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Volatility

Is DKNG a bettable buy?As shown on the daily chart DKNG has been on a clean rise this entire year now up 100% over the first six months. An earnings report is due in about three weeks. Sports betting may have some seasonability and most of all collegiate and professional sports are in the off season at this time. No matter, the chart shows a steady rise since the last earnings ( small) beat in an ascending channel between two and three standard deviations above the mean VWAP anchored one year ago. The MTF RSI indicator of Chris Moody shows both RSIs at about 70 and so not overbought. Trading volumes are steady and consistent. The relative volatility indicator shows some increases in the past 9-10 trading days. Overall, I believe that DKNG is suitable for a long swing trade which I will close just before earnings.
NASDAQ:DKNGLong
by AwesomeAvani
1
How to work with liquidity grab?Hello everyone👋 Today we will discuss how to effectively work with areas of increased liquidity. Actually, it would be appropriate to make this post after we have examined how order flow is formed in the market in order to understand the technical aspect of working with liquidity. Therefore, first, we will provide some introductory information using a long position as an example. When a trader buys an asset, they usually set a stop loss at a certain level or, if they don't use protective orders, their position will have a liquidation price depending on the chosen leverage. Based on this, when a specific price level is reached (stop loss or liquidation), their asset will be sold with a market order that will match the nearest limit order. Hence the conclusion: any exit from a losing position, as described above, is someone else's entry into a position with a limit order, often at a favorable price. This is how the positions of all major market participants are accumulated. So, we simply need to estimate where the maximum number of active stop losses is located and make a trading decision based on that. Most often, stop orders are located in the following zones: 1️⃣Obvious levels with equal highs/lows. 2️⃣Above/below any high/low in an obvious trend. After identifying such zones using our indicator or independently, you can take trades in the direction of liquidity grab (counter-trend trades with high potential but also high risk) or wait for actual liquidity grab and confirmation to enter a trend trade. In the next post, we will explore the technical aspect of liquidity grab for a deeper understanding of the topic. We look forward to your questions. Happy trading!
Education
by PhantomFlow
NQ Power Range Report with FIB Ext - 7/11/2023 SessionCME_MINI:NQU2023 - PR High: 15198.00 - PR Low: 15179.50 - NZ Spread: 41.5 12:00 – EIA Short-Term Energy Outlook Evening Stats (As of 12:35 AM) - Weekend Gap: N/A - Session Open ATR: 209.77 - Volume: 17K - Open Int: 252K - Trend Grade: Neutral - From ATH: -9.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
NQ Power Range Report with FIB Ext - 7/10/2023 SessionCME_MINI:NQU2023 - PR High: 15207.00 - PR Low: 15151.75 - NZ Spread: 123.75 Huge NZ spread - volatile session open Finding inventory above PR-1 before bear zone break - mechanical dip to PR-2 Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Open ATR: 217.79 - Volume: 38K - Open Int: 247K - Trend Grade: Neutral - From ATH: -9.8% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
LUV is loving the summer vacation travel LONGLUV has been in a persistent trend up for a couple of months after lackluster earnings were reported in early May with another due on July 27th. The airports have been quite busy with vacation travel and Southwest has been part of that action. On the 1H chart, price has been supported by the line two standard deviations above the mean anchored VWAP which shows persistent relative strength in a rise of over 25% over two months. Price above the POC line of the volume profile is another sign of buyer dominance. The MACD indicator show the lines in parallel and above a positive histogram. The relative volatility indicator shows sufficient volatility to support momentum trading. I will take a long trade going into earnings. I will do this with ten call options contracts with a strike at $40 expiring on July 28th. On the last trading day, this contract had a low of $ 0.36 and a high of $0.48 for a range of 33% in a single day. I expect similar price action as the earnings date approaches. I expect to pay about $480 for ten contracts and the profit expectation is 100% over the next 15 trading days.
NYSE:LUVLong
by AwesomeAvani
UAL United Airlines Pre Earnings LONGUAL has been in a persistent trend up for a couple of months after great earnings were reported in early May with another due on July 19th. The airports have been quite busy with vacation travel and UAL has been part of that action. On the 1H chart, price has been supported by the mean VWAP and has oscillated to the one standard deviation line above that. I see a target as 56.80 where the the second deviation lines above the mean aVWAP while placing a stop loss just under the blue line of one STD above VWAP. The price is below the POC line of the volume profile which should act as a magnet pulling the price higher. The MACD indicator shows 4 the lines in parallel and above the zero horizontal line with a positive histogram. The relative volatility indicator shows sufficient volatility to support momentum trading. I will take a long trade going into earnings. I will do this with ten call options contracts with a strike at $57 expiring on July 21st. On the last trading day, this contract had a low of $ 0.95 and a high of $1.32 for a range of 35% in a single day. I expect similar price action as the earnings date approaches. I expect to pay about $1320 for ten contracts and the profit expectation is 100% over the next 10 trading days.
