EURUSD 30M TDI LONG STRATEGYFind TDIGM under indicator search
Step #1: Look for the Read Line to break above the Yellow Line
The yellow line is regarded as being the most important line of the TDI indicator because it binds together all the other parts and it makes the indicator tradable. Traders also refer to the yellow line as the Market Base line.
The yellow line can be used to determine the long-term trend. We need to see an alignment between the long-term trend and the short-term trend in order to successfully scalp the market.
When we have positive expectation coming into the market, the red line must be above the green and the yellow line. That’s the first signal that the buyers are stepping into the market.
Step #2: Wait for the Green Line to also break above the Yellow Line. The Red Line must not break above the upper blue band.
The second required condition for a valid trade signal is to also wait for the green line to break above the yellow line. Once this happens, we have an alignment between the short-term trend and the long-term trend.
When an alignment in the trend direction occurs, that’s when we have those explosive scalping opportunities.
The catch is that we need the red line to be contained inside the blue Bollinger Bands. When the red line breaks the upper blue band, we know the market is stepping on the gas. This means we have an acceleration in volatility and tells us that the buyers are exhausted.
We don’t want that to happen!
Step #3: Buy at the closing candle after the Green Line breaks above the Yellow Line
When the green line crosses above the yellow line, it tells us that the buyers are buying and the fact that we have positive sentiment.
We’re looking to buy in a market with increasing volatility and in a market where both the short-term and the long-term trend align in the same upward direction.
When the price and the market sentiment align, and they are sharing the same sort of expectation, then that’s the best time to enter the market. So, we buy at the closing candle after the green line crosses above the yellow line.
Step #4: Hide your protective Stop Loss below the respective swing low developed as a result of the red line crossing above the green line.
Find on the chart the last time the red line crossed above the green line and located on the price chart the respective swing low developed as a result of this crossover.
Now, use this swing low to hide your protective stop loss.
Step #5: You choose Take profit or when both the red line and the green line crosses above the 70 level
The real reversal signal is given when the green line also joins the red line and touches the 70 level which signals buyer exhaustion again. When this happens, we want to take profits.
The expectation is that when we get up to these levels to start looking for market reversal because the market it can’t go any higher. And this is the perfect place to get out of our scalping trade and take profits.
Note** the above was an example of a BUY trade using the best traders dynamic index strategy. Use the same rules for a SELL trade – but in reverse.
Stoploss
Closed trade & next scenarioClosed trade & next scenario
A quick update on our trade and what we see happening in the market. Our plan still holds: we reached our second target and reached max target. We expect some to see some range-like behaviour before possibly reaching the 2.618 extension level. Or perhaps we will see a strong bearish reaction and cycle at our max target. As always, we will have to allow time to lead us.
DAILY
While typing this we reached our max target and closed our trade. Now we wait for bearish signs to enter a short, or breaking resistances to consider re-entering a long position. The daily 9 on the TD system indicates this move is exhausted, and we’re probably going to see a pullback, or major correction. We don’t know yet..
As you can see on the chart below the longs are taking profit, we’ll have to see if this is enough to start a new bearish cycle, or if we get a push through to the red box (with the weekly kijun) for a perfect shorting opportunity. As we said, this may take a while, and price will probably not go directly up and then directly down, but range a while before agreeing on a direction.
2HR - Bitfinex longs/shorts
There;s a strong (>10%) drop in longs, so there’s some major profit taking going on at the moment. We’ll have to wait and see if this is enough to usher in a new bearish cycle.
2HR
We can see a nice hammer candle forming as a region from the 0.618 retracement of the last bearish move. As we said before, we closed the trade and are waiting for the market to choose its direction. We suspect a range, and then down, possibly after reaching up once more. We have bulls taking profit, but no bears stepping in yet, so let’s see how this plays out in the coming days.
We hope you enjoyed this trade, and as always, remember,
Be patient, only time will bring you profit.
