Introduction To Gann Theory | Gann Square From ScratchHello, traders!
Today we gonna start one of the most complicated topics. Please pay as much attention as it possible and ask any questions you like.
Gann technical analysis methods are a bit complicated because they are based on geometry, ancient mathematics, astrology, and astronomy. Popular technical methods like Gann Angles and the Master Charts are at Gann’s disposal. The Gann Square is also among the several powerful tools that Gann developed.
How to use?
It can be used in a variety of ways.
One way is to start at the previous major pivot point (normally the end of the last 5 wave sequence) and draw it so that the 1 X 1 line follows the current market support areas to a good degree.
Simply put, if you want to draw it from the higher high, the end should be at the previous lower low to follow the price cycles. And if you are drawing it from lower low, finish it at previous higher high.
Another way is to highlight geometric formations that can forecast key support and resistance levels by counting forward from the all-time low or all-time high.
Well, I understand the difficulty of the instrument. It's kinda difficult to use it from scratch. However, tomorrow I will elaborate this article with short analysis using this powerful tool.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Tutorial
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.
Brakout or Fakeout ?Hello traders , As you can see in the related EURUSD idea I published sooner , I mentioned that IF we had a breakout of structure you can enter a long position ...
But what happened then ? when you see a candle breaks the resistance area , that dose not mean that you can enter a long position . Actually it's the first sign of a long position of course.
you should go through lower time frames to see a Weakness for sellers to enter a long position.
in the next bear candle we can clearly see no Weakness which means this was a FAKEOUT ...
Balance Of Power From ScratchHello, traders!
As you know it's very important to identify the balance of bulls and bears. Today, we introduce you one of the most pretty and easy-to-interpret tools - Balance Of Power Oscillator.
Balance of Power (BOP) is an oscillator that measures the strength of buying and selling pressure. Introduced by Igor Levshin in the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, this indicator compares the power of buyers to push prices to higher extremes with the power of sellers to move prices to lower extremes. When the indicator is in positive territory, the bulls are in charge; and sellers dominate when the indicator is negative. A reading near the zero line indicates a balance between the two and can mean a trend reversal.
The Balance of Power indicator shows the direction and extent of price change during the trading period. Like most oscillators, the Balance of Power indicator can be used to identify trends, divergences from price, and overbought/oversold conditions. Zero-line crossovers provide buying and selling signals.
Possible Signals
Zero-Line Crossovers
The scale of this oscillator ranges from -1 to +1, with 0 as the centerline. Zero-line crossovers indicate a move into positive or negative territory, and are often used as buy or sell signals. A cross above the center line generates a buy signal, and a cross below generates a sell signal.
The data is smoothed with a moving average in order to reduce the number of whipsaws. An SMA with more periods reduces the number of false crossover signals, but also reduces the responsiveness of the indicator.
While the main signal provided by the Balance of Power indicator comes from zero-line crossovers, it can also be used to determine the trend, look for divergences in price, and identify overbought/oversold securities.
Trend identification
A rising BOP line indicates an upward trend and a falling BOP line indicates a downward trend. The zero-line crossover confirms the trend change.
Divergences with Price
When price makes new highs but BOP doesn't, that is a negative divergence; when price makes new lows but BOP doesn't, that is a positive divergence. These divergences can foreshadow a change in trend.
Conclusion
The Balance of Power (BOP) indicator uses price to measure buying and selling pressure. It determines the strength of the buyers and sellers by looking at how strongly the price has changed, rather than using volume.
As with all indicators, traders should use the Balance of Power indicator in conjunction with other indicators and analysis techniques.
💨𝙀𝙡𝙡𝙞𝙤𝙩𝙩 𝙒𝙖𝙫𝙚 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡🌊●●● 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (D)
❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨
● A diagonal always subdivides into five waves.
● Wave 2 never goes beyond the start of wave 1 .
● Wave 3 always goes beyond the end of wave 1 .
● Wave 4 never moves beyond the end of wave 2 .
● Wave 4 always ends within the price territory of wave 1 (overlap).
● An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat .
● A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag.
● Waves 1 , 2 , 3 , 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags.
● In a leading diagonal, wave 5 always ends beyond the end of wave 3 .
❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Waves 1 , 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses (all zigzags or all impulses ).
● Within an impulse , if wave 1 is a diagonal, wave 3 is likely to be extended.
● Within an impulse , wave 5 is unlikely to be a diagonal if wave 3 is not extended.
● A leading diagonal in the wave one position is typically followed by a zigzag retracement of 78.6 %.
●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Contr.D)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● In the contracting variety, wave 3 is always shorter than wave 1 , wave 4 is always shorter than wave 2 , and wave 5 is always shorter than wave 3 .
● Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves 1 and 3 .
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● In the contracting variety, wave 5 usually ends beyond the end of wave 3 . (Failure to do so is called a truncation.)
● In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3 . (Ending beyond that line is called a throw-over.
● In the contracting variety, wave 3 may be equal .618 to .786 the length of wave 1 , and wave 5 may be equal .618 to .786 the length of wave 3 .
●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝘿𝙞𝙖𝙜𝙤𝙣𝙖𝙡 (Exp.D)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● In the expanding variety, wave 3 is always longer than wave 1 , wave 4 is always longer than wave 2 , and wave 5 is always longer than wave 3 .
● Going forward in time, a line connecting the ends of waves 2 and 4 diverges from with the line connecting the ends of waves 1 and 3 .
● Wave 5 always goes beyond the end of wave 3 .
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave.
● In the expanding variety, wave 3 may be equal to 1.618 the length of wave 1 , and wave 5 may be equal to 1.618 the length of wave 3 .
● In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3 .
Elliott Wave Principal 2005 and Q&A EWI .
USDT.DOne of the important parameters in the analysis
This domain was mentioned in the training explanations
There is a possibility of suffering
Therefore, we will have a series of fluctuations
One of the reasons for the positive domain is the existence of hidden divergence
Chaikin Oscillator From ScratchHi, traders!
Today we'll speak about one of the most pretty instrument of divergence detection.
The Chaikin oscillator is named for its creator Marc Chaikin.1
The oscillator measures the accumulation-distribution line of moving average convergence-divergence (MACD). To calculate the Chaikin oscillator, subtract a 10-day exponential moving average (EMA) of the accumulation-distribution line from a 3-day EMA of the accumulation-distribution line. This measures momentum predicted by oscillations around the accumulation-distribution line.
The purpose of the Chaikin oscillator is to identify underlying momentum during fluctuations in accumulation-distribution. Specifically, it applies the MACD indicator to accumulation-distribution rather than closing prices.
For example, a trader wants to determine whether a coin price is more likely to go up or to fall and MACD is trending higher. The Chaikin oscillator generates a bullish divergence when it crosses above a baseline. The baseline is called the accumulation-distribution line. A cross above that line indicates that traders are accumulating, which is typically bullish.
The Chaikin oscillator utilizes two primary buy and sell signals. First, a positive divergence is confirmed with a center-line crossover above the accumulation-distribution line, signaling a potential buying opportunity. Second, a negative divergence is confirmed with a center-line crossover below the accumulation-distribution line, signaling a potential selling opportunity.
A positive divergence signals a coin price is likely to rise, given the increase in accumulation. A negative divergence signals a coin price is likely to fall, given the increase in distribution.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
An example of the BOS ( breaking out the structure)after breaking the trendline you can draw a fibbonacci retracement to find your entery and your stoploss is just above the 1 point level and your take profit is in the start of the trendline
This is ALL you need to be Profitable in TradingGood morning traders! Today we will make an educational post about something that generates many doubts in many people:
That is, what are the tools that I should use to trade correctly? Do I need indicators? do I need extremely complex strategies? The answer is DEPENDS.
Why does it depend? It depends because there are many ways to see and trade the market, and just as there are thousands of traders, so there are also thousands of strategies since there are many ways to combine the different tools that we have. That said, it is worth clarifying that this post is made 100% from our experience, and the objective is not to discredit or downplay other trading methods. This is simply what we use, and for a long period of time, it has served us well.
We will divide this post into two parts, first, a theoretical explanation of each tool, and second, show how we apply the previously explained concepts.
