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ETH/USDT 4H Interval Targets and StoplossHello everyone, let's look at the ETH to USDT chart on the 4-hour time frame. As you can see, the price is moving below the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $1774 T2 = $1790 T3 = $1809 T4 = $1834 AND T5 = $1864 Now let's move on to the stop loss in case the market goes down further: SL1 = $1700 SL2 = $1656 SL3 = $1619 AND SL4 = $1585 Looking at the CHOP indicator, we see that the energy has been used, the MACD indicates an ongoing local uptrend, while the RSI has a large increase, which may give the price a rebound or a sideways trend in the coming hours.
by cryptodailyuk
Night MovesIs it wise for retail traders to hold trade positions open overnight or over the weekend if the profit target has not been met by the end of the trading day? Even if you have a stop loss in place, unless you are a position/swing trader, intra-day traders and scalpers should not get into the habit of holding any positions open overnight during the trading week or over the weekend (regular or long). If your position has not hit your take profit target by the end of the trading day and you want to keep the position open until it does, you need to have decisive analysis indicating why that take profit target is likely to be hit when the market reopens after closing. Whenever the market closes and resumes on the next day and especially when it closes on a Friday and reopens after the weekend, market flow is disrupted and unless you have a wide stop loss in place, you may well end up with a loss because your previous analysis for that set up/trade idea may no longer be valid for the new market flow. An open position held overnight can easily get stopped out if on the next trading day there is a geopolitical event that causes a gap on open, printing a big move. Geopolitical events unfortunately are not scheduled on any economic or news calendar in advance and indeed sometimes, bad news is deliberately released by governments over the weekend and can blindside novice traders with open positions. Another way that you might have your SL tripped is if an institutional algo activates a huge sell order, for example, without clear rhyme or reason on market open or soon after, creating a cascade of sells and printing a flash crash before the necessary correction. Some retail traders will even hold positions open overnight without a stop loss with the intention of “tracking” the move using dynamic support and resistance and will consequently wait to see how those MAs move on the following trading day. This can play havoc with your psychology as you will be processing bias in favour of your open position whilst trying to analyse the market as objectively as possible. Also bear in mind that you may see eye watering swap charges incurred for holding trades overnight especially with larger lot sizes and this needs to be factored into your risk to reward for the trade. At the time of writing this post, it is triple witching Friday. Any temptation to open and hold a trade just before market close today will run into another problem related to volume. This coming Monday is a U.S. federal holiday when the NYSE, Nasdaq and bond markets will be closed. Due to the thinner volume on Monday as a result, any open positions from today that get sucked into drawdown on this holiday will be that much more difficult to roll out of successfully during the day. The only exception to that might occur if the lack of volume creates an exaggerated move with a price spike due to heightened volatility. However, you’d need have your eyes on the chart at the time, have a quick trigger finger to exit and close out the trade and of course, the move has to be in your favour in terms of the direction for the exit in the first place. Always close out a position before the end of the trading day and come back to the market in the new trading day with peace of mind and a relaxed attitude. An open position in drawdown on a new trading day will only create stress and interfere with your focus not just on dealing with that open position but also with regard to entering any other set up opportunities. Remember, whenever you go to market, please be careful out there.
Education
by BluetonaFX
4
BTC/USDT ShortTerm 4hInterval Targets and StoplossHello everyone, let's look at the BTC to USDT chart on a 4-hour timeframe. As you can see, the price is moving right at the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $25598 T2 = $25793 T3 = $26074 AND T4 = $26,433 Now let's move on to the stop loss in case the market goes down further: SL1 = $25518 SL2 = $25366 SL3 = $25252 SL4 = $25,129 AND SL5 = $24961 Looking at the CHOP indicator, we see that there is room to gather energy, the MACD indicates a transition into a local uptrend, while the RSI is moving around the middle of the range with room for the price to attack the current resistance.
