how much time will be contained between open and close of each candle. If open is below the close, the candle is bullish, and if open is above the close, the candle is bearish, which is usually represented by different colors of the bodies and wicks on the chart, typically, green and red. Some of you might ask me, why am I explaining things that seems to be obvious and self evident, yet my experience of Coaching, paints a different picture, with the candlesticks being undervalued and misunderstood by many, despite them being the staple of technical analysis. In my trading strategy, which is based on multi timeframe top-down technical analysis, we examine multiple timeframes, from 1 week to 1 hour, going from higher to the lower timeframes. Looking for strong levels on weekly and daily and for patterns and confirmations on 4 hour and 1 hour charts. Which means that we are opening 1 week/1 day candle like a Russian doll, finding multiple candles inside the other. We enter the trade only if we are getting the same bias on all timeframes that were of our interest! If you found my post helpful and interesting, please, like comment and subscribe! Thank you!
Education
by TopTradingSignals
26