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Crossovertrading

The Power of Williams Alligator Indicator Crossovers in TradingUnderstanding Williams Alligator 🐊 Indicator Crossovers: Crossovers within the Williams Alligator indicator occur when the indicator's three moving averages intersect. The Alligator consists of three lines: the Jaw, Teeth, and Lips lines. These lines represent different moving averages and their interactions can provide insights into market trends. The Strength of Crossovers in a Bullish Market: Crossovers within the Williams Alligator indicator carry notable weight, particularly in bullish markets. Here's why: 🐊Trend Confirmation: A crossover where the Jaw line crosses above the Teeth line can confirm an emerging bullish trend. This indicates the potential for a significant upward move. 🐊Entry Points: Crossovers provide traders with potential entry points into a bullish market. When the Lips line crosses above the other lines, it suggests that momentum is building, indicating a suitable moment for entering a long position. 🐊Visual Clarity: Crossovers are visually striking on charts, making them easy to identify. The visual representation of crossovers offers traders a clear and prompt signal for making trading decisions. 🐊Timely Action: Crossovers offer timely information about potential shifts in market sentiment. Acting swiftly in response to crossovers can enhance your ability to capitalize on emerging trends. 🐊Confirmation Tool: Combining crossovers with other technical indicators or patterns can strengthen your analysis. Confirming crossovers with other signals can provide a more robust foundation for your trading decisions. Conclusion: In the realm of Bitcoin trading, Williams Alligator indicator crossovers are a powerful tool, especially in bullish markets. They serve as clear signals for confirming trends and identifying potential entry points. As you navigate the dynamic landscape of Bitcoin trading, integrating Williams Alligator indicator crossovers into a comprehensive trading strategy, along with other technical analysis tools, can enhance your decision-making and help you seize trading opportunities effectively. 🚀📈
INDEX:BTCUSDLong
by Yaroslav_Krasko
2
The Honey Chai RSI InidcatorHere is a fun new way to view the RSI. A new TradingView Indicator for you RSI enthusiasts. This is the Honey Chai RSI Indicator. This indicator combines the RSI oscillator with additional features to enhance its functionality and visual study. The purpose of this indicator is to provide a more comprehensive view of the RSI and aid in identifying trends, potential entry / exit points, and ranging conditions. How it's Built. The RSI: The RSI is represented by its common line which you can turn on and off, as usual. Japanese candlesticks: In this indicator, are also Japanese candlesticks giving you their representation of the RSI. This provides a clearer visualization of the RSI movements across its Open, High, Low, and Close, unlike the OHLC of the Heiken Ashi candles in the Heiken Ashi Algo. In addition to the RSI line and Japanese candles, there are two moving averages applied to the RSI value. For the purpose of keeping with my CoffeeShop theme, the High average line is the Honey Line and the Low average line is the Chai Line. The user can choose between Exponential Moving Average or Simple Moving average. These moving averages are calculated based on the high vs low values of the past RSI readings, with the high average acting as the leading line. When the Honey line is above theChai Line, it indicates an uptrend, whereas when the Honey Line is below the Chai Line, it suggests a downtrend. If the price is moving up but the Honey line is still below the Chai line, you're technically still in a downtrend and you should trade this like a pullback. Identifying Trends. To identify short entries, you need to wait for the Japanese candles to open and close below the Honey line while the Honey line is below the Chai Line. Conversely, you wait for the Japanese candles to open and close above the Honey line while the Honey line is above the Chai Line. This confirmation helps in identifying potential reversal points. Range Bound Market. The indicator also incorporates a visual representation of a ranging area. The 60 and 40 levels of the RSI are visually differentiated to indicate this range. When the Japanese candles are opening and closing within this range and the RSI remains contained within these levels, it suggests that the price is likely in a ranging phase, and traders should wait for a breakout from this range before taking action. In summary, this custom indicator provides a comprehensive view of the RSI oscillator by incorporating Japanese candlestick visuals, moving averages, and a visual representation of the ranging area. By analyzing these elements, traders can gain insights into trends, potential entry points, and ranging conditions in the market. All the parts Downtrend Example Ranging Market HOW TO TRADE LONGS AND SHORTS An example on how to use this in a long trade is to wait for your moving averages to be high (yellow) over low (orange). For the purpose of the description in this indicator you're looking for the honey to be over the chai. Even if the RSI and Japanese candles in the oscillator are falling, however the honey is above the Chai, you are still in an uptrend. The positioning of the moving averages will always determine the direction of the overall price trend so in this position you're looking for long entries. take a long position as an entry when the open and the close of the Japanese candle in the oscillator is above your honey line. when you notice a bearish candle closing below the honey line in an uptrend position you can exit your trade. Confluence for short trades would be just the opposite and using the moving averages in an upside down pattern. In other words the honey needs to be below the chai and your Japanese candle needs to be closing bearish however they open and the close of that candle needs to be below both of your moving averages. exit when you get a bullish candle closing in between the averages. TRADING RANGES Wait for your moving average to enter into the range bound 60/40 area as well as your Japanese candles to Wick above and below this area but not close above and below the area. At this point you can mark off the high and the low of the range as it pertains to your price chart and start using your range trading strategy.