COINBASE:BTCUSD
by cryptodailyuk
MTL RESULT!!!BYBIT:MTLUSDT.P Wow. this trade was everything i expected i am very proud of this outcome i took my patience and held on too watch these playa bottoms form! it was just a matter of time until i took a shot at this one and after the last spike from the 3rd through to the 6th was that sweet swing.. the volume came through and seen that double bottom forming on the 1HR and took my shot! thats all! win or lose it dont matter! im interested in the best setups. Time to reflect with my wife and find the next best trades i got my eye on. ill be sure to go through these ones tomorrow. ROAD2AMILLI
Long
by fusfamily
Daily BTC 4HChart - targets and stoplossHello everyone, let's look at the BTC to USDT chart on a 4-hour timeframe. As you can see, the price is moving below the local downtrend line. Let's start with setting targets for the near future that we can take into account: T1 = 25401$ T2 = 25579$ T3 = 25806$ and T4 = 26469$ Now let's move on to the stop loss in case of further market declines: SL1 = 25107$ SL2 = 24861$ SL3 = 24660$ and SL4 = 24456$ Looking at the CHOP indicator, we see that the energy has been used, the MACD, despite the price increase, remains in a downward trend, while the RSI has a visible rebound, we still have room for the price to overcome the current resistance.
COINBASE:BTCUSD
by cryptodailyuk
BTC/USDT 4H - Targets and StoplossHello everyone, let's take a look at the 4H BTC to USDT chart as you can see that the price has moved up from the local downtrend channel. Let's start by setting goals for the near future that we can take into account: T1 = $26,132 T2 = zone from $26383 to $26626 AND T3 = $26970 Now let's move on to the stop loss in case the market goes down further: SL1 = $25,951 to $25,655 zone SL2 = $25413 AND SL3 = $25,178 Looking at the CHOP indicator, we see that there is a lot of energy on the 4H interval, the MACD indicates a local uptrend, and the RSI is moving sideways around the middle of the range, which makes it difficult to clearly choose the direction of movement.
by cryptodailyuk
Preserving Your Capital Like A ChampIn the world of trading, effective trading capital management can mean the difference between success and failure. We cannot stress enough how critical this aspect is to long-term success. Today we will delve into the importance of managing your trading capital, the various strategies employed by many successful traders, and how you can implement these techniques to safeguard your investment and maximize profits. Understanding the Importance of Trading Capital Management Trading capital refers to the amount of money allotted for the purpose of trading your desired market. Proper management of trading capital is crucial for traders, as it helps them minimize losses and in turn, maximize profits. In essence, trading capital management is all about striking the right balance between taking risks and preserving your hard-earned money. One key aspect that differentiates successful traders from gamblers is their mindset. Gamblers tend to chase big wins, hoping for a life-changing payout, while traders focus on consistently generating small, predictable returns over the long term. Don’t get us wrong, big wins can and do happen, and they feel great when they do. Think of trading as a really long boxing match. It's rare and impractical for a boxer to believe they can knock out their opponent by flying out of a corner with no defense and going straight for a haymaker each time. The foundation for success takes many consistent jabs, and an unwavering defense, much like trading. Traders who want to be long-term successful will prioritize risk management and capital preservation, ensuring that they can continue trading even after incurring losses so they can pursue consistent profits. The Struggle is Real For New Traders New traders often find difficulty in managing their trading capital effectively. This is primarily due to their focus on making profits rather than minimizing risks. The desire to make money can lead to taking unnecessary risks, which can result in significant losses. It is crucial to remember that every loss must be recovered through a profitable trade to regain lost ground. So why not implement strategies that mitigate that lost ground in the first place? Strategies To Adopt for Long-Term Success So, what are some of the techniques that successful traders use to optimize their chances of consistent profits in the markets? Here are a few suggestions to improve your trading capital management: Implementing Stop-Loss Orders Always trade with a stop-loss. There are countless ways to implement a stop-loss, and we covered this in great detail in a previous article that is linked below. A stop-loss order allows you to specify a price at which your trade will be automatically closed if the market moves against you. This is the most practical and easily enactable