Indicators for Overbought and Oversold Stocks

Any good technical indicators for overbought/ oversold signals in forex trading

submitted by bonedoc28 to Daytrading [link] [comments]

How to Trade the Fisher Transform Indicator

One of the good things about trading is that everybody can have their own unique style. albeit two different trading styles conflict, it doesn’t mean that one strategy is true and one is wrong.
With thousands upon thousands of stocks to settle on from, there’s always an abundance of effective ways to trade.
Technical analysis is usually lumped together into one specific style, but not all indicators point within the same direction.
We’re all conversant in commonly used technical concepts like support and resistance and moving averages, alongside more refined tools like MACD and RSI.
No single indicator may be a golden goose for trading profits, but when utilized in the right situations, you'll spot opportunities before the bulk of the gang .
One technical trading indicator that tends to fly under the radar is that the Fisher Transform Indicator.
Despite its lack of recognition , the Fisher Transform Indicator may be a useful gizmo to feature to your trading arsenal since it’s fairly easy to read and influence .
What is the Fisher Transform Indicator?
One of the best struggles in marketing research is the way to affect such a lot of random data.
The distribution of stock prices makes it difficult to locate trends and patterns, which is why technical analysis exists within the first place.
Hey, if the trends were easy to identify , everyone would get rich trading stocks and therefore the advantage provided by technical analysis would be whittled away.
But since technical trends are difficult to identify with an untrained eye, we believe trading tools just like the RSI and MACD to form informed decisions.
The Fisher Transform Indicator was developed by John F. Ehlers, who’s authored market books like Rocket Science For Traders.
Visit Equiti Forex
The Fisher Transform Indicator attempts to bring order to chaos by normalizing the distribution of stock prices over various timeframes.
Instead of messy, random prices, the Fisher Transform Indicators puts prices into a Gaussian Gaussian distribution . you would possibly know such a distribution by its more commonly used name – the bell curve.
Bell curves usually want to measure school grades, but during this instance, it’s wont to more neatly smooth prices along a selected timeline.
Think of stock prices like players on a five – if you organize everyone during a pattern by height, you’ll have a way better understanding of the makeup of the team.
So what does the Fisher Transform Indicator look for? Extreme market conditions.
Unlike other trading signals where many false positives are delivered on a day to day , this indicator is meant to pop only during rare market moments.
By utilizing a normal distribution , much of the noise made by stock prices is ironed away.
Despite the complex mathematics, Fisher Transform tends to offer clear overbought and oversold signals since the extremes of the indicator are rarely reached.
How Can Traders Utilize the Fisher Transform Indicator?
One of the advantages of the Fisher Transform Indicator is its role as a number one indicator, not a lagging indicator.
Lagging indicators tend to inform us of information we already know. a number one indicator is best at remarking potential trend reversals before they occur, not as they’re occurring or after the very fact .
There are two main ways to trade the Fisher Transform Indicator – a sign reversal or the reaching of a particular threshold.
For a sign reversal, you’re simply trying to find the indicator to vary course.
If the Fisher Transform indicator had been during a prolonged upswing but suddenly turned down, it might be foreshadowing a trend reversal within the stock price.
On the opposite hand, the Fisher Transform Indicator might be used as a “breach” indicator for identifying trade opportunities that support certain levels.
A signal line often accompanies the Fisher Transform Indicator, which may be wont to spot opportunities in not just stocks, but assets like commodities and forex also .
Examples
Alphabet (NASDAQ: GOOGL)
Google has been one among tech’s best stay-at-home plays during the coronavirus pandemic, but you wouldn’t have thought that back in late March when shares cratered down near the $1000 mark.
A bounce eventually came, but the stock didn’t rebound quickly.
However, the Fisher Transform Indicator provided a playbook for the stock beginning in February.
The extreme boundary was reached around the same time because the market was high, offering a sell signal before the top of the month. because the shares fell, the Fisher Transform Indicator moved right down to the boundary and bottomed before the stock.
Buying when the indicator eclipsed the signal line in mid-April would have allowed you to catch most of the rebound.
Nikola Corporation (NASDAQ: NKLA)
Before becoming marred in controversy, Nikola Corporation was the most well liked stock of summer 2020.
The obscure car maker was toiling within the $10-12 range before exploding higher in June.
And I don’t mean just a fast double or triple up – Nikola reached a high of $93 before the music stopped.
When a stock goes parabolic, one among the toughest things to work out is when to require profits and bail.
Nikola was a cautionary tale since the corporate seemed pretty shady from the beginning , but traders using the Fisher Transform Indicator got a sign that the highest was in before the stock began its quick descent backtrack .
The June high coincided with the Fisher Transform Indicator reaching its highest level since December of 2019, a sign that sounded the alarm for observant traders.
submitted by equiti-me to u/equiti-me [link] [comments]

I was creating photos including trading tips and then I collected it to write an article on those tips !

I have so far created tips on strategies like • Price Action Trading • Range Trading Startegy • Trend Trading Startegy • Position Trading • Day Trading Startegy
Price Action Trading :-
This type of trading strategy involves the study of historical prices to formulate technical trading strategies. It is used by retail traders, speculators, arbitrageurs and trading firms who employ traders.
Range Trading Startegy :-
This strategy works well in market without significant volatility and no discernible trend. Technical analysis is the primary tool used with this strategy. Markets trends about 30% of the time which means the other 70% is a trading range.
Trend Trading Startegy :-
Trend trading attempts to yield positive returns by exploiting markets directional momentum.
Position Trading :-
This is a long-term strategy primarily focused on fundamental factors.This strategy can be employed on all markets from stocks to forex.
Day Trading Startegy :-
This is a strategy made to trade financial instruments within the same trading day. Its one of the most famous trading strategies.
All these strategies are available on this source with pictures :- https://jaskaransaini.com/forex-trading-tips-with-pictures/
Indicator Basics are also here !
Indicator Basics
MACD- BUY/SELL SIGNAL
RSI- OVERBOUGHT/OVERSOLD
BOLLINGER BANDS- VOLATILITY LEVELS
9 EMA- SHORT TERM TREND
21 EMA- ENTRY/EXIT POINTS
50 EMA- PLACE STOP LOSS
200 EMA- LONG TERM TREND
VWAP- INTRADAY BREAKOUTS
ADX- STRENGTH OF THE TREND
submitted by lazymentors to Daytrading [link] [comments]

Top Strategies that I Kno & Indicator Basics

• PRICE ACTION TRADING
RANGE TRADING STRATEGY
TREND TRADING STRATEGY
POSITION TRADING
DAY TRADING STRATEGY
Indicator Basics
MACD- BUY/SELL SIGNAL
RSI- OVERBOUGHT/OVERSOLD
BOLLINGER BANDS- VOLATILITY LEVELS
9 EMA- SHORT TERM TREND
21 EMA- ENTRY/EXIT POINTS
50 EMA- PLACE STOP LOSS
200 EMA- LONG TERM TREND
VWAP- INTRADAY BREAKOUTS
ADX- STRENGTH OF THE TREND
Price Action Trading :- This type of trading strategy involves the study of historical prices to formulate technical trading strategies. It is used by retail traders, speculators, arbitrageurs and trading firms who employ traders.
Range Trading Startegy :- This strategy works well in market without significant volatility and no discernible trend. Technical analysis is the primary tool used with this strategy. Markets trends about 30% of the time which means the other 70% is a trading range.
Trend Trading Startegy :- Trend trading attempts to yield positive returns by exploiting markets directional momentum.
Position Trading :- This is a long-term strategy primarily focused on fundamental factors.This strategy can be employed on all markets from stocks to forex.
Day Trading Startegy :- This is a strategy made to trade financial instruments within the same trading day. Its one of the most famous trading strategies.
Source :- https://jaskaransaini.com/forex-trading-tips-with-pictures/?_gl=1%2Aks9kf3%2A_ga%2AYW1wLVNDZWZTcnlrbXdONGJ3UlBFSUVfWWc.
Above article include trading strategy with pictures , please if you know another strategy. Please tell that in comments and make me know !
submitted by lazymentors to options [link] [comments]