by CoffeeshopCrypto
4
100EMA,200EMA,400EMA CROSSOVER ON 30MINHi Trading View Family, Today I have found very intersting chart of DR REDDY, here we can see that on 30min TF we have found 100EMA,200EMA crossing each other when 100EMA cross 400EMA ,We can generate a buy,As100EMA,200EMA,400EMA is forming straight line on chart and then crossing which shows that price has been consolidate and now can go away from MOVING AVERAGE to give movement.So a high probability buy signal will be triggered when 100EMA CROSSES 200EMA,400EMA, and target of 1:2 can be achived.
NSE:DRREDDYEducation
by bhoirjanmesh3
My 5 / 30 EMA alert signal got triggered for $TREESo I initially set a 5 / 30 EMA crossover (up) signal alert for $TREE (Lending Tree) as it is one of the cyclical stocks where market has been rotating into. It got triggered last night (or morning in Eastern time) and I immediately went in and bought a couple of LEAP based option calls for it. At this point in the day, $TREE was just about 290 only. Little did I realize much later in mid-day that my profit on my option call ballooned to $3000 when $TREE jumped to $317. LOL.
NASDAQ:TREE
by yeopcp
1D SMITH WESSON TRENDLINE BREAKOUTTrend Line Trading: The Trend Breaker Strategy This trendline breakout trading strategy uses three indicators, which are the following: MACD- The inputs for this indicator are: Fast Length= 12 (represents the previous 12 bars of the faster moving average), Slow Length= 26 (Represents the previous 26 bars of the slower moving average), and Signal Smoothing= 9 ( represents the previous 9 bars of the difference between the two moving averages. This is plotted by vertical lines called a histogram). Simple Moving Average- The inputs for this indicator are: Length 8, Offset 0. (Red line) Exponential Moving Average-The inputs for this indicator are: Length 20, Offset 0. (Blue line) This Trend Breaker strategy also uses three different time frames. They are the 4 hour, the 1 hour, and 15 minute time frames. This top-down approach uses these time frames to identify a trend, find a breakout point, determine an entry point, and execute the trade. Step One to trend line trading: Identify a trend The first thing you need to do is identify an upward, downward, or sideways trend by switching to a 4-hour and 1 hour time frames. The reason both are used is that it will give you the best perspective in determining a trend according to this strategy. Draw a trend-line so that 3 points of resistance or support was touched. We created this trendline trading system so that you could easily enter trades without a lot of guesswork on your part. Here You can see a funny video about trading levels. Since this strategy focuses on trends, a trend line will be drawn on the support or resistance lines of the trend. The criteria for a trend is that there needs to be at least three points of resistance or support. As you can see on the 4- hour time frame this clearly is a downtrend. Below is the same chart only this is a 1-hour time frame. This is just to get another perspective of this downtrend. It is good to do this to completely confirm this trend by identifying 3 levels of resistance. Trading with trend lines is not easy, that is why it is important to have a clear system of step by step rules to make it easy for you to follow. Step Two: Identify a Breakout point Trendline Trading System In order to find a breakout point of the trend that was identified in step one, the strategy will use a combination of the three indicators (MACD, 15 minute SMA, EMA) to identify a break out on the 15-minute time frame. This time frame is used because a trend was already identified in step one on the 4 hours and 1 hour time frames. As you can see in the chart above on the 15-minute time frame, the MACD lines were crossed. When the crossover of the fast length and slow length occurs, this will signal a new trend. This gave an indication that a trend was breaking. The moving average and exponential moving average lines also crossed. So when the MACD lines cross and the simple moving average/ exponential lines cross wait until the candlesticks go above/below trend line that was drawn in step one, then identify a point of entry into the trade. One of the reasons we like trend line trading so much is that it is straight forward and simple and we recommend all traders have something simple. So looking at our example above the criteria was met to go to step three because the SMA and EMA crossed and the MACD lines crossed. Also, the trend went upwards and hit our trend line. This is a signal to go to step three. If neither of the indicators crosses before the candlesticks close and hit the trend line then do not go any further because the trade does not meet the criteria of the rules. The indicators need to show that the trend broke before it touched the trend line. Note* When our indicators are crossing, the trend needs to be heading toward the trend line that was drawn in step one. This is because the trend is breaking and a breakout is about to occur. When the breakout happens we will discuss when to make an entry. Step Three: Trend Line Trading Identify a point of entry Here is a list of the entry criteria: These 4 things must happen to enter a trade with this Trend Breaker Strategy. Simple Moving Average Must Cross below the Exponential moving average. Macd Must Cross The price must break below or above the trend line. After the break of the trendline, you must wait for 3 candles to close on the 15-minute chart before taking your entry. Now we need to identify a point of entry. To identify a point of entry always use the 15 minute time frame in this strategy. So in our example below, we