🔸Price action:
This is the first concept that we must cover since it incorporates everything in a certain way. The price action, basically, is the behavior of the price. Depending on the market situation (trend, either bearish or bullish or in range), we may see different price actions. The technical analysis starts from the basis that the price action discounts everything necessary to decide on an asset; therefore, everything that is happening, the price is transmitting in its behavior. For example, if the price is in strong support, and we see that a candle with a lot of volume appears, and it forms a candlestick pattern (suppose bullish engulfing), clearly the price action tells us that there is strong buying interest. This applies to all scenarios; we can also consider a breakout of a structure or correction that closes with a strong candle above the previous high, and so on with infinite cases.
Example of price action in support (real situation in USD / CAD in Weekly Chart):
🔸Trendlines/channels:
This will be a determining tool when defining a trend. Depending on which market or timeframe we trade, we will see more or fewer trends, but they are a very comfortable visual way of marking them. In the case of an upward trend, the concept is based on joining the increasing lows with a line and the same with the increasing highs. Same situation for a downtrend, but with the highs and lows in reverse. The price tends to respect these lines very well, bouncing off them every time it touches them.
Example of trend lines in channel form in EUR / USD Daily Chart (Real example):
🔸Support / Resistance Zones:
The Support and Resistance zones are horizontal and static supply and demand zones. As we saw previously in the trend lines that the price reacts (these are considered dynamic supports and resistances since the value changes as time progresses), the same thing happens here, since they are specific places where there are many buy or sell orders. The key is to wait for a reaction in the price in that area to confirm the movement. When the price moves for a long time between support and resistance, we can say that it is within a range. This usually happens after periods of a powerful trend, where the price begins accumulation/distribution consolidation processes that last a long time.
Here, we have an example on Amazon (AMZN):
🔸Corrective Patterns:
This is a particular concept since it is focused on momentum/trend traders. This trading style is characterized by taking positions that are always in favor of the trend, and corrective patterns are an exciting time to join the movement. These patterns happen after impulses; if we have a strong upward movement, then once the price starts to retrace, it will form a correction pattern in the opposite direction of the trend. They are very useful to be able to join the next trend.
Real example on Facebook (FB):
🔸Risk Management:
The basic idea of risk management is to be able to earn as much as possible but always keeping losses as low as possible, and of course, avoid destroying an account. It is very common to see traders who try to "duplicate" accounts or obtain exorbitant results in very short periods of time. Is this possible? Of course, YES, but we must ask ourselves whether this is functional in the long term, and the answer is NO. OBLIGATORY, if we take high risks, we will lose a lot of money after a certain period of time. This is very simple, trading is a game of statistics, and streaks exist either for better or worse.
There are certain basic rules, such as the % risk of the total capital in each trade. For example, if we have an account of $10,000, a conservative and correct risk to assume, it would not be more than $300 per trade, which implies 3% of the total capital. We recommend risking that value as much as possible, and even the optimum is a little less. We handle ourselves with risks between 1-2%.
Assuming real situations, there are bad streaks of trades that can reach 10-15 consecutive negative trades. Assuming a risk of 2% per operation, we would have a maximum loss of capital of 30%. In this way, we can stay in the game for the long term. Never forget that capital is the raw material of labor, and rule number 1 is NOT TO LOSE IT.
🔸Psychology:
When it comes to trading, thousands of emotions appear that go through our heads, both positive and negative. We will feel fear, euphoria, anxiety, greed, depression, excitement, happiness, and infinite emotions depending on the situation in which we find ourselves. The objective of working on psychology is, obviously, to reduce these sensations, but more importantly, it is to ensure that they do not affect us in our daily work. In the end, we are human, and we will always feel emotions, but the goal is that they do not negatively influence our trading.
In the first place, to reduce negative emotions, we must necessarily know perfectly the statistics of the strategy that we are carrying out. This implies knowing what your return is, what period, maximum loss, how long it will take me to recover it, etc.
On the other hand, it is necessary to perform a backtest to know how it behaved over time and if what I see at the moment is correct. In this way, we will have peace of mind when operating.
We must never forget that this is a business, and expectations must be long-term. Do not measure the result in days or weeks. Look at it in months, quarters, or years. In this way, the results will be more representative.
🔸With the concepts explained, we will see how we can unite them all to take a trade. Although they are all useful, individually, they do not serve us to take a trade. We must unite them in an organized way to use them to our advantage.