Weekly market update
Week 30 - Market Update
Hello traders, welcome to your moment of zen :) We had a nice upweek last week, activating our trade. Today we reached our first target, so our members should (and probably did ;)) at least take partial profits. Let’s look at the markets to see how price is developing and we can find possibilities for re-entry towards our max target.
Let’s start with the weekly chart
WEEKLY
We can see that we broke out of the channel today. We’ll have to wait for this to confirm before we take this seriously, the week has just begun. Nothing much has changed on ichimoku, we are still are bearish. Except… chikou span has moved into contact with price after last weeks and this weeks developing move in price. This indicates that the down move has turned into a consolidation. As we’re still below the kumo we can look for short entries when this upwards move ends. Look at the dotted blue line. It is the kijun projected into the future.If no new highs or lows are made in the coming 4 weeks the kijun will remain flat. This sets us up for potential short trades of the weekly kijun bounce.
At the moment we are still in a long trade, and we expect the bullish move to take perhaps a few more weeks. So let us focus on that, time will bring us that short trade.
DAILY
We reached our first target today, and our members should have taken partial profits here, waiting for price to move further or correct. Price is attempting to break out of the kumo today. which is a bullish sign. Yet this signal cannot be blindly traded, kijun is still well within the kumo and the distance between the price and kijun is large. Getting into the trade now would be… stupid.
Momentum shows us that price wants to consolidate, and are expecting bulls to take some profit causing a ranging behaviour. We may consider re-entry after we see what unfolds in the coming few days, perhaps in a break of the ranging movement. We have to allow price and time to guide us..
For now the active traders can tighten their SL to around 7000, sit on their partial profits and wait for the trade to reach our max target. We might see a reaction at the target 2 level. again taking another partial profit there would not be a bad idea, but that depends on how we reach it. If we get a significant pull back or ranging period before reaching it we suspect it to blow through to the max target. After all this develops we can consider short entries in the red box, if we find a confluence of bearish entry signals. But all that in due time, we expect it to take several days if not weeks before that happens.
The 2 hr chart isn’t giving us a clearer picture. Price is working to break through our first target, and the chart looks quite bullish.
We will have to wait, following the action path laid out on the daily timeframe. We will look for some possible re-entry into the bullish trade, but have to see from where the pullback will begin. From there we can look for possible re-entry areas and momentum for the next push.
Invalidation: 7000
First target: 7775 (Reached)
Second target: 8157
Maximum target: 8360
We hope this was helpful! And remember,
Be patient, only time will bring you profit.
Bitcoin - not for meI'm out of it. I'm not getting into FOMO.
Based on my own methodology, I'm not happy with stop-losses. So that's it.
For me, I have to consider my stop-losses as 'gone'. That's money I'm willing to throw away on the chance that I'm wrong. So I'm not happy with the losses between 2H and 1D time frames.
Gamblers who want to win a single trade may get involved. I'm not gambling.
Long setup - short term
ETHUSD Long setup - Short term
Welcome everyone, we have trade setup developing for ETHUSD, following pretty much the same path as Bitcoin (which we looked at yesterday, and our trade got activated ), only looking a bit weaker.
DAILY
We’re still working well within our downward channel. kind of bouncing around the median line. And perhaps this is is a tradable bounce to the upside, we’ll see in a moment on the 2HR timeframe.
We have to recognize, similar to bitcoin, that we are still in a downward trend, and in a bear market. So any bounce to the upside must be treated with caution, as we believe we still have some downwards action to come before the market reaches a bottom.
We can see ichimoku showing us a weak bullish tk cross beneath the kumo. and the kijun is pointing downwards. We will need this to point up to have signs of bullish momentum, and to do that the price needs to make a higher high, which we are waiting patiently for it to do..
