This is part one of a series on relative strength ratios.
Part One:
Relative Strength Ratio (RS) analysis is used to compare one markets performance with that of another. The RS line provides a direct comparison of strength or weakness relative to the another. RS analysis is particularly useful for active institutional managers who are judged relative to a...
The 3-day daily ADX reading of 11 is RARELY seen in Bitcoin. The last 3-day ADX reading in the 11s was July 2020 just as Bitcoin began its rally from 9,200 to 64,000. Remember, a super low ADX reading does NOT mandate an advance, but only suggests a BIG move either up or down. A violation of the upper or lower boundary of the recent trading range is likely to tell...
History and Introduction
Everyone in the market today remembers broadly the financial response to C19. It We see it every time that we look at the price chart and we see the spike down and the V recovery. What a lot of people may not remember is the investigation into SoftBank for essentially causing a short squeeze by use of call options and gamma hedging. ...
Welcome to the world of trading patterns. If you appreciate our charts, give us a quick 💜💜
Today, we'll explore two important ones: the Rising Wedge and the Falling Wedge . These patterns can signal shifts in market trends. Let's dive in and see how they work.
Rising Wedge:
In an uptrend, the Rising Wedge hints at a bearish turn. It takes shape as prices...
The Volatility Quality Index (VQI) is an indicator used to measure the quality of market volatility. Volatility refers to the extent of price changes in the market. VQI helps traders assess market stability and risk levels by analyzing price volatility. This introduction may be a bit abstract, so let me help you understand it with a comparative metaphor if you're...
I bring today is far from uplifting. As you may already be aware, the British Pound (GBP) has taken a significant hit in the wake of the recent decision by the Bank of England (BoE) to hold interest rates steady. This unforeseen turn of events has left many traders like yourself feeling disheartened and uncertain about the future of GBP.
The BoE's decision to...
FOMO is the lost profit syndrome.
Now it is especially common due to the popularity of smartphones and social networks. Many are simultaneously afraid of social isolation and worried about lost opportunities. A similar situation is possible in trading. As soon as traders see a bullish trend, they start opening trades and buying those assets that match their...
What is position sizing & why is it important?
Position size refers to the amount of risk - money, contracts, equity, etc. - that a trader uses when entering a position on the financial market.
We assume, for ease, that traders expect a 100% profit or loss as a result of the profit lost.
Common ways to size positions are:
Using a set amount of capital...
Welcome to our Power Patterns series in which we teach you how to trade some of the most powerful price patterns which occur on any timeframe in every market.
In this week's instalment, we delve into the Break & Retest pattern—a strategic approach to navigating breakout trades. If you've wrestled with the frustration of false breakouts, incorporating this...
he Fed has kept interest rates steady as expected, but Chairman Jerome Powell's statements were much more hawkish than anticipated.
In summary, 12 out of 19 Fed members are calling for one more interest rate hike this year. No interest rate cuts are expected this year. Inflation is expected to remain high over the next 12 months. Tightening and balance sheet...
Hey guys!
Today, we're discussing 3 concrete strategies that you can use to improve your win rate with your trading strategy. This includes:
1.) How to improve your underlying decision making (trade with the trend, take advantage of levels, and understand the fundamentals driving supply and demand).
2.) How to adjust your exit strategy to improve your win rate,...
Introduction:
In technical analysis, support lines play a crucial role in identifying potential trends and predicting future market movements. When multiple levels of support converge at higher levels, it can indicate a strong bullish trend. In this article, we will explore such a scenario and discuss how it could impact the overall direction of the market.
...
Are you interested in looking at multiple charts at once without the need of adding more monitors? Well in this video I'm going to show you how to do so here on Tradingview along with some tips on how you can sync the charts & make life a lot easier for you when it comes to watching multiple markets at once and/or backtesting.
Please leave any questions or...
Hello, market enthusiasts!
In previous post , we described a group of technical indicators - Oscillators, providing a solid foundation for today's discussion on RSI. The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements.
Calculating RSI:
RS = Average of x days' up...
Jerome Powell is likely to say the following in the upcoming conference on Wednesday, September 20th:
* The Federal Reserve is committed to bringing inflation down to its 2% target.
* The Fed is prepared to continue raising interest rates until inflation is under control.
* The Fed is aware of the risks of a recession, but it believes that these risks are...
In the world of trading, tools like Andrews’ Pitchfork stand out for their precision and versatility. Dive in to discover how to use the Pitchfork for stock analysis and more with this comprehensive article, including how it’s drawn, its applications, and its limitations.
What Is the Andrews' Pitchfork Indicator?
Andrews' Pitchfork is a popular technical...
