The Bollinger Band is a versatile technical indicator. It identifies trend direction, momentum, volatility, and overbought or oversold price conditions. This indicator provides all this information using three lines.
The middle line of the classic Bollinger Bands is based on a 20-period Simple Moving Average (SMA). Two lines are then drawn above and below the...
Forex trading success hinges on a well-defined strategy, as it sets a clear direction and methodology, whether it be scalping, day trading, or another approach. Key to this is understanding the market conditions under which your strategy thrives, as different strategies perform variably across market environments. Employing technical indicators is crucial in...
Forex trading, also known as foreign exchange trading, buys and sells currencies to make a profit. It is the largest and most liquid financial market globally, with trillions of dollars traded daily. The forex market operates 24 hours a day, five days a week, allowing traders worldwide to participate.
The Importance of Patience
🕰️ Patience is a fundamental...
While the basics seem straightforward, the intricacies of the market often trip up even the most knowledgeable individuals. Trading transcends a mere understanding of market dynamics; it requires a unique blend of pattern recognition, abstract thinking, and a mindset that combines personality traits, self-discipline, and a specific mental approach.
The...
A trading strategy encompasses a set of guidelines for initiating a position.
A trading system encompasses a set of rules for consistently profitable trading. This involves a clear comprehension of your strategy, specifying the assets you trade, the setups you utilize, the risk involved, preferred timeframes, and other pertinent details.
Consistency: A...
Given ANY in- or out-of-sample time series, including purely random, synthetic data, anyone can generate (inflate) ANY Sharpe Ratio by repeatedly applying different trading or investment strategies to the same time series sample!
By definition, purely random data has no discernible structure. Consequently, no method can exist to predict such a sequence - I.e.,...
Hey traders,
In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets.
1. Trend Line Breakout and Retest
The first setup is a classic trend line breakout.
Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves.
If the...
When it comes to using technical analysis for making trading decisions, a solid, simple, yet robust trading strategy is an essential foundation for traders to achieve consistent profits. However, constructing that strategy can be a challenge, especially for those new to trading, as there is an overwhelming amount of information out there. There are nearly...
Today, I will share a practical secret that I have learned for many years. Don’t hesitate when trading. If you hesitate, then don’t trade in the short term.
Many people also have the habit of making trading plans. For example, I will enter the market at any position today, but when the opportunity really arises, I hesitate to make a decision. After the market...
The following clearly outlines my trading strategy, every day I seek out deals based solely on this strategy.
Without regular backtesting (trade by trade), the results of trading are random and uncertain. The cumulative outcome of the R-multipliers should be positive, but, if a routine backtest is conducted (after executing numerous trades based on sequential...
Dear Traders and Hopeaholics alike,
as the self-proclaimed President and Founder of HOPEAHOLICS ANONYMOUS (or HA for short), yes I know you are going to laugh at this strategy... many have, but it is me having the last laugh HA HA HA... I hear you...but this works! And the strategy is FREE, no paid course, and simple to use!
THE ONLY WAY TO MAKE MONEY - IS TO...
CRYPTO DAY TRADING STRATEGY
1. Choose Coin with High Volatility & Liquidity
2. Use MFI Indicator on 5m or 15m chart
3. Wait for MFI to reach 100 Twice
4. Buy next 100 MFI & that candle closes bullish
5. Stop Loss below Low of Current Day
6. TP during first 60 minutes of trade
Best Mean Reversion Strategy:
Before we get to that point, first and foremost, let’s see what tools we need to use for this strategy.
The best mean reversion indicator that works 85% of the time is the RSI indicator.
So, you will need the RSI oscillator on your charts.
Now, there is one more important thing that needs to be done. The RSI settings must be changed...
Hello, traders!
Last time we considered the topic about the technical indicator's types combinations to increase your profit. I promised you to show in details some strategy which applies combination of the indicators.
Let's consider the TREND + OSCILLATOR strategy which uses the EMA and RSI indicators.
First of all we should define the direction of a market...
Hello, traders!
We have already know many diffirent indicator, but sometimes we can face with the situation when a combination of different indicators demonstrates bad trading performance. Usually the reason of this confusion is that investors use indicators of the same type. We should analyze the market situation in different ways.
The indicators can be divided...
Price was in an uptrend.
Price bounce off a previous resistance.
Price created a Bearish Engulfing Reversal Candle.
Entered trade at the close of above candle.
MACD crossover happened at the close of the candle also.
Stop Loss placed above reversal candle.
EXITED trade after consolidation made price go sideways.
Engulfing Trading Strategy
The engulfing pattern is fairly regular in its occurrence. Appearing regularly means that a lot of the time, it simply won’t work. Statistically speaking, candlestick patterns have a high failure rate, which is why we come with the idea to fade the engulfing bar pattern. Of course, candlesticks can indeed be useful--but advanced trading...
