XAUUSD In Bulls control!Based on the chart, a major resistance area is broken and a pullback is completed. The strength of buyers is observable at this area which can be seen by a Doji candle formed today(However is not finished yet!). So the weakness of sellers and power of buyers at this area, lead me to open a buy position as it presented on the chart which can provide a good risk reward ratio for trading (about 1:3)
Note: As always please take all risk management rules into consideration before opening any position on the market.
Good Luck!
Riskreward
Risk per unit (R) & ExpectancyIn this article, we will expand the notions presented in the first part of the series. If you haven’t read the first part, you can check it out below in our related ideas section.
We define risk as to how much you’ll lose per unit of your investment if you are wrong about the position. We called this in the first part initial risk (1R) . All your profits and losses should be related to your initial risk.
Example 1: You buy a stock at $100 and decide to sell it if it drops to $80. What’s your initial risk?
The initial risk is $20 per share. So, in this case, 1R is equal to $20. If you buy 10 shares then your total risk is $200. R represents your initial risk per unit.
Example 2: You want to do a foreign exchange trade with a $10k account, selling the EURUSD. Let’s say that $100 USD is equal to 77 Euros. The minimum unit you must invest is $10,000. You are going to sell if your investment drops by $1k. What is your risk? What’s 1R for you?
It may sound complex, but it is very simple. If you’d close your position if it drops $1k from $10k to $9k, then your initial risk is $1000 and that is equal to 1R.
R represents your initial risk per unit.
Let’s say that you have noted on your trading journal the following trades:
1. 400 CSCO at $23 - R $1000 - P&L $2,317
2. 80 IBM at $80 - R $1000 - P&L ($813)
3. 300 VLO at $50 - R $1000 - P&L $3,413
4. 400 HRB at $51 - R $1000 - P&L ($1,531)
The R multiples for these trades are:
1. 2.32 R
2. -0.81R
3. 3.41R
4. -1.53R
The average R for your system is: 0.84R
Expectancy really refers to the mean (average) R-multiple of your system. As a trader, if you want to be successful you need to start quantifying your trading performance. You should always calculate your R-multiple and it’s average (expectancy).
The expectancy of your system is the average of the R-multiples (both positive and negative) of your system . It tells you what you can expect in terms of R, on average over many trades.
This information is pretty straightforward and easy to grasp. In our example above if we have a system with an expectancy of 0.84R and we risk 1% per trade we should expect a profit of 0,84% per trade. After 100 trades you should be up 84%! The average however is not the total picture!
To understand how much your system can deviate from the expectancy, you must not only know the average R-value, you must also know the variability of R or standard deviation. The variability will tell us how far away from the mean most samples are likely to be. It would be great if all samples were at mean, but this is never the case because it would mean that there is no variability to the sample.
Now you truly understand why the 3rd and 4th golden rules that we mentioned in the first article are very important!
Trade with care.
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EOS: break of trendline on 4HLike other coins, EOS just broke its descending trendline. Successful retest could mean major price increase with a good RR ratio at the moment.
Comments are welcome.
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DISCLAIMER:
This is neither a trading nor a financial advice.
You are responsible for your own actions so do your own research.
Ehang takes flightMy advisor Marketmiracle has generated a purchase signal for the title Ehang Holding that according to the graphical situation seems to want to take flight.
The target is from 21.46 usd to 28.17 for a potential profit of 31.29%
The stock has a slightly negative market sentiment so it is possible that there is a hesitation before starting to rise,
In any case we are close to the release of the data of the quarter for which it is a trade that hides a risk on the fundamental data and being a very volatile stock is subject to fluctuations even violent.
This idea is based on a signal generated by the advisor Marketmiracle, down on this page you will find the link to the page of signals of the advisor that you can see for free without any cost or registration
Our Favorite Way To Set Take Profit Orders/Levels Typically, most traders have no idea how or where to set their take profit orders on any given trade. Most inexperienced traders will choose a risk/reward ratio and set their take profit based on a specific ratio. For example. The trader defines where their stop loss order will be, then drags their take profit up until it says "Risk/Reward = 3". Determining your take profit order/level based on this provides the trader with no increase in profitability/edge, and we call this gambling.
Generally, the first thing the trader should be doing is setting their stop loss prior to determining the take profit. The stop loss is one of the most important factors to consider that can have a dramatic affect on how profitable your strategy will be. After the stop loss has been determined, assuming we want to go long, the first thing to identify that will aid in determining the take profit price/order is, identifying where key levels of resistance are as well as pivots.