NASDAQ:UALLong
by AwesomeAvani
2
ES TO FILL POOR VALUE OF B-PROFILE AND POSSIBLE SHORTso far everything went well for buyers but slowly coming to a point, where we may see possible short trade. Sell has tested the double distribution poor value are and got slammed by buyers. Buy tried to push to upper VAH of double distribution area but there was capitulation during Friday. So following scenarios: 1. no SELL 4438 is going up to 4487. because this poor value area can be a painful two way trading upwards. 2. SELL enters and rides below 4438 but BID enters again near 4415 => BUY painful grind up to 4487 to fill poor value area in double distribution 3. SELL passes 4415 keep on holding to 4372 (VAL SELL) 4. Level 4372 if BID enters go up to 4412 5. OFFER keeps 4372 short down to 4349 / 4324 (beware there may be another buyer attack here) 6. below 4324 down to 4286-4277
CME_MINI:ES1!Short
by iwosev
NKLA Long from bottom of channelNKLA has had an interesting week as it sought to have shareholders vote for a dilution to raise the cash necessary to grow its business. The former CEO now convicted and awaiting sentencing as a major shareholder led the opposition and the vote for a dilution failed. Seemingly, NKLA will now seek capital through some other means. Earlier, it was awarded a grant of $24M by California to build out hydrogen station infrastructure along the interstate highways. On the 15-minute chart, the price is currently at the bottom of a slowly rising channel coinciding with the bottom of the Donchian channel indicator and two standard deviations below the mean anchored VWAP. I see this as a good entry point for targeting first the middle of the channel and secondarily the top of the channel. I will find an exact entry on a short time frame likely 1 or 3 minutes and expect to realize a profit of 12-13% potentially intraday. Without regard to the fundamentals of NKLA's financial health, given the extreme volatility, I believe that NKLA can be successfully traded long if the trade is entered when it is oversold and undervalued.
NASDAQ:NKLALong
by AwesomeAvani
1
NQ Power Range Report with FIB Ext - 7/7/2023 SessionCME_MINI:NQU2023 - PR High: 15211.50 - PR Low: 15211.50 - NZ Spread: 38.75 Big open interest jump Discount brokers adjust margin req.: 08:30 – Average Hourly Earnings - Nonfarm Payrolls - Unemployment Rate 50% intraday retracement off RTH inventory - Holding daily range, half-back Evening Stats (As of 1:35 AM) - Weekend Gap: +0.09% (closed) - Session Open ATR: 217.38 - Volume: 22K - Open Int: 253K - Trend Grade: Neutral - From ATH: -9.1% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
MULN trading the volatility LongOn the 30 minute chart, MULN has pulled back from a brief uptrend. I see things suitable for an entry. I have added to the chart, the anchored VWAP lines serving as dynamic support and resistance. The mean VWAP will be my designated stop loss while lines one and two standard deviations above that are the first and second targets. Overall, the long trade is projecting a ROI of 27% compared with the stop loss of 11%. This trade could play out in only one day given MULN's volatility. The zero-lag MACD shows a line cross impending and confluent with the zero horizontal line. The relative volatility oscillator shows the magnitude of the shifts in that regard. From my perspective, no matter the fundamentals of the financial health of MULN, the volatility of the price action and technicals can be played long with high potential profit.
