structure updates
This commit is contained in:
@@ -1,24 +0,0 @@
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**Interest Rate Decisions**: Set by the Federal Reserve (Fed) and the European Central Bank (ECB).
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- **Fed**: Eight times per year (FOMC meetings)
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- **ECB**: Every six weeks
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**Employment Data**: Key data includes Non-Farm Payrolls (US) and overall Unemployment Rate (Eurozone).
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- **Non-Farm Payrolls (US)**: Monthly, typically the first Friday of the month
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- **Unemployment Rate (Eurozone)**: Monthly
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**Inflation Data (Consumer Price Index - CPI)**: A primary measure of inflation, affecting interest rate decisions.
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- **US & Eurozone CPI**: Monthly
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**Gross Domestic Product (GDP)**: An indicator of economic health, influencing currency strength.
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- **US & Eurozone GDP**: Quarterly
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**Consumer Confidence and Business Surveys**: Indicators like the ZEW Economic Sentiment (Germany) and ISM Manufacturing PMI (US).
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- **ZEW Economic Sentiment (Germany)**: Monthly
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- **ISM Manufacturing PMI (US)**: Monthly
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**Political Events and Uncertainties**: Major political events (like elections) or uncertainties (like trade disputes or Brexit-like events). - **Timing varies** based on specific events
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@@ -1,24 +0,0 @@
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**Interest Rate Decisions**: Set by the Federal Reserve (Fed) and the European Central Bank (ECB).
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- **Fed**: Eight times per year (FOMC meetings)
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- **ECB**: Every six weeks
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**Employment Data**: Key data includes Non-Farm Payrolls (US) and overall Unemployment Rate (Eurozone).
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- **Non-Farm Payrolls (US)**: Monthly, typically the first Friday of the month
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- **Unemployment Rate (Eurozone)**: Monthly
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**Inflation Data (Consumer Price Index - CPI)**: A primary measure of inflation, affecting interest rate decisions.
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- **US & Eurozone CPI**: Monthly
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**Gross Domestic Product (GDP)**: An indicator of economic health, influencing currency strength.
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- **US & Eurozone GDP**: Quarterly
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**Consumer Confidence and Business Surveys**: Indicators like the ZEW Economic Sentiment (Germany) and ISM Manufacturing PMI (US).
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- **ZEW Economic Sentiment (Germany)**: Monthly
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- **ISM Manufacturing PMI (US)**: Monthly
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**Political Events and Uncertainties**: Major political events (like elections) or uncertainties (like trade disputes or Brexit-like events). - **Timing varies** based on specific events
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@@ -60,3 +60,69 @@ Financial market indices provide snapshots of market or segment performance. The
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1. **Historical Performance**: While indices provide current performance snapshots, historical data offers insights into long-term trends. However, relying solely on historical performance for future predictions has its potential pitfalls.
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2. **Weighting Method**: Indices might be market-cap weighted, equally weighted, or use other criteria. This influences performance and representation. For instance, market-cap weighting might give more influence to larger companies, which can sway the index's performance.
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---
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# Financial Market Indices: An Overview of Types and Their Importance
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## Introduction
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Financial market indices provide snapshots of market or segment performance. They offer both retail and institutional investors an idea of the overall health of a market and its sectors, aiding in investment decision-making.
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## Types of Indices
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### Stock Market Indices
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**Description**: These indices track the performance of a selected group of stocks representing a particular market or a segment of it. They serve as a proxy for the overall market's direction and performance.
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**Examples**:
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- **S&P 500 Index**: Represents the performance of the 500 largest publicly traded companies in the US.
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- **Dow Jones Industrial Average (DJIA)**: Comprises 30 significant U.S. companies and is one of the oldest and most-watched indices globally.
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- **NASDAQ Composite**: Primarily consists of technology companies and represents over 3,000 listed companies.
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**Global Reference**: MSCI World Index captures large and mid-cap representation across 23 developed markets.
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### Bond Indices
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**Description**: These indices track the performance of a specific set of bonds, which can be segmented based on their issuer type, maturity, credit quality, etc.
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**Examples**:
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- **Bloomberg Barclays US Aggregate Bond Index**: Represents the US investment-grade bond market, including government, corporate, and municipal bonds.
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- **Government Bonds**: Indices focusing on sovereign debt.
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- **Corporate Bonds**: Indices that track the performance of debt issued by corporations.
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- **Municipal Bonds**: Indices focusing on debt issued by local and state governments.
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### Commodity Indices
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**Description**: These indices monitor a range of commodities, helping investors hedge against inflation, diversify their portfolios, or speculate on price movements.
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**Example**: The Bloomberg Commodity Index tracks 22 different commodities, spanning from energy resources like oil to precious metals like gold.
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### Real Estate Indices
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**Description**: These indices gauge the performance of the real estate market, including residential, commercial, and industrial segments.
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**Examples**:
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- **NCREIF Property Index**: Represents the US commercial real estate market.
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- **Residential Real Estate Indices**: Measure the performance and price changes in the residential housing market.
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### Hedge Fund Indices
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**Description**: By monitoring the performance of hedge funds, these indices provide insights into the effectiveness of active fund management strategies compared to passive index investing.
