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HOW TO BE THE 1% 🤔💫🤩 Our culture is obsessed with the rich, famous, and successful people, yet what is left behind is both the hard work and sacrifices of those who «made it» And millions of those who failed miserably en route to fame and became nothing. There are multiple theories on and philosophical systems, that reflect on success, but ill bring out the key points:🔑 ➡️ Genetics, upbringing, and connections determine 70% of the outcome. Oh yes, as much as we don’t like to think about it, it is genetics that determines our capacity for sports, singing, our intelligence, speed of reaction, etc. For example, musical talent is determined by the specific structures in the brain, and some people have those from birth, and some people do not. These structures might differ by a factor of 10.000 from person to person, even though the brain size would be the same. So you might spend 20 years in musical training and be good, but you will never be a Mozart without those structures in your brain. Training and upbringing, In turn, affect whether you will be able to use these Brain structures, as well as the society in which you were born, determines if your talents will be useful or not. One might be born a genius mathematician, but if he did not get good training, or if he was born in the dark ages, his talent would have been wasted. One's family and social circle affect which connections will the person have in adult life , and it is for better or worse but cronyism and nepotism as still widespread, And the connected ones, even without being super bright, usually outdo those that aren’t. ➡️ Pareto 20/80 Rule, or risky business VS the safe one. Almost everything in life follows the Pareto Rule, which says that 20% of your effort brings you 80% of the result. There is another interpretation too: 20% of people will have 80% of all success in the given industry. This rule applies best and in its extremes to the high-end risky businesses with ultra-high failure rates paired with the ultra-high payoff. These industries are Acting, Music, Sports, and Trading! As you can see, in acting, which is the extreme case, 1% of the actors make 80% of the Income generated by the industry. The same goes for music and sports where the select few make the big buck, and those that aspired but failed, barely make a living. Compare this to being an engineer or a doctor. The failure rate is much lower, which lowers the risk of entering the profession, but the highest potential income is lower too! This applies to Trading too, as once you’ve learned how to be consistently profitable, the sky is the limit. There is no difference in the cost of labor or time spent on making a trade with the risk of 100$ and making a trade with the risk of 100.000$ Of course, at some point, your trades will get so big, that YOU will start moving the market trying to enter the trade, but that’s a story for another day. ➡️ Your power of will, determination, patience, and readiness for sacrifice. Trading is a unique industry, where ANYONE can succeed , without needing a diploma, connections, or looks. In essence, trading at its core is about pattern recognition . You discover a pattern, learn to find it on the chart, and then find a way to use this knowledge to extract monetary gains by playing this pattern with the probability being on your side. That's it. That easy. Then why is it, that 99.9% of those who try trading, ultimately fail? In my years of trading, I’ve noticed a pattern: 💡 A - GET RICH FAST attitude B - Do not spend time educating themselves C - Do not treat Trading like a business D - Lack of Patience E - Can not follow rules ⚠️ People think that forex is a Magic Money Tree, just stretch forth your hand, and you will drown in gold … In reality, however, learning to trade will take YEARS , will cost you a fortune and no one will guarantee you success. HERE IS MY ADVICE TO THE NEW TRADERS: 🤓 🎯 HAVE THE RIGHT MINDSET 1)Prepare for failure, disappointment, and tears 2)Realize that you will train for YEARS 3)Learn to fight and not to give up 🎯 GET GOOD HABITS: 1) We ARE our habits , so recognize what is good for you, and make it a habit 2)Staying in good health is underestimated, while in reality, your physical condition has a direct effect on your mind. 3) Work on your mistakes. You will never learn If you do not access your previous work critically. 4) Make a plan for a week , then break it into daily tasks. Do it for a month and that will become a habit. 🎯 MANAGE YOUR FINANCES WELL 1) Learning to trade is expensive and time-consuming, so make sure you have an income. 2) Learn basic financial literacy and spend less than you make. Easy right? But if you lose an account that cushion will help. 3) Do NOT quit your job the moment you became profitable. This sounds obvious, but the market will test you multiple times, and unless you’ve got enough savings to last for 1 YEAR without working, ditching a stable source of income will not only make you vulnerable but will also affect you mentally which will negatively affect your trading. 📈 FOLLOW these steps and you will increase your chances of success in trading by a factor of 10! PLEASE LIKE AND COMMENT TO GIVE ME A BOOST!