We will show you some positions we have taken over the last few months (some already closed, others active).
Bullish Trade on INTU:
In this trade, we see a clear uptrend. The price, after making a maximum, was consolidating for a few months. We detected a clear corrective pattern and took a bullish position once it was broken to the upside. The entry was above the previous high, the stop loss behind the low, and the target in the Fibonacci extension (this concept is not explained, but we can make an informative post later if you want). The risk assumed was 1% of the capital, with a potential gain of +2.5%. The position is open but near the take profit.
Bullish Trade on FB:
Similar scenario to the previous one. Price builds bullish momentum and then corrects. We operate the correction breakout, assuming a risk of 1% with a potential gain of +2.4%.
Bullish Trade on FB (short-term):
This is a trade that we take in addition to the previous one; it is an internal trade. Here, we also incorporate the concept of support/resistance. There was a broken resistance to the upside, and then the price generates a throwback (retest). This setback forms a corrective pattern, which gives us a good opportunity to enter the market—assumed the risk of 1% with a potential gain of +2%.
Bullish Trade on GOOGL:
In this trade, the price breaks the upper end of the bullish channel and begins to correct at the edge. We see a clear consolidation, and we trade the bullish breakout. This trade is already closed with a profit of +1.75% with an assumed risk of 1%.
Of course, not everything is so nice, and there are also stop losses.
Bullish Trade on TLRY:
In this trade, the price breaks the descending trendline and the resistance zone (then support). It generates a corrective structure, and we take a bullish position at the break. The price was a bit in our favor, but then everything turned against us, and we jumped our stop loss.
🔸 This is a small sample of certain technical analysis concepts and how they can be applied to the market. There is no complex science here, no confusing indicators. Simply clear trends, trade-in that direction, and interesting profits with limited risks. That's all it takes to make money on this.
Awesome Oscillator From ScratchHi, traders!
Today we’ll speak about one of the most pretty and easy-to-interpret oscillator - Awesome oscillator.The Awesome Oscillator Indicator (AO) is a technical analysis indicator created by Bill Williams as a tool to determine whether bullish or bearish forces dominate the market. It measures the market momentum with the aim to detect potential trend direction or trend reversals. The market momentum is evaluated using a combination of a shorter time frame and longer time frame simple moving averages or stated differently, it considers the recent momentum in comparison with a higher frame momentum.
The Awesome Oscillator is calculated as the difference between the newest 5 periods (bars) simple moving average (SMA) and the 34 bars simple moving average. But instead of the closing price, the indicator uses the bar midpoint value.
The indicator is plotted as a histogram in a box at the bottom of the chart and the histogram bars are found in either of the two colors red or green (with some trading platforms the lines can be red or blue). When the midpoint value of the last price is higher than the previous bar midpoint, the histogram will be green (blue) and if the midpoint of the last bar is lower compared to the previous bar, it will be red.
How to use Awesome Oscillator?
There are a variety of strategies which could be used by traders to identify potential trading opportunities. Some of the well-known and basic trading setups are the zero-line and divergence.
Awesome Oscillator and zero-line crossovers
The basic alerts which are generated by the Awesome Oscillator are identified on the basis of the zero-line cross overs.
* A bullish buying opportunity alerts occur when the AO indicator crosses above the zero-line, indicating that the short-term momentum is increasing faster compared to the long term.
* A sell opportunity is detected when the indicator crosses below the zero-line mark displaying that the short-term momentum decreases more rapidly than the long-term.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Head and Shoulders Pattern and How to Trade them. (and Inverted)A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.
A head and shoulders pattern is comprised of three component parts:
After long bullish trends, the price rises to a peak and subsequently declines to form a trough.
The price rises again to form a second high substantially above the initial peak and declines again.
The price rises a third time, but only to the level of the first peak, before declining once more.
The first and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called the neckline.
An inverse or reverse head and shoulders pattern is also a reliable indicator that can also signal that a downward trend is about to reverse into an upward trend. (As we can see in the above example)
Like all charting patterns, the ups and downs of the head and shoulders pattern tell a very specific story about the battle being waged between bulls and bears.