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**Example**: The HFRX Global Hedge Fund Index gives an overview of more than 2,000 hedge funds worldwide.
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### Currency Indices
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**Description**: These indices evaluate the strength and performance of specific currencies in relation to other major currencies, offering insights that impact trade balances, interest rate decisions, and monetary policies.
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**Example**: The U.S. Dollar Index (DXY) measures the dollar's value against a basket of six major world currencies.
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## Additional Points
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1. **Historical Performance**: While indices provide current performance snapshots, historical data offers insights into long-term trends. However, relying solely on historical performance for future predictions has its potential pitfalls.
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2. **Weighting Method**: Indices might be market-cap weighted, equally weighted, or use other criteria. This influences performance and representation. For instance, market-cap weighting might give more influence to larger companies, which can sway the index's performance.
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@@ -1,174 +0,0 @@
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##
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//@version=5
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strategy("Swing Trading Strategy with ATR Stop Loss and Take Profit", overlay=true)
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// Define Daily Chart EMAs
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daily_ema20 = ta.ema(close, 20)
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daily_ema50 = ta.ema(close, 50)
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daily_ema100 = ta.ema(close, 100)
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daily_ema200 = ta.ema(close, 200)
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// Define Daily Trend
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daily_trend = daily_ema20 > daily_ema50 and daily_ema50 > daily_ema100 and daily_ema100 > daily_ema200
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// Define 4-Hour Chart MACD
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[macdLine, signalLine, histLine] = ta.macd(close, 12, 26, 9)
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// Define 4-Hour Trend
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four_hour_trend = macdLine > signalLine ? 1 : macdLine < signalLine ? -1 : 0
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// Define 1-Hour Chart Engulfing Patterns
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one_hour_engulfing_bullish = ta.candlebullengulfing(close, open)
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one_hour_engulfing_bearish = ta.candlebearengulfing(close, open)
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// Define Additional Technical Indicators
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rsi = ta.rsi(close, 14)
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bb_upper = ta.bbupper(close, 20, 2)
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bb_lower = ta.bblower(close, 20, 2)
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stoch = ta.stoch(close, high, low, 14, 3)
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// Define Entry and Exit Parameters
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atr_mult = input.float(title="ATR Multiplier", defval=2.0, minval=0.0)
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atr_period = input.int(title="ATR Period", defval=14, minval=1)
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atr = ta.atr(atr_period)
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// Define Trading Logic
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if daily_trend
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if four_hour_trend > 0 and one_hour_engulfing_bullish and rsi > 50 and close < bb_upper
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strategy.entry("Buy", strategy.long)
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strategy.exit("Take Profit", "Buy", profit=atr _ atr_mult, trail_offset=atr)
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strategy.exit("Stop Loss", "Buy", loss=atr _ atr_mult _ 1.5)
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else if four_hour_trend < 0 and one_hour_engulfing_bearish and rsi < 50 and close > bb_lower
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strategy.entry("Sell", strategy.short)
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strategy.exit("Take Profit", "Sell", profit=atr _ atr_mult, trail_offset=atr)
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strategy.exit("Stop Loss", "Sell", loss=atr _ atr_mult _ 1.5)
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##
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review the following version 5 pinescript that is designed to help a swing trading strategy for forex trading and provide feedback:
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//@version=5
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strategy("Swing Trading Strategy with ATR Stop Loss and Take Profit", overlay=true)
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// Define Daily Chart EMAs
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daily_ema20 = ta.ema(close, 20)
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daily_ema50 = ta.ema(close, 50)
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daily_ema100 = ta.ema(close, 100)
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daily_ema200 = ta.ema(close, 200)
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// Define Daily Trend
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daily_trend = daily_ema20 > daily_ema50 and daily_ema50 > daily_ema100 and daily_ema100 > daily_ema200
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// Define 4-Hour Chart MACD
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[macdLine, signalLine, histLine] = ta.macd(close, 12, 26, 9)
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// Define 4-Hour Trend
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four_hour_trend = macdLine > signalLine ? 1 : macdLine < signalLine ? -1 : 0
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// Define 1-Hour Chart Engulfing Patterns
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one_hour_engulfing_bullish = ta.candlebullengulfing(close, open)
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one_hour_engulfing_bearish = ta.candlebearengulfing(close, open)
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// Define RSI
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rsi_length = input.int(title="RSI Length", defval=14, minval=1)
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rsi_overbought = input.float(title="RSI Overbought Level", defval=70.0, minval=0.0, maxval=100.0)
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rsi_oversold = input.float(title="RSI Oversold Level", defval=30.0, minval=0.0, maxval=100.0)
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rsi = ta.rsi(close, rsi_length)
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// Define Entry and Exit Parameters
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atr_mult = input.float(title="ATR Multiplier", defval=2.0, minval=0.0)
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atr_period = input.int(title="ATR Period", defval=14, minval=1)
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atr = ta.atr(atr_period)
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// Define Trading Logic
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if daily_trend
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if four_hour_trend > 0 and one_hour_engulfing_bullish and rsi < rsi_overbought
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strategy.entry("Buy", strategy.long)
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strategy.exit("Take Profit", "Buy", profit=atr _ atr_mult, trail_offset=atr)
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strategy.exit("Stop Loss", "Buy", loss=atr _ atr_mult _ 1.5)