Let’s have a look at the 2HR chart now
2HR
The correction from yesterdays up move is a bit more violent than bitcoins, but that is to be expected. For now no panic yet, we need to close convincingly above the breakout level (and break the upwards channel) before we can enter the breakout trade.
breakout level: 495
Invalidation: 400
First target: 564
Second target: 615
Maximum target: 666
Another option is to see where this retracement takes us, we\re seeing no strong reaction yet at the kijun, so perhaps it will find support somewhere between the .5 and .618 fib level. Where the price bounces depends on the strength of the last upmove, if it is strong the .382 level could very well hold. This is much seen in crypto, so let's see if price holds that level, or breaks through.
For now, again, we wait until price tells us where it wants to go, then we will join it.
Zcoin (XZC) Cryptocurrency Strategy – 3L-R Trade PatternZcoin XZC 30m
The 3L-R reversal is a four-bar pattern and it means three lows (3L) followed by a reversal (R).
The main characteristics of this reversal chart pattern are the three consecutive lower low candles. The high price of these three particular candles doesn’t matter; the only thing that matter is that each low is lower than the prior low.
The fourth bar of the reversal chart pattern needs to have the high bigger than the highest high of the previous 3 candles. We’re not concerned about the low of the last bar.
Step #1: Identify Three Consecutive Lower Low Candles
The first component of this reversal pattern is the three consecutive lower low candles. At this point we’re not concerned about the highs of the three candles.
However, you’ll notice that most of the time each consecutive high is also lower than the previous high.
What is great about the Zcoin (XZC) cryptocurrency strategy is the fact that it’s designed to catch market reversals right at the moment they occur.
Step #2: The fourth candle breaks above the first bar high in the reversal pattern
The immediate candle after the three lower lows needs to be a bullish candle and secondly it needs to break above the first bar high in the pattern.
Normally, the highest high of the first three bars is made by the first bar, however, in the event that this is not the highest high we need to wait until the fourth candle breaks above the highest high of the previous 3 candles.
Note* It’s important that the 4th candle breaks above the first candle high, not the 5th or the 6th because that will invalidate the reversal pattern. We need to be very precise when trading reversal patterns like the 3L-R pattern.
Even though we said that we’re not concerned with the low of the fourth bar, it does matter if the low is higher than the third bar’s low. Through our backtesating results we have found out that this yields better trading performance.
Step #3: How to buy Zcoin: Buy if the fourth candle closes above the last three candles highest high
Before we pull the trigger and buy cryptocurrency Zcoin we need for the fourth candle to also close above the first candle high or above the last three candle highest high point, whichever that might be.
Now is the time to convert this reversal setup into profit and buy Zcoin when the fourth candle closes above the last three candles highest high.
Step #4: Place your protective Stop Loss below the 3L-R pattern low
Trading reversals have lots of benefits and among other things it offers us the possibility to really use a very tight stop loss. If the trade doesn’t work the market will tell you very quickly and it will produce only very little damage to your account balances.
Like with any reversal pattern, if you want to keep the stop very tight you need to place your protective SL below the reversal pattern aka below the 3L-R pattern low.
Step #5: Take profit should be at least two times bigger than your Stop Loss
If you trade this reversal pattern on intraday charts, it’s best to simply take profit once the Zcoin price will give you a return that is two times more than your stop loss. In other words, you have a risk to reward ratio of 1:2.
Alternatively, if you use higher time frames the exit strategy should be based on a trailing stop.
Note** the above was an example of a BUY trade using the best Zcoin XZC cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse.
PM me if you would like to read the complete strategy.
EUR/USD - downtrend awaitedLooking at the 4-hour chart we can see that the pair continued its growth towards the main support/resistance level.
Currently we are waiting for the development of a downward correction after which a new upward wave may take place. We advise to set Stop Loss around the mark of 1.1720 and Take Profit at 1.1640
HOW TO TRADE ELLIOTT for BEGINNEERSStep #1 Wait until you can spot at least a 3 wave Elliott Wave sequence
Since we always advocate trading in the direction of the trend, as explained above, we’re only
attempting to catch the last wave 5.
