Fibonacci Trading Strategie für Forex Trading 2020 » Tipps ...
Fibonacci Theory FOREX.com
Trading The ‘AB=CD’ Harmonic Pattern Using Fibonacci ...
Fibonacci Forex Trading - The Numbers That Lead To A Strategy
Fibonacci ABCD Pattern Forex Support and Resistance ...
Fibonacci ABCD Pattern Forex Support and Resistance ...
Choosing the Correct Timeframe to Trade - Trading Fibonacci
How to use Fibonacci pattern in online forex trading using ...
How to Use Fibonacci Retracements - BabyPips.com
I’ve been learning forex for about 2 months, at the moment I’m practising trading pullbacks with Fibonacci and candle stick patterns, this set up shows a pullback to the 50% retracement level with lines up with previous resistance now acting as support.
Some trading wisdom, tools and information I picked up along the way that helped me be a better trader. Maybe it can help you too.
Its a bit lengthy and I tried to condense it as much as I can. So take everything at a high level as each subject is has a lot more depth but fundamentally if you distill it down its just taking simple things and applying your experience using them to add nuance and better deploy them. There are exceptions to everything that you will learn with experience or have already learned. If you know something extra or something to add to it to implement it better or more accurately. Then great! However, my intention of this post is just a high level overview. Trading can be far too nuanced to go into in this post and would take forever to type up every exception (not to mention the traders individual personality). If you take the general information as a starting point, hopefully you will learn the edge cases long the way and learn how to use the more effectively if you end up using them. I apologize in advice for any errors or typos. Introduction After reflecting on my fun (cough) trading journey that was more akin to rolling around on broken glass and wondering if brown glass will help me predict market direction better than green glass. Buying a $100 indicator at 2 am when I was acting a fool, looking at it and going at and going "This is a piece of lagging crap, I miss out on a large part of the fundamental move and never using it for even one trade". All while struggling with massive over trading and bad habits because I would get bored watching a single well placed trade on fold for the day. Also, I wanted to get rich quick. On top all of that I had a terminal Stage 4 case of FOMO on every time the price would move up and then down then back up. Just think about all those extra pips I could have trading both directions as it moves across the chart! I can just sell right when it goes down, then buy right before it goes up again. Its so easy right? Well, turns out it was not as easy as I thought and I lost a fair chunk of change and hit my head against the wall a lot until it clicked. Which is how I came up with a mixed bag of things that I now call "Trade the Trade" which helped support how I wanted to trade so I can still trade intra day price action like a rabid money without throwing away all my bananas. Why Make This Post? - Core Topic of Discussion I wish to share a concept I came up with that helped me become a reliable trader. Support the weakness of how I like to trade. Also, explaining what I do helps reinforce my understanding of the information I share as I have to put words to it and not just use internalized processes. I came up with a method that helped me get my head straight when trading intra day. I call it "Trade the Trade" as I am making mini trades inside of a trade setup I make from analysis on a higher timeframe that would take multiple days to unfold or longer. I will share information, principles, techniques I used and learned from others I talked to on the internet (mixed bag of folks from armatures to professionals, and random internet people) that helped me form a trading style that worked for me. Even people who are not good at trading can say something that might make it click in your head so I would absorbed all the information I could get.I will share the details of how I approach the methodology and the tools in my trading belt that I picked up by filtering through many tools, indicators strategies and witchcraft. Hopefully you read something that ends up helping you be a better trader. I learned a lot from people who make community posts so I wanted to give back now that I got my ducks in a row. General Trading Advice If your struggling finding your own trading style, fixing weakness's in it, getting started, being reliably profitable or have no framework to build yourself higher with, hopefully you can use the below advice to help provide some direction or clarity to moving forward to be a better trader.
KEEP IT SIMPLE. Do not throw a million things on your chart from the get go or over analyzing what the market is doing while trying to learn the basics. Tons of stuff on your chart can actually slow your learning by distracting your focus on all your bells and whistles and not the price action.
PRICE ACTION. Learn how to read price action. Not just the common formations, but larger groups of bars that form the market structure. Those formations carry more weight the higher the time frame they form on. If struggle to understand what is going on or what your looking at, move to a higher time frame.
INDICATORS. If you do use them you should try to understand how every indicator you use calculates its values. Many indicators are lagging indicators, understanding how it calculates the values can help you learn how to identify the market structure before the indicator would trigger a signal . This will help you understand why the signal is a lagged signal. If you understand that you can easily learn to look at the price action right before the signal and learn to watch for that price action on top of it almost trigging a signal so you can get in at a better position and assume less downside risk. I recommend using no more than 1-2 indicators for simplicity, but your free to use as many as you think you think you need or works for your strategy/trading style.
PSYCOLOGY. First, FOMO is real, don't feed the beast. When you trade you should always have an entry and exit. If you miss your entry do not chase it, wait for a new entry. At its core trading is gambling and your looking for an edge against the house (the other market participants). With that in mind, treat as such. Do not risk more than you can afford to lose. If you are afraid to lose it will negatively effect your trade decisions. Finally, be honest with your self and bad trading happens. No one is going to play trade cop and keep you in line, that's your job.
TRADE DECISION MARKING: Before you enter any trade you should have an entry and exit area. As you learn price action you will get better entries and better exits. Use a larger zone and stop loss at the start while learning. Then you can tighten it up as you gain experience. If you do not have a area you wish to exit, or you are entering because "the markets looking like its gonna go up". Do not enter the trade. Have a reason for everything you do, if you cannot logically explain why then you probably should not be doing it.
ROBOTS/ALGOS: Loved by some, hated by many who lost it all to one, and surrounded by scams on the internet. If you make your own, find a legit one that works and paid for it or lost it all on a crappy one, more power to ya. I do not use robots because I do not like having a robot in control of my money. There is too many edge cases for me to be ok with it.However, the best piece of advice about algos was that the guy had a algo/robot for each market condition (trending/ranging) and would make personalized versions of each for currency pairs as each one has its own personality and can make the same type of movement along side another currency pair but the price action can look way different or the move can be lagged or leading. So whenever he does his own analysis and he sees a trend, he turns the trend trading robot on. If the trend stops, and it starts to range he turns the range trading robot on. He uses robots to trade the market types that he is bad at trading. For example, I suck at trend trading because I just suck at sitting on my hands and letting my trade do its thing.
Trade the Trade - The Methodology
Base Principles These are the base principles I use behind "Trade the Trade". Its called that because you are technically trading inside your larger high time frame trade as it hopefully goes as you have analyzed with the trade setup. It allows you to scratch that intraday trading itch, while not being blind to the bigger market at play. It can help make sense of why the price respects, rejects or flat out ignores support/resistance/pivots.
Trade Setup: Find a trade setup using high level time frames (daily, 4hr, or 1hr time frames). The trade setup will be used as a base for starting to figure out a bias for the markets direction for that day.
Indicator Data: Check any indicators you use (I use Stochastic RSI and Relative Vigor Index) for any useful information on higher timeframes.
Support Resistance: See if any support/resistance/pivot points are in currently being tested/resisted by the price. Also check for any that are within reach so they might become in play through out the day throughout the day (which can influence your bias at least until the price reaches it if it was already moving that direction from previous days/weeks price action).
Currency Strength/Weakness: I use the TradeVision currency strength/weakness dashboard to see if the strength/weakness supports the narrative of my trade and as an early indicator when to keep a closer eye for signs of the price reversing.Without the tool, the same concept can be someone accomplished with fundamentals and checking for higher level trends and checking cross currency pairs for trends as well to indicate strength/weakness, ranging (and where it is in that range) or try to get some general bias from a higher level chart that may help you out. However, it wont help you intra day unless your monitoring the currency's index or a bunch of charts related to the currency.
Watch For Trading Opportunities: Personally I make a mental short list and alerts on TradingView of currency pairs that are close to key levels and so I get a notification if it reaches there so I can check it out. I am not against trading both directions, I just try to trade my bias before the market tries to commit to a direction. Then if I get out of that trade I will scalp against the trend of the day and hold trades longer that are with it.Then when you see a opportunity assume the directional bias you made up earlier (unless the market solidly confirms with price action the direction while waiting for an entry) by trying to look for additional confirmation via indicators, price action on support/resistances etc on the low level time frame or higher level ones like hourly/4hr as the day goes on when the price reaches key areas or makes new market structures to get a good spot to enter a trade in the direction of your bias.Then enter your trade and use the market structures to determine how much of a stop you need. Once your in the trade just monitor it and watch the price action/indicators/tools you use to see if its at risk of going against you. If you really believe the market wont reach your TP and looks like its going to turn against you, then close the trade. Don't just hold on to it for principle and let it draw down on principle or the hope it does not hit your stop loss.
Trade Duration Hold your trades as long or little as you want that fits your personality and trading style/trade analysis. Personally I do not hold trades past the end of the day (I do in some cases when a strong trend folds) and I do not hold trades over the weekends. My TP targets are always places I think it can reach within the day. Typically I try to be flat before I sleep and trade intra day price movements only. Just depends on the higher level outlook, I have to get in at really good prices for me to want to hold a trade and it has to be going strong. Then I will set a slightly aggressive stop on it before I leave. I do know several people that swing trade and hold trades for a long period of time. That is just not a trading style that works for me.
Enhance Your Success Rate Below is information I picked up over the years that helped me enhance my success rate with not only guessing intra day market bias (even if it has not broken into the trend for the day yet (aka pre London open when the end of Asia likes to act funny sometimes), but also with trading price action intra day. People always say "When you enter a trade have an entry and exits. I am of the belief that most people do not have problem with the entry, its the exit. They either hold too long, or don't hold long enough. With the below tools, drawings, or instruments, hopefully you can increase your individual probability of a successful trade. **P.S.*\* Your mileage will vary depending on your ability to correctly draw, implement and interpret the below items. They take time and practice to implement with a high degree of proficiency. If you have any questions about how to do that with anything listed, comment below and I will reply as I can. I don't want to answer the same question a million times in a pm. Tools and Methods Used This is just a high level overview of what I use. Each one of the actions I could go way more in-depth on but I would be here for a week typing something up of I did that. So take the information as a base level understanding of how I use the method or tool. There is always nuance and edge cases that you learn from experience.
I keep a general high level Macro outlook for currencies. I dont get too deep into Fundamentals and just keep an eye out for news. If I am already in a trade I will hold it if its far enough away from my entry. However, I wont enter right before/during news as it can invalidate your setup.
I started with the basics of learning the standard price action formations/patterns and candles. You can find tons of free info on that online, google is your friend. Then I stared at charts and said "why did the price do that or do this etc" then after a while I started to understand what's happening without having to think about it and I can see the market structure without having to look as closely as I did in the past.
After many many hours of staring at 5 min charts for 15 hours a day 5 days a week I learned how to look at 5 min charts and be like "Oh that's a hammer on the 15 min etc. If you keep track of time you can do the same for hourly candles as well and you will start to see market structure naturally. However I typically trade in a two chart panel window so I have a 15 min and 5 min chart up when trading intra day so I dont have to think too hard about it.
Draw support resistance lines on Daily/4hr timeframes. I prefer to use body of the candle instead of the wick for support/resistance.
You can find support/resistance liquidity levels through out the day as well and trade those if the price retraces back through levels its already been through that same day.
It would be a bit length to explain exactly the best place to draw them. If your unsure there is plenty of free resources on the internet. Just try to use your head and look for price levels where the price was "Supported" or it "Resisted" that price level then slap a line on it. Draw as few or as many lines as you feel helps you and your style. I tend to lean on the side of fewer. I typically do about 6 lines main support/resistances (3 of each).
Draw two Fibonacci Extensions. One on the daily timeframe, and then one on the 4hr time frame. Then you can trade the Fibonacci levels and use them for TP targets or entry zones if price action respects the level. Also you can use it along with support/resistance and pivots if they happen to line up or are very close.
I cannot really figure out how to put it into words how to draw a Fib if you dont know how. I will have to make a picture to demonstrate it. If your interested post below and I will draw one up and post a link. Probably the easiest way to understand. Just keep in mind the Fib you draw on the 4hr time frame will be inside the daily timeframe one.
The TradeVision2020 dashboard that I use just helps me keep a tab on the current market post plus any swing strength/momentum a currency might have on higher time frames. Helps me look for shifts in the market or confirmation that the bias it already has in momentum is continuing. I have found that often currencies when they get really/weak or strong might continue for several days or even longer like a full week or more. We recently had what felt like 1 week or so of flat out Yen weakness which was making some things wonky. All it does is allow me to look at the dashboard instead of a million other charts.
I use two that work well for my intra day style. The Stochastic RSI is just like a RSI but its faster. The second is the Relative Vigor Index which I use to detect swings in momentum and divergences in bullish/bearish momentum. I have used many others in the past, but as I have grown and got better as a trader I have found making my analysis simpler has improved my trading.I dont like the whole idea of have 43 different indicators on 32 different time frames light up a dashboard to be green for me to enter a trade. With how I do it now, I have a clear understanding of what I expect to happen and why. That way when it does happen I understand the move and dont get freaked out if the market moves funny after I am in the trade.