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else if four_hour_trend < 0 and one_hour_engulfing_bearish and rsi > rsi_oversold
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strategy.entry("Sell", strategy.short)
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strategy.exit("Take Profit", "Sell", profit=atr _ atr_mult, trail_offset=atr)
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strategy.exit("Stop Loss", "Sell", loss=atr _ atr_mult _ 1.5)
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##
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fix the following error message after trying to compile the following code: Could not find function or function reference 'input.resolution'
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//@version=5
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strategy("Swing Trading Strategy with ATR Stop Loss and Take Profit", overlay=true)
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// Define Daily Chart EMAs
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ema20_length = input.int(title="EMA 20 Length", defval=20, minval=1)
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ema50_length = input.int(title="EMA 50 Length", defval=50, minval=1)
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ema100_length = input.int(title="EMA 100 Length", defval=100, minval=1)
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ema200_length = input.int(title="EMA 200 Length", defval=200, minval=1)
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daily_ema20 = ta.ema(close, ema20_length)
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daily_ema50 = ta.ema(close, ema50_length)
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daily_ema100 = ta.ema(close, ema100_length)
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daily_ema200 = ta.ema(close, ema200_length)
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// Define Daily Trend
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daily_trend = daily_ema20 > daily_ema50 and daily_ema50 > daily_ema100 and daily_ema100 > daily_ema200
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// Define 4-Hour Chart MACD
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macd_fast_length = input.int(title="MACD Fast Length", defval=12, minval=1)
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macd_slow_length = input.int(title="MACD Slow Length", defval=26, minval=1)
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macd_signal_length = input.int(title="MACD Signal Length", defval=9, minval=1)
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[macdLine, signalLine, histLine] = ta.macd(close, macd_fast_length, macd_slow_length, macd_signal_length)
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// Define 4-Hour Trend
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four_hour_trend = macdLine > signalLine ? 1 : macdLine < signalLine ? -1 : 0
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// Define RSI
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rsi_length = input.int(title="RSI Length", defval=14, minval=1)
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rsi_overbought_level = input.float(title="RSI Overbought Level", defval=70.0, minval=0.0, maxval=100.0)
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rsi_oversold_level = input.float(title="RSI Oversold Level", defval=30.0, minval=0.0, maxval=100.0)
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rsi = ta.rsi(close, rsi_length)
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// Define ATR Multiplier
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atr_multiplier = input.float(title="ATR Multiplier", defval=2.0, minval=0.0)
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atr_period = input.int(title="ATR Period", defval=14, minval=1)
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atr = ta.atr(atr_period)
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// Define Additional Entry Criteria
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price_action_high_length = input.int(title="Price Action High Length", defval=10, minval=1)
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price_action_low_length = input.int(title="Price Action Low Length", defval=10, minval=1)
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price_action_signal = ta.highest(high, price_action_high_length) > ta.highest(high, price_action_high_length _ 2) and ta.lowest(low, price_action_low_length) > ta.lowest(low, price_action_low_length _ 2)
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supp_resolution = input.resolution(title="Support/Resistance Resolution", defval="60")
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supp_length = input.int(title="Support/Resistance Length", defval=30, minval=1)
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supp_lookback = input.int(title="Support/Resistance Lookback", defval=100, minval=1)
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supp_offset = input.float(title="Support/Resistance Offset", defval=0.25)
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support_resistance_signal = ta.supp(resolution=supp_resolution)
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Bollinger Band Squeeze Breakout Strategy:
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Bollinger Band Reversal Trading Strategy: In this strategy, you look for overbought or oversold conditions. When the price reaches the upper band, it's considered overbought, while when it reaches the lower band, it's considered oversold. Wait for a candlestick to close below the upper band in an overbought condition or above the lower band in an oversold condition, indicating a potential reversal. Enter a short trade if the price is overbought and a long trade if the price is oversold. Use a stop-loss order above the breakout candlestick and a take-profit order at the middle band.
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I. Bollinger Band Squeeze Breakout Strategy
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A. Wait for Bollinger Bands to squeeze together, indicating low volatility
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B. Wait for a candlestick to close above or below the upper or lower band, indicating a potential breakout
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C. Enter a long trade if the price breaks above the upper band, or a short trade if it breaks below the lower band
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D. Use a stop-loss order below the breakout candlestick
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E. Use a take-profit order at the middle band.
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A. Use Bollinger Bands to determine trend direction
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1. Trending above upper band signals uptrend
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2. Trending below lower band signals downtrend
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B. Wait for a pullback to the middle band
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C. Enter a long trade if price bounces off middle band in uptrend
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3. Enter a short trade if price bounces off middle band in downtrend
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D. Use a stop-loss order below the middle band
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E. Use a take-profit order at the upper or lower band, depending on the trend direction.
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I. Bollinger Band Squeeze Breakout Strategy
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A. Wait for Bollinger Bands to squeeze together, indicating low volatility
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B. Wait for a candlestick to close above or below the upper or lower band, indicating a potential breakout
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C. Enter a long trade if the price breaks above the upper band, or a short trade if it breaks below the lower band
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D. Use a stop-loss order below the breakout candlestick
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E. Use a take-profit order at the middle band.