Education
by SignalProvider
14
📚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
110
BTC- 4 TH WAVE CONSOLIDATION DETAILED STUDYEven though i tried my wave count to convince the BTC bulls, it is not possible for me to deviate from NW rules in time cycles. Wave 4 has to to take equal time as wave 3 taken, if you apply this rule ,we have more time left to finish wave 4, So far wave 'A' of wave 4 completed in 5 waves (wxyxz), therefore wave B will resume fastly ,DON'T assume it as 5 th wave Because after wave 'B', BTC bears will start selling to complete the final wave 'C' until 25th OCT,2021. Since wave A is 5 segmet(motive) waves,the retracement of B is limited to 61.8%(47895)(2nd AUG) Wave C must be of 5 wave down after wave B with a minimum target of 25300. Hence 5 th wave will resume from NOV,21
BITSTAMP:BTCUSDEducation
by selvamB
Improve your Technical Analysis using Fundamental Analysis!In this video I decided to show you how to use Fundamental Analysis along with Technical Analysis in order to improve your understanding about the market. Although it is not common, as most people seem to like Tradingview for its price charts/indicators, you can use this platform for fundamental analysis as well . In this video I explain the importance of looking at the fundamentals through a chart. I hope you'll like the video! In this case, remember to support this idea, and follow me for more content like this. Have a good week. Fundamental Indicators used in this video: - Price to Earnings; - Net Margin (%); - Return on Invested Capital (ROIC).
NASDAQ:AAPLEducation
by Nathan_The_Finance_Hydra
8
Double EMA (DEMA) From ScratchHello, traders! Today we’ll speak about the most trivial, but very useful indicator that’s called DEMA. As you know, moving average is a backbone of 90% complicated indicators. It’s able to give lots of information about the price action. Well, let’s speak about it. The double exponential moving average (DEMA) is a technical indicator introduced by Patrick Mulloy in his January 1994 article "Smoothing Data With Faster Moving Averages" in Technical Analysis of Stocks & Commodities magazine. The DEMA uses two exponential moving averages (EMAs) to eliminate lag, as some traders view lag as a problem. The DEMA is used in a similar way to traditional moving averages (MA), but DEMAs react quicker than traditional MAs. How to use DEMA? -The average helps confirm uptrends when the price is above the average, and helps confirm downtrends when the price is below the average. When the price crosses the average that may signal a trend change. -Indicate areas of support or resistance. -Cross overs of 2 DEMAs. We sometimes draw fast DEMA(20) and slow DEMA(50). When the fast line crosses the slow below, it’s a bearish signal, when above - bullish. It’s consider to be a good entering signal. However, we shouldn’t forget that the indicator is still lagging. Guys, I should remember you that every indicator shouldn’t be used in solo. You should only use them in conjunction with other indictor when they confirm each other. I hope, this knowledge will boost your trading skills and make your trading staff more interesting and profitable. Have a nice day, dear traders.