The initial peak and subsequent decline represent the waning momentum of the prior bullish trend. Wanting to sustain the upward movement as long as possible, bulls rally to push the price back up past the initial peak to reach a new high (the head). At this point, it is still possible that bulls could reinstate their market dominance and continue the upward trend.
However, once price declines a second time and reaches a point below the initial peak, it is clear that bears are gaining ground. Bulls try one more time to push price upward but succeed only in hitting the lesser high reached in the initial peak. This failure to surpass the highest high signals the bulls' defeat and bears take over, driving the price down and completing the reversal.
How To Measure Volatility Easily|Advanced Usage Of BBHi traders!
As we said in the last article it’s kinda complicated problem to measure volatility. However, it’s one of the most important features of market. Any strategy directly depends on the volatility level of coin. Moreover, it provides signals of entry and exit. BB Width is one of the most accurate tool to measure volatility.
The Bollinger Band Width is the difference between the upper and the lower Bollinger Bands
divided by the middle band. This technical indicator provides an easy way to visualize consolidation before price movements (low bandwidth values) or periods of higher volatility (high bandwidth values). The Bollinger Band Width uses the same two parameters as the Bollinger Bands: a simple moving- average period (for the middle band) and the number of standard deviations by which the upper and lower bands should be offset from the middle band.
How does it works?
During a period of rising price volatility, the distance between the two bands will widen and Bollinger Band Width will increase. Conversely, during a period of low market volatility, the distance between the two bands will contract and Bollinger Band Width will decrease. There is a tendency for bands to alternate between expansion and contraction.
When the bands are relatively far apart, that is often a sign that the current trend may be ending. When the distance between the two bands is relatively narrow that is often a sign that a market or security may be about to initiate a pronounced move in either direction.
HOW TO buy shitcoins?Hey guys,
Many people asked me how they can get some altcoins they had in mind (AKA "shitcoins"), so I thought why not publish an idea?
I'll make this short.
There are three main ways to buy these coins:
1. Trust Wallet (PancakeSwap & UniSwap)
2. Enterprise websites
3. Any cryptocurrency exchange provider
Trust Wallet
First, you have to make a Trust Wallet. You can use crypto.com or any other platform you like, but make sure it supports BNB.
Then buy some BNB and then transfer it to your Trust Wallet address.
After your transfer is processed, open your BNB page on your Trust Wallet and then swap it to the Smart Chain (Because you will be using Smart Chain to make your purchases).
Now that you have everything done, you should "connect" your Trust Wallet to either UniSwap or PancakeSwap if you're using an app, or go browse through your Trust Wallet to the PancakeSwap or UniSwap websites to get your desired coins.
That's it. This method is used a lot because most "shitcoins" are not available to buy when they first come out. But you can readily get them on your Trust Wallets.
Enterprise websites
This method is hardly used because it's only relevant when you can't find your shitcoins on trust wallets. After all, they are exclusively launched only and only on their websites. So you only have to connect your Trust Wallet to their website or any other payment method they require.
Any cryptocurrency exchange provider
If your desired coin has been on the market for a while, there's a possibility that you can get it on any ordinary exchange website like you buy Bitcoin or any other coins. So there's not much to explain here as it's pretty obvious how you can make the purchase.
Now let's talk...
Have you used any of these methods? What are your experiences?
Any tricks you got in mind so that we can strategize buying shitcoins based on it?
Comment below!
Steps to invest successfully Hello guys, I hope you liked the video and you learnt something new.
Due the lack of time I didn't have the opportunity to talk in detail about everything I wanted. There are so many things to say and I would love to talk about them for hours.
Still, for any questions regard the video let me know in the comments. I will make sure to make more tutorial videos.
This video is meant to be a learning video and not a financial advise one.
Continuation Chart Patterns - Falling WedgeHello guys, this is an additional Tutorial idea following the previous one.
You can also use this trick to read your chart if you want to make sure if it's bullish or not. It's called a Falling Wedge.
What is a Falling Wedge?
When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making.
"The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When this pattern is found in a downward trend, it is considered a reversal pattern, as the contraction of the range indicates the downtrend is losing steam. When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making."
Now let's talk...
Have you used this patterns? What are your experiences?
Any tricks you got in mind so that we can improve reading charts based on it?
Comment below!
Ulcer Index From ScratchHi, traders!