Conclusion I use the above tools/indicators/resources/philosophy's to trade intra day price action that sometimes ends up as noise in the grand scheme of the markets movement.use that method until the price action for the day proves the bias assumption wrong. Also you can couple that with things like Stoch RSI + Relative Vigor Index to find divergences which can increase the probability of your targeted guesses. Trade Example from Yesterday This is an example of a trade I took today and why I took it. I used the following core areas to make my trade decision.
Fundamental Bias: I already had a bullish fundamental outlook on EUUSD with expecting the markets to price in future similes due a higher an higher chance of Biden winning on paper as the election closed in and a "Blue wave" coming which would lead to a weaker dollar. Also, the Euro Zone is getting hammered with COVID pretty hard plus Brexit drama so I had a strong Euro bias.NOTE: As frame of reference, all the other pairs I trade I traded as if they were ranging and trade a range. Markets are messed up right now.
Currency Strength/Weakness: I use a tool that gives me a currency strength/weakness dashboard called TradeVision2020. Helps me track individual currency strength/weakness intra day. Took me about a month to get used to it, but helps me keep track of intra day strength/weakness that can add a bias to trade direction as the day unfolds. Like "Will this run have a 2nd or 3rd push higher" or "I should look to TP at the first sign of weakness in the push" type bias data. You still got to use your brain and figure out the best decision. It wont make choices for you, its only a guide.NOTE: I am not trying to adverse the tool (if providing the code is against sub rules let me know), its just a tool I use every day that helps me with directional bias calls. I am sharing the coupon code that was given to me when I found out about the tool in the TradingView forex chatroom and the guy gave me the code to use when I signed up. I dont want someone to read the name and want to try it out then overpay for no reason. The coupon will give you 40% off. Coupon Code: 3F7A0T5T
Higher Timeframe Analysis: Detected some early signs of Bearish Divergence on the 1hr chart using a on a higher time frame using a Stochastic RSI. Then I saw more confirmation on 5 min charts using Relative Vigor Index to help time my entry mid session.
Pivot Points: I treat pivot points like support/resistance and trade them as such using price action to give me some idea how its being treated by the market. Pretty straight forward.
It may seem like a lot of stuff to process on the fly while trying to figure out live price action but, for the fundamental bias for a pair should already baked in your mindset for any currency pair you trade. For the currency strength/weakness I stare at the dashboard 12-15 hours a day so I am always trying to keep a pulse on what's going or shifts so that's not really a factor when I want to enter as I would not look to enter if I felt the market was shifting against me. Then the higher timeframe analysis had already happened when I woke up, so it was a game of "Stare at the 5 min chart until the price does something interesting" Trade Example: Today , I went long EUUSD long bias when I first looked at the chart after waking up around 9-10pm Eastern. Fortunately, the first large drop had already happened so I had a easy baseline price movement to work with. I then used tool for currency strength/weakness monitoring, Pivot Points, and bearish divergence detected using Stochastic RSI and Relative Vigor Index. I first noticed Bearish Divergence on the 1hr time frame using the Stochastic RSI and got confirmation intra day on the 5 min time frame with the Relative Vigor Index. I ended up buying the second mini dip around midnight Eastern because it was already dancing along the pivot point that the price had been dancing along since the big drop below the pivot point and dipped below it and then shortly closed back above it. I put a stop loss below the first large dip. With a TP goal of the middle point pivot line Then I waited for confirmation or invalidation of my trade. I ended up getting confirmation with Bearish Divergence from the second large dip so I tightened up my stop to below that smaller drip and waited for the London open. Not only was it not a lower low, I could see the divergence with the Relative Vigor Index. It then ran into London and kept going with tons of momentum. Blew past my TP target so I let it run to see where the momentum stopped. Ended up TP'ing at the Pivot Point support/resistance above the middle pivot line. Random Note: The Asian session has its own unique price action characteristics that happen regularly enough that you can easily trade them when they happen with high degrees of success. It takes time to learn them all and confidently trade them as its happening. If you trade Asia you should learn to recognize them as they can fake you out if you do not understand what's going on. TL;DR At the end of the day there is no magic solution that just works. You have to find out what works for you and then what people say works for them. Test it out and see if it works for you or if you can adapt it to work for you. If it does not work or your just not interested then ignore it. At the end of the day, you have to use your brain to make correct trading decisions. Blindly following indicators may work sometimes in certain market conditions, but trading with information you don't understand can burn you just as easily as help you. Its like playing with fire. So, get out there and grind it out. It will either click or it wont. Not everyone has the mindset or is capable of changing to be a successful trader. Trading is gambling, you do all this work to get a edge on the house. Trading without the edge or an edge you understand how to use will only leave your broker happy in the end.
Biweekly Trading Update #3: Trading without Indicators
Over the weekend my trading strategy changed drastically. At first I decided to let indicators completely rule my trading strategy; however, I quickly ran into issues with that ideology. My trading turned into gambling, and could easily be replicated by a simple program. To combat this issue I pushed back-testing indicators from the prior weekend to after I solidify my technical, sentimental, and fundamental analysis. I started learning Naked Forex, order flow analysis, and price action analysis over the weekend, and have started practicing them during the weekday. Although my win percentage is fairly low, I found that my analysis is getting stronger with each trade I take. My first trade was on the 30 min EUUSD chart. I saw that the market was entering an ascending triangle and started to expect a bullish breakout. I looked at the market sentiment on fxdaily, and saw that most of the market was bearish. I assumed that the bearish presence in the market were the retail traders, and assumed that the market would move in the opposite direction of their expectations. I used order flow analysis to find the momentum and projection of the market, and ended up placing a buy stop in order to catch the market on the expected breakout. One thing I did not factor was multiple time frame analysis. I did not see that the market had entered a channel, and that I placed a trade when it had hit the resistance level. The price reached my buy stop, but proceeded to drop until it hit my stop loss. As I went back to analyze my technical analysis, I found that I misread the order flow. I also realized that there were many parts of technical analysis that I didn't factor in, such as multiple time frame analysis, major support/resistance levels, and Fibonacci levels. I also decided to take more precaution when looking at the market sentiment, and try back-testing that data before basing another trade off of it. Although this trade was a loser, I still learned a great deal from it, and feel like I benefited more than my previous trades. The chart analysis was tough to begin, but progressively got easier as I looked for more and more trades. For the time being I decided to stick with the EUUSD, and exclusively look for repeating market behavior and reactions in order to strengthen my market sense and improve my technical analysis before I start back-testing and using indicators. I also have started to pay more attention to candlestick patterns and their link to trend behavior. Overall I believe that improving my technical analysis is a step in the right direction for my trading journey. I finally feel like i'm trading with my own mind rather than being overly reliant on the indicators on my chart.
Profitable forex strategy: it is a type of instruction for the trader, which helps to follow a clearly verified algorithm and safeguard his deposit from emotional errors and consequences of the unpredictability of the Forex currency market.
Thanks to her, you will always know the answer to the question: how to act in certain market conditions. You have the conditions of opening a transaction, the conditions of its closing, likewise, you do not guess if it is time or not. You do what the trading strategy tells you. This does not mean that it cannot be changed. A healthy trading scheme in the forex market must be constantly adjusted, it must comply with the realities of current market trends, but there must be no unfounded arguments in it. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
Profitable Forex Strategy Reddit
Types of trading strategies The forms of a trading strategy can combine a variety of methods. However, several of the most commonly used options can be highlighted.
Trading strategy based on various complementary technical indicators
Trading strategy using Bollinger Bands
Moving Average Strategy
Technical figures and patterns
Trading with Fibonacci levels
Candlestick trading strategy
Trend trading strategy
Flat trading strategy
Fundamental analysis as the basis of the strategy
Three most profitable Forex strategies
Important!These strategies are the basis for building your own trading system.Indicator settings and recommended pending order levels are for consultation only.If you do not get a satisfactory outcome in the test result or in a live account, that does not mean that the problem is the strategy.It is enough to choose individual parameters of indicators under a separate asset and under the current market situation.
1. “Bali” scalping strategy
This strategy is one of the most popular, at least its description can be found on many websites. However, the recommendations will be different. According to the author's idea, "Bali" refers to scalping tactics, as it facilitates a fairly short stop loss (SL) and take profit (TP). However, the recommended time frame is high, because the signals appear not very often. The authors recommend using the H1 interval and the EUR / USD currency pair. Indicators used:
Linear Weighted Moving Average. Period 48 (red line).
Important!Note that the indicators for the “Bali” strategy are chosen in such a way as to ultimately give an early signal.This gives the trader time to confirm the signal and check the fundamentals.
MA is one of the basics on MT4, the other two indicators can be found in the archive for free here. To add them to the platform, click on MT4: "File / Open data directory". In the folder that opens, follow the following path: MQL4 / Indicators. Copy the flags to the folder and restart the platform. Also Read: Make Money With Trading Conditions to open a long position:
Price penetrates the orange Trend Envelopes line from the bottom up. At the same time in the same candle there is a change of the orange line that falls to a growing celestial.
The candle is above LWMA. Once the above condition has been met, we wait for the candle to appear above the moving one. It is important that it closes above the LWMA red line. It is mandatory to have a Skyline Trend Envelopes on a signal candle.
The additional DSS of momentum line on the signal candle is green and is above the dotted line of the signal (that is, it crosses or crosses it).
We open a trade at the close of the signal candle. The recommended stop level is 20-25 points in 4-digit quotes, take profit at 40-50 points. https://preview.redd.it/t48d55s8faw51.jpg?width=1000&format=pjpg&auto=webp&s=1e93863745e74dec536178539817225767cbeb1c The arrow indicates a signal candle where a Trend Envelopes color change occurred. Note (purple ovals) that the blue line is below the orange line and goes upwards (in other cases the signal should be ignored). In the signal candle, the green DSS of momentum line is above the dotted line. Conditions to open a short position:
Price penetrates the Trend Envelopes sky line from top to bottom. At the same time in the same candle there is a change from the increasing celestial line to the falling orange.
The candle is below LWMA. Once the above condition has been met, we wait for the candle to appear below the mobile. It is important that it closes below the LWMA red line. It is mandatory to have an orange Trend Envelopes line on a signal candle.
The additional DSS of momentum line on the signal candle is orange and is below the dotted line of the signal (i.e. crosses or crosses it).
This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement, what went up quickly, sooner or later must fall. To trade you will only need a schedule on any platform and W1 time frame (although the daily interval can be used).
The bearish candle, which signifies last week's movement, has a relatively large body.
Open a long position early next week. Make sure to place a stop loss at 100-140 points and a take profit at 50-70 points. When it is midweek, close the order if it has not yet been closed at take profit or stop loss. After that, wait again for the beginning of the week and repeat the procedure, in any case do not open operations at the end of the current week. https://preview.redd.it/vuihnqspfaw51.jpg?width=1000&format=pjpg&auto=webp&s=7641e9d7701911cc255c4f0c8a53e1660c35c9fe On this chart it is clearly seen that after each large bearish candle there is necessarily a bullish candle (although smaller). The only question is what period to take where it makes sense to compare the relative length of the candles. Here everything is individual for each currency pair. Note that a rising candle was observed followed by a few small bearish candles. But when it comes to minimizing risks, it is best not to open a long response position, as the relatively small decline from the previous week may continue. Conditions to open a short position:
The bullish candle, which signifies last week's movement, has a relatively large body.
We open a short position early next week. https://preview.redd.it/tv4zmf5ufaw51.jpg?width=1000&format=pjpg&auto=webp&s=61cd1dcfc4aebfa6f80343b6c51f7a6e46358602 The red arrows point to the candles that had a large body around the previous bullish candles. Almost all signals turned out to be profitable, except for the transactions indicated by a blue arrow. The shortcomings of the strategy are rare signs, albeit with a high probability of profit. The best thing is that it can be used in several pairs at the same time. This strategy has an interesting modification based on similar logic. Investors with little capital opt for intraday strategies, as their money is insufficient to exert radical pressure on the market. Therefore, if there is a strong move on the weekly chart, this may indicate a cluster of large strong traders. In other words, if there are three weekly candles in one direction, it is most likely the fourth. Here you also have to take into account the psychological factor, 4 candles is equal to one month, and those who "push" the market in one direction, within a month will begin to set profits. Strategy principle:
A "three candles" pattern (ascending and descending) formed on the weekly chart.
It is preferable that each subsequent candle was larger than the previous one. Doji is not taken into account (disembodied candles).
Stop is placed at the closing level of the first candle of the constructed formation. Take profit at 50-100% of the last candle, but it is often better to manually close the trade.
This strategy is universal and is usually given as an example for novice traders. It uses classic EMA (Exponential Moving Average) indicators for MT4 and Parabolic SAR, which acts as a confirmatory indicator. The strategy is trend. Most sources suggest using it in "minutes", but price noise reduces its efficiency. It is better to use M15-M30 intervals. Currency pairs - Any, but you may need to adjust the indicator settings. Indicators used:
EMA with periods 5, 25 and 50. EMA (5) in red, EMA (25) and EMA (50) in yellow. Apply to Close (closing price).
Red EMA (5) crosses the yellows from bottom to top.
Parabolic SAR is located under the sails.
Conditions to open a short position:
Red EMA (5) crosses the yellows from top to bottom.
Parabolic SAR is located above the candles.