Education
by Skyrexio
1
Pitchfan From ScratchHello, traders! Today we’ll continue to speak about graphical tools of trading view. We have already completed Fib. Retracement, Gann Square and different kinds of Pitchfork. Today we’ll speak about extremely useful tool, that we are integrating in our strategies. So, ladies and gentlemen, love and favor, Pitchfan. A Pitchfan is a set of rays spreading out of the point of a trend's beginning. These rays inclined with the coefficients formed by a Fibonacci number sequence.it is recommended to apply a Pitchfan after the first wave of the trend has passed and the correction has clearly begun. To draw a Pitchfan, it's first and second points are to be set at the trend's extreme points, and the third point is to be set at the extreme point of the first correction wave. Basically, during the bullish trend, put the first point to the beginning of the trend, second to first confirmed higher high, third to the first confirmed higher low. Whereas during bearish trend put the first point to the beginning of the trend, second to first confirmed lower low, third to first confirmed lower high. When I say «confirmed», I mean two-three candles should close after the high lower and after the low - higher. Kinda difficult? Have a look at the chart and should become more clear. What does it say? Initially, if you plot it correctly, it’ll give you clear support resistance levels. This’s information, in my opinion is priceless for any trader cause it’s much easier to predict the future price movements. But the best of usage, seems to me, in conjunction with Fib Retracement or Trend based Fib. Extension. If it’s interesting to you, dear traders, write down to comments and advise the third indicator or tool. So, we’ll make the trading strategy together. Read my tutorials, write questions to comments and you are about to boost up. Have a nice trading week, dear traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
2
Fib Retracement From ScratchHello, traders! As you can see, SkyRock traders always use Fib tools for our analysis and predictions. We find Fibonacci tools a great powerful series of instruments that’s necessary to use. Today we’ll speak about one of my favorite TA tools - Fib Retracement. Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Well, it seems to be not very important and attractive how to calculate Fib Retracement Levels. You should just know that they are based on something called the Golden Ratio. It’s believed that all natural laws are based on this ratio. However, the right usage of it is deadly important. To initialize it, put the first point to the previous lower low and the second to the confirmed higher high during the up-trend and vice versa during the sown-trend. What can it tell you? Initially, support and resistance. It could hardly be possible to find the tool better for such purpose. Then, the levels of it is usually reached, thus it may produce some signals. Although it’s very powerful tool, it’s kinda ridiculous idea to use it marginally. Also, the areas of sideways is also defined by it, cause of high probability of consolidation in «Golden Pocket». And at last, it helps ms to define Gartley and Elliott patterns. Well, guys, as you can see it’s really great and multifunctional instrument that can help every of you to trade and make money trading. Use it in the right way! Have a nice trading day, dear traders! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
4
How to trade based on a Multi-Timeframe Analysis?Good morning, traders! Today we will do an explanatory post on how a Multi-Timeframe Analysis (Weekly-Daily-4H) can be used to take a trade. The benefit of this is that we will be trading taking into account the short, medium, and long-term behavior of the price, which gives us a higher success rate. Many times, we take a trade focusing only on one timeframe, and we are missing relevant information of higher temporalities, such as areas that we are not seeing. Let's see how it would look in practice: 🔸The first thing is to start with the chart with the higher temporality, in this case, the Weekly: - We see here that the price is in a range and bouncing in the support zone where a strong bullish momentum was previously generated. This gives us a first bullish hint. 🔸Then, in the Daily chart (published), we see that the price bounces off the previously marked zone and breaks the downtrend channel. This is the second bullish sign. - In addition, in this chart, we proceed to mark the potential targets of the movement. 🔸Finally, in the 4H chart is where we will look for our entry into the market: - After the break of the bearish channel, the price begins a corrective process at the edge of the trend line. When the breakout of this structure happens, the optimal thing is to place an income above the last lower high of the structure to avoid potential fakeouts.
Education
by ThinkingAntsOk
6
BTC / USD Price game with meanings from 04 2013 to 09 2014Make an analogy with the trading situation now with a slight shift in time and taking into account the slowdown of the process itself due to increased market liquidity. This is just an observation-comparison nothing more. Learn to notice what at first glance seems unimportant, casual and unimportant ... That is what most market participants do not notice, because they should always only lose and give, it just can not be otherwise. If they win, then only accidentally and temporarily, in order to lose more in the future.