We have found that in the markets, one should never assume the market will break past a specific resistance/pivot. Although it may happen, your take profit should never be at the mercy of the pivot blocking price. With that being said, the trader should ensure their take profit is not beyond the nearest pivot/resistance to increase profitability. For example, if price just broke resistance and is retracing back down for a retest as support, to get the highest profitability/success rate, we recommend to ensure your take profit is slightly below the pivot just above the support, which the price is retracing from. A trader could attempt to take the trade further beyond the first initial pivot/resistance, to increase net profit for the given trade, however, the trader needs to understand that doing this requires close monitoring of the trade to identify rejections at the pivot. Based on our research/back-testing, it is a viable option for traders to try to extend the take profit beyond the first pivot/resistance as long as the trader is monitoring the trade closely. Some of the things that the trader should be looking out for is, a bearish rejection off the first pivot, signifying that price may return to the support/entry price. Based on our research, roughly 39+% of the time, the trader can expect the first pivot/resistance to breakout with high volume and a large candle, which can then be used to extend the take profit if managed properly.
Ensuring that both your take profit and stop loss are placed/managed methodically will greatly increase profitability based on statistics.
AUDUSD Good buy signalBased on the chart, price have reached a major support area and a rejection happened at this area which can be a sign of buyers at this area. Also a weakness on sellers is observable at this point.
So these scenarios lead me to be buyer at this area with a good risk/reward ratio which is around 1:3
Note: As always please take risk management rules into consideration before opening any position on the market!
Good Luck!
Make a Wish Key points:
1. Incoming triangle breakout reversal of downtrend
2. 50% of free float was traded in the last days, who else is left to sell?????
3. I do not think that insiders, private equities and VCs want to sell at $9, after the lock up period.
4. P/S < 3!!!
5. Debt free & $2b+ of cash!!!
5. Sweet Risk/Reward Ratio setup
6.Target price of $20-$24 over the next 6-12 months
ETH - At potential support but could stay sideways a bitEthereum - ETHUSD -
Price missed the 161.8% Fib level by a bit...
Now we have to look for potential support at the blue zones 1900-1700.
Below that I think it's less likely to be red wave iv, I would then rather look at it as potentially higher degree blue wave 4.
Bitcoin - At potential support right now ! Dead cat bounce ?!There's really no big change since my last post (see below)
Bitcoin - BTCUSD - Count #1 :
We could see price stall around the 30k-35k zone in case this count is correct since there's potential support from the 38.2% Fib retracement level, the 1.618%-200% Fib projection level of wave (a) and that simple trend line from the wave 2 low.
For now, price made a rounded top and broke below the black support line.
We could therefore see a pullback testing that line again very quickly.
At that point, we either will then see price shoot above the wave (b) high or come back down making a new low.
Of course do not forget that waves 4 are the trickiest of all corrective phases as they can develop in any form of corrective pattern, including combinations and triangles !
Which would then keep price sideways for some days if not multiple weeks !
Therefore, be very careful when looking to buy.
Bitcoin - BTCUSD - Count #2 :
No change here since last update.
Looking for 29k/34k as first potential support zone.
s3.tradingview.com
EOS - Bullish only above 12$ - Outperforming BTCEOS - I'm not necessarily convinced by the wave counts here but what I do like is the fact that it's outperforming BTC.
Looking at Fib levels, I think if price can go and remain above ~13$ it could easily reach 23$ at which point I would also look for the 1.272 Fib level at ~50$ .
That's simply because when price tends to break above the 78.6% Fib retracement level, it has a tendency to at least touch the 127.2% level.
The Golden Rule of TradingOne of the fundamentals that every trader must know is how to evaluate the effectiveness of his trading methodology. In this article, we will explore core trading fundamentals that you must follow in order to survive and thrive in this business.
1. Never open a position without knowing the initial risk that you are willing to take. The initial risk is the point at which you will get out of the position to preserve your capital.
Very few people have the psychological makeup to keep a mental stop loss and respect it 100%, that’s why for the rest of us, there is the stop-loss that will automatically close our trade for us at a certain level.
2. Define your profit and loss in your trades as multiples of your initial risk.
These are the R multiples. If your risk is $1000 and you make $3000, you have a 3R win. If your risk is $1000 and you lose $1200, then you have a 1.2R loss. You must start to think in terms of risk/reward.
3. Limit your losses to 1R or less. If you don’t respect the stop loss that you have set and let a losing trade run then you are in real trouble.
This mechanism produces 4R losses or larger and can turn your great system into a losing system very easily.
4. Make sure that your profits, on average, are larger than 1R. Let’s say you have one 5R profit and four 1R losses.
If you add those up you have 5R in profit and 4R in losses, a net gain of 1R. Even though you lost money 80% of your trades, you still made money overall because your average gain was big. This is the power of having an average gain larger than 1R.
