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Types of market days every trader should know aboutIf you find the analysis useful, please like and share our ideas with the community. Any feedback and suggestions would help in further improving the analysis! Technical analysis is largely impacted by some very important factors. One of those very important factors is the type of the market day. Analysing the type of the market day correctly can give a potential edge to any trader who is actively trading in either stocks, indexes, cryptocurrencies, forex, derivatives etc. Today, we will be discussing ‘6 different types of days’ we might witness across the market. Please note that these 6 days are significantly different from each other. These patterns are not sacrosanct, meaning they should only be used as a guiding factor and not the exact determiner for any particular trade. Types of market days: Trend day Double distribution trend day Typical day Expanded typical day Trading range day Sideways day ✔ Trend Day The ‘Trend day’ is usually an aggressive trading day with either a clear bullish or bearish momentum. On a bullish Trend day, the opening candle is usually the day’s low, and the market then gradually moves higher throughout the day. On a bearish trend day, the opening candle usually marks the day’s high and the market gradually declines throughout the day. The Trend day is usually preceded by a quiet day with range bound movements. If spotted correctly, gives the potential of a huge profit. Such trending days occur rarely, and might happen only a handful of times in a month. ✔ Double distribution trend day The ‘Double distribution trend day’ is a bit complex and a very reliable method for placing aggressive trades. That is why institutions and professional traders use this strategy to the fullest. It is usually characterized by the indecisive nature at the beginning of the session. On such a day, the market initially follows a tight range bound path. It is also known as an initial balance. The initial balance high, or IBH, and the initial balance low, or the IBL, form the reference points. The Double Distribution trend day begins on a calm note. Gradually the price breaks free of this range and trends towards a new value propelled by buyers or sellers. After the momentum has calmed down, the market forms another range-bound movement. This is where the term ‘Double Distribution trend day’ comes from, as the bulk of trading activity happens at either extremes. A narrow initial balance is easily broken whereas a wide initial balance is harder to break. ✔ Typical Day It is characterized by a sharp rally or decline early during the trading session. It could be as a result of any impactful macro-economic news. The market participants then push the price back in the opposite direction by taking counter positions. A wide range created within a very short span of time earlier during the trading session essentially causes the market to trade within this range later on. ✔ Expanded Typical Day It is similar to that of the previously discussed ‘Typical Day’. However, the initial price movement is not as volatile and therefore, the initial balance is not as wide as a ‘Typical Day’. This leaves the opportunity for the market participants to break this narrow range. Once this range is broken either by the influx of selling or buying pressure, the market then makes a strong move towards that particular direction. In this case, the initial balance is wider than a Double Distribution Trend Day but less wide than the ‘Typical Day.’ ✔ Trading Range Day Buyers and sellers are actively pushing the prices back and forth. Responsive buyers and sellers will attempt to enter at the extremes, pushing the prices back to the original point. This type of day gives amazing trading opportunities to both parties. ✔ Sideways Day On a ‘Sideways day’ price does not move much on either side. It is a sort of indecisive day for both parties as they refrain from placing aggressive directional trades. This sort of a trading day is usually loved by option sellers who bag profits from the time decay as a result of the non-directional muted movement. Although the Trading Range Day and the Sideways might seem similar, they are significantly different from each other. The presence of buyers and sellers are pretty high on a ‘Trading Range day’ whereas the same does not happen for a ‘Sideways Day.’ "Secrets of a Pivot Boss" by Franklin O. Ochoa is a great book that delves in depth into various aspects of Technical analysis. ---------------------------------------------------------------------------------------- Keep supporting:) -Mudrex
BITSTAMP:BTCUSDEducation
by Mudrex
37
Un-Common Sense...I have recently recorded a video titled “Fear + Greed = Stupidity” I would say that lack of patience is the number one problem of traders who have come to me for mentoring or education over the years doing this. There is a term used in the industry known as the 90-90-90 rule; 90% of traders, lose 90% of their money in 90 days. Just think about that for a second! There are two types of money, 'smart money' and 'dumb money'. You, 'retail' traders are 'dumb money'. The investment banks and institutions consider themselves the 'smart money'. Their job is only to move the dumb money into the pockets of the smart money, and they do this every day, all day long. (making the rich richer & the poor ...............well broke). It amazes me, that it takes several years to go through university for many professions, yet the assumption is that you can work part time as a trader (after the 9-5) and come and dominate in crypto or FX – and we wonder why 90% lose 90% of their money in 90 days… In order to make money in the markets, you need liquidity. The 'dumb money' provides the liquidity that the 'smart money' uses to get in and out of trades. Trading is a zero-sum game, every single penny you make is because some other poor soul lost it. For every buyer there's a seller and vice-versa (in an efficient liquid market). Have a read of this little parable by @Paul_Varcoe Think of the ‘business model’ of the exchanges and brokers; many have built their empires on this one simple rule – they are happy to give leveraged accounts to people as they know it’s only ‘dumb money’ that take them up on the offer, pushing people into the funnel is a repetitive cycle. Many brokers offer commission to introducers for what’s known as “FTD’s” first time deposits. Some offer introducers commission on spreads. They know all too well; the dumb money pouring in is the fuel for the machine. Humans are naturally designed to lose; we have the fear of being hurt and the welcoming of pleasure, this goes on to create more endorphins. So, when we see a red P&L or open position, we naturally want it green so we leave the losses run. On the HOPE of it coming back. But when we are green, we cut the profits for the FEAR of it turning red. Again, step back and have a think about this point. Now combine what I have just said above; Fear + Greed = Stupidity and smart money are here to make you broke, as well as the fact that exchanges have based their business off the 90-90-90 rule. What to do about it? 1. Do you use wide stops? If so, you’re just making the brokers rich and guaranteeing losses on your part. After all, the market always trades towards the stops. How else will it shake out all the weak players before making the real move? Using the right techniques, you can learn to enter and manage your risk a whole lot better. Many “gurus” will be teaching methods that most retail traders fall for, this is another machine for making money off dumb money. I have seen these educators talk about not using stops or trading standard off the shelf tools. You ever hear some guru say "The price is about to break support off the back of a hanging man, RSI is overbought and price broke out of the Bollinger band channel. It has also crossed under the 21-week EMA" (or some other shait like this), just remember that the price doesn't care, it'll go wherever the composite man needs it to go... 2. Statistics show there are certain times to trade various chart formations, stochastic are great in ranging markets and RSI are better suited for trending conditions. All of the dumb money are busy trading RSI in range