BITSTAMP:BTCUSD
by SpartaBTC
7
ETHUSDT Short range Analysis | Both Long and Short PossibilitiesHello, traders! Today we gonna speak about Ethereum and possible trade opportunities on it. As you know, it's the most powerful Altcoin with great capitalization and powerful fundamentals. Moreover, some analysts call it the alternative of Bitcoin. We've already told, but you should remember that the great update will be on 21-th of July. Read about it in our related idea. Now, let's speak about technicals. Today we'll kill two birds with one stone. I'll show you the application of Gann Square and give some possible trades on ETHUSDT. Here we go! Let's have a look at the chart. As you can see, we have double top that tells us about the trend reverse. As you know, the range of the price goes down is the height of double top. As you can see, the price doesn't reach maximum level, thus the continuation of falling down is possible. Then, we have strong confirmed bearish divergence completed with crossover. This tells us about the highly probable price. Let's have a look at Gann Square. Here we can see that the price is in local triangle that can be break either up, or down. Moreover, we can see more global triangle that's broken broken below. Based on these knowledge, I see two possible outcomes. Scenario 1) Price returns to the blue triangle and after three bars closed inside it, we can enter the long positions. Take profit is on the top side of triangle, stop loss a bot lower than the current support-resistance line, entrance after 3 closed inside bars. Scenario 2) One-two bars closes under the triangle. Thus, we have consolidation under it and we can open short position. Take profit is put on weekly pivot and stop loss on possible level after the probable breaking down the resistance. Here you are my vision of future ETHUSDT. Please, don't enter position without your own analysis. It would boost your trading skills much better than just following over ideas. As you know guys, we work hard for you every day to make interesting and useful content. However, your opinion is extremely important for us. Thus, please, write down to comments what would you like to read about, what would you like to study and so forth. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
by Skyrexio
2
Introduction To Gann Theory | Gann Square From ScratchHello, traders! Today we gonna start one of the most complicated topics. Please pay as much attention as it possible and ask any questions you like. Gann technical analysis methods are a bit complicated because they are based on geometry, ancient mathematics, astrology, and astronomy. Popular technical methods like Gann Angles and the Master Charts are at Gann’s disposal. The Gann Square is also among the several powerful tools that Gann developed. How to use? It can be used in a variety of ways. One way is to start at the previous major pivot point (normally the end of the last 5 wave sequence) and draw it so that the 1 X 1 line follows the current market support areas to a good degree. Simply put, if you want to draw it from the higher high, the end should be at the previous lower low to follow the price cycles. And if you are drawing it from lower low, finish it at previous higher high. Another way is to highlight geometric formations that can forecast key support and resistance levels by counting forward from the all-time low or all-time high. Well, I understand the difficulty of the instrument. It's kinda difficult to use it from scratch. However, tomorrow I will elaborate this article with short analysis using this powerful tool. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio
4
Tutorial | How To Create An Order Panel Trading TemplateThe TradingView Order Panel doesn't currently have a template setting to save the order parameters. Here's a work around thanks to a comment from @thatjeph Appreciate it! Instructions: 1) Using the Long/Short Drawing Function and drop it on a chart. 2) Adjust the levels to reflect the trade entry, take profit, and stop level. (Note: The default quantity is a bit weird) 3) Save the object as a Template named to reflect the settings. 4) Right click on the trade object and Select > Create Limit Order. 5) Boom - you Order Panel is opened with the trade setting from the order object.
CME_MINI:ESU2021Education
by RodCasilli
27
Brakout or Fakeout ?Hello traders , As you can see in the related EURUSD idea I published sooner , I mentioned that IF we had a breakout of structure you can enter a long position ... But what happened then ? when you see a candle breaks the resistance area , that dose not mean that you can enter a long position . Actually it's the first sign of a long position of course. you should go through lower time frames to see a Weakness for sellers to enter a long position. in the next bear candle we can clearly see no Weakness which means this was a FAKEOUT ...
by sajadakrami1378
Balance Of Power From ScratchHello, traders! As you know it's very important to identify the balance of bulls and bears. Today, we introduce you one of the most pretty and easy-to-interpret tools - Balance Of Power Oscillator. Balance of Power (BOP) is an oscillator that measures the strength of buying and selling pressure. Introduced by Igor Levshin in the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, this indicator compares the power of buyers to push prices to higher extremes with the power of sellers to move prices to lower extremes. When the indicator is in positive territory, the bulls are in charge; and sellers dominate when the indicator is negative. A reading near the zero line indicates a balance between the two and can mean a trend reversal. The Balance of Power indicator shows the direction and extent of price change during the trading period. Like most oscillators, the Balance of Power indicator can be used to identify trends, divergences from price, and overbought/oversold conditions. Zero-line crossovers provide buying and selling signals. Possible Signals Zero-Line Crossovers The scale of this oscillator ranges from -1 to +1, with 0 as the centerline. Zero-line crossovers indicate a move into positive or negative territory, and are often used as buy or sell signals. A cross above the center line generates a buy signal, and a cross below generates a sell signal. The data is smoothed with a moving average in order to reduce the number of whipsaws. An SMA with more periods reduces the number of false crossover signals, but also reduces the responsiveness of the indicator. While the main signal provided by the Balance of Power indicator comes from zero-line crossovers, it can also be used to determine the trend, look for divergences in price, and identify overbought/oversold securities. Trend identification A rising BOP line indicates an upward trend and a falling BOP line indicates a downward trend. The zero-line crossover confirms the trend change. Divergences with Price When price makes new highs but BOP doesn't, that is a negative divergence; when price makes new lows but BOP doesn't, that is a positive divergence. These divergences can foreshadow a change in trend. Conclusion The Balance of Power (BOP) indicator uses price to measure buying and selling pressure. It determines the strength of the buyers and sellers by looking at how strongly the price has changed, rather than using volume. As with all indicators, traders should use the Balance of Power indicator in conjunction with other indicators and analysis techniques.