Just some inspirations / reminders on strategy development

I just talk about really major pairs like EURUSD, USDJPY, etc.
Forget about catching a trend, if you wanna trade trends, commodities, stocks, index funds trend way better, a lot more opportunities than forex. Major currencies range at least 70% of the time, if not more. Learn how to make money from ranging markets and hold a trend once you catch it.
The biggest purpose of currency is for settling transactions, not for scalping profits. That's why it doesn't trend (aka remaining stable). Stability is why a currency being "major".
Therefore most indicators don't work well with these currencies because first they are not designed for forex, second most of them only tell trends or overbought/oversold. Unless you are Soros or central banks etc no major currency can be overbought or oversold.
Take advantage of "fakeout" (I still wonder if it's the right way to call it so, Trump's Tweets are one of the sources IMO). Accept the fact that it happens and think about how to profit from it. Market makers and big banks are also just market players, even though very much bigger, they are also profiting from each other. If you can't beat them, join them.
Choppy market is still better than a still market.
No market maker cares about support or resistance. Like no insider or institutional money (i mean human not machines) would spend hours and hours on charts drawing trend lines before they place an order. Why would you?
Planning how to react in different scenarios after a position is opened is much better than trying to act like a crystal ball by looking at history when you trade something that ranges most of the time. The moment you observe a trend, chances are the trend is (almost) over. Even if things are against you, most of the time you can turn it to break even without using lots of margin. (Most news are just as big as baby's cough.)
But still, very few news are really big (911, fukushima, brexit, covid, name it), don't ignore the news completely.
Money management is very important. Most traders (of course including many of those on reddit) just talk about how to make an entry but seldom talk about how to manage an already open position or how to close a trade. The latter is way more important than the former.
Besides japanese candlesticks, there are a lot more charting options out there.
Be creative and know what you are trading to the deepest !
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Part II - 10 Minute/Day Trading Strategy

Part II - 10 Minute/Day Trading Strategy
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/
Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information.
Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail.
What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this.
The List Of Ingredients & Why We Use These Particular Ingredients
*I will have an image at the end of the post showing a textbook long and short setup*
Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BB help contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB.
Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data.
Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy
Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade.
*MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
  1. Short off the UBB (Here we want to see Stochastics overbought and crossing down. Bearish divergence is even better)
  2. Long off the LBB (Here we want to see Stochastics oversold and crossing up. Bullish divergence is even better)
  3. Long/Short off the Middle Bollinger Band (Here if you are looking for a short trade off the MBB you ideally want Stochs overbought. Vice versa for a long trade. NOTE: Often when taking trades off the MBB, Stochs WON'T go overbought/oversold. Because this doesn't happen often, I don't let it stop me from taking trades off the MBB.)
The actual setup is very simple and straightforward. We look for our candle/bar formation in conjunction with points 1 through 3 from the above.
There will be other nuances I will cover in terms of how to make the strategy more effective in Part 3. For example, I will go into much more detail about how the shape of the BB can tell us a lot about whether a currency pair is likely to reverse or not. I will also cover how to gauge the strength of the setup candle and a few other tips and tricks.
Technical Nuances: You can overlay a lot of other traditional technical analysis on top of the above. For example you can look for short trades off the UBB in conjunction with a prior broken support level that you now expect to be working overhead resistance. If you want to go further and deeper, of course you can. Note: the above is about as far as I went when overlaying other kinds of analysis onto this strategy. I like to keep it simple, stupid.
TEXTBOOK LONG TRADE OFF LBB:

https://preview.redd.it/e06otysgsh451.png?width=2820&format=png&auto=webp&s=101b3eed1b42512d639644bcc096d1026e558f17

TEXTBOOK SHORT TRADE OFF UBB:
https://preview.redd.it/yfg02yjhsh451.png?width=2820&format=png&auto=webp&s=18b427995f3dcecb22e1ae7f15cd5b3cd53c18e4
TRADE OFF MBB:
https://preview.redd.it/8kvzknaish451.png?width=2820&format=png&auto=webp&s=2f1e6113475193e8b812bface880a77e82ad7eeb

And that's a wrap for Part II.
submitted by ParallaxFX to Forex [link] [comments]

Part III - My 10 Minutes/Day Trading Strategy

Part III - My 10 Minutes/Day Trading Strategy
Part III - My 10 Minutes/Day Trading Strategy
You can find Part II here: https://www.reddit.com/Forex/comments/h7m1jh/part_ii_10_minuteday_trading_strategy/
Okay I’ve thought about what to include in Part 3 and this is what I’ve landed on:
Some technical nuances and tricks that build on Parts I and II.
I was going to include entry and exit points in Part III but it would be waaaay too long if I did. So that will have to wait for Part 4 or 5. There’s some really good stuff in this post though, I promise. The stuff in this post will lay the foundation for the options you will have in terms of determining your entry and exit points.
Technical Nuances & Tricks:
In this section I want to discuss some techniques that are optional to use. I am going to keep this fairly simple and focus on 2 main topics: fibonacci and horizontal levels of support and resistance.
Horizontal Support and Resistance:

  • There are many ways of identifying support and resistance. I personally subscribe to the K.I.S.S. (Keep It Simple, Stupid!) method when using this strategy.
  • When I identify a strategy setup (Off BB, Stochs overbought/oversold, indecision candle + setup candle) I will simply look to the left and see if there is any prior support or resistance that lines up with the technical strategy. I will also look for prior support or resistance levels to make sure they are not in the way of my target (will cover targets in the next subsection)
  • Support and Resistance are not always clear lines drawn in the sand. Usually they are areas. Areas of prior demand and/or prior oversupply in the market.
  • IF you want a mechanistic manner of identifying support and resistance then here’s an easy indicator: load up the Bill Williams Fractal Indicator and simply look for groupings of fractals near highs and lows of the market
  • KEEP AN EYE ON THE STOCHASTICS IN EACH OF THESE EXAMPLES
Some simple examples below:
https://preview.redd.it/6qm0kauhpz451.png?width=2820&format=png&auto=webp&s=d25a7158314469d168ab6d73a9220adbd7e642e1

https://preview.redd.it/h9540sjkpz451.png?width=2820&format=png&auto=webp&s=2674f1f0d5339529491984ec3a787f8e121b4d26

https://preview.redd.it/lp7n69empz451.png?width=2820&format=png&auto=webp&s=b9fc1090b73f7396e820e413a76740cbc3f36c8e

Here is the same EURGBP D1 chart with the Fractal Indicator:


https://preview.redd.it/daqfijynpz451.png?width=2820&format=png&auto=webp&s=122f41e16e8b2074ede595e7bcca2dc6292083b9


Fibonacci Application:

  • The way I apply fibonacci in my “normal” trading does require a lot of discretion. And it is this discretionary element that trips up a lot of traders and scares them off using fibonacci.
  • This strategy removes ANY DISCRETION involved in using fibonacci levels. This couldn’t be more in keeping with the entire K.I.S.S. philosophy of this trading strategy
  • We use Fibonacci in this strategy as an OPTIONAL tool. If you decide to use Fibonacci with this strategy, the best way of using it will be to have a mechanistic method for determining entry and exit points.