see that there is an obvious stand-off between buyers and sellers on the trend line. Once there are at least three candlesticks above or below the trend line, you execute the trade. In this example, there are three candlesticks that fell above the trend line after our indicators signaled that the trend was broken. At this point, you want to make an entry. Also, read about Trader's Tech and Installing MT4 EAs with Indicators. Step four: How to Trade with Trend Lines: Determine where to place a stop loss. 1 Use Pong Position Icon on left side toolbar. Adjust Top Prifit line until center text says 1 to 3 risk reward. This will show you where SL should be placed. OR Place a stop loss past the last support and resistance levels in the trend itself. Again, use the 15 minute time frame to find this point of resistance/ support level. In the example shown below, place the stop loss below the last support level. This will ensure that if there was a bearish move, it will hit the last point of support and make a bullish move upwards. You can clearly see that there are two levels of support in the above example. Use the support levels to determine the stop loss. The rules were to place the stop loss below the last support level which is why you see the stop loss below these levels. Step five: Trendline Trading System Exit Strategy The plan clearly identified a trend, a breakout point, point of entry, and determined a stop loss. The final step is to determine the exit point. This Trend Breaker strategy uses 1 risk to 3 reward ratio. What that means is you have the potential to make 3 times more than you are risking. Use the Long Position Icon on the left side toolbar. Adjust top profit level until the center text says 1 to 3 risk reward. Conclusion This Trend Breaker Strategy is simple and yet effective. There is no need to stress and worry that you made the wrong trade. You follow the rules and do not let anything else make you back out of a trade. If it follows the rules, execute the trade with confidence. Always remember to only be risking no more than 2% of your account! This will help you identify daily trends and points where they break. There is no need to force yourself into a trade. If it does not follow your rules and guidelines then search for another pair to trade. Feel free to check out one of our other trading strategies.
NASDAQ:SWBIEducation
by Tradingstrategyguides
1
AUDJPY 1H EMA STRATEGYExponential Moving Average Strategy (Trading Rules – Sell Trade) Our exponential moving average strategy is comprised of two elements. The first degree to capture a new trend is to use two exponential moving averages as an entry filter. By using one moving average with a longer period and one with a shorter period, we automate the strategy. This removes any form of subjectivity from our trading process. Step #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade below the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade below both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover, which will add weight to the bearish case. We refer to the EMA crossover for a buy trade when the 20-EMA crosses below the 50-EMA. By looking at the EMA crossover, we create an automatic buy and sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bearish sentiment is strong enough to push the price further after we sell to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. Step #3: Wait for the zone between 20 and 50 EMA to be tested once when selling (and at least twice when buying,) then look for selling opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for 1 successive and successful retests of the zone between the 20 and 50 EMA. The successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend. Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to sell. This brings us to the next step of the strategy. Step #4: Sell at the market when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and sell at the market price. We now have enough evidence that the bearish momentum is strong to continue pushing this market lower. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Los 20 pips above the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is down. As long as we trade below both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips above the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. The last part of our EMA strategy is the exit strategy. It is based again on the exponential moving average. Step #6: Take Profit once we break and close above the 50-EMA In this particular case, we don't use the same exit technique as our entry technique, which was based on the EMA crossover. If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse. Because the market goes down much faster, we sell on the 1st retest of the zone between 20 and 50. For a Buy trade we wait for 2 retests of the zone. After the EMA crossover happened. How to Trade With Exponential Moving Average Strategy. The exponential moving average is the oldest form of technical analysis. It is one of the most popular trading indicators used by thousands of traders. In this step-by-step guide, you’ll learn a simple exponential moving average strategy. Use what you learn to turn your trading around and become a successful, long-term trader! A moving average can be a very effective indicator. Many traders use exponential moving averages, an effective type of moving average indicator, to trade in a variety of markets. An exponential moving average strategy, or EMA strategy, is used to identify the predominant trend in the market. It can also provide the support and resistance level to execute your trade. The Exponential Moving Average EMA Strategy