bound markets as it’s the only tool they know how to use. Knowing when to use tools will go a long way – you get to a point of not really needing them, but until then acquire some more tools for the tool-box. A screwdriver is no good for hammering in a nail. 3. Do you know when to reverse your position? Since the market loves to catch everyone going the wrong way, this is a great and highly profitable tactic, but you have to know how and when to do it. I had a ton of people tell me how wrong I was on the call made in March for BTC – perma bulls, in an exhausted market. Glad to say my 30k call for the drop from 62,500 was on point. Over shot by 2k, but what’s that among friends? (See rocket post, in the related ideas) You have to work the market both ways, or at least learn to sit out during the corrective phases. They do happen from time to time! 4. Making a plan – people are busy trying to catch the bottom, this is reminiscent of that lego batman scene “first time” after several attempts of calling the bottom. They will be right at some point. The number of posts on TradingView calling the BTC spring in the most recent drop – scary. When building a plan, it should be focused on risk management and a systematic approach for both entries and exit. I would much rather catch 60-80% of the swing with high probability, than try to obtain the full A to B move with little possibility. 5. I encourage the traders I mentor to “Trade less. Earn more.” You need to learn that its better to make a bit with 95% certainty than to try to make 100% with only a 10% chance of hitting the home run! And in this way you keep your liquidity costs low and add to your earnings at the end of the year. If you’re looking to trade crypto – take a look at this; On the psychology side; And finally here’s the logic for why the cycles can last a “little longer” – see yesterday’s stream! www.tradingview.com Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
98
📚13 Topics You MUST Study in Trading👨‍🎓👩‍🎓 Hey traders, I receive dozens of questions each and every day concerning the topics to study to become an expert in technical analysis. Here I have collected the main subjects that, in my view, are essential for successful trading. *the order of the topics is spontaneous and there is no logical sequence 1️⃣ - Candlestick patterns To me, candlesticks are very important for understanding market behavior. A single wick quite often can tell you a story. Mastering different candle stick patterns, you will be impressed by how much data and information you may derive from analyzing them. 2️⃣ - Price action patterns At first glance price chart is complete chaos. The market looks irrational and it feels like there is no way to read it. Price action patterns are the language of the market. With them, the price fluctuations start to make sense. 3️⃣ - Support & resistance All my predictions, all my trades & signals are always based on support & resistance levels. These are the levels that make the market change its direction, they influence the market so much, therefore you should learn to identify them and constantly hold them on focus. 4️⃣ - Supply & demand zones The only difference between support & resistance and supply & demand zones is the fact that the first ones are represented as levels while the second ones are represented as the zones. The identification of these zones is very important for proper market analysis. 5️⃣ - Key levels Key levels are the strongest supports and resistances. Of course, spotting various supports and resistances on the chart, we can not say that they all are equal in their significance. There is a strong (however subjective) hierarchy of them. The most significant are called key levels and from them, the most significant moves are always expected. 6️⃣ - Trend analysis When I teach my students how to analyze the price chart, I always start with a trend analysis topic. Knowing where exactly the market is going, having specific and objective rules for the trend identification are necessary for successful trading. 7️⃣ - Top-Down analysis Multi-time frame analysis is my passion. I am constantly combining the signals & observations from different time frames to make my trading decision and predict future market moves. It proved to be a very efficient method of trading various markets. 8️⃣ - Financial instruments Though to many it may sound obvious, in practice I know that a lot of people are struggling with a simple question "What to trade?". You must learn to properly build your watchlist and you should have strong reasoning behind the selection of each unite that is inside. 9️⃣ - Trend following trading As we know, the trend is our friend. And even though the phrase itself is very simple and straightforward, it takes so much effort and time to learn to follow the trend properly. 1️⃣0️⃣ - Counter trend trading Occasionally the market reverses. Properly identifying early reversal signs and then catching a sharp counter-trend move, huge profits can be made. Even though such a style of trading is considered to be extremely risky, being applied properly will generate a lot of cash. 1️⃣1️⃣ - Risk management Losses are inevitable. They are part of the game and we can do nothing about that. The only thing that we can do, however, is to control the losses. Calculating the risk for every single transaction is essential to avoid a margin call. 1️⃣2️⃣ - Leverage trading Leverage selection, margin are the things that are tightly connected with risk management topic. These are the terms that you must know how to operate with. 1️⃣3️⃣ - Trading psychology Playing with real money, occasionally losing significant portions of your trading account can be a tough game. It takes time to build a strong psyche to deal with the irrationality of the market. Which topic to start with? Pick any, learn it, study it. They all are equally important so at the end of the day you need to cover them all in order to become successful. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
105
Heikin Ashi candlesticks overview Heikin Ashi candlesticks gives a smoother appearance by reducing some of the market noise, hence making it easier to spots trends and reversals. There is a tendency with Heikin-Ashi for the candles to stay red during a downtrend and green during an uptrend Heikin-Ashi calculation uses a formula based on two-period averages How to read Heikin-Ashi candles Green candles indicate an uptrend and in case with no lower shadows the move can be assumed a strong uptrend Red candles indicate a downtrend and if with no higher shadows a strong downtrend Candles with a small body surrounded by upper and lower shadows indicate a potential trend change or trend pause the Heikin-Ashi candlesticks do not show the exact open and close prices for a particular time period because they are averaged hence who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful For whom interested with Higher Time Frame Candle presentation on lower time frame chart including Heikin-Ashi candles are invited to check HTF Candles
Education
by dgtrd
147
Success Rate of Popular PatternsRemember Do not trade solely on Patterns only. Ultimately, traders should seek out the best combination of patterns and price action to create an analysis strategy that works for them. Experiment with different approaches and combinations until you discover a method that suits your trading strategy and goals. Here are the success rates for these patterns: Inverted Head and Shoulders Pattern (83.44%) Head and Shoulders Pattern (83.04%) Bearish Rectangle Pattern (79.51%) Bullish Rectangle Pattern (78.23%) Triple Bottom Pattern (79.33%) Triple Top Pattern (77.59%) Double Bottom Pattern (78.55%) Double Top Pattern (75.01%) Ascending Channel Pattern (73.03%) Descending Triangle Pattern (72.93%) Ascending Triangle Pattern (72.77%) Bull Flag Pattern (67.13% Success) Bear Flag Pattern (67.72% Success) Bullish Pennant Pattern (54.87%) Bearish Pennant Pattern (55.19%) These success rates presented are the result of a study conducted by a group of professional traders. They studied 10 different patterns independently from one another in 5 different markets (Forex, Futures , Equities, Crypto and Bonds), for a time period of 22 months with more than 50 case studies for each and every single pattern.