  • Fibonacci retracement levels can be used for limit entry orders and stop loss orders.
  • Fibonacci extension levels can be used for take profit orders
  • You can copy my fibonacci settings in the screenshot below. I use the following fibonacci % levels:

https://preview.redd.it/p4c2a7ep24651.png?width=2906&format=png&auto=webp&s=71dd141e527d0516e6f019a2c7abf8f9f4daa83c

  • It really is a stupidly simple way we will draw the fibs (note: it will be the SAME WAY on every single trade). We simply draw the fibs over the setup candle. ALWAYS draw the fibs in the direction that price is moving ie: from left to right. So if you have a bullish setup candle you draw your fibs from the LOW to the HIGH of the setup candle. If you have a bearish setup candle you will draw the fibs from the HIGH of the candle to the LOW of the candle. I will cover in a future post which levels we use for entry and exit, although many of you will be able to figure it out quickly. Examples below:
https://preview.redd.it/r1vqhq5tpz451.png?width=2820&format=png&auto=webp&s=39732ceb5390eeef4d560600d7dd0a9a2364ac02

https://preview.redd.it/mbbnlh93qz451.png?width=2820&format=png&auto=webp&s=38c70327a2df4d20fbcd2de0bd8bc5c9cde4ed51
That’s a wrap for Part III.
submitted by ParallaxFX to Forex [link] [comments]

[Free] The Complete Day Trading Course - YouTube Playlist (New 2020)

Day Trading & Technical Analysis System For Intraday Trading Stocks, Forex, Crypto, Options Trading & Financial Trading
What you'll learn
Learn All The Charting Tools, Trading Strategies And Profitable Hacks For Day Trading With Real World Examples!
Dedicated Support from the Course Instructors and the Learning Community. 100% Questions Answered Within 24 Hours!
How to Build a Solid Strong Foundation For Day Trading
How to Use TradingView For Chart Analysis & Paper Trading
How to Choose The Best Chart Time Frames For Day Trading
How to Use Different Day Trading Order Types
How to Short Sell & Deal With Short Squeezes
How to Avoid Blowing Up Your Account
How to Use Support & Resistance
How to Trade Profitable Technical Indicators & Overlays That Work Well For Day Trading
How to Identify Market Directions Using EMA
How to Identify Market Directions Using MACD
How to Identify Overbought and Oversold Conditions Using RSI
How to Use Bollinger Bands to Buy Low Sell High
How to Trade Profitable Chart Patterns That Work Well For Day Trading
How to Trade Broadening Tops and Bottoms
How to Trade Wedges and Triangles
How to Trade Flags and Pennants
How to Trade Gaps
How to Trade Double Tops and Bottoms
How to Trade Rounding Tops and Bottoms
How to Trade Diamond Tops and Bottoms
How to Trade Cup and Handle
How to Trade Head and Shoulders
How to Trade Dead-Cat Bounces
And a lot more...
Videos
Introduction

003 How to Use Trading View For Chart Analysis

004 How to Choose The Best Chart Time Frames For Day Trading

005 Day Trading Order Types

006 Short Selling Short Squeeze

007 How to Avoid Blowing Up Your Account

008 How to Use Support Resistance

009 How to Identify Market Directions Using EMAs

010 How to Identify Market Directions Using MACD

011 How to Identify Overbought and Oversold Conditions Using RSI

012 How to Use Bollinger Bands to Buy Low Sell High

013 How to Trade Broadening Tops and Bottoms

014 How to Trade Wedges and Triangles

015 How to Trade Flags and Pennants

016 How to Trade Gaps

017 How to Trade Double Tops and Bottoms

018 How to Trade Rounding Tops and Bottoms

019 How to Trade Diamond Tops and Bottoms

020 How to Trade Cup and Handle

021 How to Trade Head and Shoulder

022 How to Trade Dead Cat Bounces
submitted by cardporbudspha to Daytrading [link] [comments]

So you wanna trade Forex? - tips and tricks inside

Let me just sum some stuff up for you newbies out there. Ive been trading for years, last couple of years more seriously and i turned my strategies into algorithms and i am currently up to 18 algorithms thats trading for me 24/7. Ive learned alot, listened to hundreds of podcasts and read tons of books + research papers and heres some tips and tricks for any newbie out there.

  1. Strategy - How to... When people say "you need a trading strategy!!" Its because trading is very hard and emotional. You need to stick to your rules at all times. Dont panic and move your stop loss or target unless your rules tell you to. Now how do you make these rules? Well this is the part that takes alot of time. If your rules are very simple (for example: "Buy if Last candles low was the lowest low of the past 10 candles." Lets make this a rule. You can backtest it manually by looking at a chart and going back in time and check every candle. or you can code it using super simple software like prorealtime, MT4 ++ Alot of software is basicly "click and drag" and press a button and it gives you backtest from 10-20-30 years ago in 5 seconds. This is the absolute easiest way to backtest rules and systems. If your trading "pure price action" with your drawn lines and shit, the only way to truly backtest that kind of trading is going in a random forex pair to a random point in time, could be 1 year ago, 1 month ago, 5 years ago.. and then you just trade! Move chart 1 candle at a time, draw your lines and do some "actual trading" and look at your results after moving forward in the chart. If you do not test your strategy your just going in blind, which could be disaster.. Maybe someone told u "this is the correct way to trade" or "this strategy is 90% sure to win every trade!!!" If you think you can do trading without a strategy, then your most likely going to look back at an empty account and wonder why you moved that stop loss or why you didnt take profit etc.. and then your gonna give up. People on youtube, forums, interwebz are not going to give you/sell you a working strategy thats gonna make you rich. If they had a working strategy, they would not give it away/sell it to you.
  2. Money management - How to.... Gonna keep this one short. Risk a small % of your capital on each trade. Dont risk 10%, dont risk 20%. You are going to see loosing trades, your probably gonna see 5-10 loss in a row!! If your trading a 1000$ account and your risking 100$ on each trade (10%) and you loose 5 in a row, your down -50% and probably you cant even trade cus of margin req. Game over.. Now how does one get super rich, super fast, from risking 1-3% of your account on each trade?? Well heres the shocking message: YOU CANT GET RICH FAST FROM TRADING UNLESS YOUR WILLING TO GO ALL IN! You can of course go all in on each trade and if you get em all right, you might get 1000%, then you go all in 1 more time and loose it all... The whole point of trading is NOT going bust. Not loosing everything, cus if you loose it all its game over and no more trading for you.
  3. Find your own trading style.... Everyone is different. You can have an average holding period of 1 month or you could be looking at a 1 min chart and average holding time = 10 minutes. For some, less volatility helps them sleep at night. For others, more volatility gives them a rush and some people crave this. There is no "correct" timeframes, or holding periods, or how much to profit or how much to loose. We are all individuals with different taste in risk. Some dont like risk, others wanna go all in to get rich over night. The smart approach is somewhere in the middle. If you dont risk anything, your not gonna get anything. If you risk everything, your most likely going to loose everything. When people are talking about trading style, this is kinda what that means.
  4. There are mainly 2 ways to trade: Divergence and Convergence. Or in other words: Mean reversion or trend following. Lets talk about them both: Trend following is trying to find a trend and stay with the trend until its over. Mean reversion is the belief that price is too far away from the average XX of price, and sooner or later, price will have to return to its average/mean (hence the name: MEAN reversion). Trend following systems usually see a lower winrate (30-40% winrate with no money management is not uncommon to see when backtesting trend following systems.. You can add good money management to get the winrate % higher. Why is the % winrate so low? Well a market, whatever that market is, tend to get real choppy and nasty right after a huge trend. So your gonna see alot of choppy fake signals that might kill 5-6 trades in a row, until the next huge trend starts which is going to cover all the losses from the small losses before the trend took off. Then you gotta hold that trade until trade is done. How do you define "when trend starts and stops"? Well thats back to point 1, find a strategy. Try defining rules for an entry and exit and see how it goes when you backtest it. For mean reversion the win % is usually high, like 70-90% winrate, but the average winning trade is alot smaller than the average loosing trade. this happens because you are basicly trying to catch a falling knife, or catch a booming rocket. Usually when trading mean reversion, waiting for price to actually reverse can very often leave you with being "too late", so you kinda have to find "the bottom" or "the top" before it actually has bottomed/ topped out and reversed. How can you do this you ask? Well your never going to hit every top or every bottom, but you can find ways to find "the bottom-ish" or "the top-ish", thens ell as soon as price reverts back to the mean. Sometimes your gonna wish you held on to the trade for longer, but again, back to point 1: Backtest your rules and figure that shit out.