capital management technique you can use. Some would consider trading without a stop-loss to be one of the cardinal sins of trading, as it prevents you from managing risk effectively. Utilizing Reward Risk Ratios (RRR) Every trade carries the risk of making a loss. Successful traders assess their potential trade risk and potential reward before entering a position. Utilizing reward-to-risk ratios may seem complicated, but it doesn't have to be. Many traders will often aim for a reward that is twice their risk or a ratio of 2 to 1. So in theory for every $1 you risk you aim to make $2 in profit. Your RRR can also help you understand what your theoretical minimum win rate would need to be a profitable trader. Utilizing this information is very handy when backtesting and forward-testing your strategy. In the early stages of a trader's journey, we highly recommend to keep a trading journal to keep track of these metrics. Keeping track of your wins and losses and keeping your RRR consistent offers deep insight into whether you are on the right path to consistency. Managing Your Money How much capital are you risking per trade? It's difficult to predict which trades will be profitable, but it's essential to risk a consistent amount on every trade. Coupled with an appropriate risk-to-reward ratio, this approach can help protect your trading account. For example, consider risking only 1-2% of your total trading portfolio on each individual trade with a maximum overall of 10% among your trades. This may not seem like much, but if you can remain disciplined with your stop losses and RRR you greatly increase the odds of success. If you have a small account don’t sweat it. It will help you grow that account size and compound those gains in a stable fashion that would outlast the method of throwing your entire account into each trade. Hedging Holding long and short positions on various assets in different sectors can help protect against any aggressive moves that affect the market as a whole. For instance, if there was a sudden 'flash crash,' the traders who solely went long would experience a loss or a potentially significant loss without proper risk mitigation. However, if you held both long and short positions, you could have made profits to offset the losses. Obviously, market events are hard to account for, but hedging can be a useful capital preservation strategy. Focusing on a Single Asset to Limit Risk Exposure Some traders prefer to concentrate on trading one asset to minimize risk exposure. This can be effective, especially when the trader has in-depth knowledge of the specific asset being traded. The potential downside is that this can limit your trading opportunities, but we highly advise this approach for new traders. Focusing on one asset can help you grow your experience and hone your strategy through a rigorously disciplined approach. Consistency in Risk and Money Management There is no one-size-fits-all approach to trading, and that's part of the beauty of it all. A strategy that works for one trader may not work for another. The key to improving your trading strategy is to adopt a disciplined approach to risk and money management. While this approach may not be as flashy as some in the trading community portray, consistently minimizing risk is an essential aspect of enhancing overall profitability and is a massive attribute to long-term success. Final Thoughts on Trading Capital Management Effective trading capital management is crucial for success in the world of trading. By adopting a disciplined approach to risk and money management, traders can minimize losses, maximize profits, and safeguard their investments. The techniques discussed – implementing stop-loss orders, utilizing reward-to-risk ratios, managing money, and diversifying trades – are all essential components of a successful trading capital management strategy. Remember, the key to success in trading lies not in chasing the knockouts but rather by consistently landing the jabs while maintaining a stout defense. By following these strategies adopted by long-term, successful traders and focusing on preserving capital, you can improve your chances of obtaining that same long-term success in the markets.
NASDAQ:MSFTEducation
by LeafAlgo
BNB/USDT 4HInterval Targets and StoplossHello everyone, let's look at the BNB to USDT chart on a 4-hour time frame. As you can see, the price is moving above the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $240.7 T2 = $244.5 T3 = $247 T4 = $251 AND T5 = $255.5 Now let's move on to the stop loss in case the market goes down further: SL1 = $231.8 SL2 = $221.9 SL3 = $214.3 AND SL4 = $206.3 Looking at the CHOP indicator, we see that there is still energy to continue the move, MACD indicates a local uptrend, while the RSI has been moving below the lower border for a long time and now we are approaching the middle of the range with room for further growth.