BITSTAMP:BTCUSDEducation
by MoonBets
86
Tutorial | How To Create An Order Panel Trading TemplateThe TradingView Order Panel doesn't currently have a template setting to save the order parameters. Here's a work around thanks to a comment from @thatjeph Appreciate it! Instructions: 1) Using the Long/Short Drawing Function and drop it on a chart. 2) Adjust the levels to reflect the trade entry, take profit, and stop level. (Note: The default quantity is a bit weird) 3) Save the object as a Template named to reflect the settings. 4) Right click on the trade object and Select > Create Limit Order. 5) Boom - you Order Panel is opened with the trade setting from the order object.
CME_MINI:ESU2021Education
by RodCasilli
27
📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD, the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
26
Stop focusing on the uncontrollable 🙌We have all been guilty of this at some point as traders. The only thing that matters to us is the returns or the potential returns 🤑 Our only focus is those returns which we have no control over 🤦‍♂️ When returns become the only focus we fail to focus on other elements we do control that will get those much wanted gains. Once upon a time I focused on a target each day then each week and month as my only focus. Sometimes the targets were met but most the time wildly missed and I spent all my time chasing money back. Once I started focusing my efforts on the four elements posted in this idea I can control the returns started to come naturally. Every trade idea I post does have the trade history attached for transparency which includes returns. However these returns come via focusing my risk, costs, time and emotions all correctly. Risk is controlled to sensible levels capital. Time is managed correctly as automation and building proven strategies has freed me up from excessive chart time. Costs are controlled as I'm not re-depositing to my account all the time. Above all else my emotions are in check due to working to proven plans along with a systematic/rules based approach negating the need for stressful decision making. Getting those four control elements dialled in to my trading helped the all important returns to flourish. Focus on the elements you can control and not the ones you can't and trading will get a lot more simpler. Thanks for taking the time to read my post 👍 Darren.
BITTREX:DOGEUSDEducation
by pow_removetheguesswork
17
TOP 20 TRADING PATTERNS [cheat sheet]Hey here is Technical Patterns cheat sheet for traders. 🖨 Every trader must print this cheatsheet and keep it on the desk 👍 🖼 Printable picture below (Right click > Save Image As…) In finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results. As such it has been described by many academics as pseudoscience. Fundamental analysts examine earnings, dividends, assets, quality, ratio, new products, research and the like. Technicians employ many methods, tools and techniques as well, one of which is the use of charts. Using charts, technical analysts seek to identify price patterns and market trends in financial markets and attempt to exploit those patterns. Technicians using charts search for archetypal price chart patterns, such as the well-known head and shoulders or double top/bottom reversal patterns, study technical indicators, moving averages and look for forms such as lines of support, resistance, channels and more obscure formations such as flags, pennants, balance days and cup and handle patterns. Technical analysts also widely use market indicators of many sorts, some of which are mathematical transformations of price, often including up and down volume, advance/decline data and other inputs. These indicators are used to help assess whether an asset is trending, and if it is, the probability of its direction and of continuation. Technicians also look for relationships between price/volume indices and market indicators. Examples include the moving average, relative strength index and MACD. Other avenues of study include correlations between changes in Options (implied volatility) and put/call ratios with price. Also important are sentiment indicators such as Put/Call ratios, bull/bear ratios, short interest, Implied Volatility, etc. There are many techniques in technical analysis. Adherents of different techniques (for example: Candlestick analysis, the oldest form of technical analysis developed by a Japanese grain trader; Harmonics; Dow theory; and Elliott wave theory) may ignore the other approaches, yet many traders combine elements from more than one technique. Some technical analysts use subjective judgment to decide which pattern(s) a particular instrument reflects at a given time and what the interpretation of that pattern should be. Others employ a strictly mechanical or systematic approach to pattern identification and interpretation. Contrasting with technical analysis is fundamental analysis, the study of economic factors that influence the way investors price financial markets. Technical analysis holds that prices already reflect all the underlying fundamental factors. Uncovering the trends is what technical indicators are designed to do, although neither technical nor fundamental indicators are perfect. Some traders use technical or fundamental analysis exclusively, while others use both types to make trading decisions. Best regards Artem Shevelev
BITFINEX:BTCUSDEducation
by ArShevelev
239
Do you know the inside of the candle?A typical candle will have an Open, High, Low, Close. You will see these referred to in some text, articles and indicators as O,H,L,C Below is the structure of both a Bullish (Green) & Bearish (Red) Candle The cycle shown below, is the action within a candle, think about this – the candle opens at say 100, it dips to 95 and starts gaining ground to 120, before dropping a little to 115 and closing there. Why is this important? Think of it like a football (soccer) match – the game starts and plays out during a set time, much like the candle – and at the end we have a score. The actions in the match tell the story, but it’s the end result that counts. So, what is the story? The middle of the candle known as the body is equal to the spread and gives a clue as to the sentiment of this particular candle. Sentiment A wide spread gives the indication of strong sentiment, of course if the candle is red with a long body it would be strong bearish sentiment. If the body is narrow – it suggests a weak bias overall. Do the wicks matter? – well yes, of course. They tell another story, the wick can give you the equivalent of the match highlights – how much time/effort was committed in the oppositions half. If you think of it still as a sports match. Although the body (spread) is small this image shows a different type of strength, well actually it is more weakness to the upside than downside strength. The market has tried to push higher and failed. Wicks in some more detail. Inside the wick you can see effort with lack of reward. Shown in the image above, this can be exaggerated and emphasised if accompanied by a small body or spread. Especially in the other direction. By this I mean a large wick on the top and then the bar closing red would have emphasis on bearish sentiment – however, a small red body would show little buying interest but no real intent to the downside. The candles can tell a story, often on their own. However various formations give more detail and can be used to identify events prior to a major move. This is especially powerful when used with some other methods, that can zone in on areas of interest. Did you know? Inside @TradingView indicator tab; there is a sub section for candlestick patterns – to automate the recognition. This feature has several scripts for Doji, Engulfing, Hammers, Spinning tops and many more. This was only a quick dive into candlesticks – nothing major and not much depth, but as usual, I hope this helps even with the appreciation of what a candle represents. Some additional educational posts; Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