Read these 4 points and try to follow them and you are at least 4 steps closer to being a profitable trader. Some might disagree with me on some points but i think for the majority, people are going to agree that these 4 points are pretty much universal. Most traders have done or are doing these things every day, in every trade.
Here is some GREAT material to read: Kevin Davey has won trading championship multiple times and he has written multiple great books, from beginner to advanced level. Recommend these books 100%, for example: Building winning algorithmic trading systems" will give you alot to work with when it comes to all 4 of the above points. Market wizards, Reminiscences of a stock operator are 2 books that are a great read but wont give you much "trading knowledge" that you can directly use for your trading. Books on "The turtles" are great reading. Then you have podcasts and youtube. I would stay away from youtube as much as possible when it comes to "Heres how to use the rsi!!!" or "this strategy will make you rich!!". Most youtube videoes are made by people who wanna sell you a course or a book. Most of this is just pure bullshit. Youtube can very harmfull and i would honestly advice about going there for "strategy adivce" and such. Podcasts tho are amazing, i highly recommend: Better systems trader, Chat with traders, Top traders unplugged, We study billionairs, to name a few :)
Also, on a less funny note.. Please realize that you are, and i am, real fucking stupid and lazy compared to the actual pro's out there. This is why you should not go "all in" on some blind stupid strategy youve heard about. This is why this is indeed VERY FUCKING HARD and most, if not everyone has busted an account or two before realizing just this. Your dumb.. your not going to be super rich within 1 year.. You can not start with 500$ account and make millions! (some might have been able to do this, but know that for every winner, theres 999 loosers behind him that failed... Might work fine first 5 trades, then 1 fuckup tho and ur gone..
And lastly: Try using a backtesting software. Its often FREE!!! (on a demo account) and often so simple a baby could use it. If your trading lines and such there exists web broweser "games" and softwares that lets you go "1 and 1 candle ahead" in random forex pairs and that lets you trade as if its "real" as it goes.
A big backtesting trap however is backtesting "losely" by just drawing lines and looking at chart going "oh i would have taken this trade FOR SURE!! I would have made so much money!!" however this is not actually backtesting, its cherry picking and its biased beyond the grave, and its going to hurt you. Try going 1 candle at a time doing "real and live" trades and see how it goes.

Bonus point!!
many people misunderstands what indicators like the RSI is telling you. Indeed something is "overbought" or "oversold" but only compared to the last average of xx amounts of bars/candles.
It doesn't tell you that RIGHT NOW is a great time to sell or buy. It only tells you that the math formula that is RSI, gives you a number between 1-100, and when its above 70 its telling you that momentum is up compared to the last average 14 candles. This is not a complete buy/sell signal. Its more like a filter if anything. This is true for MOST indicators. They INDICATE stuff. Dont use them as pure buy/sell signals.. At least backtest that shit first! Your probably gonna be shocked at the shitty results if you "buy wehn rsi is undeer 30 and sell when RSI is above 70".

Editedit: Huge post already, why not copy paste my comment with an example showing the difference in trend following vs mean reversion:
The thing about trend following is that we never know when a trade starts and when it ends. So what often happens is that you have to buy every breakout going up, but not every breakout is a new trend. Lets do an example. Check out the photo i included here: https://imageshost.eu/image/image.RcC

THE PHOTO IS JUST AN EXAMPLE THAT SHOWS WHY A TYPICAL TREND FOLLOWING STRATEGY HAVE A "LOW" WINRATE.
THE PHOTO IS NOT SHOWING AN EXAMPLE OF MY STRATEGIES OR TRADING.

  1. We identify the big orange trend up.
  2. We see the big break down (marked with the vertical red line) this is telling us we are not going higher just yet. Our upwards trend is broken. However we might continue going up in a new trend, but when will that trend come?
  3. We can draw the blue trend very earyly using highs and lows, lines up and down. Then we begin to look for breakouts of the upper blue line. So every time price breaks upper blue line we have to buy (cus how else are we going to "catch the next trend going up?)
As you can see we get 5 false breakouts before the real breakout happens!
Now if you could tell fake breakouts from real breakouts, your gonna be rich hehe. For everyone else: Take every signal you can get, put a "tight" stop loss so in case its a fake signal you only loose a little bit. Then when breakout happens as you can clearly see in chart, your going to make back all the small losses.
So in this example we fail 5 times, but get 1 HUGE new trend going further up. This 1 huge trade, unless we fuck it up and take profits too early or shit like that, is going to win back all those small losses + more.
This is why trend following has a low winrate. You get 5 small loss and 1 big win.

Now lets flip this! Imagine if your trading Mean reversion on all the same red arrows! So every time price hits the blue line, we go short back to the bottom (or middle) again! You would have won 5 trades with small profits, but on that last one you would get stopped out so hard. Meaning 5 small wins, 1 big loss (as some have pointed out in comments, if you where trading mean reverting you would wanna buy the lows as well as short the tops - photo was suppose to show why trend following strategies have a lower % winrate.)

Final edit: sorry this looks like a wall of text on ur phones.
submitted by RipRepRop to Forex [link] [comments]

What is the most reliable forex indicator?