by cryptodailyuk
Developing a Trading Plan: 7 Key Aspects to Consider Becoming a successful trader requires more than just simply buying and selling assets. To be consistently profitable, traders must create and stick to a well-designed trading plan. A trading plan is a detailed document that outlines a trader's approach to the market and establishes rules for each step of the trading process. The following are seven key aspects that a trading plan should include. ✅Timeframe The timeframe determines the length of time each position will be held open. Traders can choose a long-term, medium-term, or short-term trading strategy. Long-term strategies may require holding a position for several months, while short-term strategies require closing a trade within a day, or even just a few minutes. ✅Risk Management Risk management is the process of identifying, assessing, and prioritizing risks or uncertainties that may affect trading outcomes. A trader's risk management strategy may involve using a fixed lot size or a percentage of the account for each trade. With proper risk management, traders can reduce their losses and maximize their profits. ✅Market Conditions Market conditions refer to whether the market is trending or ranging. A trending market is one in which prices move persistently in one direction, while a ranging market is one in which prices move sideways between a range of support and resistance levels. A trader should have different strategies for each type of market condition. ✅Choosing the Market to Trade Traders must choose which market they want to trade, based on their trading plan, resources, and experience. Forex, stocks, commodities, and cryptocurrencies are some of the markets that traders can choose from. It is advisable to trade in markets that a trader understands and has experience in. ✅Where to Enter Traders can use different methods to enter a trade, such as pullbacks, breakouts, or crossovers. A pullback is a temporary reversal in the direction of an asset's price movement. A breakout occurs when an asset's price moves through a support or resistance level, and a crossover is when two moving averages cross over each other. ✅Stop Loss A stop loss is an order placed with a broker to buy or sell a security when it reaches a certain price. Traders can use percentage-based or market structure stop-losses. A market structure stop-loss is set at a support or resistance level and is based on the analysis of market structure. ✅Targets Traders can have fixed or trailing targets. Fixed targets are predetermined profit objectives that are fixed in advance. Trailing targets are profit targets that move along with the price of the trade as it goes in the trader's favor. In conclusion, developing a trading plan is an essential step for every trader. It allows traders to make informed decisions based on their analysis, experience, and personal risk tolerance. It's important to review and adjust the plan regularly based on market conditions and changes in personal goals and financial conditions. By adhering to a trading plan, traders can improve their chances of success in the market. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
10
SOL/USDT targets and stoplossHello everyone, let's look at the SOL to USDT chart on a 4-hour time frame. As you can see, the price is moving below the local uptrend line. Let's start by setting goals for the near future that we can take into account: T1 = $19.89 T2 = $20.40 T3 = $20.84 T4 = $21.26 AND T5 = $21.89 Now let's move on to the stop loss in case the market goes down further: SL1 = $19.45 SL2 = $19.07 SL3 = $18.67 AND SL4 = $18.12 Looking at the CHOP indicator, we see that the energy is recovering, the MACD indicates the continuation of the local downtrend, while the RSI is approaching the lower limit, which in the coming hours may give the price an upward rebound.
by cryptodailyuk
LTC/USDT 1DInterval Targets and StoplossHello everyone, let's look at the LTC chart on the one day time frame. As we can see, the price is still above the uptrend line. Let's start with setting targets for the near future that we can take into account: T1 = 89,13$ T2 = 92,33$ T3 = 94,98$ T4 = 97,54$ and T5 = 101,28$ Now let's move on to the stop loss in case of further market declines: SL1 = 83,56$ SL2 = 80,14$ SL3 = 75,28$ and SL4 = 69,44$ The CHOP index indicates that there is still energy for movement, the MACD indicates the uptrend is maintained, while the RSI, despite a strong rebound, still takes place for the price to go down to the previously mentioned support areas.
by cryptodailyuk
XRP/USDT 1DInterval Targets and StoplossHello everyone, let's look at the 1D XRP to USDT chart as you can see that the price is moving above the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 - $0.55 T2 - $0.59 AND T3 - $0.64 Now let's move on to the stop loss in case the market goes down further: SL1 - $0.50 SL2 - $0.48 SL3 - $0.46 SL4 - $0.44 AND SL5 - $0.41 Looking at the CHOP indicator, we see that the energy has been used, the MACD confirms the ongoing uptrend, while the RSI is at the upper limit, which may affect the change of the trend to the downside.