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A. Look for overbought or oversold conditions
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4. Upper band considered overbought
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5. Lower band considered oversold
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B. Wait for a candlestick to close below the upper band in an overbought condition or above the lower band in an oversold condition, indicating a potential reversal
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C. Enter a short trade if the price is overbought and a long trade if the price is oversold
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D. Use a stop-loss order above the breakout candlestick
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E. Use a take-profit order at the middle band.
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@@ -1,62 +0,0 @@
|
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# Financial Market Indices: An Overview of Types and Their Importance
|
||||
|
||||
## Introduction
|
||||
|
||||
Financial market indices provide snapshots of market or segment performance. They offer both retail and institutional investors an idea of the overall health of a market and its sectors, aiding in investment decision-making.
|
||||
|
||||
## Types of Indices
|
||||
|
||||
### Stock Market Indices
|
||||
|
||||
**Description**: These indices track the performance of a selected group of stocks representing a particular market or a segment of it. They serve as a proxy for the overall market's direction and performance.
|
||||
|
||||
**Examples**:
|
||||
|
||||
- **S&P 500 Index**: Represents the performance of the 500 largest publicly traded companies in the US.
|
||||
- **Dow Jones Industrial Average (DJIA)**: Comprises 30 significant U.S. companies and is one of the oldest and most-watched indices globally.
|
||||
- **NASDAQ Composite**: Primarily consists of technology companies and represents over 3,000 listed companies.
|
||||
|
||||
**Global Reference**: MSCI World Index captures large and mid-cap representation across 23 developed markets.
|
||||
|
||||
### Bond Indices
|
||||
|
||||
**Description**: These indices track the performance of a specific set of bonds, which can be segmented based on their issuer type, maturity, credit quality, etc.
|
||||
|
||||
**Examples**:
|
||||
|
||||
- **Bloomberg Barclays US Aggregate Bond Index**: Represents the US investment-grade bond market, including government, corporate, and municipal bonds.
|
||||
- **Government Bonds**: Indices focusing on sovereign debt.
|
||||
- **Corporate Bonds**: Indices that track the performance of debt issued by corporations.
|
||||
- **Municipal Bonds**: Indices focusing on debt issued by local and state governments.
|
||||
|
||||
### Commodity Indices
|
||||
|
||||
**Description**: These indices monitor a range of commodities, helping investors hedge against inflation, diversify their portfolios, or speculate on price movements.
|
||||
|
||||
**Example**: The Bloomberg Commodity Index tracks 22 different commodities, spanning from energy resources like oil to precious metals like gold.
|
||||
|
||||
### Real Estate Indices
|
||||
|
||||
**Description**: These indices gauge the performance of the real estate market, including residential, commercial, and industrial segments.
|
||||
|
||||
**Examples**:
|
||||
|
||||
- **NCREIF Property Index**: Represents the US commercial real estate market.
|
||||
- **Residential Real Estate Indices**: Measure the performance and price changes in the residential housing market.
|
||||
|
||||
### Hedge Fund Indices
|
||||
|
||||
**Description**: By monitoring the performance of hedge funds, these indices provide insights into the effectiveness of active fund management strategies compared to passive index investing.
|
||||
|
||||
**Example**: The HFRX Global Hedge Fund Index gives an overview of more than 2,000 hedge funds worldwide.
|
||||
|
||||
### Currency Indices
|
||||
|
||||
**Description**: These indices evaluate the strength and performance of specific currencies in relation to other major currencies, offering insights that impact trade balances, interest rate decisions, and monetary policies.
|
||||
|
||||
**Example**: The U.S. Dollar Index (DXY) measures the dollar's value against a basket of six major world currencies.
|
||||
|
||||
## Additional Points
|
||||
|
||||
1. **Historical Performance**: While indices provide current performance snapshots, historical data offers insights into long-term trends. However, relying solely on historical performance for future predictions has its potential pitfalls.
|
||||
2. **Weighting Method**: Indices might be market-cap weighted, equally weighted, or use other criteria. This influences performance and representation. For instance, market-cap weighting might give more influence to larger companies, which can sway the index's performance.
|
||||
@@ -265,3 +265,31 @@ This is just one example of how to use the strategy. Traders can adjust the para
|
||||
|
||||
- **Bitcoin**
|
||||
- Ticker: `BTCUSD`
|
||||
|
||||
|
||||
---
|
||||
|
||||
**Interest Rate Decisions**: Set by the Federal Reserve (Fed) and the European Central Bank (ECB).
|
||||
|
||||
- **Fed**: Eight times per year (FOMC meetings)
|
||||
- **ECB**: Every six weeks
|
||||
|
||||
**Employment Data**: Key data includes Non-Farm Payrolls (US) and overall Unemployment Rate (Eurozone).
|
||||
|
||||
- **Non-Farm Payrolls (US)**: Monthly, typically the first Friday of the month
|
||||
- **Unemployment Rate (Eurozone)**: Monthly
|
||||
|
||||
**Inflation Data (Consumer Price Index - CPI)**: A primary measure of inflation, affecting interest rate decisions.
|
||||
|
||||
- **US & Eurozone CPI**: Monthly
|
||||
|
||||
**Gross Domestic Product (GDP)**: An indicator of economic health, influencing currency strength.
|
||||
|
||||
- **US & Eurozone GDP**: Quarterly
|
||||
|
||||
**Consumer Confidence and Business Surveys**: Indicators like the ZEW Economic Sentiment (Germany) and ISM Manufacturing PMI (US).