BITSTAMP:ETHUSDEducation
by Mayfair_Ventures
34
Larry Williams Strategy - Guide Part 25Larry Williams Merchant Larry Williams burst onto the business scene in 1987 after he succeeded in what used to be called the Robbins Business Competition. Now is the World Cup Business Championship. He has turned a $ 10,000 account into well over $ 1.1 million in 12 months. By the way, it has turned the accounting into well over $ 2 million, however two final operations did not work and the accounting concluded closing at $ 1.1 million. Over the years, he has shared his business ideas and written a gigantic proportion of books, I think about 11 business books, which is perhaps more than any other merchant. He has performed internationally and also used to hold his "Million Dollar Challenge" (MDC). He more on that a little later. On those days, you will find Larry talking about his trading on his website IReallyTrade.com. I think he is, a genius. Incredibly generous with each of the business ideas he has posted. He is a super nice guy. Now, what do we have the possibility to learn from any trader? He will never operate exactly like another operator. However, study what they do, understand why they make it, and tailor what works for you. I think it is excellent advice for everything you read, learn or watch online about business. It requires taking the ideas that resonate with you and working on them and making them your own. This is the best way to operate, rather than trying to mechanically continue what someone else is doing. Larry Williams Business Strategy Input using settings, indicators and patterns This is Larry's business methodology the best I can summarize. He argues that he is not a technical trader, that is, that he is not based on technical research. His configurations are based more on the "fundamentals" and he uses 3 main indicators of the market to see when these configurations remain happening: Merchant Engagement - He was one of the first merchants to take a deep look at merchant engagement data and has written a number of books on the subject. Interrelationships between markets: The interrelationships between the activity market and bonds, gold, etc. These interrelationships between markets are very relevant in their negotiation. Seasonality and multi-year patterns: The month-to-month seasonality patterns in certain of the commodity markets are incredibly relevant. However, in addition, multi-year patterns. Exemplifying, the 4-year period in the stock market that is driven by the presidential election period. Later, a period of 10 years that is identified in the stock market, and in this way successively. Their trading configurations stem from these 3 fundamentals: merchant engagement, market interrelationships, and seasonality. Then, to activate trade entries, use historical patterns. Exit using basic system rules To exit operations, Larry uses certain different procedures: "Bailout" exit: in other words, closing a position at the first profitable opening. Now remember, several of Larry Williams' trades are swing trades. Actually, he is not a daily trader. If he has a profit on an open trade, he will come out on the open. If he is in a losing stance, wait until the next opening to see if he is profitable at the next day's opening. Number of days: in other words, close a position after a fixed number of days, let's mention 3, 5, 7 or 10 days. It will put different days as mechanical or systematic output. Wide Stops: Sayings keep you in business for a bit longer. He is the source of much criticism. Several traders comment that wide stops are insane, with the proportion of capital that you have to trade for those wide stops to work, they still work. The way it is there, that's all, in a nutshell, my perspective on Larry Williams' trading methodology: setups, inputs, and outputs. So what can I convey, in terms of lessons learned, by trading with Larry Williams? Without breaking confidences, without revealing concrete configurations, etc., these are the principles in general, the visualizations and what I have learned from reading and looking at the Larry Williams business. Business lessons learned Lesson # 1: Use the market trend to re-mean The market is in a horizontal channel and you go out of that channel and then you want to go back to the channel. Or it is in a trending stage, either up or down and temporarily oversold or oversold. Either way, the market will want to return to a medium reversal stance. Periods in which mentally things get out of the head temporarily, are resolved by returning to the mean. This became clear to me, whether it be on the second or third day of the MDC, once Larry was defining a particular setup. He was quite interested in where the open compared to the close, the highs and lows of the day before. Someone in the audience commented, "What if the open space is further away?" And Larry coded it using his Genesis program, which is quite powerful for backtesting patterns with interactions between markets. He commented, "Yes, it could be a great trade as it tests well and opening in such a stance would especially lead to a winning trade." Then the merchant comes back and says, "Well, what if the open space was somewhere else?" And again, it seemed to me that what Larry Williams was really mentioning was that the further he was from the mean, the more likely it was that bartering would be profitable. He was constantly trying to find those opportunities where the outfield got out of control, he was out of position compared to where he had historically been. He was trying to find opportunities to close that gap and make the market mean again. So the market re-signifying is a pretty deep force in the market, and he he was using that to look for business opportunities. Said is the first lesson. Lesson # 2: The market is often more random than rational It had nothing to do with an actual Larry Williams quote, but rather a generalization of which he was actually mentioning. And again, this came from a question on the MDC. It would have been the second day in which one of the merchants asked: "What is it just what he has learned in the business that is the best initiative that he has come up with?" He mentioned: "The exit of the 'rescue'". Exit at the first profitable opening once you are trading a position. He commented that he hadn't really come up with the initiative, yet he had done so much backtesting on the initiative that it felt like it was his. The "rescue" exit works with a huge stop as it is using the randomness and volatility of the market to get it out of the way for a position to be profitable. And so he fundamentally says, "If you have a profitable stance, get out, get out." Its effectiveness lies in the conjunction of using a profitable first opening with a huge stop, those 2 things together. The huge stop enables you to sit through enormous volatility in the market. Afterwards, if you have a profitable open position, close the position and take your money. The market is often more random than rational. Your reaction to the business should keep that in mind. I think it's really quite a fundamental lesson that we try to see the logic and that the market is up or down on a particular day, or trends in a particular direction, why does it do that? It does not have a reason for being. I think you can look at the stock market and see in the longer term, in the medium and long term and yes, pose various rational causes why the market did that. Yet minute by minute, hour by hour even at times day by day, the market is commonly incomprehensible and more random than moving in a special direction for pretty good root causes. Lesson # 3: Failed Technical Patterns Are Usually The Highest Trades This is truly the result of technical study and trading books that keep getting so ubiquitous. So much has been written about