is a universal trading strategy that works in all markets. This includes stocks, indices, Forex, currencies, and the crypto-currencies market, like the virtual currency Bitcoin. If the exponential moving average strategy works on any type of market, they work for any time frame. In simple terms, you can trade with it on your preferred chart. Also, read the hidden secrets of moving average. Let’s first examine what a moving average is and the exponential moving average formula. After, we will dive into some of the key rules of the exponential moving average strategy. Exponential Moving Average Formula and Exponential Moving Average Explained. The exponential moving average is a line on the price chart that uses a mathematical formula to smooth out the price action. It shows the average price over a certain period of time. The EMA formula puts more weight on the recent price. This means it’s more reliable because it reacts faster to the latest changes in price data. An exponential moving average tries to reduce confusion and noise of everyday price action. Second, the moving average smooths the price and reveals the trend. It even sometimes reveals patterns that you can't see. The average is also more reliable and accurate in forecasting future changes in the market price. There are 3 steps for the exponential moving average formula and calculating the EMA. The formula uses a simple moving average SMA as the starting point for the EMA value. To calculate the SMA, take the sum of the number of time periods and divide by 20. We need a multiplier that makes the moving average put more focus on the most recent price. The moving average formula brings all these values together. They make up the moving average. The exponential moving average formula below is for a 20-day EMA: Initial SMA = 20-period sum / 20 Multiplier = (2 / (Time periods + 1) ) = (2 / (20 + 1) ) = 0.0952(9.52%) EMA = {Close - EMA(previous day)} x multiplier + EMA(previous day). The general rule is that if the price trades above the moving average, we’re in an uptrend. As long as we stay above the exponential moving average, we should expect higher prices. Conversely, if we’re trading below, we’re in a downtrend. As long as we trade below the moving average, we should expect lower prices.
by Tradingstrategyguides
GBPJPY 4H ADX STRATEGYThe Best ADX Strategy The ADX indicator trading rules will ensure that you only trade when there is a strong trend on the 5-minute chart up to the daily chart. In this regard, the best ADX strategy is a universal strategy that performs the same, regardless of the time frame used. Moving forward, we’re going to look for selling opportunities. Step #1: Wait for the ADX indicator to show a reading above 25. Before we even look to see if the market goes up or down, we must first wait for the ADX indicator to show a reading above 25. Based on the ADX indicator trading rules, a reading above 25 is signaling a strong trend and the likelihood of a trend developing. We all know that the trend is our friend, but without real strength behind the trend, the newly trend formed can quickly fade away. In order to gauge the direction of the trend, we also need to look at the actual price action. This brings us to the next step of the best ADX strategy. Step #2: Use the last 50 candlesticks to determine the trend. For sell signals, look for price to develop a bearish trend. No matter of your time frame, we need a practical way to determine the direction of the trend. By using a sample size of 50 candlesticks to determine the trend we ensure that we trade in the moment of now. We like to keep things simple, so if the price is heading lower during the last 50 candlesticks we’re in a bearish trend. Step #3: Sell when the RSI indicator breaks and show a reading below 30. For our entry signal, we’ll be using the RSI indicator that uses the same settings as the ADX indicator settings. Normally the RSI reading below 30 shows an oversold market and a reversal zone. However, smart trading means looking beyond what the textbook is saying. In a strong trend as it’s defined by the ADX indicator that’s precisely what we want to see. We want more sellers coming into the market. So, we want to sell when the RSI indicator breaks and shows a reading below 30. Step #4: Protective Stop Loss should be placed at the last ADX high. In order to determine the stop-loss location for the best ADX strategy, first identify the point where the ADX made the last high prior to our entry. Secondly, find the corresponding high on the price chart from the ADX high and there you have it your SL level. Step #5: Take Profit when the ADX indicator breaks back below 25. The best ADX strategy seeks to only capture those profits resulted from the presence of a strong trend. Once the prospects of a strong trend fade away we look to take profits and wait for another trading opportunity. To accomplish this we take profits as soon as the ADX indicator breaks back below 25. An ADX reading back below 25 suggests the prevailing trend is running out of strength. Note** The above was an example of a SELL trade using the ADX indicator trading rules. Use the same rules but in reverse, for a BUY trade. Conclusion - ADX Indicator The best ADX strategy gives us very useful information because a lot of the time, we as traders don’t want to get into something that’s moving nowhere and not trending in a strong fashion. By applying the ADX indicator trading rules one can take advantage of the strength of the trend and cash in quick profits. The bottom line is that the best profits come from catching strong trends and the best ADX strategy can help you accomplish your trading goals.