|
||||
|
||||
- **ZEW Economic Sentiment (Germany)**: Monthly
|
||||
- **ISM Manufacturing PMI (US)**: Monthly
|
||||
|
||||
**Political Events and Uncertainties**: Major political events (like elections) or uncertainties (like trade disputes or Brexit-like events). - **Timing varies** based on specific events
|
||||
|
||||
@@ -1,483 +0,0 @@
|
||||
I spent years going in circles trying to
|
||||
become a profitable Trader but when I
|
||||
threw everything out the window and
|
||||
traded one simple strategy my trading
|
||||
turned from losing me money to actually
|
||||
making me money this is the biggest
|
||||
Pitfall that everyone falls into when
|
||||
they come to trading is thinking that
|
||||
you can Master multiple strategies and
|
||||
patterns and become profitable with them
|
||||
all but in reality this is probably
|
||||
what's holding you back from becoming a
|
||||
profitable Trader so let me try and fix
|
||||
that for you and save you from the
|
||||
headache of wasting potential years and
|
||||
walk you through the strategy that I
|
||||
spend years waking and trying to figure
|
||||
out so you can try and become profitable
|
||||
faster than it took me so a quick
|
||||
overview of the strategy is I have found
|
||||
it way more profitable to just focus on
|
||||
key areas of support and resistance in
|
||||
the market just focusing on those cuts
|
||||
out a ton of the noise and back and
|
||||
forth that the market does and it allows
|
||||
you to focus on high areas of
|
||||
probability where the market is likely
|
||||
to reverse and at those areas you can
|
||||
get a high risk reward rate you and so
|
||||
what that means is if you risk a hundred
|
||||
dollars you can make three or four
|
||||
hundred dollars and why this is
|
||||
important for trading is because you're
|
||||
not going to win every time that's just
|
||||
a part of the game and when you have a
|
||||
risk reward like that you can have
|
||||
something like a 50 wound rate you're
|
||||
only right half the time but you're
|
||||
still profitable over the long run and
|
||||
that's what's important when it comes to
|
||||
trading and so that's what I found super
|
||||
powerful about just focusing on key
|
||||
areas in the market because that
|
||||
increases the likelihood that it
|
||||
reverses but it also increases the
|
||||
likelihood of how large that potential
|
||||
reversal is and so I focus trading the
|
||||
es Futures on a one minute chart that's
|
||||
what we're looking at right here and
|
||||
what I found future so powerful for is
|
||||
they allow you to day trade while
|
||||
avoiding the pattern day trading rule
|
||||
you do not need 25
|
||||
000 in your account to execute day
|
||||
trades consistently the rule is with
|
||||
Futures you don't have to abide by that
|
||||
they're a little different but the main
|
||||
thing is you can skip the pattern day
|
||||
trading rule which is very important
|
||||
when you're trying to day trade actually
|
||||
on a one minute chart and so how I like
|
||||
to find these levels is I actually like
|
||||
to use a larger time frame so if we go
|
||||
over and look at a 15 minute chart I
|
||||
like to essentially look at where the
|
||||
market has made a clear double bottom
|
||||
and then when the market comes back and
|
||||
touches that level that's when I like to
|
||||
look for a potential bounce because if
|
||||
you use a larger time frame those
|
||||
signals are going to be stronger and so
|
||||
it increases the likelihood that you're
|
||||
gonna find a stronger support level in
|
||||
that area and when it comes to looking
|
||||
for a bounce because you're on a smaller
|
||||
time frame this bounce right here looks
|
||||
pretty small on a 15 minute chart but on
|
||||
a one minute chart which is what I like
|
||||
to enter in on it can be a very large
|
||||
trade and definitely a big enough trade
|
||||
to make a nice profit off of and so once
|
||||
you have created that level you just sit
|
||||
and wait for the mark to come to you
|
||||
that is a big key when it comes to
|
||||
trading is you want to have your levels
|
||||
already in place when it comes to
|
||||
looking for trades you want to be
|
||||
planning out what you're doing you don't
|
||||
want to be reactive based if you're just
|
||||
reacting to moves in the market as they
|
||||
happen you're more likely to be trading
|
||||
on emotions and not have a structured
|
||||
plan in place having a structured plan
|
||||
in place is extremely important when it
|
||||
comes to your trading and another way I
|
||||
like to draw levels is you can just draw
|
||||
them off of a one minute chart as well
|
||||
is the market has clearly made multiple
|
||||
Bottoms in this area so I like to draw a
|
||||
support Zone off of that and so when the
|
||||
market then comes back and touches that
|
||||
zone right here I'm gonna look for a
|
||||
potential reversal off of that betting
|
||||
that the Market's going to go higher off
|
||||
of that now the biggest mistake you can
|
||||
make is just buying when it gets to
|
||||
these support levels randomly you don't
|
||||
know if they're gonna hold and so I
|
||||
found three key steps to follow when
|
||||
you're looking for these reversals off
|
||||
of these levels because if you just
|
||||
randomly buy when the market comes down
|
||||
to these levels we don't know anything
|
||||
that's going to happen in the market
|
||||
when it comes to trading but it's nice
|
||||