trading patterns that you can almost "fade" famous trading patterns and be profitable. Such patterns are so well known to all players that by the way the strongest moves are generated once you do the opposite of which such known patterns predict. Exemplifying, a candle head like a shooting star in which a place opens and new highs are made and then closes at the lows. The general agreement is that this could be a huja shift that a lot of people will see as bearish. Well, if everyone looks at that boss and says, "Well, it's time to cut back." There are many stops above the Shooting Star bar. If the market is trading above that, it is going to knock all these people out of their stops and cause a rebound in the market. So once the classic, usual, and well-known technical patterns fail or are faded by the real experts, they end up being pretty good trades. Well, quite a few people, plus the amateur side of things, made an obvious trade-off and are therefore going to be arrested once it doesn't work out as planned. They are really worth keeping in mind. Lesson # 4: Use market volatility and cycles in market volatility. There are so many interactions that are ethereal in the business. They will work for a time and then they will break and reverse. There are quite a few things you can trust, not just week after week, month after month, but year after year and decade after decade. However, there are 2 things. One is the cycles of volatility from day to day. The market goes from periods of fairly active to fairly quiet, from fairly active to fairly quiet. I don't think that will ever change, so use it to your advantage. If you have had two consecutive days of extensive variety. The most likely thing is that the next day will be calm. If you've missed out on the long-range trend movements, don't expect the same activity after the long-range days. Later, if you have a sequence of days where things are fairly calm and fairly subdued, you will occasionally break out of that on larger range days and high trend days. That is one aspect of volatility cycles, and that is an interaction that will continue ad infinitum. It's a psychological thing, driven by humans. The second is the daily range. That is to use the huge days to be aware of the giant movements. So once you have a great day setting up like an open range breakout, those will tend to travel the distance, and you end up with huge range days. I think those kinds of days will continually persist. If you can find them, they are going to be good business opportunities. Don't expect each day to be a trending day, however once you identify trending days, dissolving range open trades are consistently going to be a winning initiative. It's going to be good times and bad, however long-term, long-term, breakthroughs of the opening range and cyclical changes in market volatility are good principles to integrate into your trading approach. Lesson # 5: Use Cross-Market Collaborations to Filter Losing Trades Now, with this particular lesson, I really don't agree with her. Whether a deep disagreement is intended or just a big question mark, it is possibly more appropriate that it dictates that the jury is not in consensus, I am not so convinced of this. In Larry Williams' setups and operations, it relies heavily on interactions between markets. Especially once he's trading the occupation market, watching the bond market and then trading the bond market and looking at the gold market. I am not convinced that these long-term interactions will hold. You are seeing patterns in the short-term trend in those markets with each other, rather than long-term correlations between them. However, still in this way, I am not convinced that these kinds of interactions are maintained in the long, long term. For me, what has changed my criticism has been the financial crisis of 2008: many of these collaborations that looked good and worked well over the years and almost decades previously, were completely broken. I still think that with the global financial crisis we are through the mirror, everything is turned upside down. With the advent of quantitative easing, bank bailouts and bank bailouts, central banks around the globe take positions in corporate bonds and occupations, each of these follies, the planet changed. I don't think long, long-term cross-market collaborations can be trusted. If you create a trading system based on short-term trends in bonds versus occupations, or gold versus bonds, I am not convinced that they are going to work in the long, long term. The historical results of the system tests have the possibility to teach that they work historically. However, will they endure and continue to function in the future? I am not convinced. Lesson # 6: Don't Be a Slave to Sample Size and Statistical Significance In Larry Williams' post-testing, especially of market interactions, the size of the trade sample is shockingly tiny. Even though the results have the potential to look really good with a high percentage of profitable results, much of that is being driven by the exit from the "rescue" and the big stop. Trades are only the result of market volatility to create the results of the system rather than actual interactions between patterns and interrelationships between markets. The criticism you get is that the sample sizes are quite small and there is definitely no statistical significance to the results you are getting. Therefore, you should not trust such patterns in the future. Therefore, you could be quite cautious about using small samples to build a theoretically sound business system that will function for years and decades into the future.
Education
by UnknownUnicorn18500526
26
Trading - Expectations VS RealityHey Traders, In this post we will aim to clear some of common misconceptions of trading and how we can help you go further in your trading career by giving you all the tools you need to better understand the market and kill the game. ____________________________________________________________ 1. Trading is easy. Trading is relatively easy IF you know the rules of the market and use certain analytical techniques. Once you have a full arsenal of technical tools, you can easily understand the market and figure out where it may go next. 2. Market moves in one direction. That can be true to a certain extent where we have trending markets. However, within that trend there are various types of pullbacks. Once you understand the different market phases, you can make money whether it's a trending or ranging market. Opportunities are endless! 3. Buy when low. Sell when high. If only things were that straight forward, right? Sometimes the lows aren't really the lows and the highs push higher and higher. This is when you need to understand the different patterns and structure of the market to help you figure out where the best possible place is to buy or sell. Once we understand the market, we need a trading plan. How do we enter? Where do we enter? Where is the stop loss? This is where having rigid checklist really helps! You can tick things off the list and grade the trade setup from good to bad and then enter accordingly using various entry methods. It may sound like a lot of but once broken down into little bits, you can learn this EASILY and know exactly how to analyse and enter trades! ____________________________________________________________ What we will be covering: - Market structure: Impulse & Corrections - Using Index charts to correlate your trades (Very important Topic!) - Drawing a trendline and levels correctly – There’s a hack to it! - Using Moving Averages Correctly - Combining higher timeframe & lower timeframe - Different patterns and how to trade them - More topics to come! Comment below on what other topics you would like to see! I hope this post help clarify some of the misconceptions of trading and the different elements involved. See the links below for information on how we can help you!