Education
by Skyrexio
1
💨𝙀𝙡𝙡𝙞𝙤𝙩𝙩 𝙒𝙖𝙫𝙚 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡🌊●●● 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (D) ❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨 ● A diagonal always subdivides into five waves. ● Wave 2 never goes beyond the start of wave 1 . ● Wave 3 always goes beyond the end of wave 1 . ● Wave 4 never moves beyond the end of wave 2 . ● Wave 4 always ends within the price territory of wave 1 (overlap). ● An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat . ● A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag. ● Waves 1 , 2 , 3 , 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags. ● In a leading diagonal, wave 5 always ends beyond the end of wave 3 . ❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Waves 1 , 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses (all zigzags or all impulses ). ● Within an impulse , if wave 1 is a diagonal, wave 3 is likely to be extended. ● Within an impulse , wave 5 is unlikely to be a diagonal if wave 3 is not extended. ● A leading diagonal in the wave one position is typically followed by a zigzag retracement of 78.6 %. ●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Contr.D) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● In the contracting variety, wave 3 is always shorter than wave 1 , wave 4 is always shorter than wave 2 , and wave 5 is always shorter than wave 3 . ● Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves 1 and 3 . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● In the contracting variety, wave 5 usually ends beyond the end of wave 3 . (Failure to do so is called a truncation.) ● In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3 . (Ending beyond that line is called a throw-over. ● In the contracting variety, wave 3 may be equal .618 to .786 the length of wave 1 , and wave 5 may be equal .618 to .786 the length of wave 3 . ●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Exp.D) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● In the expanding variety, wave 3 is always longer than wave 1 , wave 4 is always longer than wave 2 , and wave 5 is always longer than wave 3 . ● Going forward in time, a line connecting the ends of waves 2 and 4 diverges from with the line connecting the ends of waves 1 and 3 . ● Wave 5 always goes beyond the end of wave 3 . ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave. ● In the expanding variety, wave 3 may be equal to 1.618 the length of wave 1 , and wave 5 may be equal to 1.618 the length of wave 3 . ● In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3 . Elliott Wave Principal 2005 and Q&A EWI .
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
10
Chaikin Oscillator From ScratchHi, traders! Today we'll speak about one of the most pretty instrument of divergence detection. The Chaikin oscillator is named for its creator Marc Chaikin.1 The oscillator measures the accumulation-distribution line of moving average convergence-divergence (MACD). To calculate the Chaikin oscillator, subtract a 10-day exponential moving average (EMA) of the accumulation-distribution line from a 3-day EMA of the accumulation-distribution line. This measures momentum predicted by oscillations around the accumulation-distribution line. The purpose of the Chaikin oscillator is to identify underlying momentum during fluctuations in accumulation-distribution. Specifically, it applies the MACD indicator to accumulation-distribution rather than closing prices. For example, a trader wants to determine whether a coin price is more likely to go up or to fall and MACD is trending higher. The Chaikin oscillator generates a bullish divergence when it crosses above a baseline. The baseline is called the accumulation-distribution line. A cross above that line indicates that traders are accumulating, which is typically bullish. The Chaikin oscillator utilizes two primary buy and sell signals. First, a positive divergence is confirmed with a center-line crossover above the accumulation-distribution line, signaling a potential buying opportunity. Second, a negative divergence is confirmed with a center-line crossover below the accumulation-distribution line, signaling a potential selling opportunity. A positive divergence signals a coin price is likely to rise, given the increase in accumulation. A negative divergence signals a coin price is likely to fall, given the increase in distribution. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Education
by Skyrexio
3