by Tradingstrategyguides
ROKU 1D 3 BAR EMA TRADING STRATEGY3 Bar EMA Trading Strategy The EMA stock trading strategy can help us follow the price strength with one simple twist. The twist is using two exponential moving averages with the same period, but calculated using two different sets of price data, namely: The bars’ lows. The bars’ highs. Note* the inputs for both EMAs is 3-period. So we’re going to have one 3-period EMA applied to the lows and second 3-period EMA applied to the highs. We can use the two 3-periods EMAs trading to locate chart zones that have the potential to signal short-term trend reversals. If we combine the two 3-periods EMAs we increase our odds of success. Why are we using 2 exponential moving averages with the same period? First, you need to keep in mind that the exponential moving averages are not magical tools. But, by using 2 EMAs with the same period, we accomplish two things: We encapsulate the price between the two bands. They can be used to form the basis of an EMA trading strategy that works. EMA trading can be used in countless strategies, but they don’t equally perform the same. Now, here is how to use the best EMA trading strategy. For buy signals, we wait for both EMAs slopes to turn upwards and leave behind a sharpened EMA slope. There is no better way to explain this than by showing it directly on the price chart. Note* There are going to be some instances where only one of the two EMAs is going to display a sharpened slope. However, the best EMA setups are when both exponential moving averages show the same thing. Everything is simple with this strategy and as such we close the trade once we break below the 3-period EMA that is based on the low prices. In case you haven’t noticed the two 3-period EMAs are doing a great job in eliminating the noise and reveal the trend direction. If you look closely you’ll notice that during uptrends the price has the tendency to stay glued on the 3-period EMA that is based on the highs. On the other hand, during downtrends, the price has the tendency to stay glued on the 3-period EMA that is based on the lows. Now, here is an EMA technique that you can use to take advantage of this price behavior. For EMA sell signal, wait until you see three consecutive candles that have the open and close price near the 3-period EMA that based on the low prices. Inversely, for EMA buy signal, wait until you see three consecutive candles that have the open and close price near the 3-period EMA that based on the high prices. Final Words – EMA Trading In summary, Exponential Moving Average (EMA) trading offers you the flexibility to trade in different market conditions and it provides a complete set of trading rules. The EMA stock trading strategy combines the power of using multiple moving averages of the same periods but using different forms of calculations. These EMA techniques will allow you to find unique trading opportunities that no one else is able to spot. Here are the most important things you need to remember: Exponential moving averages are more sensitive to the recent price. EMA can signal good trades, but it can also keep you out of bad trades. EMA offers dynamic support and resistance levels, which is good for trailing SL. The EMA slope shape has hidden secrets. The rules for the EMA trading strategy can be modified to fit your own trading needs. We don’t claim this to be hard rules, but they are good on their own to make for a great trading strategy. Make sure you first test out the EMA strategy on a paper trading account before you risk any of your hard-earned money.