OANDA:XAUUSDEducation
by WicktatorFX
30
👶 Trading For Beginners | ORDER TYPES 👦👧 There are multiple ways of opening a trade in a trading terminal. Here is the list of universal order types that you MUST know: 1. Market Order A market order is a trade order to buy or sell a desired financial instrument on a current market price. In such an order type, the price is determined by the market. Constant price fluctuations and spreads make market order quite risky way of opening a trading position. 2. Limit Order A limit order is a trade order to buy or sell a desired financial instrument at a specific price level. It allows the trader to enter the market on a strict price level ignoring the price fluctuations and spreads. A limit order can be referred to as a buy limit order or a sell limit order. 3. Buy/Sell Stop Order Buy stop order is used to buy at a price above the market price, and it is triggered when the market price touches or goes through the Buy Stop leve. Sell stop order is used to sell when a specified price is reached. The selection of order types is based on a trader's trading style. Let me know in a comment section which order types do you apply in your trading! Please, like this post and subscribe to our tradingview page!
Education
by UnitedSignals
11
EDUCATION - Moving Average Trading Tutorial ⚡⚡What is a Moving Average? In technical analysis, there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market. How is moving average calculated? A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis. How do you use moving average? In very simple terms: if the price is above the moving average, you can assume that the market is bullish. If price is below the moving average, you can assume that the market is bearish. The way we use the moving average is that we see it as dynamic resistance/support. Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off. Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower. Transition from bearish to bullish (vice versa) We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action. What moving average do we use? 100 and 200 moving average. Examples
Education
by Altsignals
24
How to trade The News Correctly Trading strategies on news for many traders play an important role, since one news can take a very good movement, it is important to observe the nuances of such strategies. The essence of the strategy is to catch the movement and make money at the moment of the release of important news, becauseof which, most often, the volatility of the instruments we are interested in increases significantly, and it does not matter from the direction where the price will go. NUANCES: 1) the entry point is located outside the range, in which the price was moving before the news was released 2) place two identical deals at the same distance in different directions 3) do not forget about stop loss 4) do not forget to set take profit What a trader can get by trading on the news 1) At high volatility , slippage can be obtained. At such a moment, the trader can get both a larger loss than the planned one, or a smaller profit, and quite the opposite. More often slippage is bad for the trader's account 2) False breakout, which can deceive you and give you a loss 3) Bad work of the broker, usually if you use the services of "Kitchen". they "process" a lot of traders on the news in their favor. What news is it permissible to trade such a strategy on: Important news: 🔼 NFP 🔼 Retail Sales 🔼 Trade Balances 🔼 CPI 🔼 FOMC The movement that a trader can pick up can be up to 50-70 points in some currency pairs. What currencies and why 🔼 EUR/USD 🔼 GBP/USD 🔼 USD/JPY These are the most traded currency pairs in the world, gold is not taken into account, the expected movement in these pairs can be up to 50-70 pips. Important to remember ❗ : 🔼 These are the most aggressive strategies 🔼 You, during the news release, have no advantages, without this it is difficult to win 🔼 And it is best not to trade before and after the news release for at least half an hour. ------------------- Share your opinion in the comments and support the idea with likes. Thank you for your support!
Education
by DeGRAM
7
Quick tip: Add a signal line to your indicator, no coding!Want to make your RSI smoother and easier to track and follow its signals? You can add a moving average signal line to it. Let me share how to do this quickly without coding. This is a very neat and easy trick you can do - thanks to TradingView :) - using the feature "Indicator-on-indicator" Quick Steps: add RSI to your chart if its not already there, hover on the RSI indicator label, click the "..." ellipsis, choose the option to "Add Indicator/Strategy on RSI" - it will be the second command from the top on the shortcut menu, and choose your favorite moving average from the indicator library - adjust the MA settings to your preference - and you're done! No coding needed. maybe, like me, you are experimenting with my recently-published RSS_WMA - aka the Lazy Line 😎 - will add a link below - you can add it to your RSI like i did in the example chart above. The RSI with the new signal line looks a lot easier to use and trade on, right? The MA Line not only makes RSI more visually appealing, but also makes it easy to follow the RSI movements into OB/OS zones, or crossing the middle line. for "visual folks" like me, this is an improvement that makes a big difference in my trading. * You can use this same trick with any other indicator / combo of indicators - that would make sense to combine with this approach - in your charts. Get creative. * Indicator-on-Indicator is an awesome feature - just wanted to share a quick reminder of this trick, as i also forget about it most of the time. * for more details, there's a comprehensive guide to this feature in TradingView's Help Center www.tradingview.com trade safely and good luck!