The transaction can be opened on the same candle where the mobile crossover occurred. Stop loss at the local minimum, take profit at 20-25 points. But with the manual management of transactions you can extract great benefits. For example, close at the time of the transition from EMA (5) to a horizontal position (change of the angle of inclination of the growth to flat). https://preview.redd.it/4un92jlegaw51.jpg?width=1000&format=pjpg&auto=webp&s=406a700c00722349622d031e20d0858e4196d18b This screen shows that all three signals (two long and one short) were effective. It would be possible to enter the market on the candle by following the signal (in order to accurately verify the direction of the trend), but you would then miss the right time to enter. It is up to you to decide whether it is worth the risk. For one-hour intervals, these parameters hardly work, so be sure to check the performance of the indicators for each period of time in a minimum span of three years. And now that you know the theory, a few words about how to put these strategies into practice. Ready? Then let's get started!
From the theory to the practice
Step 1. Open demo account It's free, requires no deposit, takes up to 15 minutes, and no verification required. On the main page of your broker there is for sures a button "Register", click and follow the instructions. An account can also be opened from other menus (for example, from the top menu, from the commercial conditions of the account, etc.). Step 2. Familiarize yourself with the functionality of the Personal Area. It won't take long. It is at the most user friendly and intuitive. You just need to understand the instruments of the platform and understand how the trades are opened. Step 3. Launch the trading platform. The Personal Area has the platform incorporated, but it is impossible to add templates. Hence, the "Bali" and "Parabolic Profit" strategies can only be executed on MT4.
Characteristics of an effective Forex strategy Reddit
And finally, let's see what makes a profitable Forex strategy effective. What properties should it have? Perhaps three of the most important characteristics can be pointed out.
The minimum number of lag indicators. The smaller they are, the greater the forecast accuracy.
Easy. Understanding your strategy is more important than your saturation with complex elements, formulas, and schematics.
Uniqueness. Any trading strategy must be "tailored" to your trading style, your character, your circumstances, and so on.
It is very important to develop your own trading strategy, but it is necessary to test a large number of already available and proven strategies. On the Forex blog you will find trading strategies available for download. Before using a live account, test your chosen strategy on the demo account on the MetaTrader trading platform. Conclusion. To successfully trade the Forex currency market, create your own trading strategy. Learn what's new, learn out-of-the-box trading schemes, and improve your individual action plan in the market. Only in this case, the trading results will satisfy you to the fullest. Success, dear readers! >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE Join the community for more articles on trading and making money on the Forex and Stock market. ------------------------------------------------ ------------------------------------------------ Disclosure: This post contains affiliate links, if you click and make a purchase I may receive a commission - This has NO extra cost for you.
Disclaimer: None of this is financial advice. I have no idea what I'm doing. Please do your own research or you will certainly lose money. I'm not a statistician, data scientist, well-seasoned trader, or anything else that would qualify me to make statements such as the below with any weight behind them. Take them for the incoherent ramblings that they are. TL;DR at the bottom for those not interested in the details. This is a bit of a novel, sorry about that. It was mostly for getting my own thoughts organized, but if even one person reads the whole thing I will feel incredibly accomplished.
For those of you not familiar, please see the various threads on this trading system here. I can't take credit for this system, all glory goes to ParallaxFX! I wanted to see how effective this system was at H1 for a couple of reasons: 1) My current broker is TD Ameritrade - their Forex minimum is a mini lot, and I don't feel comfortable enough yet with the risk to trade mini lots on the higher timeframes(i.e. wider pip swings) that ParallaxFX's system uses, so I wanted to see if I could scale it down. 2) I'm fairly impatient, so I don't like to wait days and days with my capital tied up just to see if a trade is going to win or lose. This does mean it requires more active attention since you are checking for setups once an hour instead of once a day or every 4-6 hours, but the upside is that you trade more often this way so you end up winning or losing faster and moving onto the next trade. Spread does eat more of the trade this way, but I'll cover this in my data below - it ends up not being a problem. I looked at data from 6/11 to 7/3 on all pairs with a reasonable spread(pairs listed at bottom above the TL;DR). So this represents about 3-4 weeks' worth of trading. I used mark(mid) price charts. Spreadsheet link is below for anyone that's interested.
I'm pretty much using ParallaxFX's system textbook, but since there are a few options in his writeups, I'll include all the discretionary points here:
I'm using the stop entry version - so I wait for the price to trade beyond the confirmation candle(in the direction of my trade) before entering. I don't have any data to support this decision, but I've always preferred this method over retracement-limit entries. Maybe I just like the feeling of a higher winrate even though there can be greater R:R using a limit entry. Variety is the spice of life.
I put my stop loss right at the opposite edge of the confirmation candle. NOT at the edge of the 2-candle pattern that makes up the system. I'll get into this more below - not enough trades are saved to justify the wider stops. (Wider stop means less $ per pip won, assuming you still only risk 1%).
All my profit/loss statistics are based on a 1% risk per trade. Because 1 is real easy to multiply.
There are definitely some questionable trades in here, but I tried to make it as mechanical as possible for evaluation purposes. They do fit the definitions of the system, which is why I included them. You could probably improve the winrate by being more discretionary about your trades by looking at support/resistance or other techniques.
I didn't use MBB much for either entering trades, or as support/resistance indicators. Again, trying to be pretty mechanical here just for data collection purposes. Plus, we all make bad trading decisions now and then, so let's call it even.
As stated in the title, this is for H1 only. These results may very well not play out for other time frames - who knows, it may not even work on H1 starting this Monday. Forex is an unpredictable place.
I collected data to show efficacy of taking profit at three different levels: -61.8%, -100% and -161.8% fib levels described in the system using the passive trade management method(set it and forget it). I'll have more below about moving up stops and taking off portions of a position.
And now for the fun. Results!
Total Trades: 241
TP at -61.8%: 177 out of 241: 73.44%
TP at -100%: 156 out of 241: 64.73%
TP at -161.8%: 121 out of 241: 50.20%
Adjusted Proft % (takes spread into account):
TP at -61.8%: 5.22%
TP at -100%: 23.55%
TP at -161.8%: 29.14%
As you can see, a higher target ended up with higher profit despite a much lower winrate. This is partially just how things work out with profit targets in general, but there's an additional point to consider in our case: the spread. Since we are trading on a lower timeframe, there is less overall price movement and thus the spread takes up a much larger percentage of the trade than it would if you were trading H4, Daily or Weekly charts. You can see exactly how much it accounts for each trade in my spreadsheet if you're interested. TDA does not have the best spreads, so you could probably improve these results with another broker. EDIT: I grabbed typical spreads from other brokers, and turns out while TDA is pretty competitive on majors, their minors/crosses are awful! IG beats them by 20-40% and Oanda beats them 30-60%! Using IG spreads for calculations increased profits considerably (another 5% on top) and Oanda spreads increased profits massively (another 15%!). Definitely going to be considering another broker than TDA for this strategy. Plus that'll allow me to trade micro-lots, so I can be more granular(and thus accurate) with my position sizing and compounding.
A Note on Spread
As you can see in the data, there were scenarios where the spread was 80% of the overall size of the trade(the size of the confirmation candle that you draw your fibonacci retracements over), which would obviously cut heavily into your profits. Removing any trades where the spread is more than 50% of the trade width improved profits slightly without removing many trades, but this is almost certainly just coincidence on a small sample size. Going below 40% and even down to 30% starts to cut out a lot of trades for the less-common pairs, but doesn't actually change overall profits at all(~1% either way). However, digging all the way down to 25% starts to really make some movement. Profit at the -161.8% TP level jumps up to 37.94% if you filter out anything with a spread that is more than 25% of the trade width! And this even keeps the sample size fairly large at 187 total trades. You can get your profits all the way up to 48.43% at the -161.8% TP level if you filter all the way down to only trades where spread is less than 15% of the trade width, however your sample size gets much smaller at that point(108 trades) so I'm not sure I would trust that as being accurate in the long term. Overall based on this data, I'm going to only take trades where the spread is less than 25% of the trade width. This may bias my trades more towards the majors, which would mean a lot more correlated trades as well(more on correlation below), but I think it is a reasonable precaution regardless.
Time of Day
Time of day had an interesting effect on trades. In a totally predictable fashion, a vast majority of setups occurred during the London and New York sessions: 5am-12pm Eastern. However, there was one outlier where there were many setups on the 11PM bar - and the winrate was about the same as the big hours in the London session. No idea why this hour in particular - anyone have any insight? That's smack in the middle of the Tokyo/Sydney overlap, not at the open or close of either. On many of the hour slices I have a feeling I'm just dealing with small number statistics here since I didn't have a lot of data when breaking it down by individual hours. But here it is anyway - for all TP levels, these three things showed up(all in Eastern time):
7pm-4am: Fewer setups, but winrate high.
5am-6am: Lots of setups, but but winrate low.
12pm-3pm Medium number of setups, but winrate low.
I don't have any reason to think these timeframes would maintain this behavior over the long term. They're almost certainly meaningless. EDIT: When you de-dup highly correlated trades, the number of trades in these timeframes really drops, so from this data there is no reason to think these timeframes would be any different than any others in terms of winrate. That being said, these time frames work out for me pretty well because I typically sleep 12am-7am Eastern time. So I automatically avoid the 5am-6am timeframe, and I'm awake for the majority of this system's setups.
Moving stops up to breakeven
This section goes against everything I know and have ever heard about trade management. Please someone find something wrong with my data. I'd love for someone to check my formulas, but I realize that's a pretty insane time commitment to ask of a bunch of strangers. Anyways. What I found was that for these trades moving stops up...basically at all...actually reduced the overall profitability. One of the data points I collected while charting was where the price retraced back to after hitting a certain milestone. i.e. once the price hit the -61.8% profit level, how far back did it retrace before hitting the -100% profit level(if at all)? And same goes for the -100% profit level - how far back did it retrace before hitting the -161.8% profit level(if at all)? Well, some complex excel formulas later and here's what the results appear to be. Emphasis on appears because I honestly don't believe it. I must have done something wrong here, but I've gone over it a hundred times and I can't find anything out of place.
Moving SL up to 0% when the price hits -61.8%, TP at -100%
Adjusted Proft % (takes spread into account): 5.36%
Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%
Adjusted Proft % (takes spread into account): -1.01% (yes, a net loss)
Now, you might think exactly what I did when looking at these numbers: oof, the spread killed us there right? Because even when you move your SL to 0%, you still end up paying the spread, so it's not truly "breakeven". And because we are trading on a lower timeframe, the spread can be pretty hefty right? Well even when I manually modified the data so that the spread wasn't subtracted(i.e. "Breakeven" was truly +/- 0), things don't look a whole lot better, and still way worse than the passive trade management method of leaving your stops in place and letting it run. And that isn't even a realistic scenario because to adjust out the spread you'd have to move your stoploss inside the candle edge by at least the spread amount, meaning it would almost certainly be triggered more often than in the data I collected(which was purely based on the fib levels and mark price). Regardless, here are the numbers for that scenario:
Moving SL up to 0% when the price hits -61.8%, TP at -100%
Winrate(breakeven doesn't count as a win): 46.4%
Adjusted Proft % (takes spread into account): 17.97%
Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%
Winrate(breakeven doesn't count as a win): 65.97%
Adjusted Proft % (takes spread into account): 11.60%
From a literal standpoint, what I see behind this behavior is that 44 of the 69 breakeven trades(65%!) ended up being profitable to -100% after retracing deeply(but not to the original SL level), which greatly helped offset the purely losing trades better than the partial profit taken at -61.8%. And 36 went all the way back to -161.8% after a deep retracement without hitting the original SL. Anyone have any insight into this? Is this a problem with just not enough data? It seems like enough trades that a pattern should emerge, but again I'm no expert. I also briefly looked at moving stops to other lower levels (78.6%, 61.8%, 50%, 38.2%, 23.6%), but that didn't improve things any. No hard data to share as I only took a quick look - and I still might have done something wrong overall. The data is there to infer other strategies if anyone would like to dig in deep(more explanation on the spreadsheet below). I didn't do other combinations because the formulas got pretty complicated and I had already answered all the questions I was looking to answer.
2-Candle vs Confirmation Candle Stops
Another interesting point is that the original system has the SL level(for stop entries) just at the outer edge of the 2-candle pattern that makes up the system. Out of pure laziness, I set up my stops just based on the confirmation candle. And as it turns out, that is much a much better way to go about it. Of the 60 purely losing trades, only 9 of them(15%) would go on to be winners with stops on the 2-candle formation. Certainly not enough to justify the extra loss and/or reduced profits you are exposing yourself to in every single other trade by setting a wider SL. Oddly, in every single scenario where the wider stop did save the trade, it ended up going all the way to the -161.8% profit level. Still, not nearly worth it.