So, in order to find our Elliott Wave entry points we need to let the market tip his hands off and
wait to develop the first 3 waves of a five Elliott Wave pattern
We must verify that each wave complies with the Elliott Wave strategy rules in order to confirm
the validity of our Elliott Wave count. In the figure above, we’ve spotted a bearish Elliott wave
count that complies with the Elliott Wave strategy rules, which means we’re looking for a sell
setup.
Step #2 Sell between 38.2% and 50% Fibonacci retracement of Wave 3
One of the Elliott wave rules states that, ideally, wave 4 should retrace between 38.2% and 50%
Fibonacci retracement of wave 3. Our Elliott Wave entry points are at 38.2% because we never
know for sure how far the market will retrace and we don’t want to miss the move.
We’re pretty much sure that with experience you can fine tune your Elliott Wave entry points and
get even better entries.
Now, we can note that wave four retrace a little bit above the 50% retracement. Since the market
is never a perfect place where rules are respected to the pip there will always be small
variations and the Elliott Wave strategy is no exception from the rule
Step #3 Place the Protective Stop Loss few pips above the Wave 1 Ending Point
In the section “How to trade Elliott Wave” we highlight the importance of wave 4 never entering
into the wave 1 territory. In this regard, it’s smart to place our stop loss exactly where the Elliott
Wave pattern will be invalidated.
Step #4 Take Profit when Wave 5 is equal to Wave 1 or when we break below
wave 3
With the Elliott Wave strategy is all about experimenting new trade ideas and we encourage you
to find your own set of rules because once you have a firm understanding how to trade Elliott
Wave you can develop many Elliott Wave strategies around it.
In this regard, we don’t have a set in stone take profit strategy because the Elliott Wave strategy
looks to maximize profits and the only way you can do this is through flexibility because no two
Elliott Wave structure is the same
Note** The above was an example of a SELL trade… Use the same rules – but in reverse – for a
BUY trade.
PM me if you want to read the complete strategy.
ADAUSD 1h CARDANO STRATEGYStep #1: Cardano ADA price needs to trade BELOW the 200-day moving average
The first condition that Cardano requires to satisfy is to trade BELOW the 200-day moving average.
When price trades BELOW the 200-day moving average we know we have a strong premise for a bearish trend to be put in place.
The more time Cardano price spends below the 200-day moving average and the biggest the distance between the Ada price and the 200-day moving average the stronger the trend is.
Step #2: Volume needs to be above average and twice as much volume compared with previous volume bars needs to come in
We need to look for instances when the volume bars are above the average volume (the red moving average). But this is not all; we also need the buying volume to be twice as much as previous volume bars.
Wait for trading situations where the selling volume is increasing considerably. This really shows institutional buying that has the power to move the Ada coin price.
Step #3: After volume has increased, sell at the opening of the next candle
When to sell Cardano ADA is quite intuitive if you have followed this cryptocurrency step-by-step guide.
The moment we see institutional selling presence we want to be sure we’re not left out. In this regard, after the volume has increased, we sell at the opening of the next candle preceding the big volume candle.
Usually, you’ll be selling right after the first bearish candle that often is the starting point of a new trend. Don’t be afraid to sell on the way down as this will pay handsomely in the long run.
Step #4: Place protective Stop Loss above the 200-day moving average
Hide your protective stop loss above the 200-day moving average.
A market that has a strong bearish trend should not drop above the most powerful moving average aka the 200-day moving average. By hiding your stop loss above the 200 moving average, we’re minimizing risk as much as possible.
Note* as the trend progresses you can also trail your stop loss below the 200-day MA.
Step #5: You decide or Take Profit when we break and close above the 200-day Moving Average
The 200-day moving average can serve us as a significant trigger for our exit strategy.
When we break above the 200 moving average, that’s the first sign that the trend is about to change the tide. When these happen make sure you take profits.
Note** the above was an example of a SELL trade using the Cardano trading strategy. Use the same rules for a BUY trade – but in reverse.
PM me if you want to read the complete strategy
#BTC $BTCUSD 4H Update AnalysisOn chart is shown a partial of circular support and resistance purple-colored lines.