Volatility is one of the most important parameters of the market. The measurement of it play a great role in technical analysis. Thus, it's kinda important to use tools that can tell you a lot about it.
The Ulcer Index (UI) is a technical indicator that measures downside risk in terms of both the depth and duration of price declines. The index increases in value as the price moves farther away from a recent high and falls as the price rises to new highs. The indicator is usually calculated over a 14-day period, with the Ulcer Index showing the percentage drawdown a trader can expect from the high over that period.
The indicator looks only at downside risk, not overall volatility. Other volatility measures, like standard deviation, treat up and down movement equally, but a trader typically does not mind upward movement; it is the downside that causes stress and stomach ulcers, as the index's name suggests.
The Ulcer Index is recommended as a measure of risk in various contexts where the standard deviation is usually used. The Ulcer Index can also be charted over time and used as a kind of technical analysis indicator, to show coins going into ulcer-forming territory, or to compare volatility in different coins.
Watching for spikes in the Ulcer Index that are beyond "normal" can also be used to indicate times of excessive downside risk, which investors may wish to avoid by exiting long positions.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Ichimoku CloudToday i am gonna show you why you have to use ichimoku cloud with CME and why you should avoid it with Futures or Spot trading. ( Unless you don't change settings in Ichimoku )
if you keep Ichimoku with his original settings, they are adapted for a closure of the markets every Week-Ends, that's why ichimoku is mostly used in Forex or Stocks.
What about Bitcoin ?
- CME are closing on Week-end that's why you can see a GAP every weeks.
- Perpetuals Futures never close ( That's why they call them perpetuals :D )
- Spot Margin Never Close also
- i used H12 Timeframe + i kept only the cloud
- So now you just compare the 2 Charts and you will get very fast the aberrations between CME and Binance Perpetual Futures.
- Those little anomalies can drive you to make some big mistakes while using the cloud, so Stay Safe!
And remember that "The sun always shines above the clouds!"
Happy Tr4Ding !
Pitchfork and Its Modifications From ScratchHi, traders!
Trading View gives us great opportunities to gain as much profit from analysis as it’s possible. Many tools indicators, including custom indicators let traders to extract all insights from the price action plot. However, many of us don’t know about very useful tools that TW gives us “from the box”. Well, today we’ll speak about pitchfork and its modifications.
Pitchfork
The technical indicator known as Andrews Pitchfork is not that well known and is rarely used by novice traders. However, it is a quick and easy way for traders to identify possible levels of support and resistance for price. It is created by placing three points at the end of previous trends and then drawing a line from the first point that runs through the midpoint of the other two points. The reason this indicator is called a "pitchfork" becomes apparent from the shape that is created in the chart.
How to draw?
Put the first point to the start of a new trend, second point on the next higher high, and the third to the lower low.
Shiff Pitchfork
But it’s good when we have no corrections. Try to draw pitchfork after it and you’ll fail. Fortunately, this problem has been solved with Shiff Pitchfork.
It has the same properties like the Original one, but the “corrections bug” is fixed.
How to draw?
Put the first point to the start of correction (pump), second point on the next higher high/lower low, and the third to the lower low/higher high.
Well, frankly speaking, the Original Pitchfork works well only on trend markets. For the corrections Shiff Pitchfork was invented. But what should we do with other cases? choppy market< for instance? Don’t worry, everything has been already invented.
The Modified Shiff Pitchfork
The Modified Shiff Pitchfork is heuristic above the Shiff pitchfork that specializes on sideways market movements.
How to draw?
Put the first point to the start of sideways movement, second point on the next higher high/lower low, and the third to the lower low/higher high.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
How To Tame A Reptile or Williams Alligator From ScratchHi, traders!
Have you ever heard about Alligator? Not from Australia or America but Williams Alligator. Both Australian reptile and Williams ‘pet’ have some common – they all have Jaw, Teeth, and Lips. So what is Williams Alligator?
As you know, you can get maximum profit during trend markets. You gonna enter to longs or shorts, to take some profit. It’s obvious that trading on choppy (sideways) market can be very dangerous for your funds. Thus, there’s the reasonable question, are you sure that the market has trend. Genius trader Bill Williams was concerned about the problem. That’s why he invented such pretty tool to define if market is trendy or choppy. It’s the first Alligator that’ll help you to earn money, but not spend them in boutiques.