As I've said many times now, I'm really not qualified to be doing an analysis like this. This section in particular. Looking at shared currency among the pairs traded, 74 of the trades are correlated. Quite a large group, but it makes sense considering the sort of moves we're looking for with this system. This means you are opening yourself up to more risk if you were to trade on every signal since you are technically trading with the same underlying sentiment on each different pair. For example, GBP/USD and AUD/USD moving together almost certainly means it's due to USD moving both pairs, rather than GBP and AUD both moving the same size and direction coincidentally at the same time. So if you were to trade both signals, you would very likely win or lose both trades - meaning you are actually risking double what you'd normally risk(unless you halve both positions which can be a good option, and is discussed in ParallaxFX's posts and in various other places that go over pair correlation. I won't go into detail about those strategies here). Interestingly though, 17 of those apparently correlated trades ended up with different wins/losses. Also, looking only at trades that were correlated, winrate is 83%/70%/55% (for the three TP levels). Does this give some indication that the same signal on multiple pairs means the signal is stronger? That there's some strong underlying sentiment driving it? Or is it just a matter of too small a sample size? The winrate isn't really much higher than the overall winrates, so that makes me doubt it is statistically significant. One more funny tidbit: EUCAD netted the lowest overall winrate: 30% to even the -61.8% TP level on 10 trades. Seems like that is just a coincidence and not enough data, but dang that's a sucky losing streak. EDIT: WOW I spent some time removing correlated trades manually and it changed the results quite a bit. Some thoughts on this below the results. These numbers also include the other "What I will trade" filters. I added a new worksheet to my data to show what I ended up picking.
Total Trades: 75
TP at -61.8%: 84.00%
TP at -100%: 73.33%
TP at -161.8%: 60.00%
Moving SL up to 0% when the price hits -61.8%, TP at -100%: 53.33%
Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%: 53.33% (yes, oddly the exact same winrate. but different trades/profits)
Adjusted Proft % (takes spread into account):
TP at -61.8%: 18.13%
TP at -100%: 26.20%
TP at -161.8%: 34.01%
Moving SL up to 0% when the price hits -61.8%, TP at -100%: 19.20%
Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%: 17.29%
To do this, I removed correlated trades - typically by choosing those whose spread had a lower % of the trade width since that's objective and something I can see ahead of time. Obviously I'd like to only keep the winning trades, but I won't know that during the trade. This did reduce the overall sample size down to a level that I wouldn't otherwise consider to be big enough, but since the results are generally consistent with the overall dataset, I'm not going to worry about it too much. I may also use more discretionary methods(support/resistance, quality of indecision/confirmation candles, news/sentiment for the pairs involved, etc) to filter out correlated trades in the future. But as I've said before I'm going for a pretty mechanical system. This brought the 3 TP levels and even the breakeven strategies much closer together in overall profit. It muted the profit from the high R:R strategies and boosted the profit from the low R:R strategies. This tells me pair correlation was skewing my data quite a bit, so I'm glad I dug in a little deeper. Fortunately my original conclusion to use the -161.8 TP level with static stops is still the winner by a good bit, so it doesn't end up changing my actions. There were a few times where MANY (6-8) correlated pairs all came up at the same time, so it'd be a crapshoot to an extent. And the data showed this - often then won/lost together, but sometimes they did not. As an arbitrary rule, the more correlations, the more trades I did end up taking(and thus risking). For example if there were 3-5 correlations, I might take the 2 "best" trades given my criteria above. 5+ setups and I might take the best 3 trades, even if the pairs are somewhat correlated. I have no true data to back this up, but to illustrate using one example: if AUD/JPY, AUD/USD, CAD/JPY, USD/CAD all set up at the same time (as they did, along with a few other pairs on 6/19/20 9:00 AM), can you really say that those are all the same underlying movement? There are correlations between the different correlations, and trying to filter for that seems rough. Although maybe this is a known thing, I'm still pretty green to Forex - someone please enlighten me if so! I might have to look into this more statistically, but it would be pretty complex to analyze quantitatively, so for now I'm going with my gut and just taking a few of the "best" trades out of the handful. Overall, I'm really glad I went further on this. The boosting of the B/E strategies makes me trust my calculations on those more since they aren't so far from the passive management like they were with the raw data, and that really had me wondering what I did wrong.
What I will trade
Putting all this together, I am going to attempt to trade the following(demo for a bit to make sure I have the hang of it, then for keeps):
"System Details" I described above.
TP at -161.8%
Static SL at opposite side of confirmation candle - I won't move stops up to breakeven.
Trade only 7am-11am and 4pm-11pm signals.
Nothing where spread is more than 25% of trade width.
Looking at the data for these rules, test results are:
Adjusted Proft % (takes spread into account): 47.43%
I'll be sure to let everyone know how it goes!
Other Technical Details
ATR is only slightly elevated in this date range from historical levels, so this should fairly closely represent reality even after the COVID volatility leaves the scalpers sad and alone.
The sample size is much too small for anything really meaningful when you slice by hour or pair. I wasn't particularly looking to test a specific pair here - just the system overall as if you were going to trade it on all pairs with a reasonable spread.
Here's the spreadsheet for anyone that'd like it. (EDIT: Updated some of the setups from the last few days that have fully played out now. I also noticed a few typos, but nothing major that would change the overall outcomes. Regardless, I am currently reviewing every trade to ensure they are accurate.UPDATE: Finally all done. Very few corrections, no change to results.) I have some explanatory notes below to help everyone else understand the spiraled labyrinth of a mind that put the spreadsheet together.
I'm on the East Coast in the US, so the timestamps are Eastern time.
Time stamp is from the confirmation candle, not the indecision candle. So 7am would mean the indecision candle was 6:00-6:59 and the confirmation candle is 7:00-7:59 and you'd put in your order at 8:00.
I found a couple AM/PM typos as I was reviewing the data, so let me know if a trade doesn't make sense and I'll correct it.
Insanely detailed spreadsheet notes
For you real nerds out there. Here's an explanation of what each column means:
Pair - duh
Date/Time - Eastern time, confirmation candle as stated above
Win to -61.8%? - whether the trade made it to the -61.8% TP level before it hit the original SL.
Win to -100%? - whether the trade made it to the -100% TP level before it hit the original SL.
Win to -161.8%? - whether the trade made it to the -161.8% TP level before it hit the original SL.
Retracement level between -61.8% and -100% - how deep the price retraced after hitting -61.8%, but before hitting -100%. Be careful to look for the negative signs, it's easy to mix them up. Using the fib% levels defined in ParallaxFX's original thread. A plain hyphen "-" means it did not retrace, but rather went straight through -61.8% to -100%. Positive 100 means it hit the original SL.
Retracement level between -100% and -161.8% - how deep the price retraced after hitting -100%, but before hitting -161.8%. Be careful to look for the negative signs, it's easy to mix them up. Using the fib% levels defined in ParallaxFX's original thread. A plain hyphen "-" means it did not retrace, but rather went straight through -100% to -161.8%. Positive 100 means it hit the original SL.
Trade Width(Pips) - the size of the confirmation candle, and thus the "width" of your trade on which to determine position size, draw fib levels, etc.
Loser saved by 2 candle stop? - for all losing trades, whether or not the 2-candle stop loss would have saved the trade and how far it ended up getting if so. "No" means it didn't save it, N/A means it wasn't a losing trade so it's not relevant.
Spread(ThinkorSwim) - these are typical spreads for these pairs on ToS.
Spread % of Width - How big is the spread compared to the trade width? Not used in any calculations, but interesting nonetheless.
True Risk(Trade Width + Spread) - I set my SL at the opposite side of the confirmation candle knowing that I'm actually exposing myself to slightly more risk because of the spread(stop order = market order when submitted, so you pay the spread). So this tells you how many pips you are actually risking despite the Trade Width. I prefer this over setting the stop inside from the edge of the candle because some pairs have a wide spread that would mess with the system overall. But also many, many of these trades retraced very nearly to the edge of the confirmation candle, before ending up nicely profitable. If you keep your risk per trade at 1%, you're talking a true risk of, at most, 1.25% (in worst-case scenarios with the spread being 25% of the trade width as I am going with above).
Win or Loss in %(1% risk) including spread TP -61.8% - not going to go into huge detail, see the spreadsheet for calculations if you want. But, in a nutshell, if the trade was a win to 61.8%, it returns a positive # based on 61.8% of the trade width, minus the spread. Otherwise, it returns the True Risk as a negative. Both normalized to the 1% risk you started with.
Win or Loss in %(1% risk) including spread TP -100% - same as the last, but 100% of Trade Width.
Win or Loss in %(1% risk) including spread TP -161.8% - same as the last, but 161.8% of Trade Width.
Win or Loss in %(1% risk) including spread TP -100%, and move SL to breakeven at 61.8% - uses the retracement level columns to calculate profit/loss the same as the last few columns, but assuming you moved SL to 0% fib level after price hit -61.8%. Then full TP at 100%.
Win or Loss in %(1% risk) including spread take off half of position at -61.8%, move SL to breakeven, TP 100% - uses the retracement level columns to calculate profit/loss the same as the last few columns, but assuming you took of half the position and moved SL to 0% fib level after price hit -61.8%. Then TP the remaining half at 100%.
Overall Growth(-161.8% TP, 1% Risk) - pretty straightforward. Assuming you risked 1% on each trade, what the overall growth level would be chronologically(spreadsheet is sorted by date).
Based on the reasonable rules I discovered in this backtest:
Date range: 6/11-7/3
Adjusted Proft % (takes spread into account): 47.43%
Demo Trading Results
Since this post, I started demo trading this system assuming a 5k capital base and risking ~1% per trade. I've added the details to my spreadsheet for anyone interested. The results are pretty similar to the backtest when you consider real-life conditions/timing are a bit different. I missed some trades due to life(work, out of the house, etc), so that brought my total # of trades and thus overall profit down, but the winrate is nearly identical. I also closed a few trades early due to various reasons(not liking the price action, seeing support/resistance emerge, etc). A quick note is that TD's paper trade system fills at the mid price for both stop and limit orders, so I had to subtract the spread from the raw trade values to get the true profit/loss amount for each trade. I'm heading out of town next week, then after that it'll be time to take this sucker live!
Date range: 7/9-7/30
Adjusted Proft % (takes spread into account): 20.73%
Starting Balance: $5,000
Ending Balance: $6,036.51
Live Trading Results
I started live-trading this system on 8/10, and almost immediately had a string of losses much longer than either my backtest or demo period. Murphy's law huh? Anyways, that has me spooked so I'm doing a longer backtest before I start risking more real money. It's going to take me a little while due to the volume of trades, but I'll likely make a new post once I feel comfortable with that and start live trading again.
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/ Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information. Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail. What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this. The List Of Ingredients & Why We Use These Particular Ingredients *I will have an image at the end of the post showing a textbook long and short setup* Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BBhelp contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB. Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data. Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade. *MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
Short off the UBB (Here we want to see Stochastics overbought and crossing down. Bearish divergence is even better)
Long off the LBB (Here we want to see Stochastics oversold and crossing up. Bullish divergence is even better)
Long/Short off the Middle Bollinger Band (Here if you are looking for a short trade off the MBB you ideally want Stochs overbought. Vice versa for a long trade. NOTE: Often when taking trades off the MBB, Stochs WON'T go overbought/oversold. Because this doesn't happen often, I don't let it stop me from taking trades off the MBB.)