Support at 6650 and 6550
Resistance at 6850 and 7200
2 PRs:
PR1 trgt = 6605 (reached) (=strong signal) -- further uptrending momentum is likely - failing more than 2 PR failures.
PR2 trgt = 7034.51 (Not yet reached) -- needs more time till proven failed (=avg strength signal w/BearishDiv)
MAs are Positive on price.
RSI wma45 is positive
1 NR: Failed on 4H
1 NR: Still putting negative pressure on 12H frame
Entry made @ 6500 - June 18th
50% position sold ~ 6730 June 20th
placed stop 1: 6525
placed stop 2: 6300
Re-entry @ breakout of 6800 - 6900 zone with valid volume on 4H frame
Odds:
60% Up
40% Dn
USDJPY 15M DONCHIAN CHANNEL STRATEGYStep #1: Attach the Donchian channel indicator to your chart. Preferred setting 20 periods.
For the purpose of this example, we’re going to plot the Donchian channel on the 15-minute time frame. The preferred Donchian channel settings is 20-periods, which means that the channel lines will be calculated based on the price action from the last 5 hour candles
Note* The Donchian indicator is a free pre-build technical indicator that comes free with most trading platforms.
Step #2: Wait until the price crawls along the upper Donchian Channel. The price should not go below the middle band during this stage.
It’s quite easy to visualize the Crawling Along pattern. When the price action touches the upper Donchian channel, and it stays glued to the upper line, we create the price effect where the price looks like it’s crawling along the top Donchian line.
If you think in terms of supply and demand, when the price is crawling along the upper Donchian channel, without departing too far away it means there are lots of buyers that try to push the price higher. This eventually will lead to seller capitulating once the breakout happens.
Another characteristic of the Crawling pattern is that during this stage, the price shouldn’t go below the middle Donchian band.
Note* The closer the price action moves along the upper band, the stronger the trend is.
If you spot this type of price action, then you know this day trend has a big potential for following through.
Step #3: Buy1 when the price pulls back to the middle Donchian band. Buy2 when the price pulls back to the lower Donchian band.
The channel width gives us a measurement of the market volatility. When we have high volatility in the market, this will be shown on the chart by wide channel bands, whereas low volatility will be displayed on the chart by a narrow channel.
Like with all technical indicators the Donchian channel can be subject to false signals from whipsaws and sizeable market swings. Breakouts are very hard to trade, and that is the reason why we prefer to enter on pullbacks.
We recommend splitting your trade into two parts as this will give you a better average entry price.
The first buy order is deployed when the price pulls back to the middle Donchian band, while the second buy order is deployed when the price retraces all the way to the lower Donchian band.
Our entry strategy will give us the opportunity to implement a proper risk management
This entry strategy is a good way of framing a trade. So, you have a very specific entry point
By sticking to this entry rules, you will realize this is not a bad trade to take because you trade in the direction of the prevailing trend
Step #4: Hide your protective Stop Loss below the lower Donchian band
Your stop loss can be placed below the lower Donchian band. The catch is that you need to move to the left side of the chart and find the first part of the lower Donchian band where it is flat.
You’ll find that often times the Donchian channel will plot perfectly flat lines. This can provide us with excellent spots to hide our stop loss.
Step #5: Take profit at the end of the day or if you want to ride the trend more take profit when
The beauty of the Donchian trading strategy is that you can apply multiple exit strategies so you can maximize your profits.
Now, that we know that the supply and demand balance is skewed to the upside, we can expect buyers to step in far quicker on retracements than they have before. This can indicate that we’ll have a buy explosion to the upside.
The first proposed exit strategy is to liquidate your position at the end of the day. Since we’re trying to take advantage only of the intraday trends we don’t want to have any overnight exposure.
Secondly, you can wait until the price breaks below the most recent flat lower Donchian band.
Note** the above was an example of a BUY trade using our Donchian Channel Strategy PDF. Use the same rules for a SELL trade – but in reverse.