What is typically known as the golden rule of trading is a summary of these 4 rules:
“Cut your losses short and let your profits run.”
Here we are talking about doing your best to make sure your losses are 1R or less and that your profits are much bigger than 1R. In 2002, the Nobel prize for Economics was awarded to Daniel Kahneman, a psychologist and economist Amos Tversky for their development of “prospect theory”. This theory when applied to trading/investing showed that people have a natural bias to cut profit short and let their losses run, exactly opposite to the golden rule.
5. Understand your trading system in terms of mean (the average R) and the standard deviation (variability in the results) of your R multiples.
Your system, when you trade it, will generate a number of trades. The result of those trades can be expressed as a multiple of your initial risk or a set of R-multiples. You should know the properties of that distribution for any system that you plan to trade. And the majority of the people who trade the markets never know this. If you spend some time and calculate the mean and the standard deviation of your R multiples, you’ll know a lot about your system and what can you expect from it in the long run.
Trade with care.
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We have some good patterns here on Tesla!Tesla is at a nice support area right now, and the risk-reward ratio is pretty good at this level.
We see a double-bottom pattern in the 30 min, and a very strong RSI divergence. The 592 is the trigger for a good reversal ahead.
In the 4h chart Tesla is very oversold, and if the 30 min triggers the reversal, Tesla has the 626 as its first target.Let's remember that it has an open gap at 733. All these signs make a good trade thesis for Tesla, let's watch these points closely!
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
Silver to outperform Bitcoin in the near termPrecious metals looks ripe for a move up, and looking relative to Bitcoin, it seems prudent to take some money off the table and reallocate to hard assets. Silver and gold have been stores of value for thousand of years and proven to protect against inflation.
Multiple good charts and fundamental stories out there as to why silver and gold are ripe for a move up. If you want crypto like moves go for junior miners.
Gold Revisits Yesterday's Lows (In Profit)Good day guys! I am still holding my long term sell position with gold. God has revisted yesterday low's and gone even further. This could be the continuation I have been posting about, since my entry last Friday. I am still patient and I did take profit a couple intraday positions yesterday. My intraday positions SL's were triggered at 1825. I do believe that the price could be going much lower, based on the Fed NOT wanting gold to go higher for it represents the lost of purchasing power of the US dollar. People can stomach Bitcoin going higher, because it is a risky asset. However, they cannot stomach gold going higher for the reality is much bitter than sweet. The irony is that Bitcoin reflects the same thing. People just do not know it yet. In conclusion, I will continue to update you all on this trade. If you made money on this setup or any setups I have provided, be sure to like, leave a comment and share it with others. It lets me know that I am doing a good job. Well we do appreciate you for checking out our post and remember, we will see you on the other side.
Rodrick (CEO)
Third Eye Traders
EMAMI LTD. - Looking BullishAs per my analysis, EMAMI LTD. is trading in a higher high - higher low formation on a weekly timeframe which confirms bullishness in the stock.
It is currently trading near the support trendline which can be a low-risk entry.
It has the potential of reaching the target of 550+ within the next 1-2 months with a stop below 460 levels.
DOGECOIN - where is the limit?Elon Musk will save your funds? I don't think so!
Analysis:
Doge is one of the most trending coin on the market and it has some more potential to grow since the "DOGEFAM" community is in an exponential growing tendency. The main goal of the DOGE community is to reach the 1$/coin level. If you are planning to invest into DOGE, or you are already own a "bag" of DOGE you need to take into consideration that the market will became choppy once the large speculators will exit the market. It will come a day when buying the dip will fail, and there will be a sudden crash on the market. I
also think that the market will turn back before reaching the 1$ level, somewhere around 0.95$, so I advise you to get out from the market sooner than later in order to keep your funds/profits safe. If you are planning to go long on DOGE there is an opportunity to make a low risk reward trade, buying around the 0.40$ level with a stop loss of 0.35$ + exit plan around 0.95$. ( potential 130% profit ).
Do not forget the fact that this kind of an exponential growth needs a stable supply-demand curve to be sustained on the long run. Once the demand cannot overperfom the supply, the whole smoken mirror mirror speculative game will collapse. If everyone wants to exit at 1$, you need to exit around 0.90$ to find somebody who believes that the price will go above 1$...
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ZM - Bullish only if can go above 340ZM - This wave 4 correction I talked about a few months ago turned into a combination it seems and reached equality of wave W vs Y.
Price also bounced off the anchored VWAP from the wave 2 low.
But I don't recommend blindly buying right now, unless using tight stops of course, but rather wait for a confirmation that price really wants to turn first.