Due to popular demand I've decided to bring this series back for a week 2 and I'll continue to release 3-5 trading ideas every Saturday. How do you guys feel about the name of this series? Would you like me to change the name to something like "Setup Saturdays" or are you guys cool with the current naming scheme? So this week I wanted to be a lot more in depth in my analysis and setups since I didn't think I was super clear last week with my reasoning on some the setups. I want these posts to be as beginner friendly as possible because there's a lot more beginners in this Subreddit than I had realized. I want you to use this as an educational tool and not as a signal service as a result I'm going to give you possible trade setups and I want you to be the judge of whether you should enter once/if price gets to that point since I feel like that will benefit beginners in the long run. I got a couple questions about top down time frame analysis so that'll be a focus of today's post. Scroll down to NZDJPY if you really want an in-depth look at how I perform top down time frame analysis. I'll include a picture of a chart and my TradingView chart so if you want to zoom in and out of the chart you'll have that ability to do so. Quick Disclaimer: Some of the charts pricing might be off by a bit since I started working on this during the New York session on Friday. If any of the charts are impacted in a way that alters the setup I'll be sure to update the charts before I post this on Saturday. Just gotta hope that hope that Powell doesn't break the market or else I might have to redo this entire post. AUDUSD: AUDUSD Daily TradingView Link For Daily: https://www.tradingview.com/chart/AUDUSD/Wb5K2bS8-AUDUSD-Daily-For-Reddit-Post-6-20-U-AD3133/ Analysis: Which way is the trend pointing? It looks like it's pointing up which we can see with the green trend line but how about we zoom in to the 4 hour char to see if that's actually the case. Tip: When drawing a trend line, especially on the daily and higher time frames, remember to hit as many wicks as possible since they are relevant and not just some anomaly you can ignore. AUDUSD 4 Hour TradingView Link For 4 Hour: https://www.tradingview.com/chart/AUDUSD/aah8294z-AUDUSD-4-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: When we got close to where we are with price and we draw a Fibonacci Retracement from the point where price took off to the point where price peaked we can see that price came down to .5 Fibonacci level where it then started going up again. Coincidence? Possibly. As a result I believe that price could continue higher and it would be justified if it did. However, if we look at the trend lines we can see that price appears to have broke put of of our major trend line (Green) which means that price could fall to the downside if it's actually a breakout. Price then appears like it would then adhere to the new minor trend line (Red). There's also the possibility that this was just a fake breakout and price could go up and adhere to green trend line. I'm going to have a selling bias on this trade since price looks like it double topped at the highs of this year and it looks like we could see price fall. I'm leaning towards the drop of price due to the symmetrical triangle pattern created by the major and minor trend line and looks like price is going to get pushed down which we should get an idea of soon. Tip: Every time price makes a large move and falls/rises after making a peak/valley always pull out the Fibonacci retracement tool to see if price will bounce from the .382, .5, or .618 levels as they are the most significant levels. This can tell you if you're going to likely get a trend continuation. AUDUSD 1 Hour TradingView Link For 1 Hour: https://www.tradingview.com/chart/AUDUSD/IHgrnfYs-AUDUSD-1-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: I drew out multiple different scenarios which I think can play out since like I said before we're not trying to predict a single movement but we're preparing to be reactive to an ideal condition which may be thrown at us. Remember that major trend line we drew in on the daily chart well it's going to play a large role here. This trend line has been in the making since March so we're not just going to brush it off. The trend line appears to have been broken and we seem to be sticking that minor trend line after the break of the symmetrical triangle pattern. After the break of the symmetrical triangle pattern price usually gets pushed heavily to one side and it looks like price is wanting to get pushed to the downside. As a result, I'm going to really keep on eyes on scenario the blue arrows display since I think it's the most probable. Looking at the scenario there are going to be two potentially good entry points for a sell. The first being when price goes up to retest the green trend line which would also serve as a bounce from our red trend line. Once we get that bounce we could enter in for a sell with a take profit hopefully somewhere around the .66 area. Another good entry would be when price breaks the zone of support of .68 and after it retests it. Wait for a confirmation candlestick pattern showing price will fall when retesting (i.e. railroad track, bullish engulfment candle, evening star, shooting star, etc.). Look for these candlestick patterns on the 15 minute chart. Once you got the confirmation take the sell and ride price down to the .66 zone. The other scenario that could occur is we could see price go back into the green trend line by breaking the red trend line (Orange Arrows). If this occurs we want to catch the retest bounce of the red trend line and ride price up to the high of the year which is at .702. At that point price could break the resistance at which point we could catch the retest of the zone and ride price up. Or it could go up to .702 create a triple top and fall. If you get a candlestick confirmation saying it'll fall then take a sell at the high of the year. NZDUSD: If there's something I really like in Forex it's definitely got to be harmonic patterns due to their high accuracy. NZDUSD just recently completed one of them and this is a really good indicator of what price is going to do. NZDUSD Daily TradingView Chart For Daily: https://www.tradingview.com/chart/NZDUSD/zQpHzUcK-NZDUSD-Daily-For-Reddit-Post-6-20-U-AD3133/ Analysis: Yes, we have trend line that says that price is going up however I make exceptions for Harmonic patterns since they are accurate about 80%-90% of the time. The pattern you see above is know as a Bearish Bat Pattern. Like the name says it's an indicator that price is going to go Bearish so although the trend line is going up I'm going to have a bearish bias on this trade. NZDUSD 4 Hour TradingView Chart For 4 Hour: https://www.tradingview.com/chart/NZDUSD/C29kpCyO-NZDUSD-4-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: Not really much to add here just tossed on a Fibonacci retracement tool from where price took off to the peak just to check for any potential support from any of the major levels which we don't appear to have. We'll go a lot more in-depth on this pair on the 1 hour chart since that's where things get interesting. NZDUSD 1 Hour TradingView Link For 1 Hour: https://www.tradingview.com/chart/NZDUSD/dKJatcM7-NZDUSD-1-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: Looking at price we can see that since June 11th price has been trading in a boxed consolidation range. Again I drew out the possibilities I believe could be ideal for us. Remember that I said Harmonics work 80%-90%. Well that means that they fail 10%-20% of the time which is definitely not something we can neglect. We can see that there's a descending triangle which price is reaching the end of. This means that price is getting ready to move to one direction since big moves always come after consolidation. If it moves to upside wait for price to close above the the spot marked D then you can enter for a buy and ride price up to the .67525 zone where price could break to upside or bounce back down (Orange Arrow). Remember to wait for it to actually close above point D since it could create a triple top and drive price back down. It's the same procedure as AUDUSD here if it makes this move where if it breaks it then catch the retest and if it looks like it's wanting to fall down wait for a confirmation pattern. If it breaks the box to the downside and breaks the support zone then take a sell and ride price down to the trend line at which point you should close the trade as there's a chance price could move against you and it's best to secure profits while you can. Once at the trend line it could bounce and if it does you should be able to ride price up to that .67525 zone (Green Arrow). If price breaks the trend line then wait for the retest and you should be able to ride price down pretty far (Red Arrows). I think you should be able to ride it down to .5918 zone but you'll have to keep your on it. EURNZD: EURNZD Daily TradingView Link For Daily:https://www.tradingview.com/chart/EURNZD/jzgmGcRe-EURNZD-Daily-For-Reddit-Post-6-20-U-AD3133/ Analysis: Well we got a pretty clear descending channel and price looks like it's at the top part of the channel currently so we're going to want to look for some optimal selling conditions due to the down trend. EURNZD 4 Hour TradingView Link For 4 Hour:https://www.tradingview.com/chart/EURNZD/YzOpvcH7-EURNZD-4-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: Looking at the 4 hour chart we can see that there appears to be a symmetrical triangle coming to it's end meaning price is getting ready to get pushed to a side. I believe it'll break the triangle and fall to the downside so once you see it break it would be a good idea to take a sell and ride price down to that support zone at 1.7187. Price could also briefly break to the upside then bounce off the top of the channel and it does take a trade from the bounce and ride price down to the same support zone. At that point, I'll leave it up to you to determine how you think price will go and what you should be looking for. Consider it to be a little quiz if you want to think of it like that. You've got my charts so use them as a reference since I've already marked some crucial support/resistance zones which we should keep our on for the next couple weeks. EURNZD 1 Hour TradingView Link For 1 Hour:https://www.tradingview.com/chart/EURNZD/ICWvgEsg-EURNZD-1-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: There's nothing that special on the one hour chart that I have to point out since I think we pretty much got all the big stuff out of the way on our analysis of the 4 hour chart. Be sure to get a good sell in there since there are two potentially good setups which I've outlined for you. Also be sure to be careful and wait for the bounce of the channel if price goes that way since there's a chance price could break the channel and I don't want you to take a loss because you were impatient. NZDJPY: This pair is going to be really fun since we're going to be looking through a lot of time frames so if you really want to learn about a top down approach to analyzing time frames and trends then pay very close attention to how I break down this trade. NZDJPY Monthly TradingView Link For Monthly:https://www.tradingview.com/chart/NZDJPY/jZh4F2Jv-NZDJPY-Monthly-For-Reddit-Post-6-20-U-AD3133/ Analysis: Yes, we're actually going to be looking at the monthly chart. I bet you guys don't do that very often. Looking at it we can see that price has been following a clear down trend line since late 2014. If you look at the wick of this month's candle you can see that it appears to have touched the trend line meaning we could see a good opportunity to catch a sell since it had just recently bounced off. Let's take a look at lower time frames to see if this continues to be true. NZDJPY Weekly TradingView Link For Weekly:https://www.tradingview.com/chart/NZDJPY/dpvI29BB-NZDJPY-Weekly-For-Reddit-Post-6-20-U-AD3133/ Analysis: When zooming into the weekly we can see that using the wicks of the candles we can actually draw a channel for the low portion that runs pretty much in parallel to the trend line we drew on the monthly chart. We can see that price clearly bounced from the trend line and I think this gives us good reason to believe in the coming weeks we could see the price drop. Also looking at the Bollinger Bands we can see that price also bounced from the top band which also supports a drop of price. Let's go into the daily to see if we can get a better idea. NZDJPY Daily TradingView Link For Daily:https://www.tradingview.com/chart/NZDJPY/NbWLURkU-NZDJPY-Daily-For-Reddit-Post-6-20-U-AD3133/ Analysis: Looking at the daily time frame we can see that price is currently consolidated and remember big moves always come after consolidation. If you look closely however you can see that price looks like it's about to break the 200 day EMA (Orange line). If it breaks the EMA we could see price drop pretty far at an accelerated rate. Besides those couple observations there's not much else going on with the daily chart. NZDJPY 4 Hour TradingView Link For 4 Hour:https://www.tradingview.com/chart/NZDJPY/d1kaogH5-NZDJPY-4-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: Would you look at that, it looks like we got a descending triangle on the 4 hour chart which looks like it's coming to an end. Looking at price it looks like it's wanting to push to the downside. Once you get a break below the lows of the day of June 11th I think it would be a safe bet to take a sell trade and ride it down for 66.825 for this week. If it breaks the 66.825 support zone then I'll definitely take a sell and try to ride price down to the bottom of the channel which we drew on the weekly chart. There's also the possibility that price could take support at any of these support zones and then head back up to test the top of the channel. At which point I'll be looking to get into a sell at the top of the channel but I won't ride price up to the channel since at this current point in time I feel like there's a large amount of risk in that. NZDJPY 1 Hour TradingView Link For 1 Hour:https://www.tradingview.com/chart/NZDJPY/83b47mFS-NZDJPY-1-Hour-For-Reddit-Post-6-20-U-AD3133/ Analysis: Not much more to add here since I think by this point we got the entire story so I'm not going to say much more about the 1 hour chart since I think the analysis for the 4 hour chart also sums this up pretty well. Well that was a lot of information to go through and I hope you found some value in this since it took me quite a few hours to put this together for you guys. Truth be told, I spent most of Friday working on this so I hope at least one person finds some value in which case I'll consider it a win. So you guys tired of me yet or do you want me to continue this series for a week 3? It takes a lot of time and effort to put this together so I'll only do it if people want it or else I'll pretty much feel like I wasted my time. I might put together a little lesson on how to use the COT in order to catch some big reversal moves in the market since the COT pretty much tells you what the hedge funds are doing and you also want to trade with the hedge funds and institutions. It'll probably take a couple weeks since I'll have to compile some data together and wait for a setup before putting that out but I'll be working on it. Are there any other things you may want explained? Let me know and I'll try to find setups which contain the topic you may want more details on. I hope you have a great trading week!
Trading Update: exited FET for 1.5% loss, into MVIS
I'm not quite sure what the best method is of letting you guys know what I'm doing with my trades. I try to be transparent (I posted about me exiting the FET trade this morning) but I also want you guys to be able to make your own informed decisions. Maybe at the end of the trading day, I can do a recap and then show you what I'm looking for tomorrow. Here's mine from today: Overview for FET. This cypher pattern formed. I entered at $0.3580, not great entry but I was confident after seeing that little white reversal candle, second from the right, yesterday. Then today happened and I wasn't convinced while watching the price action and level two data. Just not much buy side pressure. I sold for really small loss this morning. Ideally today should've been a bullish daily candle, the start of that move up, but it just wasn't. https://preview.redd.it/mn05wq0r8sz41.png?width=1828&format=png&auto=webp&s=62303d393d66a9a139dc8d4321eab489a6eb6f0e Then this happened today: https://preview.redd.it/i135hwa0asz41.png?width=1828&format=png&auto=webp&s=39372d64753ea7caee1cd02fdc2288fdff36c91f Smaller timeframe for FET: This is called a head and shoulders pattern. I haven't seen it in a while but saw it when it formed. The target downwards is from the top of the head to the neckline. It just wasn't a good day for FET so I dipped. No worries on a 1.5% loss. It could go back up, but I trade off the charts and this one wasn't looking great today. So far we can consider my $0.5976 prediction a failure unless we see some strong bullish momentum tomorrow. And I got into MVIS: https://preview.redd.it/gnaycg42bsz41.png?width=1828&format=png&auto=webp&s=7bafe1b9ca6104f883f6bf7b4c243090a979ce71 That daily candle looks strong. It closed above the wick of the previous candle. The next resistance is the red line as a daily level of resistance, which you can also see that the price has already pierced it previously. https://preview.redd.it/lpr7kcp9csz41.png?width=1828&format=png&auto=webp&s=8a0c1f1cf299f4e222d72f5119cbc48ad2f27415 15min chart. The first arrow, the price failed in the pennant pattern, but rebounded nicely in the afternoon. This is what caught my attention. I love fibonacci trading, so on the smaller blue arrow, I saw it bounce off a fib level and the fifteen minute candle that closed as bullish engulfing, I bought. Then it formed the rest of the pennant. Admittedly, this week I've been struggling with entries. I think this being my first week with webull is part of that, but maybe I'm just a retarded trader lol. I set my stop loss and take profits when I bought, and I've learned to never change those levels after I set them. It sucks but things can become way worse once you start moving your stop loss lower and lower. It is technically underneath a level of daily support, so that's good I guess. MVIS hit my previous target of $1.0346 (weekly resistance) today. If MVIS has downwards momentum and starts to break the $0.9513 level, that would be a bad sign. Although it did fail that pattern this morning and rebound nicely afternoon, so I'll assess things if that happens and might enter another trade here. Risk is standard 5% of my account So that's what I'm doing. Currently 0/1 this week in penny stocks, but I made 5% in forex from betting on usd strength against jpy. So I'm still feeling good. Sorry there isn't a great way to notify my 1,000 followers about what I'm doing immediately. I hope this helps. Cheers!