Here i have given a brief explanation about Forex indicator. This will help you to get basic knowledge about this. If it is also not clear then don’t hesitate to Learn about MT4 indicators .You will get more information there, There are thousands of indicators that are used to find opportunities in the market and profit from them. However, most of them do not give good signals and will get you in the market late. In this article we will present several indicators which are the most accurate and give the biggest trading edge. 1584890638387.png The Bollinger Bands: The Bollinger Bands were developed 20 years ago by John Bollinger, and were designed to show the volatility of the market on the screen in an easy-to-comprehend manner. They give very good signals and can be used as support\resistance indicators, telling us - before the move occurs - that a reversal is prone to happen. When price touches the lower band it is oversold, and when price touches the upper band it is overbought. The trading method for the Bollinger Bands is basically to look for price-action support and resistance levels, and confirm them with bounces on the Bollinger Bands themselves. This results in very high win rate and consistent profits. The Relative Strength Index (RSI): The Relative Strength Index was developed 30 years ago by J. Welles Wilder, and is considered a powerful trading indicator that also has a predictive edge in the markets. It tells us when the price is overbought\oversold before the trends begin, so we can enter early and have great reward with little risk. The signals it gives are usually very accurate, and if confirmed using the Thomas DeMark mild bounce system it can even reach 70-80% win rate (depending on the timeframe). It is a very accurate indicator that we highly recommend. Simple Moving Average: The Simple Moving Average, or the SMA, is an interesting trading indicator that most traders do not use in the right way. Most traders use it as a trend-following indicator to enter trades after a trend has been established, however we use it in an entirely different way. The most accurate and predictive way to use the SMA is in the bounce method: we wait for trend to establish, but instead of randomly entering, we wait for price to retrace to the moving average and bounce off it. Once a reversal signal is given we enter a trade in the direction of the trend with stop loss right below the moving average, thus entering at a tactical point with small stop loss and huge reward. The 3 indicator described above are the most accurate indicators for trading Forex and stocks, and have proven themselves in countless opportunities.
submitted by Rongpure1 to u/Rongpure1 [link] [comments]

Trading reversals (experienced forex traders, your thoughts)

I’m curious about trading reversals and entering once I 1) Have overbought/oversold conditions (using RSI) 2) Price is above a MA 3) Price is starting to show candle sticks indicating it’s going in my intended directions
Any thoughts on trading reversals with forex? I tend to catch trends too late, so this is why I think catching the reversals may be for me.
submitted by amatias2026 to Daytrading [link] [comments]

Hello, new traders. Here are a few words from my four and a half years of experience.

Hey! I’m a full time currency and cryptocurrency trader, I need to point out a few major fallacies and misconceptions I frequently see in this community and others.
First up. If it’s your first year trading expect to fail. Actually, if there was a contract I could buy that’d pay me out if you ended up liquidating your account in the next 12 months, I’d literally bet on your failure. You need to immediately reduce your trading account to 1/10th of its original size for your first year of trading. Seriously, do it. You are betting that you can outperform billions of dollars of institutional order flow, typically with basic patterns or default setting indicators with no experience. Which brings me to my next point.
Your strategy is not your identity, stop treating what you use to trade as dogma. That indicator or pattern you’re using, can you tell me why it works? Not HOW to use it, but what fundamental paradigm it uses to accurately predict future price action. There are legitimate answers, but trying to use your indicators/patterns without understanding why is like driving across the country without knowing how to open or what’s inside the hood or your car. Sure, you’re going to get pretty far, but eventually it’ll break down and you won’t have a clue what to do, stranded and starving in the middle of the desert.
Chances are, while you were reading this you came up with one of three answers in your head as to why your indicatopattern works. Let me guess. “Everyone else uses it, it’s made me money so far, it’s natures law (for you Fibonacci folks,) or it’s a proven standard.” All of those are appeal to authority fallacies. For instance....
How does a compass work? Are the answers “well everybody else uses compasses” or “compasses are a proven standard” WHY a compass works? If you don’t know how a compass works and you’re lost, you aren’t going to know what variables will stop the compass from working. You might be in the Southern Hemisphere, that’d lead you in the exact opposite direction, but you wouldn’t know it because you DON’T KNOW WHY it works. Then die of starvation shortly after because you didn’t understand a tool paramount to your survival and couldn’t find your way back to civilization. If you’re lost in the ocean of institutional investors, AT LEAST understand why your tools work.
For instance, why does divergence work? You probably know that divergence represents a reversal.
Divergence doesn’t form because of “price” or “its losing momentum,” divergence forms because an oscillator defines a data set that expands and contracts based on the activity in the period lookback you define for it. When you have an expanding data set, it requires increasingly drastic moves to register the same “extreme” values. If you have a tight data set and you have a huge outlier, the data set widens to compensate with every candle close. So now that you have a wider data set, an equal move would register as a less extreme event as defined by the oscillator. That’s why divergence forms/works.
Seriously, it’s worth learning these things. Unless you can explain why something works like I just did with divergence you shouldn’t EVER use it in your arsenal. Then if you do take the time to learn the “why,” you’ll start realizing that a lot of the commonly accepted tools are fundamentally broken. For instance, with your new understanding of divergence, think about overbought or oversold signals. Why would a new outlier of a data set imply a return to the center of the data set if the data set is in an active state of expansion, CAUSED by the outlier?
Now if you’re relying on an appeal to authority fallacy for understanding, could it be that the authority that presented the information doesn’t have your best interest at heart? Breakout patterns for example. If you have a bull flag, and you’re betting on bullish trend continuation, I’ll take a wild guess about where you put your stop loss. Oh, below the bull flag? Large players know this and will scoop up your stops before pushing price up. How often have you said, “wow, I was right but I stopped out just before trend continuation!” The “golden standard” of technical analysis is only so to make the masses of retail traders a predictable herd of cattle.
Also, stay away from entirely subjective strategies that will always appear correct in hindsight. Oh, how many times have you redrawn that Elliot wave extension to match what happened instead of what you predicted? Don’t you dare bring up the Fibonacci to justify your subjective drawings either. Fibonacci doesn’t work because “it’s natures law” or the “golden rule,” it just happens to be very similar to the first standard deviation of any price move. So why are you using a static reading to predict a dynamic value that changes with every candle close?
For TA that actually works (if you use it correctly,) I can recommend ichimoku, though only on macro timeframes and requires a lot of reading to use properly.
Mark Whistler’s books on volatility are my biggest recommendation to learn. Any strategy using WAVE PM and 3D WAVE PM are ideal, treating price strictly as reactionary, multiperiod probability distributions gives an excellent “why” in the chaos of the markets. The compression and expansion cycles can be defined to the exact period on any timeframe with the right readings. I created a write up a while back going in depth on my findings on probability distributions here. https://www.reddit.com/Forex/comments/ah5bxo/lets_talk_about_the_basics_of_advanced_volatility/?utm_source=share&utm_medium=ios_app
I also created a google doc over the years and filled it with a few resources I’ve used to learn, I can hand it out if you dm me.
Finally, don’t forget to do your FA. Macro level economic indications are incredibly important for defining the long term alignment of expectations. However never trade the news, this is an important distinction. Don’t bet that the US dollar will go down because Trump made a stupid tweet, please. What you SHOULD do is measure the strength of the move and the EXPANSION caused by the FA and identify where the compression begins afterwards. For every period of expansion, there is a predictable compressionary range that follows that is equal to the expansion. For every action there’s an equal and opposite reaction. Instead of betting on the news, bet on the reaction after the news has cooled off.
That’s all that immediately comes to mind. Feel free to ask any questions.
submitted by FallacyDog to Forex [link] [comments]

Would any experienced traders (or inexperienced) share some insight please.