So, let’s speak about technical part. The Alligator indicator uses three smoothed moving averages(calculated with a simple moving average), set at 5, 8, and 13 periods, which are all Fibonacci numbers. The initial smoothed average is calculated with a simple moving average (SMA), adding additional smoothed averages that slow down indicator turns.
The three moving averages comprise the Jaw, Teeth, and Lips of the Alligator, opening, and closing in reaction to evolving trends and trading ranges:
1. Jaw (blue line): Starts with the 13-bar SMMA and is smoothed by eight bars on subsequent values.
2. Teeth (red line): Starts with the eight-bar SMMA and is smoothed by five bars on subsequent values.
3. Lips (green line): Starts with the five-bar SMMA and smoothed by three bars on subsequent values.
The indicator applies convergence-divergence relationships to build trading signals, with the Jaw making the slowest turns and the Lips making the fastest turns. The Lips crossing down through the other lines signals a short sale opportunity while crossing upward signals a buying opportunity. Williams refers to the downward cross as the alligator "sleeping" and the upward cross as the alligator "awakening."
The three lines stretched apart and moving higher or lower denote trending periods in which long or short positions should be maintained and managed. This is referred to as the alligator "eating with mouth wide open." Indicator lines converging into narrow bands and shifting toward a horizontal direction denote periods in which the trend may be coming to an end, signaling the need for profit-taking and position realignment. This indicates the alligator is "sated."
The indicator will givefalse positives when the three lines are crisscrossing each other repeatedly, due to choppy market conditions. According to Williams, the alligator is "sleeping" at this time. Remain on the sidelines until it wakes up again. This exposes a significant drawback of the indicator because many awakening signals within large ranges will fail, triggering whipsaws.
A "Welcome to" Pinescript coding, Part 2I have built on my partner @Mayfair's_Ventures simple intro to Pine Script on @TradingView & @PineCoders
I have added some labels and shown how to use crossover and crossunder.
If you liked the first one, then watch this to develop your skills!
BTC confirmed forming a botttom - BTFDThe beauty of elliott waves is not only in their invaluable analytic tools but also in their trading methology. They tells us that previous W4 area acts as a support/resistance. When price action breaks this zone it often suggets that the trend has changed and reversal is more likely.
This indeed happended recently on BTCUSD. Price action exceeded the prevous W4 termination point (In this case it was the end of wave E of triangle). It was rejected from strong 42k resistance but since we got the confirmation any pullback can be perceived as BUY THE FKING DIP.
Momentum of the pullback is lowering which may indicate that reversal is near. We are also above POC and Daily MA21. This confluence provide us with a high-probability setup.
I do not want to see prices below 34k. If we drop below I will start considering alternatives count but for now this count is the most likely.
Keep monitoring the situation and adjust accordingly. Remember, price action knows the best. It is the current opinion of all market participants.
💨𝙀𝙡𝙡𝙞𝙤𝙩𝙩 𝙒𝙖𝙫𝙚 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚🌊●●● 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (T)
❗❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙧𝙪𝙡𝙚𝙨
● A triangle always subdivides into five waves.
● At least four waves among waves A , B , C , D and E are subdivided into a single zigzag.
● A triangle never has more than one complex subwave, in which case it is always a multiple zigzag or a triangle.
❗ 𝙂𝙚𝙣𝙚𝙧𝙖𝙡 𝙜𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Usually, wave C subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves.
● Usually, wave D subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves.
● Alternating waves of a triangle may be in Fibonacci proportion to each other by a ratio of 0.618 for contracting triangles and 1.618 for expanding triangles. For example, in a contracting triangle, look for wave C to equal 0.618 of wave A .
● A triangle can be wave 4 impuls , wave B of a zigzag, wave X of a double or second wave of an X of a triple zigzag, sub-wave C , D or E of a triangle and the last structure of a combination .
●● 𝘾𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙞𝙣𝙜 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Contr.T — CT)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● Wave C never moves beyond the end of wave A , wave D never moves beyond the end of wave B , and wave E never moves beyond the end of wave C . The result is that going forward in time, a line connecting the ends of waves B and D converges with a line connecting the ends of waves A and C .