Hey everyone, My name is Allen and I am new to Forex trading. I've messed around with trading stocks a year ago, but never got good enough to profitability yet. Now, I want to learn how to trade Forex and hoping I can become profitable through consistency and persistence. I recently opened a live account and have made 7 trades: 2 wins, 4 losses. I have been trading small and have followed my stop losses so my losses have been small. I am down net -$35 currently. Here are a few of my trades. If anyone has feedback or sees a pattern in my trading that I can improve on, please let me know. I mainly execute trades off when market taps a resistance/support level or EMA line. Things that I think I need to improve on: 1) Identifying correct market trend - Ex) sometimes I have trouble figuring out if market is pulling back on a downtrend or starting to create a higher low and reversing 2) Identifying proper entry signals - I am still working on interpreting price action. I usually enter trades on 15min chart or 1 hour chart. I may need to stop using 15min chart because I get faked out easily from it. One thing I've been implementing and it has helped my patience is waiting for candles to close before assuming market trend. Such as waiting for 15min candle or 1hour candle to close before entering a trade. Here are some examples of my trades: 1) NZD/USD (Loss) Entry: short 0.65313 Exit: 0.65394 Reason for entry: I thought the market was going to respect the green trend line. Stop loss was right above the trend line. I saw a wick on 15 min chart and a red engulfing candle following it. 1 hour chart ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2) USD/CHF (Loss) Entry: short 1.00876 Exit: 1.00942 Reason for entry: In the 1 hour chart, it broke it's uptrend structure by creating a lower low. It rejected off the .50 level of Fibonacci Retracement, which signaled me that it is possibly going to continue downtrending. Both, 4hour and 1 hour charts were under the 34EMA (orange trend line). 15 min chart ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3) EUNZD (Win) Entry: short 1.71027 Exit: 1.70674 | 1.70884 Reasons for entry: - Market went under key level (orange horizontal line) - Market was under 34EMA (yellow trend line) - Broke through support (white horizontal line) 15 min chart Where could I have gotten a better entry on this trade? I was negative for a long time until it finally broke the support. What will signal me if the market will be rejected off a resistance level or break through a resistance level? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4) NZD/USD (Win) Entry: 0.65426 Exit: 0.65335 | 0.65215 | 0.65188 Reasons for entry: - downward market trend - market rejected off 34EMA trendline (yellow trend line) - big red engulfing candle https://preview.redd.it/7u6fidd78h131.png?width=1560&format=png&auto=webp&s=701cf325906e056ec5b71544c5bc4895a0117c02 Lessons I learned from this trade: - Be more patient on my take profit. Took first profits out too quickly because it was dropping so quick and I was scared it would bounce back up - Find better entry - Similar to the previous trade, I was in the negative for a while before it worked out. Where would be a proper signal for a short? Long wick followed by a red engulfing candle at resistance level? Sorry for the long post! Hope you learned something from my mistakes and I would greatly appreciate any feedback you guys can give me! I believe forex trading can become the gateway to financial freedom for me and I want to do my best to make it work. I also live in Orange County, CA and wouldn't mind meeting anyone who is in the area to discuss strategies and learn from each other! Hope everyone has a great night!
Free professional level trading course (Videos hosted by myself / Altcoin Markets)
Hello everyone, I want to start by introducing myself. Introduction: I'm c0tt0nc4ndyTA and I'm a day trader that's had great success in this field for many years. My path was to be an Architect; I spent 9 years in university studying computer sciences for the first 6 years, and then my masters in architecture for the remaining. During my studies I fell in love with day trading, and quickly let the student in me consume any book I could get my hands on while going on a shopping spree of online courses. For years I refined my talents and switched my career direction to day-trading. I focus mainly on Crypto Currencies as the ethos of Libertarianism aligns with my beliefs. This would consciously allow me to day-trade as a career. My objective: I'm reaching out to communities to let them know I've started an online journey to train people for free. I want to take my years of knowledge and refinement to create a free course that give the new generation of traders a fighting chance at success, and the ability to learn the core mechanics of trading, which I believe function heavily in psychology and discipline. Why Free?: I have a real problem with the training industry in it's current state. I've spent many thousands of dollars on my journey to becoming a professional. I've seen literally hundreds of courses, ads, websites, people on social media, or marketing spots trying to take advantage of people by offering something along the lines of this: "I've taught thousands of people how to make millions of dollars and you can join my course for only $2,000" or " Want to be your own boss and make up to $2,500 a day? start here by taking my course and learning the best killer strategies for only $300.00 a month" The amount of "pay to learn how to trade" material out there is staggering, and it has become the new way to angle shoot people for profits. Almost sort of a new age form of scamming. The funny part is most of these paid for courses or materials are a very poor form of trading, some rehash of fib levels, regurgitated strategies that simply don't work, or some form of "enter at C for insane mad easy guaranteed profits". It's pure crap, and there's not enough real training out there. In my time I have seen close friends, many acquaintances online and in person, and strangers fall into this trap of spending over $25,000.00 at times on these materials that simply don't work. They then lose money after spending absorbent amounts of money trying to learn to become a professional trader. What do I expect?: Absolutely nothing. I do this to give people a fighting chance at learning institutional level trading. My content is 100% free, I devote a lot of my time every week to create a platform where people (beginners and advanced) can learn how to trade, and refine their skills. I upload three videos a week on youtube, I do live lessons in discord, I openly receive questions and feedback, and I post charts on trading view for people to get in on the same trades I'm already in on. I can't stress enough that this is free. There is no types of hidden memberships, paid bonuses, back-end dealings, pump and dumps of any kind, or anything even closely resembling me taking money for some type of service. The only thing I expectwant is for people to tune in and learn! Whose this for?: Everyone! It doesn't matter if you're a beginner, or an advanced trader. It doesn't matter if you trade the Forex, Crypto, Bonds, Derivatives, or other. This material will be applicable to you. I focus primarily on the crypto markets. A quick example, what will I learn?: Here's a quick overview of the lesson plan that I upload 3 videos a week for. Lesson 1: The FundamentalsLesson 2: Accumulation and distributionLesson 3: TargetsLesson 4: Levels (Supports and Resistances) Lesson 5: MomentumLesson 6: PatternsLesson 7: TrendsLesson 8: Time FramesLesson 9: Fibonacci ToolsLesson 10: Live Trade 1 ADVANCED LEVEL Lesson 11: Targets AdvancedLesson 12: Trend Starts and FinishesLesson 13: ExhaustionLesson 14: Advanced Support and ResistanceLesson 15: Advanced Levels Gained vs LostLesson 16: Advanced Levels 2 Touch, Rejection, Wicks, and ClosesLesson 17: Live Trade 2Lesson 18: Catching and Releasing falling knivesLesson 19: Day Trading as a CareerLesson 20: Entries and ExitsLesson 21: Moving AveragesLesson 22: Advanced Trends Valleys and PeaksLesson 23: Mechanical TradingLesson 24: Live Trade 3Lesson 25: Putting It All Together PROFESSIONAL Lesson 26: Level StrengthLesson 27: Dissecting The PsychologyLesson 28: Camouflaged LevelsLesson 29: The Disciplined TraderLesson 30: Planning The Trade To Perfection You can find me as listed below. The training course is hosted on YouTube. 🎓 Course Via YOUTUBEhttps://www.youtube.com/channel/UChULbX89jjbCEDhGn56_yuw 🎓 Trading View https://www.tradingview.comc0tt0nc4ndyTA/ 🎓 Twitter https://twitter.com/c0tt0nc4ndyTA 🎓 Discord Community https://discord.gg/4e2SjZe TLDR: I'm offering free training here https://www.youtube.com/channel/UChULbX89jjbCEDhGn56_yuwwhy? Because paying for materials is a scam.
Autistic "Super Powers"? I think my "super strength" comes from Austim, as well as all other mental and physical gifts I have, and find being autistic/asperger a true gift. This is not a joke, have a video to show it's true.
Hi all, I found I am Asperger some weeks ago, explain that at the end, and want to find other cases like me, or opinions about these gifts and Asperger. But, does any of you see Asperger Syndrome as a wonderful think like I do? I always loved to be who I am, and now I found that probably all the "gifts" I have come from Asperger Syndrome. One of them, I really want to know if it's related to Asperger, is "super strength", and would like to know if any of you aspies like me have also an abnormal physical strength. Here you'll see what I am physically capable of, without any training at the time, 5'11'' tall by 140lb bodyweight (body mass index of 19/20): https://www.youtube.com/watch?v=3zuabvEjcdQ I found this when watching Stan Lee Superhumans, I decided to imitate and noticed I could do those things, roll frying pans, bend horseshoes, etc. Other physical characteristics: - No Cold - I don't feel cold in my country, have tried to be some hours at the snow (below 0ºC or below 30 Farenheit), use just a tshirt the entire year even near 0ºC and below heavy rain and with fog, and dropping water from my clothes, I can feel the weather is colder, but doesn't affect me or give me pain, or something (correct me if I'm wrong, but I think this can relate to pain tolerance as an autistic characteristic); - Never Get Sick - Even being at the rain, with 0ºC I never get a cold, etc; - Pain Tolerance - Have bent (have it in video) a St. Croix 2 horseshoe barehanded the first time I've tried it, heart and paperclip shape (think it's an autistic trait sometimes also); - Hyper sensitivity to light (but see very well at dark and love to be like this); - Hyper sensitivity to sounds (hear very well, but seem deaf while in shoppings because of the noise); - Can be the entire day without eating or drinking and even carrying heavy weights at night without getting weak; - Etc; Psycologically (sorry about my English) it was always great: - I'm a self-taught polymath, learn everything very fast, start computer programming as a child, created softwares, freewares, developing now a C++ 2D game engine, developed mechanical trading systems, one of them gave 19,000% profit in Forex in 3 years, created new statistical and math formulas, wrote ebooks teaching how to invest, in my country, created successful websites, and teams to manage them, etc; - Done lots of jobs, system administrator and software developer both in the biggest IT companies in my country, done also as electronics, trading, banking, consulting, etc (liked to try new things), but only did 12 years on school didn't want to go to universities; - Can do the tests neuro-typical(or all?) people say that it's not possible to do, even wrote 2 different sentences, in 2 keyboards, on hand per keyboard, at the same time, while looking at a person talking to her at the same time (3 different things); - My motor skills are (in my point of view) perfect for me, even done skateboarding tricks that only Rodney Mullen from US would be able to do at that time, like "shove-it 180 to late underkick-flip 360", etc; - Tried arts, on my first day with a synthesizer, created several musics without ever having learned how to play, it's like I was already born knowing how to play. Example of first tries: https://www.youtube.com/watch?v=gWE0vUWAHEI&index=2&list=PLswCft9xAHt9AAf81r1odbyMzsx-220dI&t=0s Or slow ones: https://www.youtube.com/watch?v=6Q_Yfy0SA-k&index=5&list=PLswCft9xAHt9AAf81r1odbyMzsx-220dI&t=0s On the first two weeks created several and then stopped. - For one month I painted in soft pastels and also drawn in carbon, and made photo realitic drawings of people's faces, did some cool paintings also. I've read Music is like Mathematics, but paintings? - Studied several areas, and keep thinking some geniuses were sometimes dumb, like Einstein is a genius and I have the upmost respect for him, but in my point of view we can never reach a TEO with Time because Time doesn't exist, it's an abstract concept we use objectively, Space isn't mixed with Time, I think several things Hawking said are plain stupid, I don't agree with super string theory, M theory, etc, and I could be the one wrong anyway, but I always strangely never considered these geniuses's theories like, bullet-proof theories, while everybody does. Like I probably have too much self-confidence. But Time doesn't exist anyway lol. - Memory - Remember the most incredible things from my past like if it were videos, from 40 years ago, including sounds, smells, etc. - Ageing - People say I look a lot younger, I'm 40-43 at the videos (is this a trait?). Well, I don't know how to explain, but whatever I try to do I always was able to learn quickly and do well or it seemed (like in arts) that I was already born knowing, not sure how. So I always thought it was born with me, in my genes but didn't know how. Some weeks ago I found some hidden papers from my mother, from 1977-1981 when I was 2 to 6 years old, saying I was autistic, I didn't talk, I had pendular motions, etc. I was amazed, it was my name that was there, because I felt always the smarted guy in my schools, although I never studied and had an average of only 14/20, because I didn't care, but to see that, saying I couldn't speak well, didn't want to speak, etc, was strange to me. At that time, in my country, a child was considered mentally retarded when autistic, or else, a normal child. So my mother refused to accept I was autistic and put me into school and my doctor approved because he believed I could adapt. And I didn't. I've done some asperger tests some weeks ago, and noticed I was asperger, and had a friend psychiatric doctor confirm it to me. From 32 to 40 on the regular tests, still exibit 9 to 11 of the 14 autistic traits that are in some papers, etc. But nobody ever noticed that in my, I don't have anything visible, just being called eccentric, sometimes being caught with 2 hands in the air imagining stuff (like in the movie Aviator), used the same equal clothes everyday (black), ate the same food 5 years everyday (because I don't like to cook haha vegan raw food was quicker), used just the same spoon and fork and knife to eat, walk in mathematical patterns in the street (fibonacci, etc), notice car plates all the time, like to be alone, don't like people to touch me, love to see water flowing, am always spinning pens in my hand, very distracted (I thought I just had ADHD because I give positive on those tests), but it was strange how I could program 10 hours in a row without stopping, like a machine, very quickly, etc, etc (people call it being in "the zone" in computer programming). I mean, I knew I was different but didn't know why. When I found I was asperger, everything made sense, even why I sometimes didn't understand why people are so sensitive to some stupid words and sentences and consider me insensitive sometimes or rude. But I like being like this, don't want to change, I'm not rude, but I'm now a very sensitive guy to human things anyway, just to animals (I'm an ethical vegan). My friend told me that my mind compensated (I don't know my IQ I just know it's a lot higher than the limit they had at the tests they gave me at the time, I've done everything well and well before time and never wanted to know, I feel it's irrelevant), and it made me have no bad traits. I even eliminated the Obsessive Compulsive Disorder I had, nowadays I just walk in patterns but I like it, it's like a game. He says I just have nowadays what I can't remove, what my mind can't correct, which is the distraction, the not understanding why people is so sensitive to some things, not having the will to be with friends often, etc. Some years ago (3/4) I read that not looking people on the eyes was a weak trait (on job interviews) so I practiced it and now can be 1 minute or more looking someone in