NASDAQ:QQQEducation
by RedKTrader
15
Williams Alligator Indicator: Guide Part 24The late iconic forex trader Bill Williams formed the Williams Alligator technical study indicator in 1995. He gave the indicator his name. In addition, he was developed other primary indicators usually used by traders today. Certain of those indicators are Williams Fractal, Awesome Oscillator, and Accelerator / Decelerator Oscillator. The Alligator indicator follows the conjecture that financial markets and individual stocks trend only 15 to 30 percent of the time. As it grinds to the sides, it changes the other 70-85 percent of the time. The inventor believed that people and institutions collect most of their profits over periods of deep trend. What is the Williams Alligator indicator? The crocodile is both a metaphor and an indicator. 3 lines make up the indicator, overlaid on a cost chart. They represent the jaw, teeth and lips of the beast. He designed it to help traders confirm the existence of a trend and its direction. The indicator can further assist traders in naming encouraging and corrective wave formations. However, it works best once used in conjunction with a boosting indicator. There are different "aspects" of the crocodile. If you mix the 3 lines, the Alligator's mouth closes and the merchants claim that it is sleeping. As he sleeps, he grows hungrier minute by minute, waiting for a dissolution of his lethargy to ingest. Once the trend takes shape, the crocodile wakes up and begins to ingest. Once full, he closes his mouth again and rests again. The Alligator indicator uses 3 smoothed moving averages, set at 5, 8 and 13 periods. They are all Fibonacci numbers. Calculate the first smoothed average with a simple moving average, adding smoothed averages that slow down the turns of the indicator. Importance of the Williams crocodile The author of the indicator has been a pioneer in financial market psychology. He made some of the most used technical indicators today. He can use the Williams Alligator indicator to find the lack of a trend. In addition, the trends that remain beginning to form and the markets that began to trend. Technical traders have the ability to use this information to dictate when to enter or exit the market. How does the Williams Alligator work? He formed the indicator on the rule that the asset should trend 15 to 30 percent of the time. They do this as they remain stuck in a narrow trading range the other 85 to 70 percent of the time. The author was sure that the first thing is once most of the institutional traders record the majority of their profits. Additionally, the moving averages that make up the Alligator indicator commonly have the potential to act as dynamic support or resistance. You can use it as a buy or trade signal depending on which direction the lines cross. Also, if the candles close above or below the indicator lines. Crocodile formula The crocodile is both a metaphor and an indicator. 3 lines make up the indicator, overlaid on a cost chart. Williams designed it to help traders confirm the existence of a trend and its direction. The Alligator indicator can further assist technical traders in deciding on encouraging and corrective wave formations. However, it works best once it is combined with a promotion indicator. The sequence of the calculation formula includes these 3 steps The crocodile's jaw, the "blue" line, is a 13-period smoothed moving average. 8 bars move you into the future. The Crocodile's Tooth, the "Red" line, is an 8-period smoothed moving average. 5 bars move you into the future. The lips of the crocodile, the "green" line, is a smoothed 5-period moving average. 3 bars move you into the future. 3 smoothed moving averages make up this indicator. Traders will rarely add an "oscillator" like the "CCI" to improve the cost of trading signals. The business mixes the "jaw", the "teeth" and the "lips" as the alligator sleeps throughout the initial portion of the cost action depicted. The green line moves first once the crocodile wakes up. Follow the red line to confirm a separation in a totally new direction. The ICC first issued an overbought alert. The Alligator lagged behind, however confirmed the signal after a candle closed below the group of 3 lines. The depletion of the indicator is that the timing may be delayed as a result of its future positioning. It is for this reason that it is necessary to attach a promotion indicator to anticipate the signal of a crocodile. The Alligator helps operators stay in position longer and performs better the longer the period of inaction. In the example above, you would stay in business until a candle culminates above the center red line. Williams also designed a "Gator" histogram indicator to aid visual interpretation. Other traders have integrated his ideas to improve the reliability of this indicator. Special Considerations The indicator uses convergence-divergence interrelationships to develop trading signals. The jaw makes the slowest turns and the lips the fastest. The lips crossing down through the other lines indicate a possibility of a short marketing. In what crossing up suggests a possibility of purchase. How to use the crocodile indicator The indicator gives signals once the 3 lines: jaw, teeth and lips meet and split. They signal a change in trend. Once the 3 lines diverge widely, there is a deep trend that suggests that the alligator's mouth is being fed. In other words, according to Williams. However, once the 3 lines start to narrow and converge, it shows that a trend is weakening and how quickly it could reverse. In addition, it shows that intense displacement is approaching. Traders will want to see if there is a crossing of the blue and green lines. In addition, they observe the closing of a candle through the lines of the indicator before acting. Combining the Alligator indicator with other trading tools Not even a commercial tool is perfect. This means that traders are constantly trying to find ways to use various indicators. Certain traders have the ability to observe a trend indicator that uses a different procedure to see if it ensures signals. This refers to the use of a crocodile indicator, exemplifying. This will help remove the wrong signals in the resting stage of the Alligator indicator. It could also improve the timing of trading signals. Tips for traders and common mistakes you should avoid with the Alligator indicator It is common for dealers to get caught up in the market once they use the Williams Alligator. According to Williams, throughout that situation, the alligator is still sleeping and has not yet woken up. This indicates that traders have to wait for another claim. They also have to wait for the cost to reflect the change in trend indicated by the indicator. Traders have to try to watch the mouth opening along the rise or fall of cost. They slowly close again once volatility subsides, showing a viable trend reversal in the future due to the weakening of the present trend. Conclusion The Williams Alligator indicator is a complex technical study instrument, however quite fundamental and profitable. One of the most legendary forex traders to ever exist designed this indicator. Traders have the possibility to use it in forex, commodities, stock indices and cryptocurrencies, among the various financial assets. The trading program could be expensive, however several platforms have charting tools built into the trading panel. This gives an impressive cost to traders. The application of tools such as Williams Alligator and stop-loss custody makes it possible for traders to spread their profits instantly, safely and with quite little start-up capital. This indicator is usually quite useful together with the current trend, and to see possible trend changes. If the trend is bearish, it will prioritize seeing resistance zones. If the trend is bullish, prioritize seeing supports. And when the moving averages are approaching, it is best to stop trading and see where the change is headed for a possible continuation or reversal. Add any complement, although they usually combine it with fractals. There are already almost 900 pages of the guide, remember to support me in any way, leave a comment ^-^
Education
by UnknownUnicorn18500526
14
Introducing our new Chart Preview featureOur new Chart Preview feature simplifies the way you follow your favorite symbols from iPhones or iPads. Please note: we have exciting updates coming to our Android app, so please stay patient. We won't let you down! 😎 Chart Preview is intuitive for all investors and traders. Beginners and pros can use it seamlessly to study their watchlist and then dive into the advanced chart when it's time. We created Chart Preview to let traders quickly scan and study symbols from a viewpoint that is simple and beautiful. With a second tap, traders can dive into the advanced chart and begin their research process using technical and fundamental analysis. Start simple and get more advanced depending on your skill level. On iPhone, users can toggle our new Chart Preview feature on or off depending on their preference. You decide whether you want to see a quick preview or jump straight to the advanced chart. We know many of you would rather be analyzing charts with all the power of our advanced tools, so you can decide what you would rather see first. Make sure your app is updated and using the latest version. Remember: our mobile apps are free for iOS and Android devices. Thanks for being a TradingView member and we look forward to reading your feedback and comments below.