DOGEUSD DAY STRATEGYStep #1: Wait until you can spot a bar that has its daily range smaller than the previous three days
The first rule requires you to have the patience until the Nr4 pattern develops on the Dogecoin chart. When we have a daily trading range that is narrowed than the previous trading ranges it means that the price is contracting.
Based on our backtesting results we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion.
This is the reason why this short-term price pattern is so powerful.
Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame
Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day.
Step #3: How to buy Dogecoin: Buy only if the breakout of the Nr4 high happens during the first 5 trading hours.
We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days.
Our Dogecoin trade doesn’t have an inside day, but nevertheless we want to buy only after we break above the Nr4 day high. Also, we want to make sure the breakout happens during the first five trading hours of the next day.
Trades based on the ORB – Nr4 pattern will show you a profit instantly.
Now, if the trade is not showing you a profit right away than your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market.
Of course, you can only do that if your stop loss hasn’t been triggered in the meantime.
Step #4: Place your protective Stop Loss below the Nr4 day low
You can hide your protective stop loss below the Nr4 day low. Alternatively, you can also place your stop loss below the current day low as this will give you a better risk to reward ratio.
The ORB – Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined they tend to produce even more powerful trades.
Step #5: Take profit at the close of the first 1-hour bearish candle
Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel.
Even though the ORB pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. So as soon as the first bearish candle shows up we close the trade and enjoy our daytrade profits.
Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the cryptocurrency market.
Note** the above was an example of a BUY trade using our Dogecoin cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse.
PM me if you want to read the complete strategy.
NEM XEM RSI CRYPTO STRATEGYRate of Change indicator or simply put it the ROC indicator is another momentum indicator and as the name suggests it measures the rate of a crypto’s change in price and predicts future price movements.
Our RSI is applied over the ROC. So the RSI line is derived from ROC not the price.
Step 1 - Step #1: Wait until the RSI has a value of less than 30
At this stage, we need to use the RSI readings from the daily chart. Just wait until the RSI has a value of less than 30. You’ll have to wait for the daily close to get the RSI reading.
Obviously, this means that you’ll always buy XEM the next day.
Once you spot an RSI reading less than 30 we switch to a lower time frame which brings us to the second rule of the Nem (XEM) cryptocurrency strategy.
Step #2: Switch to the 1-hour chart and wait again until the RSI shows a reading of less than 30.
The second rule that needs to be satisfied before pulling our trigger is to wait again for the RSI indicator to show a reading of less than 30 but this time on the 1-hour time frame.
Remember, this should be the next day after the RSI posted less than 30 readings on the daily chart.
Step #3: How to buy XEM: Buy at the opening of the next candle after the RSI went below 30 levels.
The original momentum Pinball pattern uses a different entry method. We have done some backtesting and found that we can achieve superior returns if we follow a different entry strategy.
How to buy XEM with our cryptocurrency trading strategy is much more eloquent because it uses the concept of multiple time frame analysis.
Buy at the opening of the next candle after the RSI posted a reading of less than 30.
Step #4: Place your protective Stop Loss below the previous day low
After the buy EOS order is triggered, we need to have a strategy to protect our bottom line.
The best Nem XEM price to hide your protective stop loss is below the previous day low. The Nem XEM price should not come to this point.
Step #5: Take profit should be 2 or 3 times larger than your stop loss
Again, our exit strategy is slightly different than the original momentum Pinball pattern.
Be sure to close your Nem trade once the take profit is two or three times larger than your stop loss.
Alternatively, you can use the initial exit strategy which requires taking profits when we break above the previous day high. Don’t limit yourself to either of these two strategies, but instead make the best out of them and use the one that suits the most the current trading environment.
Note** the above was an example of a BUY trade using our Nem (XEM) cryptocurrency strategy. Use the same rules for a SELL trade – but in reverse.
PM me if you want to read the complete strategy.