the eyes, don't like it but got used to it. And over-think things, get obsessed to find answers, routines, using equal clothes, etc. But all cool things, nothing that I consider bad. But I can make friends, I can talk in the stage in front of 1000 persons, I've gone to the tv, I can make conversation with strangers and be friends, I can always guess who have the fake smiles on photo tests, I can recognize emotions (although sometimes when distracted or furious I forget that and even had 2 persons crying with things I said, unintentionally). My friend said my mind probably compensated that and I learned how to identify emotions and fake smiles, etc, artificially, and now I don't know it's artificially because I didn't try to learn intentionally. So probably I learned that throughout life. So basically, it's like I just had left the cool things, that don't affect my life much. And I consider them like "super powers", I know this seems stupid, but that's how I feel, and love to have these traits. I say "don't affect my life much" because one girlfriend in 2009 stopped walking when talking to me, and when I noticed and turned back she was like 15 meters from me furious that I didn't listen to her. Anyway, I see Asperger as the source of all these gifts I have, physically and mentally. I even think that above peak human performance strength can be also a rare trait from autism. Da Vinci had it, not only me! Because people said I looked like da vinci for being a polymath but I said "No, I can bend steel bars with my hands!" but then I found Da Vinci had an abnormal strength, was asperger, and could bend horseshoes with his hands also! So I even created a video in English (terribly spoken though): https://www.youtube.com/watch?v=Jy0K4UvVOo4 To try to convince other oldtime strongmen to do the asperger tests, because if I found more than 1% of aspergers in steel benders/oldtime strongmen, like 10%, 20%, I could statistically prove something. And I bet several of them are as I now recognize their behaviours as typical aspergers. But they don't want to answer it, maybe they are afraid of admiting or knowing, some seems to be for other reasons (believing other things). So, does any of you have an abnormal strength also? Is there any study that related strength and aspergers? And do any of you think of asperger syndrome / austism like a source of "super powers"? I would like to have your opinions on this. Sorry for my terrible English I've written this in a few minutes, and I'm Portuguese. But I really want to find out if are there other cases like me, that moved from a (severe?) autistic child (or maybe just autistic? not even know as I don't have more papers from that time, just found 2), to a kind of "borderline" aspie like me. I'm not sure if I can be considered "borderline" because I have 9 or 11 from the 14 general autistic traits, rate 32-40 on the regular basic tests, and others also high. Although on the empathy tests I have usually 20 or higher, not below (above 30 seems to be the typical). But as I love to be who I am and can do whatever I want, make friends (just don't like to be with them all the time or feel the need to), etc, I consider myself a "borderline" aspie, I was a much more severe case in my childhood, took 2 years in the primary school just to adapt my teacher was great, never went to special schools. I consider myself a borderline aspie (ignoring test results) because I don't have "clumsiness", read people's faces, predict human behaviour well, can manipulate people, read fake smiles, use and abuse of sarcasm and irony (although I think some stuff people think it's funny is not funny at all anyway), etc. Am I a "borderline" aspie for this, or with all my traits a regular aspie but learned to appear "borderline"? Anyway I would like to know if there are cases here like me, and that think being asperger is a gift (or source of gifts), and specially if are there very strong aspergers, I need to prove to myself that there is a link between autism and "super strength". Can anyone tell me something about the Da Vinci - Asperger - Super Strength connection? Am I being crazy? Are there kinesiologists, or psychiatric doctors focused on Aspergers that could study this? I would gladly allow some studies like D.R. has done in Stan Lee Superhumans, if this could help us learn more about Autism. Thanks! Sorry for writting too much, I can't write few words. And thank your help in advance.
Hello, new traders. Here are a few words from my four and a half years of experience.
Hey! I’m a full time currency and cryptocurrency trader, I need to point out a few major fallacies and misconceptions I frequently see in this community and others. First up. If it’s your first year trading expect to fail. Actually, if there was a contract I could buy that’d pay me out if you ended up liquidating your account in the next 12 months, I’d literally bet on your failure. You need to immediately reduce your trading account to 1/10th of its original size for your first year of trading. Seriously, do it. You are betting that you can outperform billions of dollars of institutional order flow, typically with basic patterns or default setting indicators with no experience. Which brings me to my next point. Your strategy is not your identity, stop treating what you use to trade as dogma. That indicator or pattern you’re using, can you tell me why it works? Not HOW to use it, but what fundamental paradigm it uses to accurately predict future price action. There are legitimate answers, but trying to use your indicators/patterns without understanding why is like driving across the country without knowing how to open or what’s inside the hood or your car. Sure, you’re going to get pretty far, but eventually it’ll break down and you won’t have a clue what to do, stranded and starving in the middle of the desert. Chances are, while you were reading this you came up with one of three answers in your head as to why your indicatopattern works. Let me guess. “Everyone else uses it, it’s made me money so far, it’s natures law (for you Fibonacci folks,) or it’s a proven standard.” All of those are appeal to authority fallacies. For instance.... How does a compass work? Are the answers “well everybody else uses compasses” or “compasses are a proven standard” WHY a compass works? If you don’t know how a compass works and you’re lost, you aren’t going to know what variables will stop the compass from working. You might be in the Southern Hemisphere, that’d lead you in the exact opposite direction, but you wouldn’t know it because you DON’T KNOW WHY it works. Then die of starvation shortly after because you didn’t understand a tool paramount to your survival and couldn’t find your way back to civilization. If you’re lost in the ocean of institutional investors, AT LEAST understand why your tools work. For instance, why does divergence work? You probably know that divergence represents a reversal. Divergence doesn’t form because of “price” or “its losing momentum,” divergence forms because an oscillator defines a data set that expands and contracts based on the activity in the period lookback you define for it. When you have an expanding data set, it requires increasingly drastic moves to register the same “extreme” values. If you have a tight data set and you have a huge outlier, the data set widens to compensate with every candle close. So now that you have a wider data set, an equal move would register as a less extreme event as defined by the oscillator. That’s why divergence forms/works. Seriously, it’s worth learning these things. Unless you can explain why something works like I just did with divergence you shouldn’t EVER use it in your arsenal. Then if you do take the time to learn the “why,” you’ll start realizing that a lot of the commonly accepted tools are fundamentally broken. For instance, with your new understanding of divergence, think about overbought or oversold signals. Why would a new outlier of a data set imply a return to the center of the data set if the data set is in an active state of expansion, CAUSED by the outlier? Now if you’re relying on an appeal to authority fallacy for understanding, could it be that the authority that presented the information doesn’t have your best interest at heart? Breakout patterns for example. If you have a bull flag, and you’re betting on bullish trend continuation, I’ll take a wild guess about where you put your stop loss. Oh, below the bull flag? Large players know this and will scoop up your stops before pushing price up. How often have you said, “wow, I was right but I stopped out just before trend continuation!” The “golden standard” of technical analysis is only so to make the masses of retail traders a predictable herd of cattle. Also, stay away from entirely subjective strategies that will always appear correct in hindsight. Oh, how many times have you redrawn that Elliot wave extension to match what happened instead of what you predicted? Don’t you dare bring up the Fibonacci to justify your subjective drawings either. Fibonacci doesn’t work because “it’s natures law” or the “golden rule,” it just happens to be very similar to the first standard deviation of any price move. So why are you using a static reading to predict a dynamic value that changes with every candle close? For TA that actually works (if you use it correctly,) I can recommend ichimoku, though only on macro timeframes and requires a lot of reading to use properly. Mark Whistler’s books on volatility are my biggest recommendation to learn. Any strategy using WAVE PM and 3D WAVE PM are ideal, treating price strictly as reactionary, multiperiod probability distributions gives an excellent “why” in the chaos of the markets. The compression and expansion cycles can be defined to the exact period on any timeframe with the right readings. I created a write up a while back going in depth on my findings on probability distributions here. https://www.reddit.com/Forex/comments/ah5bxo/lets_talk_about_the_basics_of_advanced_volatility/?utm_source=share&utm_medium=ios_app I also created a google doc over the years and filled it with a few resources I’ve used to learn, I can hand it out if you dm me. Finally, don’t forget to do your FA. Macro level economic indications are incredibly important for defining the long term alignment of expectations. However never trade the news, this is an important distinction. Don’t bet that the US dollar will go down because Trump made a stupid tweet, please. What you SHOULD do is measure the strength of the move and the EXPANSION caused by the FA and identify where the compression begins afterwards. For every period of expansion, there is a predictable compressionary range that follows that is equal to the expansion. For every action there’s an equal and opposite reaction. Instead of betting on the news, bet on the reaction after the news has cooled off. That’s all that immediately comes to mind. Feel free to ask any questions.
https://i.imgur.com/Bm4Nx7a.png The triangle phase of the Bitcoin market completed at the 24-JUL-2018 high. Since then, the third phase of market has been underway with an expectation of creating new lows for 2018 at sub $6,000 prices. Initial approx targets have been projected as follows (BITSTAMP):
@5920: Fibonacci 0.618% of wave-d low projected from wave-e high. @5220: Fibonacci 0.786% of wave-d low projected from wave-e high. @4327: Fibonacci 0.100% of wave-d low projected from wave-e high. @4200: Fibonacci 78.6% decline of entire Bitcoin market.
Any of the aforementioned approx price levels based on Fibonacci projections are potential targets of where the 2018 bear market may conclude. Should price retrace below the Fibonacci 78.6% of the entire Bitcoin market, i.e. below the psychological $4,000 level; it may suggest the bear market extends into 2019 with an expectation of a 90%-95% decline of the entire Bitcoin market to approx $1,000 by 2020. Such a scenario would be consistent with the collapse of other historical asset mania bubble bursts, which typically elapse 2 years on average: thebubblebubble.com/historic-crashes However, the Bitcoin market has reached an inflection point. The third phase of the bear market appears to have stagnated in price and time. Since 09-SEP-2018, price has traded in a narrow 10% range at an average price of $6,400 for almost 60 days thus far. Volatility is now at a 22-month low and technicals such as moving averages are flat-lining across daily timeframes. This behaviour has been quite unexpected. Since completion of the consolidating triangle phase of the market, volume and volatility was expected to breakout. Speculators and traders have left the stabilised cryptocurrency marketplace in favour of the more volatile global equity bear markets. An alternative scenario can now be considered: Since completion of the triangle at the 24-JUL-2018 high, the concluding phase of the bear market may have declined and truncated at the 11-OCT-2018 low. If so, a cyclical (i.e. short-term) bull market may be commencing within an overall secular (i.e. long-term) bear market. Such a bull market would be termed as a wave-X as part of a complex ongoing long-term bear market structure. https://i.imgur.com/vePkBiL.png In some schools of Elliott Wave thought, the wave-X bull market may unfold in five 1-2-3-4-5 impulsive waves; or, as three a-b-c corrective waves considered in other schools of thought. Either way, the size of a wave-X is challenging to predict. Typically, it may retrace either a Fibonacci 38.2%, 50%, 61.8% or 78.6% of the entire 2018 bear market; that is approx $11,081 or $12,720 or $14,360 or $16,705 respectively (BITSTAMP). In some cases, a wave-X may extend to, and even exceed prior all-time highs, like typically seen in commodity and forex markets. The wave-X cyclical bull market could be a swift parabolic move elapsing within 12 months during the course of 2019, and thus the overall secular bear market may still resume to unfold to a low in late 2020. In summary, the parameters of the inflection point can be currently defined as follows, using BITSTAMP prices… Bear Market Inflection Points —A break below the 11-OCT-2018 low of $6,055 would be the first indication to suggest the bear market is still underway. —A break below the 14-AUG-2018 low of $5,880 would confirm the ongoing bear market. —A break below $4,000 may suggest an extended bear market leading to a 90%-95% collapse of the entire Bitcoin market by 2020. Bull Market Inflection Points —A break above the 15-OCT-2018 high of $6,756 would be the first indication to suggest a bull market may be commencing. —A break above the 04-SEP-2018 high of $7,412 would likely confirm a bull market is underway. Notes —Bitcoin CBOE XBT futures expiries: 14-NOV-2018, 19-DEC-2018 —Bitcoin CME futures last trade dates: 30-NOV-2018, 28-DEC-2018 —Bitcoin ICE Bakkt daily futures tentative launch: 12-DEC-2018 —S&P500: global stockmarket indices appear to have topped, and a bear market is underway. Expectation is a rally into the end of year 2018 towards $2,800+ in the S&P500 index, followed by a decline to approx $2,400 by Easter 2019 to end the brief equity bear market. —Gold: rally underway, expectation to conclude at approx $1,260, and then bear market resumes to sub $1,000 by 2020. —US Dollar: expecting uptrend to be bounded by approx 98, and then bear market resumes. Elliott Wave models are speculative and indicative of price and structure, not time; i.e. the projections may occur sooner or later than anticipated. —BTC (Weekly): https://i.imgur.com/B0ftUHf.png —BTC (Daily): https://i.imgur.com/ljfMvlt.png —BTC (4-hr): https://i.imgur.com/Ip1QQTe.png
[educational] Technical analysis, patterns, and charts analysis for the day trader
Chart patterns form a key part of day trading. Candlestick and other charts produce frequent signals that cut through price action “noise”. The best patterns will be those that can form the backbone of a profitable day trading strategy, whether trading stocks, cryptocurrency of forex pairs. Every day you have to choose between hundreds of trading opportunities. This is a result of a wide range of factors influencing the market. Day trading patterns enable you to decipher the multitude of options and motivations – from hope of gain and fear of loss, to short-covering, stop-loss triggers, hedging, tax consequences and plenty more. Candlestick patterns help by painting a clear picture, and flagging up trading signals and signs of future price movements. Whilst it’s said you’ll need to use technical analysis to succeed day trading with candlestick and other patterns, it’s important to note utilizing them to your advantage is more of an art form than a rigid science. You have to learn the power of chart patterns and the theory that governs them in order to identify the best patterns to supplement your trading style and strategies.