NASDAQ:ROKU
by Tradingstrategyguides
PRPL 1D 200 EMA PULLBACK STRATEGYHow can I use Exponential Moving Averages (EMA) to trade Pullbacks? Trading pullbacks with EMA can be done profitably as long as we use a long-term exponential moving average. And, without a doubt, the 200-day EMA is probably the most powerful moving average that a trader can use. For a valid EMA pullback setup we need two things to happen: First, a break of the EMA. Second, the price needs to move further away from the EMA, creating an empty space. Once these two variables align together we have a powerful EMA trading setup. Here is a stock chart highlighting this EMA stock trading strategy:
NASDAQ:PRPL
by Tradingstrategyguides
EOS Wants to Repeat history. Could it go bullish beyond 80% ?BINANCE:EOSUSDT wants to make move we are expecting a cross over of EMA21 and EMA 89 which happened last time In January which pushed prices upto 80 % within a month. The trend got broken pushing BINANCE:EOSUSDT into bearish territory, further pushed head and shoulders pattern. At the moment EOS wants to test Ema crossover. Currently we are testing EMA55 and the trend is bullish as long as we are above EMA-21 . Wait for EMA21, 89 crossover with increased volume and for potential entry. Use tight stop loss for this trade and use support zones mentioned in the chart. Happy trading
ELong
by CognitoBTC
BCHUSD 1H BEST MOMENTUM TRADING STRATEGYThe Best Momentum Trading Strategy using the Best Forex Momentum Indicator Our team at Trading Strategy Guides believes that smart trading is the way to build the best momentum trading strategy. In this regard, we don’t want to predict when the momentum will happen, but we let the market tips his hands and then react. One principle of the momentum indicator strategy is, “buy high to go higher” and “sell low to go lower.” In other words, we trade in the direction of the trend while having the momentum on our side. Also read the hidden secrets of moving average. Moving forward, we present the buy side rules of the best momentum trading strategy. Step #1: Define the Trend. An Uptrend is defined by a Series of HH Followed by a Series of HL. The definition of an uptrend is pretty much standard. In an uptrend, we look for a series of higher highs followed by a series of higher lows. Two HH followed by at least another two HL is enough to define an uptrend. A higher high is simply a swing high point that is higher than the previous swing high. While a higher low is simply a swing low that is higher than the previous swing low. All momentum traders know that the trend is our friend. But without momentum behind the trend, we might actually not have any trend. For active traders, we also look at the actual price action in order to gauge momentum. Besides reading the best forex momentum indicator. Step #2: In an Uptrend Look for Bold Candlesticks that Close Near the Higher End of the Candlestick . A technical analysis concept is that you want to use multiple confirmation signs when buying and selling. This will increase the likelihood that’s a high probability trading setup. In this regard, the momentum trading strategy besides using the best Forex momentum indicator, also incorporates the price action. A practical way to read momentum from a price chart is to simply look at the candlestick length. What we want to see in an uptrend is big, bold bullish candlesticks that close near the higher end of the candlestick. In the figure above, we have an ideal representation of what we’re looking for. The upside price movement is preceded by big bullish candlesticks. This confirms the momentum behind the trend. Now, it’s time to focus on the Williams %R. This is the best forex momentum indicator. Which brings us to the next step of our momentum indicator strategy. Step #3: Wait for the best Forex Momentum Indicator to get oversold (below -80). Then rallies above the -50 level before Buying . We’re going to use Williams %R, the best forex momentum indicator in a smart way. In an uptrend, we buy after the best forex momentum indicator has reached oversold conditions (below -80). And then rallied back above the -50 level. Now, we have confirmation from both the price and the best forex momentum indicator. The real momentum is behind this trend and the probabilities are in favor of more upside prices from here on. Note* If the best forex momentum indicator continually stays in overbought territory (above -20 level), it signals a strong momentum and conversely a strong trend. Inversely the same is true in a downtrend. The next important thing we need to establish is where to place our protective stop loss. Step #4: Place Your Protective Stop Loss below the Recent Higher Low. We want to hide our protective stop loss. It is below the most recent higher low level that formed right before the best momentum trading strategy issue the buy signal. Alternatively, you can also trail your stop loss below each most recent higher low. This strategy will allow you to lock-in the potential profits in case of a sudden market reversal. Last but not least the momentum indicator strategy also needs a place where we need to take profits, which brings us to the last step of the best momentum trading strategy. Step #5: Take Profit once we break below the Previous Higher Low A trend in motion can stay in that state longer than anyone can anticipate. And since we want to maximize our potential profits we let the market tips it hands before liquidating our trades. In this regard, we look for a break in the trend structure. Respectively a break below the most recent higher low. Alternatively, you can take profit once the best forex momentum indicator breaks below the -50 level. Note** The above was an example of a BUY trade using the Best Momentum Trading Strategy. Use the same rules for a SELL trade. Summary The best momentum trading strategy leverages the tendency of a market’s price to continue moving in a single direction. This is where the momentum might be upwards or downwards. In essence, market timing is crucial for a momentum indicator strategy. And in this regard, we incorporated the best Forex momentum indicator (Williams %R) in our momentum strategy. Here are some of the trading conditions you want to avoid in the forex market. Timing the market can be a daunting task. But our team at Trading Strategy Guides believes that using a pure price action can get you a long way.
COINBASE:BCHUSDLong
by Tradingstrategyguides