NASDAQ:MULNLong
by AwesomeAvani
NQ Power Range Report with FIB Ext - 7/6/2023 SessionCME_MINI:NQU2023 - PR High: 15360.75 - PR Low: 15350.00 - NZ Spread: 24.25 Economic Events: 08:15 – ADP Nonfarm Employment Change 08:30 – Initial Jobless Claims 09:45 – Services PMI 10:00 – ISM Non-Manufacturing PMI JOLTs Job Openings 11:00 – Crude Oil Inventories Strong inventory run during Asian hours - Tapped bear zone moon - Maintaining daily range Evening Stats (As of 12:05 AM) - Weekend Gap: +0.09% (closed) - Session Open ATR: 218.96 - Volume: 23K - Open Int: 246K - Trend Grade: Neutral - From ATH: -8.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
Salesforce Has Been SnoozingSalesforce rallied along with other software and growth names between March and May. Is it poised for more upside after a June pause? The first pattern on today’s chart is the falling trendline along the recent highs. A break of that resistance could make traders expect the uptrend to continue. Next, CRM has been stuck near the 50 percent retracement of its drop between November 2021 and December 2022. That’s a natural place for a breather. However other stocks like Tesla and Meta Platforms have continued higher after resting at similar spots. Third, Bollinger Band Width has narrowed to its tightest range in almost two years. That price compression could be followed by a period of expansion. Finally, moving averages are still consistent with upward movement in price. CRM has stayed above its 50-day simple moving average (SMA). The 8-day exponential moving average (EMA) has also remained above the 21-day EMA. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
NYSE:CRM
by TradeStation
1
NQ Power Range Report with FIB Ext - 7/5/2023 SessionCME_MINI:NQU2023 - PR High: 15351.00 - PR Low: 15341.25 - NZ Spread: 21.75 Expected heavy volume at session open - Traders anxious to get back after long weekend - Ranging into London session, inside NZ - Front running pivot high from June 16 Fed kicking off the short week 14:00 – FOMC Meeting Minutes Evening Stats (As of 12:05 AM) - Weekend Gap: +0.09% (closed) - Session Open ATR: 219.98 - Volume: 57K - Open Int: 243K - Trend Grade: Neutral - From ATH: -8.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
NQ Power Range Report with FIB Ext - 7/3/2023 SessionCME_MINI:NQU2023 - PR High: 15362.50 - PR Low: 15328.00 - NZ Spread: 76.75 Early Close at 12:15 CST Evening Stats (As of 1:05 AM) - Weekend Gap: +0.09% (open < 15318) - Session Open ATR: 231.30 - Volume: 21K - Open Int: 246K - Trend Grade: Neutral - From ATH: -8.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
BTC remains parked at resistance as BBs tighten BTC remains to be stuck at the 30-31k resistance zone, where it has been stuck now for almost 2 weeks. The Bollinger Bands are also tightening, so it appears everyone is waiting for a news event strong enough to kick the price in either direction. The BTC ETF hype gave some temporary momentum, but without more concrete evidence that one will get approved, it isn't enough to continue the upward run. I suspect there will be a dramatic move in either direction this week, unsure on the direction though at this stage.
by ryanboyd_
Ichimoku Cloud Demystified: A Comprehensive Deep DiveHello TradingView Community, it’s Ben with LeafAlgo! Today we will discuss one of my favorite indicators, the Ichimoku Cloud. The Ichimoku is a versatile trading tool that has captivated traders with its unique visual representation and powerful insights. We will dive deep into understanding the Ichimoku Cloud, explore its history, discuss its parts, highlight real-life examples, and address potential pitfalls. By the end of this article, we believe you will know how to leverage the Ichimoku Cloud effectively in your trading endeavors. Let’s dive in! Origin of The Ichimoku Cloud The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, was developed by Goichi Hosoda in the late 1930s but was not published until later in the 1960s. Its name translates to "one glance equilibrium chart," reflecting its ability to provide a holistic view of market dynamics with a single glance. Over time the Ichimoku Cloud has become a popular trading tool among new and seasoned traders. Components of The Ichimoku Cloud Some traders believe the Ichimoku cloud is a complex jumble of lines with no rhyme or reason, but this is not necessarily true. The best way to understand the Ichimoku cloud is to break it down into its respective parts. Each element contributes to the overall interpretation of price action, trend direction, support and resistance levels, and potential entry and exit points. The Ichimoku Cloud has five components: Tenkan-sen, Kijun-sen, Senkou Span A and B, and Chikou Span. The Tenkan-sen and Kijun-sen, often called the Conversion Line and Base Line, respectively, are essential in identifying trend direction and momentum. Below we can see a bullish signal happens when the Tenkan-sen crosses above the Kijun-sen. Conversely, a bearish signal occurs when the Tenkan-sen crosses below the Kijun-sen. Typical length inputs for the Tenkan-sen and Kijun-sen are 9 and 26. The Senkou Span A and B form the cloud or "Kumo." These components serve as dynamic support and resistance levels, with Senkou Span A calculated as the average of the Conversion Line and Base Line and Senkou Span B representing the midpoint