Use In Day Trading
Used correctly trading patterns can add a powerful tool to your arsenal. This is because history has a habit of repeating itself and the financial markets are no exception. This repetition can help you identify opportunities and anticipate potential pitfalls. RSI, volume, plus support and resistance levels all aide your technical analysis when you’re trading. But crypto chart patterns play a crucial role in identifying breakouts and trend reversals. Mastering the art of reading these patterns will help you make smarter trades and bolster your profits, as highlighted in the highly regarded, ‘stock patterns for day trading’, by Barry Rudd.
Breakouts & Reversals
In the patterns and charts below you’ll see two recurring themes, breakouts and reversals.
Breakout – A breakout is simply when the price clears a specified critical level on your chart. This level could by any number of things, from a Fibonacci level, to support, resistance or trend lines.
Reversal – A reversal is simply a change in direction of a price trend. That change could be either positive or negative against the prevailing trend. You may also hear it called a ‘rally’, ‘correction’, or ‘trend reversal’.
Candlestick charts are a technical tool at your disposal. They consolidate data within given time frames into single bars. Not only are the patterns relatively straightforward to interpret, but trading with candle patterns can help you attain that competitive edge over the rest of the market. They first originated in the 18th century where they were used by Japanese rice traders. Since Steve Nison introduced them to the West with his 1991 book ‘Japanese Candlestick Charting Techniques’, their popularity has surged. Below is a break down of three of the most popular candlestick patterns used for day trading.
Shooting Star Candlestick
This is often one of the first you see when you open a chart with candlestick patterns. This bearish reversal candlestick suggests a peak. It is precisely the opposite of a hammer candle. It won’t form until at least three subsequent green candles have materialized. This will indicate an increase in price and demand. Usually, buyers lose their cool and clamber for the price to increasing highs before they realize they’ve overpaid. The upper shadow is usually twice the size of the body. This tells you the last frantic buyers have entered trading just as those that have turned a profit have off-loaded their positions. Short-sellers then usually force the price down to the close of the candle either near or below the open. This traps the late arrivals who pushed the price high. Panic often kicks in at this point as those late arrivals swiftly exit their positions. https://preview.redd.it/gf5dwjhbrdh31.png?width=300&format=png&auto=webp&s=437ff856bfd6ebc95da34528462ba224d964f01f
One of the most popular candlestick patterns for trading forex is the doji candlestick (doji signifies indecision). This reversal pattern is either bearish or bullish depending on the previous candles. It will have nearly, or the same open and closing price with long shadows. It may look like a cross, but it can have an extremely small body. You will often get an indicator as to which way the reversal will head from the previous candles. If you see previous candles are bullish, you can anticipate the next one near the underneath of the body low will trigger a short/sell signal when the doji lows break. You’ll then see trail stops above the doji highs. Alternatively, if the previous candles are bearish then the doji will probably form a bullish reversal. Above the candlestick high, long triggers usually form with a trail stop directly under the doji low. These candlestick patterns could be used for intraday trading with forex, stocks, cryptocurrencies and any number of other assets. But using candlestick patterns for trading interpretations requires experience, so practice on a demo account before you put real money on the line. https://preview.redd.it/4yo650lcrdh31.png?width=300&format=png&auto=webp&s=b2aa3cdeef23e44e1e3e3047bbe2604fce0a4768
This is a bullish reversal candlestick. You can use this candlestick to establish capitulation bottoms. These are then normally followed by a price bump, allowing you to enter a long position. The hammer candlestick forms at the end of a downtrend and suggests a near-term price bottom. The lower shadow is made by a new low in the downtrend pattern that then closes back near the open. The tail (lower shadow), must be a minimum of twice the size of the actual body. The tails are those that stopped out as shorts started to cover their positions and those looking for a bargain decided to feast. Volume can also help hammer home the candle. To be certain it is a hammer candle, check where the next candle closes. It must close above the hammer candle low. Trading with Japanese candlestick patterns has become increasingly popular in recent decades, as a result of the easy to glean and detailed information they provide. This makes them ideal for charts for beginners to get familiar with. https://preview.redd.it/7snzz8qdrdh31.png?width=300&format=png&auto=webp&s=f83ff82f0980dd30c33bc6886ae7e7ed3a98b72f
More Popular Day Trading Patterns
Using Price Action
Many strategies using simple price action patterns are mistakenly thought to be too basic to yield significant profits. Yet price action strategies are often straightforward to employ and effective, making them ideal for both beginners and experienced traders. Put simply, price action is how the price is likely to respond at certain levels of resistance or support. Using price action patterns from pdfs and charts will help you identify both swings and trendlines. Whether you’re day trading stocks or forex or crypto with price patterns, these easy to follow strategies can be applied across the board.
This empty zone tells you that the price action isn’t headed anywhere. There is no clear up or down trend, the market is at a standoff. If you want big profits, avoid the dead zone completely. No indicator will help you makes thousands of pips here.
The Red Zone
This is where things start to get a little interesting. Once you’re in the red zone the end goal is in sight, and that one hundred pip winner within reach. For example, if the price hits the red zone and continues to the upside, you might want to make a buy trade. It could be giving you higher highs and an indication that it will become an uptrend. This will be likely when the sellers take hold. If the price hits the red zone and continues to the downside, a sell trade may be on the cards. You’d have new lower lows and a suggestion that it will become a downtrend.
The End Zone
This is where the magic happens. With this strategy, you want to consistently get from the red zone to the end zone. Draw rectangles on your charts like the ones found in the example. Then only trade the zones. If you draw the red zones anywhere from 10-20 pips wide, you’ll have room for the price action to do its usual retracement before heading to the downside or upside.
Put simply, less retracement is proof the primary trend is robust and probably going to continue. Forget about coughing up on the numerous Fibonacci retracement levels. The main thing to remember is that you want the retracement to be less than 38.2%. This means even when today’s asset tests the previous swing, you’ll have a greater chance that the breakout will either hold or continue towards the direction of the primary trend. https://preview.redd.it/ey997b2irdh31.png?width=300&format=png&auto=webp&s=c938aac51e3b3bbf1f45a11c46f4ae3dfd1b6dd4 Trading with price patterns to hand enables you to try any of these strategies. Find the one that fits in with your individual trading style. Remember, you’ll often find the best trading chart patterns aren’t overly complex, instead they paint a clear picture using minimal indicators, reducing the likelihood of mistakes and distraction.
Consider Time Frames
When you start trading with your short term price patterns pdf to hand, it’s essential you also consider time frames in your calculations. In your market, you’ll find a number of time frames simultaneously co-existing. This means you can find conflicting trends within the particular asset your trading. Your stock could be in a primary downtrend whilst also being in an intermediate short-term uptrend. Many traders make the mistake of focusing on a specific time frame and ignoring the underlying influential primary trend. Usually, the longer the time frame the more reliable the signals. When you reduce your time frames you’ll be distracted by false moves and noise. Many traders download examples of short-term price patterns but overlook the underlying primary trend, do not make this mistake. You should trade-off 15-minute charts, but utilize 60-minute charts to define the primary trend and 5-minute charts to establish the short-term trend.
Our understanding of chart patterns has come along way since the initial 1932 work of Richard Schabacker in ‘Technical Analysis and Stock Market Profits’. Schabacker asserted then, ‘any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental…’ So whilst there is an abundance of patterns out there, remember accurate analysis and sustained practice is required to fully reap their benefits. The source : https://www.daytrading.com/patterns
Tips for Using the Minimum 88.6% Retracement with Fibonacci Pattern in Forex Trading When you seek the Fibonacci trading, there are 3 main patterns: 1. The usage of multiple setbacks and extensions for identifying price levels in different This strategy uses 1 hour and higher timeframe. It is applicable to any currency pairs. Forex Indicator: 1.-2-3- pattern. This is the formula: Target point D (profit Objective) and retracement point C cab be calculated by measuring the number of pips From poin A to point B and multiplyng by the factors below. If you had some orders either at the 38.2% or 50.0% levels, you would’ve made some mad pips on that trade. In these two examples, we see that price found some temporary forex support or resistance at Fibonacci retracement levels.. Because of all the people who use the Fibonacci tool, those levels become self-fulfilling support and resistance levels.. If enough market participants believe ... Fibonacci Sequence of Numbers; Forex Trading Tips; The History of Foreign Exchange; Introduction to Money Management; Trading Terms. Trading Terms A-E; Trading Terms F-P; Trading Terms Q-Z; Patterns. Harmonic Trading and Patterns; Identifying Chart Patterns; Elliott Wave Patterns; Trading Triangles (Three Triangle Formations) Choosing the Correct Timeframe to Trade; Candlestick Formations ... A bit of history of Fibonacci. Before we get in too much about what Fibonacci is, let’s first answer the question “who is Fibonacci?” Leonardo Pisano, or Leonardo Fibonacci as he is most widely known, was a European mathematician in the Middle Ages who wrote Liber Abaci (Book of Calculation) in 1202 AD. In this book he discussed a variety of topics including how to convert currencies and ... A Fibonacci strategy for day trading forex uses a series of numbers, ratios and patterns to establish entry and exit points. We’ll explain how to use Fibonacci retracement levels and extensions to identify support and resistance areas, plus profit taking targets. Also, we’ll consider what you need from a broker for Fibonacci forex trading, from formulas and analysis software to tutorial ... Combining Fibonacci Retracement with Japanese Candlesticks The Fibonacci retracement can be combined with several technical analysis indicators but it can also be combined with candlestick patterns.. When combining the Fibonacci retracement with Japanese patterns, the aim is to identify trend exhaustion (e xhaustive candlesticks). This exhaustion can occur either after a strong bullish/bearish ... Jetzt zum Testsieger XTB! CFD Service - 77% verlieren Geld. 6. Fehler beim Fibonacci-Trading vermeiden Fibonacci-Zahlen sind beim Trading leicht zu verwenden. Sie sind so populär, dass die meisten Forex-Broker die Chart-Analyse mit Fibonacci-Zahlen ermöglichen und zudem sind die Grundlagen leicht zu verstehen. 1.-2-3- pattern This is the formula:. Target point D (profit Objective) and retracement point C cab be calculated by measuring the number of pips From poin A to point B and multiplyng by the factors below.. For Fibonacci Retracement, left click on point A, drag the line to point B, then release the mouse.; For Extension left click on point B, hold and drag the line, to point A and release. Forex.Academy is a free news and research website, offering educational information to those who are interested in Forex trading. Forex Academy is among the trading communities’ largest online sources for news, reviews, and analysis on currencies, cryptocurrencies, commodities, metals, and indices.
Guide To Fibonacci Trading With Forex Strategy - YouTube
CLICK HERE FOR MORE INFO: https://rebrand.ly/forex33 And start earning in the Forex Market Now! In our expanding international company atmosphere, there are ... CONTACT: EMAIL 👉[email protected] MENTORSHIP 👉 www.trendtrading.academy INSTAGRAM: JayTakeProfits 👉 https://www.instagram.com/jaytakeprofits/ (... Forex Trading: Fibonacci Retracement Techniques http://www.financial-spread-betting.com/academy/fibonacci-retracements.html Fibonacci in Forex. PLEASE LIKE A... Learn how I identify Fibonacci Retracement levels to find high probability forex trades These are essential Forex trading strategies for forex traders and inves... Forex Trading - Gartley pattern tutorial ( live trading example ) - Duration: 16:52. The Trading Channel 208,751 views. 16:52 . The Ins and Outs of Fibonacci patterns, fans and retracement levels ... 👉Get the Mastering Price Action course: https://www.urbanforex.com/courses In this webinar, Navin will cover: What is Fibonacci? Why is this indicator so...