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Raw VS Percentage Volatility FormatA Quantitative Comparison of "Buying & Selling Pressure" and "Average Bullish & Bearish Percentage Change" In market analysis, the choice of averaging method can profoundly influence the insights derived. The "Buying & Selling Pressure " and "Average Bullish & Bearish Percentage Change" indicators demonstrate the unique strengths of fixed-period and candle-count-based averaging approaches. Key Differences Between Fixed-Period and Candle-Count Averaging Fixed-Period Averaging in BSP: ➡︎ In "Buying & Selling Pressure", candle metrics are averaged over a defined period (e.g., 14 bars). ➡︎ This provides rapid insights into market sentiment changes, making it ideal for tracking incentive shifts and volatility in real time. ➡︎ However, because this method includes all candles in the averaging window, it may reflect short-term fluctuations, offering less stability compared to candle-count-based methods. Candle-Count Averaging in ABBPC: ➡︎ "Average Bullish & Bearish Percentage Change"uses a predefined count of bullish or bearish candles for averaging percentage changes. ➡︎ This produces stable and reliable values, which are less sensitive to noise and better suited for risk and reward assessment. ➡︎ The focus on specific candle states ensures that only relevant market behaviors contribute to the averages. Using Percentage Change for Risk Definition One of the greatest strengths of the "Average Bullish & Bearish Percentage Change" indicator is its ability to assist in risk and reward calculations with much more market related figures instead of raw values of volatility: Defining Risk The average percentage change of bearish candles can serve as a dynamic stop-loss level. For example, if the average bearish percentage change over the last 10 candles is 2%, a trader can set a stop-loss at 2% below their entry to account for typical market behavior. Quantifying Reward: The average bullish percentage change helps identify realistic profit targets. If the average bullish percentage change over the last 10 candles is 3%, a trader can set a target at 3% above their entry to maintain a favorable risk-to-reward ratio. Dynamic Adjustments: As the market evolves, these average percentage changes update, allowing traders to adjust their risk and reward levels in real time for better precision. Quantitative Advantages of Percentage Change Averaging Normalization Across Price Levels: Percentage changes enable consistent comparison across assets with vastly different price ranges. Enhanced Stability for Risk Assessment: Candle-count averaging smooths out noise, offering a reliable basis for setting risk parameters like stop-losses and profit targets. Improved Predictability: By isolating specific candle behaviors, percentage-based metrics provide clearer signals for trend-following or mean-reversion strategies. Advantages of BSP’s Fixed-Period Averaging Despite being less stable, "Buying & Selling Pressure " excels in areas requiring speed and adaptability: Fast Incentive Tracking: Period-based averaging adapts quickly to changing market conditions, providing timely insights into shifts in buying or selling pressure. Broad Volatility Capture: BSP includes all candles in the defined period, capturing overall market dynamics, including sudden spikes or reversals. Real-Time Decision Making: Its responsiveness makes it highly suitable for momentum or breakout trading strategies. Bottomline: Use "Average Bullish & Bearish Percentage Change" for stable, consistent data ideal for risk assessment, particularly when defining dynamic stop-loss levels or profit targets based on average percentage changes. Use "Buying & Selling Pressure " for its speed and adaptability in tracking real-time shifts in market incentives and capturing volatility.
PEducation
by fract
1
AUDCHF SELL Entered off a minor area of supply i found on my M5 , can't post from a timeframe lower then m15 since tradingview dosen't allow it , sorry guys :( , Want price to break the minor demand zone (blue zone) to continue pushing to the downside, still in my original sell that i got from my drawn area of daily supply Please like and comment it pushes me to keep creating content on pairs and my bias on it :) -This is merely MY outlook and not advice on what YOU should do just my opinion on what I see
Short
by yonsfx
1
Oil Inventories as a Catalyst for Breaking ResistanceEvent driven volatility is nothing new in commodity trading. Position traders thrive off post-announcement drift action, and while Wall Street continues to supply them with their needed dose of earnings reports, we shouldn't neglect the weekly available economic indicators that grant us so many setups for great trades. United States crude oil inventories are published on a weekly basis by the Energy Information Administration. The level of inventories greatly influences the price of all petroleum products, which in turn affect other foreign exchange assets. If you're not using U.S. Crude Oil inventories in your energy strategies - are you really trading oil then or are you just gambling ? In the chart you can see just what a catalyst these reports have been in the past. However, we can't attribute all price action to these reports alone; supply is only one part of the equation, and demand we gauge by the daily and hourly news updates that we form from whatever is thrown at us. In this case we have a very interesting set-up. From the technical perspective we see that since 18/07 oil couldn't find a new bottom, and gently started making higher-lows - ultimately dropping back down to its $56 support. There is no obvious sign that oil should continue it's descent to winter '18 levels, nor do fundamentals suggest anything close. In fact if we look at the relative volatility index (a volatility proxy similar in design to RSI), we can see that volatility has been mostly flat for the last two weeks, with little indicating further devaluation - but an assurance for a potential take breakout attempt is evident in the compression of the last 10 candles. On a fundamental level we're looking at quite a few catalysts that could potentially mint some gains on a long position. The ECB is considering rate cuts that could bring stimulus to a stifling European economy. The Fed has been in discussion of rate cuts for weeks. Global rate cuts could provide a nice monetary stimulus and support global trade. These looser conditions translate into bullish prospects for oil - mostly as a result of the actions of the Fed. With crude denominated in dollars, a rate cut with effectively weaken the dollar (rate cut = smaller cost of borrowing = dollar is cheaper), thereby making the asset far more available to global buyers. At the same time we have several political developments that greatly affect the global supply of oil. Tension in the Strait of Hormuz have still failed to deescalate. Further rising tensions, or a - not unforeseeable, but unlikely - blockade of the narrow shipping lane, could point to further gains. As a result Saudi Arabia and Kuwait have already expressed a sense of urgency in regulating this supply by exploring resuming oil production within the Saudi-Iraqi neutral zone. Overall; we see a potential for upside on technical level, with weekly inventories presenting great opportunity for volume driven growth, however traders should be cautious in evaluating fundamentals as multiple stakeholders aim to secure their own interests in the face of political instability. This weekend may present further information that would affect energy futures come Monday. Morpher presents a trading solution that allows users to trade in after-hours and pre-market - including weekends. Check out more information about Morpher on our profile. Useful further reading: Oilprice.com Reuters
NYMEX:CL1!Long
by morpher
2
BTC/USD Technical Analysis 26/02/18Dear Viewers, Welcome to my first TA on Tradingview. Let's get right into it ! As we can see, bitcoin is still in a Bearish mood, we can see that thanks to the RSI still being under 50 and the MACD is about to cross downwards on the daily charts. I hope you tethered out before this bearish mood started, there is a possibility that bitcoin drops furthermore towards the 8.5k. On the other hand, we will start seeing a bullish mood if bitcoin breaks the red dotted resistance level it failed to break before, but in order to make that happen, it has to get threw a few resistance levels I marked with a green dotted line. For now my mood is to short, as is other technical analysis, do keep an eye on bitcoin if it breaks through these 3 resistance levels, that shows us that the bullish are trying hard to get past that huge resistance level. I would not trade anything at this moment, the market is, as always, unpredictable. The only thing we can do is to try to figure out WHAT COULD HAPPEN . Thanks for reviewing my first analysis on trading view, don't forget to leave behind any comments on what you think about this easy TA without any ABC waves, triangles and such. Raw_Blitz out.
BITFINEX:BTCUSDShort
by TjerkPieksma