of the highest high and lowest low over a specified period, typically 52. The cloud's thickness and color provide visual cues for potential market strength and volatility. The Chikou Span, or the Lagging Span, is the current closing price plotted 26 periods back on the chart. It helps traders gauge the relationship between the current price and historical price action, providing insights into potential trend reversals or continuation. Putting the parts together gives us a complete picture of the Ichimoku Cloud. Each aspect contributes to the one-glance equilibrium theory, giving traders a more holistic view of price action. Applying the Ichimoku Cloud in Trading We now better understand all parts of the Ichimoku cloud, but that means little if we don’t understand how it can be utilized in trading. Let's explore examples that demonstrate the practical application of the Ichimoku Cloud: Example 1: Trend Following In an uptrend, we would look for the Tenkan-sen to cross above the Kijun-sen while the price remains above the cloud. When the price retraces to the cloud, a long position opportunity may arise, with the cloud acting as support. The Chikou Span should also be above the historical price action, confirming the bullish sentiment. Example 2: Trend Reversals and Breakout Opportunities A potential trend reversal or continuation can be identified when the Tenkan-sen crosses above the Kijun-sen and the price moves above the cloud. A breakout trade can initiate when the price breaks through the cloud's upper boundary, indicating a shift in momentum. For the Ichimoku cloud to give its strongest confirmation of a reversal, some traders will take a fairly conservative approach and wait for a few things to occur. Traders typically wait for a kumo twist, the Tenkan-sen/Kijun-sen cross, and the Chikou Span to break the cloud and be above the price. The reverse of these signals can be used in the same fashion for a short position. Example 3: The Kumo Twist In a trend, a Kumo Twist can signal a potential trend reversal. Look for the Senkou Span A to cross above or below the Senkou Span B within the cloud. This twist can confirm a shift in market sentiment. Traders can enter a position when the twist is confirmed, placing a stop loss above or below the cloud or the recent swing high/low. I think of the Kumo twists and subsequent clouds as a trend filter. Placing longs on the bullish side or shorts on the bearish side, however, some traders use the Ichimoku Cloud in a contrarian fashion. Contrarian trades can be profitable using this method as price tends to pull back to the clouds A or B span where support or resistance may lie. Pitfalls and Challenges: Avoiding Common Mistakes While the Ichimoku Cloud is a powerful tool, it is paramount to be aware of potential pitfalls. Here are a few challenges to navigate: False Signals and Choppy Market Conditions In ranging or volatile markets, cloud signals may generate false indications. During such periods combine the Ichimoku Cloud with other technical indicators or wait until the market picks a direction. Moving out to higher time frames can help clear the murkiness of consolidation phases and provide a clearer picture of the trend, in turn, weeding out false signals. Overcomplicating Analysis The Ichimoku Cloud provides a wealth of information, but it's crucial to maintain simplicity and focus. Avoid overcrowding the chart with an abundance of indicators, especially other overlays. It is easy to get lost in the sauce or run into redundancies with too much on the chart. Testing and Adapting Each market has its characteristics or volatility, and it's essential to backtest the Ichimoku Cloud strategy, experiment with different parameters, and adapt to market conditions over time. Many traders rely on the standard settings, but in my time developing trading algorithms, I have learned that those settings do not hold from market to market or consistently over time. It is critical to regularly revisit your settings or overall trading strategy to make sure you are drawing on the best available information the Ichimoku Cloud can give. Enhancing the Ichimoku Cloud Strategy To enhance your understanding and utilization of the Ichimoku Cloud, consider the following: Incorporating Other Technical Indicators Combining the Ichimoku Cloud with other indicators, such as oscillators, to confirm signals can be beneficial. I know I said not to over-clutter your chart with other indicators, but that is a rule of thumb more set for overlays. Timeframe Considerations Adapt the Ichimoku Cloud to different timeframes based on your trading style. Higher time frames may provide more reliable signals, while lower timeframes may offer shorter-term opportunities. I don’t believe it ever hurts to back out a few time frames to get a clear picture of market dynamics and avoid tunnel vision. Conclusion The Ichimoku Cloud is a versatile indicator, and today we scratched the surface of how it can be appropriately used. Remember, practice, patience, and continuous learning are critical for refining your skills and adapting the Ichimoku Cloud strategy to ever-evolving market conditions. If there is anything unclear or you have any questions, please don’t hesitate to comment below. Trading education is our passion, and we are happy to help. Happy trading! :)
Education
by LeafAlgo
49