Good day to all you experienced and inexperienced traders alike.. Pardon me for this extremely long post, and i thank you in advance for spending the time to read this.
Basically.. I'm really passionate about Forex, not because of getting rich. But because i just love what Forex is and the ability to be well informed and stuff. For example.. it interests me how banks work, how monetary policy affects currencies and stuff.. I love the idea of being able to predict what is going to happen to a country/currency in the coming months and i love the thought of being informed about such stuff..
I come from a country where everyday is a 9-5 office job for majority of the country, in fact, Forex seems to be non-existent here (maybe its just me), its hard to find a mentor (because i know that it is important that one must learn live trading from a mentor to see his/her perspectives), but because only a minority (if it exists) does Forex.. its extremely hard to find a mentor.. Not only that.. There are 'courses' here that charge 4000USD for a single course which im pretty sure is just basic TA and FA that can be found on Youtube.
The only thing i can teach myself is stuff that can be found online.. Mostly TA, i have spent time and time over again to practice, buying at supports, selling at resistance. Candlesticks pattern etc and never going against a trend.. I started demo trading last October and i just started live trading on January this year. In my first week, i started with a live account of 200USD and with TA alone, i made 310 USD in a week. I felt unstoppable, i felt confident and that i know Forex in and out. I figured that i could trade my lifetime relying on TA alone. The 2nd and 3rd week were all profits without a single loss, earning and earning, i grew my account from 200 to 850 in a matter of 3 weeks. Then, it went downhill.
There was a week i cant remember, where i traded USD pairs and on that week, it was a really hectic week for USD as there were alot of news revolving it. (correct me if im wrong, which i think i am, it was the week where there was Trump's testimony or something like that, and then there was Theresa May's meeting with Trump and strengthening the pound) I took quite a hit of -120 dollars in total and because i didnt keep a journal then, i started to panic. Over the next few weeks, i tried to develop new TA analysis, usage of Bollinger Bands, MACD etc.. When i had profit, i was happy and thought 'this is the analysis that i will stick to', but when i had losing trades, i went on to tweak my methods.
I think it was the ending of Feburary where i was lying on my bed and thinking, why dont i just trade like how i did on the first few weeks, since it ended in many correct trades. So i began using my method of trading in week 1-3. During that week, i had a little bit more profit than i had over the last couple of losing weeks. (my account was at 400 balance at this point in time)
However, i was confused and sceptical to trade as i was really unsure.. Everytime i look at the charts, it was already either oversold or overbought on the RSI, and on the charts, a huge trend just took place and it was nearing either support or resis. I would trade against the trend when it was nearing resis/support and i got screwed really badly.
Today, i just blew my account trading EURJPY and EURUSD sell. I entered EURJPY at 129.626 and EURUSD at 1.22624. I kept holding even when my trades were going against me because i stubbornly refused to close, believing that my analysis was right. I kept holding as i thought 'its already overbought, surely it'll retrace soon' but it didnt. Its even worst because during the first few weeks where i was confident in my trades, i wanted to do my part to be a filial son, ( i come from an average family) and i told my mom and dad that i wanted to make money for them. They invested in me 1k USD which i am close to blowing it all, its sitting at 450USD now.. all due to my ignorance.
I was disappointed, frustrated that i blew my account. It is of course naive and stupid to think thoughts like ' i should have closed earlier when my losses could have been minimized' but what if it went to profit instead?? I was stupid and ignorant and i regret it. It was today that i realize that i have to pair fundamentals with technicals, but im just berating myself because i dont know where to start learning fundamentals, or actually, Forex as a whole.. I've been using indicators, such as RSI, automated trendlines and atuomated support/resistance.. I know that plain naked chart with self drawn S/R lines are best.. but i just dont know how to do it..
I do know that i shouldn't harp on the fact that i blew my account because everyone goes through it at least once, but i cant help it, the feeling sucks.
So that brings me to the question.. Would any experienced traders out there share where they learnt Fundamentals with TA?? It will be even better if a link or a book/course could be provided alongside it. I have always wanted to learn Fundamentals but because it is so broad, i don't know where to start. The only thing i know is that high impact news on the economic calender usually affects a currency long term, like FOMC/ interest rates etc.. I just dont know where and how to start learning it... Would appreciate if i could get a little help.. Be it in recommendations of books or links/courses.
Sorry guys for this extremely lengthy post, would really appreciate it if i can get any insight at all..
Thank you guys so much..
My results on a live account the first 2 weeks, in case anyone was curious: https://imgur.com/a/f2UGw https://imgur.com/a/o2b1Z
submitted by Risingvilla to Forex [link] [comments]

New rule! Also are cryptocurrencies an investment, will there be a crash? Everything answered here!

This is going to be the only crypto post for now and an announcement:
Rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. Posts regarding this topic will be automatically removed.
If there's a stock correlated with cryptocurrencies, like coinbase going IPO, then that's fine, you might have to message the mods after posting to have it approved, no big deal.
Also if you're questioning whether something is an investment or not, just search for it on personalfinance. For general currency trading strategies, see forex .
If you're wondering if bitcoins are an investment or if there will be a crash, read on.

Are cryptocurrencies an investment?

This post is going to deal with bitcoins & cryptocurrencies as an investment... they're more speculative. All currencies are speculative mostly due to how the forex market works, but more because of exchange rates between countries keep currencies balanced (including inflation, country debt, interest rates, political & economic stability, etc), so you can only profit in price fluctuations.
Sure you could buy the currency of a depressed country, like Mexico decades ago, and then hold in the hopes it'll go up (which it did for Mexico), but that's also speculation (no one knew Mexico would pay off so much debt).
Bitcoins are also affected by other countries' currency values, but more so by the future expectation of legitimacy, world wide adoption, limited gains from mining, and eventual limit in supply. But at any given moment the United States could pay off more debt, raise interest rates to reduce inflation (or cause deflation), grow GDP, or even reduce the supply of USD all of which would increase the value of USD (keep in mind bitcoins can't do any of these things).
Far too many people are treating cryptocoins as an investment because currently (June 5th 2017) a lot of crypto investors are worth a lot of money, god bless you people, so this post will also help you determine if we're headed for a crypto crash and maybe you can keep those profits.

Should I invest in cryptocurrencies?

Understand that an investment is something you hope will go up in the future or provide income, both of which for the long term vs speculation which profits on short term inefficiencies.
Speculative securities are typically commodities, options, bonds, and currencies, but also stocks that are volatile enough to give you extreme returns or extreme loses.

Examples of investments:

Examples of speculation:

Reducing the risk of speculation

Typically for speculation you reduce risk by reducing your trade size and timeframe, but since you're trying to invest into something that is speculative, you can try:
Asset allocation, a strategy that reduces risk.. If you're 80% stocks, 15% bonds, 4% gold, and 1% bitcoins, if something were to happen to bitcoins, you still have 99% of your money.
But even very aggressive long term portfolios leave speculation out completely and just go 100% stocks because stocks benefit from growth while speculative securities like gold benefit from global turmoil in the short term. Only mid risk & mid term portfolios can take advantage of gold's speculative returns.
I also mention asset allocation because many crypto investors have been using this strategy on a portfolio of 100% crypto coins, but that doesn't help you reduce the overall risk of crypto coins, you're just reducing the risk of 1 speculative asset with another speculative asset. 100% crypto portfolio would face the same risks such as being made illegal, IRS aggressively hunting down crypto profits, a drop in correlated coin markets, or just a loss of popularity would all cause a sell off. Even the USD or Chinese currencies becoming more valuable would reduce the value of crypto coins.

Should I buy coins right now?

Cryptocoins are a better investment after a period of consolidation when volatility has stabilized:

Bitcoin 2013/2014 speculation, chart

Bitcoin 2015 consolidation, chart

Source Bitstamp exchange, while the volume is #2 to GDAX, Bitstamp is better to look at for historical price/data, more charts here.