GBPUSD 1H STRIKE TRADER ELITE PULSE INDICATOR SIGNALSStrike Trader Elite Pulse Indicator is a Macd based signal indicator
Green vertical line indicates Macd signal
Entry is based on a delayed amount of pips before a Buy Stop order Yellow line is painted on chart
Buy Stop Loss Red line is painted on chart from a pre-determined amount of pips from entry
Buy Take Profit Green line is painted on chart from a pre-determined amount of pips from entry
PM me if you are interested in reading about this indicator
XPloRR S&P500 Stock Market Crash Alert GeneratorXPloRR S&P500 Stock Market Crash Alert Generator
Long-Term Trailing-Stop study detecting S&P500 Stock Market Crashes/Corrections and showing Volatility as warning signal for upcoming crashes
Detecting or avoiding stock market crashes seems to be the 'Holy Grail' of strategies/studies.
This study detects all major S&P500 stock market crashes and corrections since 1980 depending on the Trailing Stop Smoothness parameter. The 5 crashes/corrections of 1987, 1990, 2001, 2008 and 2010 were successfully detected with the default parameters.
With the default parameters this study generates 5954% profit, with 6 closed trades, 100% profitable, while the Buy&Hold strategy only generates 2427% profit, so this strategy beats the Buy&Hold strategy by 2.45 times!
The script shows a lot of graphical information:
the green area shows a trading period (between buy and sell)
the close value is shown in light-green. When the close value is temporarily lower than the buy value, the close value is shown in light-red. This way it is possible to evaluate the virtual losses during the trade.
the trailing stop value is shown in dark-green.
the EMA and SMA values for both buy and sell signals are shown as colored curves
the Volatility is show below in green and red. The alert threshold (red) is default set to 200 (see Volatility Warning Threshold parameter below)
Trailing Stop Smoothness value:
Adjust the Trailing Stop Smoothness parameter to hide/show smaller corrections/crashes:
96: 6 trades, 100% profit, 5954% profit, detected crashes: 1987, 1990, 2001, 2008, 2010
90: 8 trades, 100% profit, 5347% profit, detected crashes: 1984, 1987, 1990, 2001, 2008, 2010, 2011
74: 9 trades, 100% profit, 4964% profit, detected crashes: 1984, 1987, 1990, 2001, 2008, 2010, 2011, 2015
41: 10 trades, 100% profit, 4886% profit, detected crashes: 1984, 1987, 1990, 1998, 2001, 2008, 2010, 2011, 2015
How to use this alert generator?
Add to your alerts to get an automatic warning (via e-mail) of an upcoming stock market crash
Optimize parameters using the strategy settings icon, you can increase/decrease the parameters
More trades don't necessarily generate more overall profit. It is important to detect only the major crashes and avoid closing trades on the smaller corrections. Bearing the smaller corrections generates a higher profit.
Watch out for the volatility alerts generated at the bottom (red). Threshold can by changed by the Volatility Warning Threshold parameter (default 2% ATR). In almost all crashes/corrections there is an alert ahead of the crash.
Although the signal doesn't predict the exact timing of the crash/correction, it is a clear warning signal that bearish times are ahead!
The current correction in march 2018 is not yet a major crash but there was already a red volatility warning alert. If the volatility alert repeats the next weeks/months, chances are higher that a bigger crash or correction is near.
As can be seen in the graphic, the deeper the crash is, the higher and wider the red volatility signal goes. So keep an eye on the red flag!
Information about the parameters: see below
If you are interested in buying this S&P500 Stock Market Crash Alert Generator, please drop me a message to receive the code (Price 99$).
DGB/BTC 25+% potentialBuy now or wait after the breakthrough of a triangle or flag in the zone 0.00000464 - 0.00000482
stoploss
in case the triangle is triggered down
0.00000397 - 0.00000389 if there still one more movement to the bottom of the flag, the stops are different:
0.00000371 - 0.00000363
Target:
0.00000512 - 0.00000558
maximum:
0.00000718