by cryptodailyuk
EDUCATION: Hedging vs Stoploss Some rookie traders frequently trade without a stop loss because they think they can avoid being stopped out by market swings or rollover. However, if the market moves against them, this technique could result in severe losses. In this article, we'll cover why trading without a stop loss is a bad idea and how stop losses can be used efficiently or, as an alternative, how to employ hedging techniques. What is a stop loss? A stop loss is an order that you place on your trading platform to automatically close your position at a certain price level if the market goes against you. For example, if you buy EUR/USD at 1.2000 and set a stop loss at 1.1950, you are limiting your potential loss to 50 pips if the price drops below that level. A stop loss can help you control your emotions and prevent you from holding on to losing trades for too long, hoping that the market will turn around. There are several reasons why trading without a stop loss is a bad idea, such as: 🔹 You expose yourself to unlimited risk. Without a stop loss, you have no exit plan and you are relying on your gut feeling or luck to close your trade at the right time. However, the market can be unpredictable and volatile, and sometimes it can move hundreds or thousands of pips in a matter of minutes or hours. If you don't have a stop loss, you can lose more than your initial investment and even end up with a negative balance in your account. 🔹 You increase your stress level. Trading without a stop loss means that you have to constantly monitor your positions and worry about every pip movement. This can be very stressful and exhausting, especially if you have multiple trades open at the same time. You may also experience fear, greed, anxiety, anger, frustration, and other negative emotions that can cloud your judgment and affect your trading performance. 🔹 You reduce your profitability. Trading without a stop loss can also reduce your profitability in the long run. By not cutting your losses short, you are letting them eat into your profits and reduce your win rate. You may also miss out on better trading opportunities because you are too focused on your losing trades or afraid to open new ones. Additionally, you may incur higher trading costs due to wider spreads, commissions, swaps, and slippage. How to use stop losses effectively? Effectively utilizing stop losses will help you increase your trading profits and stay away from the risks of trading without one. The following advice will help you use stop losses effectively: 🔹 Determine your stop loss level using technical analysis. You can use a variety of technical tools and indicators, including as support and resistance levels, trend lines, Fibonacci retracements, moving averages, volatility indicators, etc., to pinpoint areas where the market is expected to reverse or rebound. Depending on whether you are going long or short, you should set your stop loss just below or just above these levels. 🔹 Use risk management rules to determine your position size. You should always calculate how much money you are willing to risk on each trade and adjust your position size accordingly. A common rule of thumb is to risk no more than 1% or 2% of your account balance per trade. This way, you can limit your losses and preserve your capital for future trades. 🔹Use trailing stops to lock in profits. A trailing stop is a type of stop loss that moves along with the price as it goes in your favor. For example, if you buy EUR/USD at 1.2000 and set a trailing stop of 20 pips, your stop loss will move up by 20 pips every time the price moves up by 20 pips or more. This way, you can protect your profits and let your winners run. NB: In related ideas I have attached my publication on trailing stop loss and support and resistance for those who would like to know more on those topics If a trade is having a hard time using stop losses what they can do as an alternative is hedge there position. Similar to how stock traders will use stock options to hedge their risk in the markets. What is hedging ? Hedging is a trading strategy that involves opening a position opposite to an existing one, in order to reduce the risk of loss from unfavorable price movements. For example, if you are long on EUR/USD, you can hedge by opening a short position on the same currency pair. This way, if the price goes down, you can offset some or all of the losses from your long position with the profits from your short position. Why this and not a stop loss ? The reasons someone would do this is because a stop loss can be triggered by temporary price fluctuations that do not reflect the true market direction. This can result in premature exits and missed opportunities. Moreover, stop loss can expose you to slippage and gaps, which are situations where the market price jumps over your stop loss level and executes your order at a worse price than expected causing you to loss more that you anticipated. hedging your position protects you from those situations. By hedging, you can keep both positions open until you are confident about the market direction and close the losing one when the price starts trending in your direction again. Things to note: Though you have positions opened in both directions and in theory you should not lose any additional funds once you've initiated the hedge it is worth noting that you can still have fees both positive and negative from swap fees at rollover depending on the direction and the asset you are trading. I will be doing a post soon on heading as a stop loss as a standalone topic and also swaps and rollover.
Education
by ChristopherDownie
37
BTC/USDT short-term Targets and StoplossHello everyone, let's take a look at the 4H BTC to USDT chart as you can see that the price is moving right at the local downtrend line. Let's start by setting goals for the near future that we can take into account: T1 = $27,112 T2 = $27,475 T3 = $27,780 AND T4 = $28089 Now let's move on to the stop loss in case the market goes down further: SL1 = $26,783 SL2 = $26,493 SL3 = $26,257 AND SL4 = $26,036 Looking at the CHOP indicator, we see that there is a lot of energy for a new move, the MACD is on the verge of entering a local uptrend, while the RSI, after recovering, has a small increase with room for the price to go a little higher in the coming hours.
by cryptodailyuk
1