to try and increase your chances as much
|
||||
as possible and so the first thing to
|
||||
keep in mind is you want to make sure
|
||||
that the downtrend into your support
|
||||
level is broken because if the Market's
|
||||
just trending down in a clear downtrend
|
||||
and you have some kind of really nice
|
||||
downtrend in place and it's just
|
||||
respecting that well if the markets come
|
||||
to your level down here and you just get
|
||||
in down here with the buy well the
|
||||
market could just keep going down here
|
||||
and break that level you want to wait
|
||||
for the market to show a clear break of
|
||||
this downtrend and switch that Trend
|
||||
that's going to save you a lot of
|
||||
hardship when trying to counter Trend
|
||||
trade is you have to wait for that
|
||||
downtrend to break in some ways before
|
||||
there's a likelihood of the market to
|
||||
actually reverse and so that's the first
|
||||
big key thing is I like to see the most
|
||||
recent Trend broken and so if we're
|
||||
looking for a reversal off of this area
|
||||
right here you know we have our support
|
||||
level that's the burst key that we even
|
||||
want to be looking out for but then we
|
||||
want to make sure that the downtrend is
|
||||
broken so to analyze this trend right
|
||||
here the Market's made two pretty big
|
||||
swings right here and those those are a
|
||||
little too big to be drawing a trend
|
||||
line off of because we're on a one
|
||||
minute chart there are some smaller
|
||||
Trends here in place you could say
|
||||
there's a downtrend right here and it's
|
||||
broken and then there's also a really
|
||||
tight downtrend right here as well I
|
||||
like to generally go off a couple swings
|
||||
in the market or if the market makes a
|
||||
really fast move like this where the
|
||||
bars are just really one directional
|
||||
then I just draw a really tight trend
|
||||
line based on that and assume when
|
||||
that's broken that that really tight
|
||||
downtrend is broken now a quick side
|
||||
note my bearish bars are blue here and
|
||||
my bullish bars are white the reason why
|
||||
I do this is that purely for emotional
|
||||
reasons if you think about it red and
|
||||
green are extremely emotional triggering
|
||||
colors when it comes to trading you want
|
||||
to try and keep things as neutral as
|
||||
possible so these are very Zen colors
|
||||
and so they don't trigger me as much
|
||||
when it comes to trading seeing you know
|
||||
a trade go against me seeing a bunch of
|
||||
red bars that really adds up to
|
||||
affecting you when it comes to trading
|
||||
but so with this trade right here is
|
||||
looking for a bounce off of this Zone I
|
||||
would consider right here this as a
|
||||
break of that downtrend now over my time
|
||||
analyzing the market I've realized that
|
||||
when the market breaks a downtrend that
|
||||
doesn't necessarily mean it's going to
|
||||
quickly reverse off of that area now of
|
||||
course that can happen but in terms of
|
||||
being consistently profitable I have
|
||||
found that it's better to wait for the
|
||||
market to come down break that downtrend
|
||||
and then make a pullback and then this
|
||||
is where you make that decision to get
|
||||
in because there's a couple things that
|
||||
can happen in this pullback right here
|
||||
is one the market can actually continue
|
||||
lower because then this could just be a
|
||||
pullback in the downtrend where it
|
||||
continues lower or it can then start to
|
||||
shift higher essentially what this
|
||||
pullback here is is it's an inflection
|
||||
point in the market it's either the
|
||||
market attempting to break lower and
|
||||
continue that downtrend and that's
|
||||
attempt failing which is a really good
|
||||
signal if you're you're looking for the
|
||||
market to go long and go up higher or it
|
||||
just continues lower and it confirms
|
||||
that hey the trend's still going down
|
||||
and it's not time to get in yet and you
|
||||
avoid that trade and just move on to the
|
||||
next trade and you don't take a loss
|
||||
which is really important when it comes
|
||||
to trading is it's not about taking a
|
||||
ton and ton of Trades the same reason
|
||||
why this strategy works so well is
|
||||
you're just focusing on just a few key
|
||||
areas in the market and if you can just
|
||||
take a couple of really good high
|
||||
probability trades a couple times a week
|
||||
it's going to be way more beneficial
|
||||
than trying to take 10 or 20 trades in a
|
||||
day and so once that pullback happens
|
||||
what I want to see is a really strong
|
||||
Candlestick that reverses in the
|
||||
direction I want and so because we're
|
||||
looking for a long trade here I want a
|
||||
really bullish candle and so on my chart
|
||||
those are white and this candle right
|
||||
here is very very bullish you can see it
|
||||
Market opens here essentially breathing
|
||||
into the Candlestick The Market opens
|
||||
here pushes lower and then Rockets
|
||||
higher and it does have a little back
|
||||
here and so that's pretty much exactly
|
||||
what this Candlestick says but what it's
|
||||
telling us is it's come back to this
|
||||
area where the market previously
|
||||
bottomed and buyers came in and really
|
||||
wanted that area and so once I see that
|
||||
I like to get in either at the close or
|
||||
break of the high here and bet the
|
||||
Market's going to go higher and then I
|
||||
like to put my stop below this swing low