RSI & MACD key for above charts and primer

Analyzing overbought signals

So the first chart above have RSI & MACD screaming that bitcoin is overbought and you shouldn't invest in 2013/2014.
The black squares in the 2nd chart show consolidation and reduced volatility, a "better" time to invest. If you were trading short term, it would be a whole different story, and there would be opportunities to buy & short, but since this is written for investing, the small overbought signals are ignored, so if you were to buy Bitcoin at $300 inside the first blacksquare (2nd chart) and then it suddenly drops to 25%, it's okay because the volatility is much lower compared to previous price movements (nothing compared to 80% loss in the 1st chart). Any investor would tell you a 25% drop is terrible, but bitcoins are speculative and that kind of drop is pretty damn good for this level of volatility.

Nothing goes straight up forever

and anything that comes near this vertical incline will eventually lose 80% to near 100%, always happens, it's usually preceded by emotions (price euphoria), attention, and increased volume, all classic signs that something is becoming riskier.
Other speculative securities gaining multiples and then losing 80% to near 100% of value:

Notable comments on reddit:

*This is just to get you guys looking at different subs on this topic, and yeah it's mostly anti-crypto, but don't let that discourage you.

Is Bitcoin going to crash?

Maybe, the signals are getting louder, you tell me: The only chart you wanted to see this entire time.
So based on the above chart, is bitcoin overbought? MACD levels are the same as 2013's crash, but the increased in value is around 4.3x or 2.4x (depending on which you look at), so maybe we'll see another spike before a crash, I don't know, it's up to interpretation right now. There's the emotional price levels of 3000 and 4000 that we might have no problem getting to in an overbought environment before a correction. And how big will the correction be? I think 80%, but it very well could be around 50% down to $1200, the previous level of resistance which would become support.
I put everything above in its own wiki here.
Well I hope that helps everyone. Sorry to anyone that may feel butthurt on classifying cryptocoins as speculation, I hope you understand the facts. Feel free to argue or agree with this. If I made any mistakes and you point them out, I'll correct them and give you credit for it in an update to this post and the wiki.
Also the automod will is just going to blanket remove posts (not comments) with the following keywords {crypto, bitcoin, btc, etherium, altcoin} (see update 4 below) (this will eventually get relaxed if Coinbase ever IPOs) and then it'll send the user this message:
"Sorry your post[link] was removed in stocks because of rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. You can find more information in our are-cryptocurrencies-investments wiki. If you're trying to discuss a non-OTC stock related to cryptocoins like Coinbase IPO, or this was just a mistake, message the mods and they'll approve your post, thanks."
Update: Created wiki, added relevant websites and sub reddits. Also turned on automod reply.
Update2: those relavant websites and subreddits I put into the wiki, thanks u/dross99 for recommending ethereum

Relevant websites/wikis

Relevant subreddits

  • CryptoCurrency - main sub to learn about all bit & altcoins
  • ethtrader - trading eth
  • ethereum - for more eth information
  • btc - the place to have bitcoin discussions or r/CryptoCurrency; while Bitcoin does have a lot of information on Bitcoins in general, you'll find many reddit subs completely opposed to Bitcoin for heavy censorship of discussions, especially those critical of bitcoins, so you're better off reading the sub's wikis and discussing bitcoins in btc & r/CryptoCurrency
  • personalfinance
Update3: Shoutout to the mods on CryptoCurrency
Update4: Updated auto mod keywords, it's not a blanket catch all, a little completed to understand if you don't know regex but it looks like this
"crypto ?(trading|investing)","(should(| I)|could(| I)|can(| I)|how to|is it worth) (buy|sell|mine|min)(|ing) (btc|btcs|bitcoin|ether|etherium|eth|litecoin|ripple|altcoin)" 
submitted by provoko to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 25, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

Importance of Technical Indicators

Importance of Technical Indicators

Introduction:

Much after they emphatically show toward a path, it just means there is a decent possibility or likelihood that the market will take that heading, not an assurance. It's likewise great to recall that specialized markers depend on information gathered from past exchanges. Each exchange is unique thus it is conceivable that authentic data probably won't be adequate to effectively discover future market developments. Additionally, recollect that a marker ought not to be utilized in seclusion. It ought to be utilized in mix with others. Given underneath are a few pointers that can demonstrate to be useful in apportioning probabilities, obviously like we said previously, don't depend on them to foresee advertise developments.

https://preview.redd.it/yqodp11g6s541.png?width=560&format=png&auto=webp&s=b67a38b65690923ba7ccb39436dd5ba7ab50a7f9

MACD:

MACD is known as the moving average convergence divergence calculation is a covering indicator used to track trends. The MACD consists of 2 exponential moving average and histogram. It is to keep in mind that these two lines in the indicator are not simple moving averages because many traders think it that way.

Forex Index:

The force index tells you how much force or volume is behind a trade. The manner in which this can help you is by helping you see what's happening underneath the surface. So if a pattern is going up and the Force Index is going down, it implies that the volume is diminishing and the pattern will likely return soon. So it sets you up for what's to come

Stochastic Oscillator:

The Stochastic Oscillator shows you overbought or oversold conditions. Overbought and oversold sign is significant on the grounds that it gives you when to anticipate that the pattern should go down when it has been going up for some time.
On the off chance that a cost goes excessively high excessively quick, it implies that that pair is very nearly being overbought and therefore it will return. So it cautions any merchants who may be going to enter an exchange taking a gander at the pattern that it may before long return because of the restorative wave. Additionally, on the off chance that it descends too rapidly that shows that it is oversold thus it will before long skip back thus you have to act in like manner.
submitted by Andrew-Mark to u/Andrew-Mark [link] [comments]

r/Stocks Technicals Tuesday - Nov 27, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 11, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 18, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 04, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

$GIMO Chart DD and stuff

Ticker: $GIMO
Exchange: NYSE
Industry: Software
Overview: $GIMO offers solutions that deliver visibility and control of traffic accross networks. It has a presence in the United States; Rest of Americas; Europe; Middle East and Africa, and Asia Pacific. (Source: Reuters)
In January, $GIMO reported prelimiary Q4 results that caused a crash of almost 20%. Of course institutional downgrades soon followed. Now, the company is operating at it's "new" value, and looks to be at a fair price. This post will outline when to buy, and when to sell in an effort to make a short-term gain. Personally, I like playing options to get the most bang for my buck.
That being said, I believe $GIMO will continue it's uptrend through to the middle of next week before it either peaks, or rallies, and here's why...
Ichimoku Cloud:
Figure A
If you'd like to read up on Ichimoku clouds, check out this article. Otherwise, the TL;DR is that when the pink, green, and light-blue lines cross in to the purple cloud, there's a good chance there will be a rally of some sort.
Aside from that, you want to notice the green line and how it is starting to trend upwards. This alone is not enough to say whether or not you should expect it to continue, but it's a good starting indicator...
MACD:
Figure B
You can learn about the MACD over here.
What you want to notice, is that the green line is starting to turn around, and the blue is about to as well. This would be a nice 'sweet spot'. Scroll down in the article to Figure 4 and look at the 2nd circled 'Buy' spot. Looks familiar, eh? TL;DR looks like it's trending up.
Stochasitcs:
Figure C
This is the Stoachastic Momentum Index (SMI). We are using it as an indicator to tell us whether or not the 'run' is over ($GIMO has been green 2 days in a row now). Since the two lines look like they just turned around and are still near the bottom, it leads us to believe that there is still room to run. I personally think it'll be bullish through next week.
More info on using this indicator can be found here
Figure D
This figure shows the Stochastics-Fast chart. Similar to the Stochastic Momentum Index (SMI), this is to help identify whether or not the stock is overbought or oversold. More information can be found here.
This chart is the LEAST desirable out of all the charts posted so far. Right now it says its approaching the overbought territory, so tread carefully!
Conclusion: I believe $GIMO will dip or stay relatively flat tomorrow (Friday Mar 10th), this will give a little more leeway on the overbought territory which allows for a little more of a run throughout next week. So my play would be to wait for a dip tomorrow, buy, then hold through to Weds or Thurs next week for a small run. After a few smaller green days Mon-Weds, I think it will dip a bit, until the MACD levels out. Not necessarily to 'oversold' territory, but enough to run back up again and a little higher than the previous peak (seen in first chart around mid Feb).
Well, I guess that's all. Let me know what you guys think, and if I'm an idiot that's gonna lose every last penny or not. Or if I'm doing everything wrong, etc... Otherwise, good luck and godspeed.
submitted by alexslacks to wallstreetbets [link] [comments]