This is ALL you need to be Profitable in TradingGood morning traders! Today we will make an educational post about something that generates many doubts in many people: That is, what are the tools that I should use to trade correctly? Do I need indicators? do I need extremely complex strategies? The answer is DEPENDS. Why does it depend? It depends because there are many ways to see and trade the market, and just as there are thousands of traders, so there are also thousands of strategies since there are many ways to combine the different tools that we have. That said, it is worth clarifying that this post is made 100% from our experience, and the objective is not to discredit or downplay other trading methods. This is simply what we use, and for a long period of time, it has served us well. We will divide this post into two parts, first, a theoretical explanation of each tool, and second, show how we apply the previously explained concepts. 🔸Price action: This is the first concept that we must cover since it incorporates everything in a certain way. The price action, basically, is the behavior of the price. Depending on the market situation (trend, either bearish or bullish or in range), we may see different price actions. The technical analysis starts from the basis that the price action discounts everything necessary to decide on an asset; therefore, everything that is happening, the price is transmitting in its behavior. For example, if the price is in strong support, and we see that a candle with a lot of volume appears, and it forms a candlestick pattern (suppose bullish engulfing), clearly the price action tells us that there is strong buying interest. This applies to all scenarios; we can also consider a breakout of a structure or correction that closes with a strong candle above the previous high, and so on with infinite cases. Example of price action in support (real situation in USD / CAD in Weekly Chart): 🔸Trendlines/channels: This will be a determining tool when defining a trend. Depending on which market or timeframe we trade, we will see more or fewer trends, but they are a very comfortable visual way of marking them. In the case of an upward trend, the concept is based on joining the increasing lows with a line and the same with the increasing highs. Same situation for a downtrend, but with the highs and lows in reverse. The price tends to respect these lines very well, bouncing off them every time it touches them. Example of trend lines in channel form in EUR / USD Daily Chart (Real example): 🔸Support / Resistance Zones: The Support and Resistance zones are horizontal and static supply and demand zones. As we saw previously in the trend lines that the price reacts (these are considered dynamic supports and resistances since the value changes as time progresses), the same thing happens here, since they are specific places where there are many buy or sell orders. The key is to wait for a reaction in the price in that area to confirm the movement. When the price moves for a long time between support and resistance, we can say that it is within a range. This usually happens after periods of a powerful trend, where the price begins accumulation/distribution consolidation processes that last a long time. Here, we have an example on Amazon (AMZN): 🔸Corrective Patterns: This is a particular concept since it is focused on momentum/trend traders. This trading style is characterized by taking positions that are always in favor of the trend, and corrective patterns are an exciting time to join the movement. These patterns happen after impulses; if we have a strong upward movement, then once the price starts to retrace, it will form a correction pattern in the opposite direction of the trend. They are very useful to be able to join the next trend. Real example on Facebook (FB): 🔸Risk Management: The basic idea of ​​risk management is to be able to earn as much as possible but always keeping losses as low as possible, and of course, avoid destroying an account. It is very common to see traders who try to "duplicate" accounts or obtain exorbitant results in very short periods of time. Is this possible? Of course, YES, but we must ask ourselves whether this is functional in the long term, and the answer is NO. OBLIGATORY, if we take high risks, we will lose a lot of money after a certain period of time. This is very simple, trading is a game of statistics, and streaks exist either for better or worse. There are certain basic rules, such as the % risk of the total capital in each trade. For example, if we have an account of $10,000, a conservative and correct risk to assume, it would not be more than $300 per trade, which implies 3% of the total capital. We recommend risking that value as much as possible, and even the optimum is a little less. We handle ourselves with risks between 1-2%. Assuming real situations, there are bad streaks of trades that can reach 10-15 consecutive negative trades. Assuming a risk of 2% per operation, we would have a maximum loss of capital of 30%. In this way, we can stay in the game for the long term. Never forget that capital is the raw material of labor, and rule number 1 is NOT TO LOSE IT. 🔸Psychology: When it comes to trading, thousands of emotions appear that go through our heads, both positive and negative. We will feel fear, euphoria, anxiety, greed, depression, excitement, happiness, and infinite emotions depending on the situation in which we find ourselves. The objective of working on psychology is, obviously, to reduce these sensations, but more importantly, it is to ensure that they do not affect us in our daily work. In the end, we are human, and we will always feel emotions, but the goal is that they do not negatively influence our trading. In the first place, to reduce negative emotions, we must necessarily know perfectly the statistics of the strategy that we are carrying out. This implies knowing what your return is, what period, maximum loss, how long it will take me to recover it, etc. On the other hand, it is necessary to perform a backtest to know how it behaved over time and if what I see at the moment is correct. In this way, we will have peace of mind when operating. We must never forget that this is a business, and expectations must be long-term. Do not measure the result in days or weeks. Look at it in months, quarters, or years. In this way, the results will be more representative. 