|
||||
because what that does is if the
|
||||
Market's going to decide to go up here
|
||||
and keep going up great my Stop's not
|
||||
going to get hit but if the trends going
|
||||
to actually keep going lower well I want
|
||||
to get out as soon as possible right
|
||||
there's no reason to risk more money or
|
||||
give it more wiggle room because in my
|
||||
eyes this pullback here should hold if
|
||||
it's going to actually reverse and then
|
||||
from there I like to manage the trade
|
||||
which we'll get into with a live example
|
||||
in a second and in this case one key
|
||||
thing that happened is there was a nice
|
||||
little up channel here you gotta hold
|
||||
through the chop in the market sometimes
|
||||
the market right here really took a
|
||||
while to get going and that's just a
|
||||
part of trading right it's not gonna
|
||||
just be a extremely fast reversal in
|
||||
your favor right away but you know once
|
||||
it gets going it can go quickly and
|
||||
that's when you want to potentially get
|
||||
out right in terms of getting out of a
|
||||
trade you want to be looking at where
|
||||
the highs are there's a there's
|
||||
definitely a resistance level up here
|
||||
the markets kind of come up here
|
||||
multiple times and reversed and so
|
||||
seeing the market rocket up into this
|
||||
when you're in a trade you definitely
|
||||
want to be getting out once you kind of
|
||||
get up to those highs because the easy
|
||||
money's done it's potential to have a
|
||||
lot larger of a pullback you can see the
|
||||
market did kind of get going up here and
|
||||
make one more push higher but it did
|
||||
eventually kind of sideways and holding
|
||||
through this kind of pullback is really
|
||||
hard and you don't know when that's
|
||||
going to happen you don't know if it's
|
||||
going to happen right here or right here
|
||||
so let me walk you through a real
|
||||
example of this strategy in practice and
|
||||
so first off what we want to be doing is
|
||||
looking for our support level so just to
|
||||
show you on a 15 minute chart where I
|
||||
found that is looking at currently you
|
||||
can see the market made a nice bottom
|
||||
here kind of moved along and it made a
|
||||
pretty good bottom here as well and so
|
||||
my thinking was okay I want to draw a
|
||||
support Zone off of this level I like to
|
||||
use zones because the market can really
|
||||
come and touch the area anywhere it's
|
||||
unlikely that it's gonna Just Bounce
|
||||
perfectly off of the level and so you
|
||||
want to use a Zone and so that support
|
||||
zone is right here and so what I looked
|
||||
for is hey when the market comes up
|
||||
pulls back into that level that's when I
|
||||
want to get in betting that hey I like
|
||||
this area for a potential buy and I
|
||||
think the Market's going to go up and so
|
||||
that's what I looked for let me just
|
||||
walk you through that a little bit let's
|
||||
just zoom back in this recording and so
|
||||
the setup for getting to this is just
|
||||
that simple checklist having a support
|
||||
Zone looking for a downtrend to be
|
||||
broken we kind of had a really quick
|
||||
downtrend like in our previous example
|
||||
here and then looking for a Candlestick
|
||||
pattern so the market essentially made
|
||||
some pretty bullish reversal
|
||||
candlesticks here and that's when I
|
||||
wanted to get in and so I put my stop
|
||||
right below that swing because the idea
|
||||
is hey if it pulls back here and breaks
|
||||
this area it's probably just going to
|
||||
keep going lower and I'm wrong and
|
||||
that's okay I just want to get out at
|
||||
that point and move on to the next trade
|
||||
but if I'm right and the Market's gonna
|
||||
reverse here I think down here is a
|
||||
great spot for my risk and then we can
|
||||
see what the market can do with that and
|
||||
so just to quickly kind of Zoom forwards
|
||||
this a little bit I like to have it
|
||||
pretty fluid management style and so
|
||||
once the market kind of breaks up here I
|
||||
move my stop to break even because I
|
||||
like to take some risk off the table
|
||||
there is kind of a downtrend line right
|
||||
here and if the market decides to you
|
||||
know sell off of that well I want to get
|
||||
out right I I would rather get out at
|
||||
break even versus trying to hold on to
|
||||
it that's a really big mistake is trying
|
||||
to give your trade too much wiggle room
|
||||
it's good to give your trade some room
|
||||
because the market does ebb and flow it
|
||||
has ups and downs even in an uptrend and
|
||||
so you have to be able to give it a
|
||||
certain amount of room and that's hard
|
||||
to know that definitely takes practice
|
||||
but what I found is once it makes a good
|
||||
break in your favor go up to break even
|
||||
but just like when it comes to entering
|
||||
in your trade and analyzing the trend
|
||||
you want to be analyzing the trend when
|
||||
you're in a trade as well and so if the
|
||||
market comes up to this level I want to
|
||||
jump out and I want to be able to try
|
||||
and read into things and know when it's
|
||||
good to get out of the trade really the
|
||||
most important part is getting into a
|
||||
trade and so if having a more fluid
|
||||
management style is too complicated at
|
||||
the start that's totally understandable
|
||||
just have a simple risk reward ratio of
|
||||
trying to go for two times or three