● Waves A and B never subdivide into a triangle.
● In a running triangle, wave B should be no more than twice as long as wave A . (Q&A EWI)
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Sometimes one of the waves, usually wave C , D or E , subdivides into a contracting or barrier triangle. Often the effect is as if the entire triangle consisted of nine zigzags.
● About 60% of the time, wave B goes beyond the beyond the start of wave A . When this happens, the triangle is called a running triangle.
●● 𝘽𝙖𝙧𝙧𝙞𝙚𝙧 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Barr.T — BT)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● Wave C never moves beyond the end of wave A , wave D never moves beyond the end of wave B , and wave E never moves beyond the end of wave C . The result is that going forward in time, a line connecting the ends of waves B and D converges with a line connecting the ends of waves A and C .
● Waves B and D end at essentially the same level.
● In a running triangle, wave B should be no more than twice as long as wave A . (Q&A EWI)
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● About 60% of the time, wave B goes beyond the beyond the start of wave A . When this happens, the triangle is called a running barrier triangle.
● When wave 5 follows a triangle, it is typically either a brief, rapid movement or an exceptionally long extension.
☝ 𝙉𝙤𝙩𝙚𝙨
● We have yet to observe a 9 -wave barrier triangle, implying that this form may not extend.
●● 𝙀𝙭𝙥𝙖𝙣𝙙𝙞𝙣𝙜 𝙏𝙧𝙞𝙖𝙣𝙜𝙡𝙚 (Exp.T — ET)
❗❗ 𝙍𝙪𝙡𝙚𝙨
● Wave C , D and E each moves beyond the end of the preceding same-directional subwave. (The result is that going forward in time, a line connecting the ends of waves B and D diverges from a line connecting the ends of waves A and C .)
● Subwaves B , C and D each retrace at least 100 percent but no more than 150 percent of the preceding subwave.
❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨
● Subwaves B , C and D usually retrace 105 to 125 percent of the preceding subwave.
☝ 𝙉𝙤𝙩𝙚𝙨
● No subwave has yet been observed to subdivide into a triangle.
Elliott Wave Principal 2005 and Q&A EWI .
ELLIOTT WAVES BASICS - TUTORIALHow to understand ELLIOTT WAVES IN 4 STEPS?
For my followers to understand my analysis:
The topic is only described very roughly and is intended to give you a first overview of one of my analysis methods.
1. An impulse always moves in five sub-waves.
Waves 1, 3 and 5 of these are motive waves that move in the same direction as the overall trend.
Waves 2 and 4 are corrective waves, i.e. they correct the previous movement.
The following rules apply to an impulse:
-Wave 4 must not overlap with wave 1, except in a diagonal.
-Wave 3 is never the shortest wave.
-Wave 2 must not fall below the starting point of wave 1.
If one of these rules is broken, the chart analysis must be revised.
2. A correction wave moves in the opposite direction to the overall trend.
Corrective waves are three-part and basically consist of waves A, B and C.
Waves A and C are primarily impulse patterns of the corrective movement and drive the market in the opposite direction to the overall trend.
Wave B corrects the previous wave A and even has the potential to surpass the starting point of wave A.
3. The standard pattern consists of an impulse wave and a corrective wave.
These standard patterns repeat on a short-term basis as well as on a multi-year basis. In other words, every single wave consists of several sub-waves and in turn belongs to the larger picture. For example, wave 1 (an impulse) itself consists of five sub-waves.
This standard pattern continues and accordingly always merges into a higher level.
4. Relation Between Fibonacci and Elliott Wave Theory
Fibonacci Ratio is useful to measure the target of a wave’s move within an Elliott Wave structure. Different waves in an Elliott Wave structure relates to one another with Fibonacci Ratio. For example, in impulse wave:
Wave 2 is typically 38,2 %, 50% or 61.8% of wave 1
• Wave 3 is typically 161.8% of wave 1
• Wave 4 is typically 23.6%, or 38.2% of wave 3
• Wave 5 is typically inverse 1.236 – 1.618% of wave 4, equal to wave 1 or 61.8% of wave 1+3
You can use the information above to determine the point of entry and profit target when entering into a trade.