🔸With the concepts explained, we will see how we can unite them all to take a trade. Although they are all useful, individually, they do not serve us to take a trade. We must unite them in an organized way to use them to our advantage. We will show you some positions we have taken over the last few months (some already closed, others active). Bullish Trade on INTU: In this trade, we see a clear uptrend. The price, after making a maximum, was consolidating for a few months. We detected a clear corrective pattern and took a bullish position once it was broken to the upside. The entry was above the previous high, the stop loss behind the low, and the target in the Fibonacci extension (this concept is not explained, but we can make an informative post later if you want). The risk assumed was 1% of the capital, with a potential gain of +2.5%. The position is open but near the take profit. Bullish Trade on FB: Similar scenario to the previous one. Price builds bullish momentum and then corrects. We operate the correction breakout, assuming a risk of 1% with a potential gain of +2.4%. Bullish Trade on FB (short-term): This is a trade that we take in addition to the previous one; it is an internal trade. Here, we also incorporate the concept of support/resistance. There was a broken resistance to the upside, and then the price generates a throwback (retest). This setback forms a corrective pattern, which gives us a good opportunity to enter the market—assumed the risk of 1% with a potential gain of +2%. Bullish Trade on GOOGL: In this trade, the price breaks the upper end of the bullish channel and begins to correct at the edge. We see a clear consolidation, and we trade the bullish breakout. This trade is already closed with a profit of +1.75% with an assumed risk of 1%. Of course, not everything is so nice, and there are also stop losses. Bullish Trade on TLRY: In this trade, the price breaks the descending trendline and the resistance zone (then support). It generates a corrective structure, and we take a bullish position at the break. The price was a bit in our favor, but then everything turned against us, and we jumped our stop loss. 🔸 This is a small sample of certain technical analysis concepts and how they can be applied to the market. There is no complex science here, no confusing indicators. Simply clear trends, trade-in that direction, and interesting profits with limited risks. That's all it takes to make money on this.
BITSTAMP:BTCUSDEducation
by ThinkingAntsOk
3
Awesome Oscillator From ScratchHi, traders! Today we’ll speak about one of the most pretty and easy-to-interpret oscillator - Awesome oscillator.The Awesome Oscillator Indicator (AO) is a technical analysis indicator created by Bill Williams as a tool to determine whether bullish or bearish forces dominate the market. It measures the market momentum with the aim to detect potential trend direction or trend reversals. The market momentum is evaluated using a combination of a shorter time frame and longer time frame simple moving averages or stated differently, it considers the recent momentum in comparison with a higher frame momentum. The Awesome Oscillator is calculated as the difference between the newest 5 periods (bars) simple moving average (SMA) and the 34 bars simple moving average. But instead of the closing price, the indicator uses the bar midpoint value. The indicator is plotted as a histogram in a box at the bottom of the chart and the histogram bars are found in either of the two colors red or green (with some trading platforms the lines can be red or blue). When the midpoint value of the last price is higher than the previous bar midpoint, the histogram will be green (blue) and if the midpoint of the last bar is lower compared to the previous bar, it will be red. How to use Awesome Oscillator? There are a variety of strategies which could be used by traders to identify potential trading opportunities. Some of the well-known and basic trading setups are the zero-line and divergence. Awesome Oscillator and zero-line crossovers The basic alerts which are generated by the Awesome Oscillator are identified on the basis of the zero-line cross overs. * A bullish buying opportunity alerts occur when the AO indicator crosses above the zero-line, indicating that the short-term momentum is increasing faster compared to the long term. * A sell opportunity is detected when the indicator crosses below the zero-line mark displaying that the short-term momentum decreases more rapidly than the long-term. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
BEducation
by Skyrexio