|
||||
times a risk and then get out once it
|
||||
hits there I don't really have a profit
|
||||
Target I just have one just because my
|
||||
system puts one in but I mainly just get
|
||||
out with my stop loss and so a big thing
|
||||
here too is we're kind of Awards this
|
||||
resistance level up here now a big key
|
||||
is this is kind of a minor resistance
|
||||
level and so I want to get out if it
|
||||
sells off of that level here and so you
|
||||
can see I move my stop up again below
|
||||
this kind of little micro pullback we
|
||||
had here the thought process is hey we
|
||||
have a really nice bullish move here
|
||||
it's broken my little trend line I have
|
||||
drawn right here if it pulls back and
|
||||
keeps going up that's totally fine I'll
|
||||
stay in the trade but we do have this
|
||||
little micro resistance I have to
|
||||
respect that and there's no reason to
|
||||
get greedy betting that the Market's
|
||||
gonna push all the way up to the larger
|
||||
15 minute resistant right away and so
|
||||
the market kind of just plays out
|
||||
flagging out at this level and so that
|
||||
can be really hard to hold through
|
||||
learning to pull through trades when
|
||||
it's just kind of sitting there is a
|
||||
skill I often like to actually just go
|
||||
and walk around and and vacuum or
|
||||
something you know try and essentially
|
||||
keep myself busy of course I'll look at
|
||||
the charts but if your stop loss is in a
|
||||
solid spot and you could say your profit
|
||||
Target is in a solid spot too that's
|
||||
totally okay you know I have this up
|
||||
here because it's like if the market all
|
||||
of a sudden smashes higher and hits me
|
||||
well I'm okay getting out you know
|
||||
that's still three or four times my risk
|
||||
I'm not gonna complain right it's better
|
||||
than you having no profit Target the
|
||||
mark comes up here and then reverses all
|
||||
the way down here and you missed it
|
||||
because you were you know not paying
|
||||
attention and so it's definitely a fine
|
||||
line in doing that and so just seeing
|
||||
the market puts along here I was just
|
||||
moving my stop loss up with these little
|
||||
pullbacks with the idea that hey this is
|
||||
a pretty good breakout here I want to
|
||||
you know move my stop-loss up and
|
||||
capture that little bit more of profit
|
||||
and now one thing I'm starting to see
|
||||
here as I'm analyzing this is this is
|
||||
pretty much a bull flag in terms of a
|
||||
pattern and that's just a continuation
|
||||
pattern so the thought is as soon as it
|
||||
breaks this bull flag that it's going to
|
||||
make another push higher like this the
|
||||
market likes to move in pushes of two I
|
||||
mean a good example is here it made one
|
||||
push down two pushes down and then
|
||||
reverse so my thought is okay I've
|
||||
caught the reversal on the other side
|
||||
and it might make two pushes like this
|
||||
and so here you can see it starts to do
|
||||
that it makes a pretty bearish candle
|
||||
there and I move my stop up again below
|
||||
that candle with idea that that's
|
||||
another little micro pullback and once
|
||||
the trade gets up to above three times
|
||||
my risk I like to be be really tight
|
||||
with how I managed to trade just because
|
||||
it's great trying to capture really big
|
||||
trade like this but on average I have
|
||||
found that when I get up to about three
|
||||
times my risk which is up here it's more
|
||||
likely to have a pullback that is not
|
||||
going to be worth it holding through you
|
||||
know sometimes yes you can have a larger
|
||||
pullback and it keeps going higher but
|
||||
you know it's a fine line if you give
|
||||
the trade too much wiggle room it's more
|
||||
likely that on average you're just gonna
|
||||
be giving a lot more back it's better to
|
||||
take the easy money and run essentially
|
||||
because you know that's just how trading
|
||||
goes and so the market makes a really
|
||||
big climactic handle here I like to call
|
||||
it when the market makes a really big
|
||||
Candlestick at the end of a trend like
|
||||
this especially close to the resistance
|
||||
level of the highs it's more likely that
|
||||
it has a deeper pullback because think
|
||||
of it like the market has energy right
|
||||
it's taken a lot of energy to make these
|
||||
two moves and it's gonna need
|
||||
essentially to take a and so when it has
|
||||
a very large move like this at the end
|
||||
of already using all of this energy in
|
||||
One Direction it's gonna need to recover
|
||||
and so that increases the likelihood of
|
||||
a larger pullback and so there you can
|
||||
see I pretty much got out right as I saw
|
||||
it start to look like it was losing
|
||||
momentum and the market did have a
|
||||
little bit larger of a pullback here and
|
||||
so I was able to get out with a really
|
||||
nice profit there so if you want to
|
||||
learn more about this strategy check out
|
||||
the link I have in the description below
|
||||
it is a class that goes way more in
|
||||
depth into this it's free and it will
|
||||
walk you through everything you need to
|
||||
know about this strategy and if you want
|
||||
a video that dives more into entries and
|
||||
exits of these trades check out this
|
||||
video right here
|
||||
now a quick side note my bearish bars
|
||||
here are blue and my up bars
|
||||
bars what is the upper bar
|
||||
Reference in New Issue
Block a user