Top Forex Trading tips and Strategies- 2018

Forex trading is completely bounded by the economy of the currency pair. Forex trading is not a kind of business where you can take spontaneous decisions to run your business. It needs a thoughtful and strategic process with the emotional discipline to make any move in Forex trading. It is always said that a Forex trader must strive to develop his/her own trading strategy or try a strategy that has proven itself in past. Best Forex trading tips and strategies for 2018 can develop after multifaceted analysis of currency pairs and economy news. Here are some forex currency trading tips that will work in 2018:
1. Trading is an Art, not a Rocket Science:
You must remember that trading is an art, not a rocket science. No one can assure you for 100% accurate movement of any currency. Therefore, no rule in trading is ever absolute. You have to learn Art of trading. How the market reacts to the economic news? And how technical indicators work with those data?
2. Emotional Discipline:
Everyone knows about emotional discipline, but no one controls their emotions while trading which becomes a reason for the loss of trading. Emotional discipline keeps you on the track of successful trader. If you are trading with a strategic process and don’t have the emotional discipline you can lose your money on trading and we suggest you stop wasting time in trading. You can do more interesting in your life.
3. Don’t Get Greedy:
Forex trading is highly fluctuating trading system. You are making a good profit 1 min ago and next min you are having a loss. If you’re in profit and you are making good money with respect to your investment. Then don’t get greedy into making more profit. Just close the trade and have fun with your profit.
4. Risk Management:
Most of the people trade without risk management and wipe out their account. If you want to be a successful trader don’t forget to put proper risk to management in your trades. Trading is a kind of business if you are not able to lose money that you are investing. Please don’t put any trade in stocks, currency market.
5. RSI (Relative Strength Index) Indicator:
As you know it is a momentum indicator. It is used to understand the movement of the market. It also helps us to learn the trend of the market in particular time frame. But why we are suggesting to others to use in your toolkit. We know that market is run by investors and all investors need something to predict short terms and long-term movement of the market to make a good amount of profit. That’s why they use tools used by a majority of traders and RSI is one of the tools which is used by the majority.
6. ATR (Average True Range):
Most of the traders lose money in Forex trading not because they are trading against the trend, they lose money because they don’t what is stop loss and take profit they have to put while trading and ATR will help you to use a proper stop loss on your all trade so you can increase the number of profitable trade in your portfolio.
7. Stochastic Oscillator
Every trader must keep this tool in his/her toolkit. This tool will let you know about get-in and get-out price of your trade. If you are following the signals provided by this tool, you may lose most of your trades with good profit. It shows the overbought and oversold price of any currency, commodity, and stock. This range – from 0 to 100 – will remain constant, no matter how quickly or slowly a security advances or declines. Considering the most traditional settings for the oscillator, 20 are typically considered the oversold threshold and 80 are considered the overbought threshold. However, the levels are adjustable to fit security characteristics and analytical needs. Readings above 80 indicate a security is trading near the top of its high-low range; readings below 20 indicate the security is trading near the bottom of its high-low range.
8. Simple Moving Average:
The thing to remember about SMA is it helps you to determine the upcoming trend. It helps you to know upcoming the bullish trend and bearish trends in your currency trading.
Two popular trading patterns that use simple moving averages include the death cross and a golden cross. A death cross occurs when the 50-day simple moving average crosses below the 200-day moving average. This is considered a bearish signal that further losses are in store. The golden cross occurs when a short-term moving average breaks above a long-term moving average. Reinforced by high trading volumes, this can signal further gains are in store.
9. A risk to Reward Ratio:
Before entering every trade, you must know your pain threshold. You need to figure out what the worst-case scenario is and place your stop based on a monetary or technical level. Every trade, no matter how certain you are of its outcome, is an educated guess. Nothing is certain in trading. Reward, on the other hand, is unknown. When a currency moves, the move can be huge or small. Always trade in 1:2 risks to reward ratio. So if you lose two trade you, your one profit trade can recover your loss and put you in no loss- no profit situation.
10. Never Risk more than 5\% of your investment:
If you are a trader with the low budget in rang $100-$1000. Never put more than %5 of your total amount of investment. And if you have budget more than $1000 than please don’t get greedy and don’t put more than 2% on risk.
If you remember this rules and learn to use above mention tools properly. Definitely, you can make a good amount of money from your trades, without wiping out your account. Trading is subject to market risk. You can lose all money, so please trade safely and don’t get emotional.
submitted by sannidhyammf to u/sannidhyammf [link] [comments]

How to Identify Overbought & Oversold Conditions - Forex 101 Forex overbought oversold indicator, Trading strategy ... RSI Pointer - Forex Oversold and Overbought Indicator for Meta Trader Trading Overbought And Oversold Markets With Steven Primo Currency array indicator - overbought & oversold Oversold and Overbought Indicator The Only Overbought Oversold Indicator That Works - YouTube Forex Q&A  RSI Over Bought & Over Sold How To REALLY Use Overbought And Oversold Indicators - YouTube

When looking for the main indicators for oversold and overbought stock or forex pair, there are a few things to look for. Programs such as MT4 offer highly effective and robust trading on the most common methods for forex trading as well as a thorough definition of both methods. When analyzing these types, there is a range of tips that can be applied. The first tip when looking for oversold ... Overbought and oversold indicators abound, but RSI and stochastics have stood the test of time. Relative strength index indicates overbought conditions when it moves towards 80 and oversold ... Having a clear understanding of overbought and oversold conditions is an essential money-making hack in the financial markets. With the help of RSI Strategies, traders, as well as forex robots, rely on these conditions to lock in optimum profits. Similarly, traders develop trading strategies based on overbought and oversold conditions. In most ... Oversold & overbought Method Help you for Good entery point .You can use This indicator or method any currency paire and any time fram but best for long term trading.. For scalping you can use m5 Good For short term trading . M15 best for 15 pips and m30 for 30 pips if you wants 100 pips then you can follow H4 Chart . overbought-oversold — Check out the trading ideas, strategies, opinions, analytics at absolutely no cost! — Indicators and Signals Overbought means a period where there has been a significant and consistent upward move in price without much pullback. On the other hand - oversold describes a period where there has been a significant and consistent downward move in price without much pullback. The market is considered overbought when the indicator rises above the 70 level ... Overbought and Oversold in Forex Trading A lot of new Forex traders think that all they have to do in Forex trading is to Buy in an Uptrend and Sell in a Downtrend . While this is a general truth, there are a lot of other factors like the overbought and oversold conditions which determine whether a trade is going to end in profit or not.

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How to Identify Overbought & Oversold Conditions - Forex 101

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