NASDAQ:AAPLEducation
by TradingView
91
📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
30
DEMO account for trading. Useful or notDEMO account for trading. Useful or not A demo account is considered by traders to be the safest method of learning to trade 😎 You are trading on virtual money. You have a sense of responsibility for this money and for your trade. The lack of psycho-logical pressure and emotional tension very "blinds" you. You become indifferent to your trade. You can stop putting on the feet and trade like a flop. A demo account provides an opportunity to gain experience 🐱‍👤 Demo account is comparable to the virtual world, where there is nothing real. There is no profit and no loss, you do not feel any of this. It is only needed for the initial stage, where you are just starting to understand the structure, orders, how everything works. On a demo account, you can check the strategy, system 📈 This cannot be done again because of the lack of attachment to money or lack of responsibility for their activities. A trading strategy gives success only if you follow everything that is indicated in it, without your own improvisation. Winning a demo account can tell you how to trade on a real account 🤑 Demo account in comparison with a real account are completely different things due to the emotional component, psychological, lack of responsibility and rashness. Any positive result on a demo account means nothing What, then, is a demo account needed? 🤷‍♂️ 🔼 For acquaintance with the trading platform and the characteristics of the trading market 🔼 For acquaintance with the financial tools on which you will be trading 🔼 To perfect your technical skills 🔼 To test your trading strategy ------------------- Share your opinion in the comments and support the idea with likes. Thank you for your support!
Education
by DeGRAM
12
Setting Alarms For Fun and ProfitOne of the most attractive things about being a trader is that once you become proficient with your trading system you don't have to spend all day in front of your computer like an extra in the Walking Dead. There's a lot more to life than trading.  The goal is that once we have developed that skill, we can “trade to live” and not “live to trade.” I like to teach that trading is like fishing - Your job is to go into the water, cast a few lines, and wait for the fish to come and snag a hook. The keyword there is wait . Once you set your lines, you don't have to babysit them: go do something else. (We trade to live, after all!) Likewise, with trading, once you have developed a certain level of skill in "setting your lines", you should only need to spend about 30-60 minutes in front of your computer "working". Then you simply need to wait until the trade, that is price, gets snagged onto your hook. In the meantime, go do whatever it is in life that you enjoy doing.  How do fishermen then know when a fish has taken the bait? Some fishermen attach a small bell on the end of their pole, a “fishing buddy”, and as the fish jerks the line the bell alerts the fisherman that “he’s got a live one!” How is is that Alarms can instantly become your "fishing buddy?" Let us count the ways: First: Management of Buying Power Let's say you have a $10,000 trading account. You wake up, do your morning routine, head to your home office (or the kitchen table) and “go fishing” in the Futures markets. You find three great opportunities for Soybeans, Oil, and Copper. The margin requirements for each of them (per contract) is $4,500, $5,800, and $7,300, respectively. Futures trading requires that you have a certain amount of capital in your account per trade setup, known as the margin, or buying power, at the time you setup your trade. This "margin" is set aside in your account and can't be used, even if the trade hasn't been triggered or entered.  If you wanted to setup all three of those  trades before you headed to work you would need $17,600 in your account. But you only have $10,000. What do you do? In the past, when I ran into this situation, I would have to guess (or hope) I would choose the correct trade to place before I left for work, and send just that one trade to my broker.  Inevitably, I would choose the one losing trade, or the one that didn't get hit , and it ended up that one or more of the other trades turned out to be winners - the trades I did not take - all because I couldn't put on all three at the same time. Aaargh!!! Every day I felt like the trading gods were against me! Here's where alarms can become your best friend. Let's say at any given moment if you received an alarm, you would be able to respond to that alarm within an hour. You could setup an alert line 1/24th the daily ATR away from your entry price. For example, at the time I am writing this, the Daily ATR for Crude Oil is 1.7708 - the average distance or range that Oil trades in a day. Divide that by 24 and on average, oil moves about .0738 per hour. If you are looking to go long oil at $73, you would draw a horizontal line at 73.0738, and set an alert on the line, giving you about an hour to check that the trade is still valid.  When price activates your alert, you can log into your trading platform, verify that you still want to take the trade, right-click the long-short tool (which you had setup beforehand) and send the trade to your broker, whereby then and only then will the $5,800 be allocated from your Buying Power. It is unlikely that all three trades will hit at the same time so this gives you the "buffer time" needed to efficiently manage the available capital in your account to take as many trades as possible. Using alerts in this manner can help you minimize the number of missed opportunities you might experience because of the limited amount of buying power you may have. Second: Trade Opportunity Alerts In the futures market, I have what I call my "31 Flavors" - the 31 Futures contracts that I actively trade. On any given morning I might find 5 assets where I’m looking for a long opportunity, another 5 assets that I’m looking for a short, and the rest aren’t in any trend or environment where I’m looking to trade. Many indicators let you set an alarm when a certain condition occurs. For instance, I can set an alarm on the ten high-probability assets I have flagged to let me know “Hey, Captain: a Sabre Long opportunity just formed on the S&P;”, or “Hey Captain, a short opportunity with the pattern you are looking for just popped up on Crude Oil.”  Likewise, if you are following a Moving Average strategy, you can setup an alarm saying “Hey, Trader: XYZ just crossed the 89 Moving Average” or "ABC just crossed the 40 day Moving Average.  At the time of this writing TradingView will let you setup up to 400 of these alerts. (P.S. - If you need more than 400 alerts, you're probably overtrading... just sayin') :-) When the alert is triggered you can just take a few minutes out of your day outside of your normal trading hours to check in and see if that mid-day opportunity is worth setting up. After a couple minutes, you can get back to what it was you were doing. The myth of the day trader who is glued to his or her computer all day in fear of missing an opportunity is just that - a myth, because alerts free you up to do what is important. Remember, we are trading to live - we aren't living to trade. Finally: Trade Management Let's say you are a swing trader. Trades you enter may take anywhere from 3 to 30 days to hit their target. Say, however, you have a hard and fast rule to take 3R profit from all of your trades because you would rather take 3R any day rather than see price go to 5R, or 7R, just to have it come on back and stop you out for a loss due to emotions or lack of paying attention, because, yes, you trade to live - you're not tethered to your computer or smartphone all day. You've got better things to do. (At least I hope you do!) You can setup an alarm to let you know that a trade you have running achieves 3R of profit, whereby you can then move your stop, then check in on it each morning and/or evening to see how you may want to lock in more profit or call it a day and cash in on your winning trade. Conclusion: In short: Use alarms to make your trading more efficient, more effective, and ultimately, more profitable. Are there any other ways that you use alarms to maximize your trading game? Let us know in the comments... I'm sure we are all, myself included, dramatically under-utilize this very powerful trading tool. Trade well, everybody!
NYMEX:CLN2021Education
by ocaptain
80