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NQ Power Range Report with FIB Ext - 7/26/2023 SessionCME_MINI:NQU2023 - PR High: 15739.50 - PR Low: 15619.75 - NZ Spread: 267.25 !FOMC DAY! 08:30 – Building Permits 10:00 – New Home Sales 10:30 – Crude Oil Inventories 14:00 – FOMC Statement - Fed Interest Rate Decision 14:30 – FOMC Press Conference Huge inventory drop at session open - Extremely wide NZ spread - High vol expected indicated by cheap brokers (AMP) Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Gap: -0.11% (open > 15939) - Session Open ATR: 215.64 - Volume: 35K - Open Int: 253K - Trend Grade: Neutral - From ATH: -6.7% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
BOIL (3X Natural Gas ) Overnight Trade RecapAs a triple leveraged ETF BOIL is highly volatility and typically has a good range even if the overall price changes only a small amount from one day to the next. While these overnight day trades are typically conducted on the 3 or 5 minute time frame, here a 15- minute chart is shown. Because BOIL is tracking natural gas futures and the futures markets are around the clock , BOIL often has movement after-hours and in the pre-market while futures markets are active. In this example, the chart is dressed with double Bollinger band setup with deviations of 1.618 and 2 618 which are Fibonacci numbers. Relative volatility and relative volumes are indicated as well to be better attentive to reversals or trending amplitudes. In this example at about 12N on yesterday 7/24, price dropped out of the bands volume and volatility went red to green and the candlesticks formed a morning star pattern. This is the entry. The stop loss is placed just below the lowest bottoming wick in the pattern. Today, in the premarket, when the price rose to outside the upper trade zone and green bars on the volatility and volume indicators fell quickly, the trade was closed for a realized profit of 4.7%. About 90 minutes later, another long trade was set up for a more than 4% five hour day trade. Rinse and repeat DYODD !
AMEX:BOILLong
by AwesomeAvani
NQ Power Range Report with FIB Ext - 7/25/2023 SessionCME_MINI:NQU2023 - PR High: 15572.00 - PR Low: 15559.75 - NZ Spread: 27.25 10:00 – CB Consumer Confidence EKG print continues with tight NZ Spread - Quick inventory dip below PR-1 Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Gap: -0.11% (open > 15939) - Session Open ATR: 211.38 - Volume: 13K - Open Int: 251K - Trend Grade: Neutral - From ATH: -7.2% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
NQ Power Range Report with FIB Ext - 7/23/2023 SessionCME_MINI:NQU2023 - PR High: 15571.00 - PR Low: 15544.25 - NZ Spread: 60.0 08:30 – Core PCE Price Index Evening Stats (As of 12:25 AM) - Weekend Gap: N/A - Session Gap: -0.11% (open > 15939) - Session Open ATR: 218.94 - Volume: 24K - Open Int: 256K - Trend Grade: Neutral - From ATH: -7.3% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
GBPUSD losing momentum at the supply zone ?(5rep pts needed pls)This is my take on the GBPUSD. We saw GBPUSD getting close to a 15-month high last week. After the rally to reach 1.31420, and a series of bad news for the pair especially the decreases in UK's inflation, the GBPUSD started to slow down. Still, after touching the Supply zone that was responsible for last week's uptrend, we can see a small loss in momentum. All eyes are now focused on next week's flash manufacturing PMI and flash services PMI of both GBP and USD to see how this pair will react to the supply zone. Until that, I believe it will be consolidating. what do you guys think ? By the way, I already published an idea but i still don't know how to get the reputation points. Can you help me to get there so I can chat on the Forex Group? I will be forever grateful. Thanks for your attention.
by ysfsaied
NQ Power Range Report with FIB Ext - 7/21/2023 SessionCME_MINI:NQU2023 - PR High: 15601.50 - PR Low: 15573.50 - NZ Spread: 62.5 No Significant Events Scheduled Major correction prev session - Ranging inside the lows, today's NZ Evening Stats (As of 1:45 AM) - Weekend Gap: N/A - Session Gap: -0.11% (open > 15939) - Session Open ATR: 222.82 - Volume: 30K - Open Int: 263K - Trend Grade: Neutral - From ATH: -7.0% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
Is the S&P 500 Nearing a Top for Now?The S&P 500 has enjoyed a strong run with new 52-week highs for six straight sessions. But some traders may consider waiting for a pullback -- especially with the Federal Reserve meeting next week. The first pattern on today’s chart is Wilder’s Relative Strength Index (RSI). It moved back above the overbought threshold of 70 this week. While frequent overbought readings can reflect a bullish market, they can also represent moments of overextension, like mid-June, early February and last August. Second, prices have pushed above the top of the Keltner Channel. Some investors may prefer buying inside these bands. Next, the bottom study includes our Distance from MA script . It shows SPX is almost 6 percent above its 50-day simple moving average (SMA). While not a record, this is also near the top of its long-term range. Finally, Cboe’s volatility index (VIX) has held the February 2020 low of 13.38 all month. This may create the potential for a modest increase in fear and selling pressure in SPX. (See below.) TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
SP:SPX
by TradeStation
NQ Power Range Report with FIB Ext - 7/20/2023 SessionCME_MINI:NQU2023 - PR High: 15925.75 - PR Low: 15844.00 - NZ Spread: 182.75 Major vol increase, huge NZ spread - Strong inventory run during PR hour - Anticipated correction enroute to ATH - Strongest volume of the week Economic Events 08:30 – Initial Jobless Claims - Philadelphia Fed Manufacturing Index 10:00 – Existing Home Sales Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Gap: -0.11% (open > 15939) - Session Open ATR: 214.49 - Volume: 35K - Open Int: 262K - Trend Grade: Neutral - From ATH: -5.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
Trading Breakouts with Donchian ChannelsBreakout trading is a popular strategy among traders seeking to capitalize on significant price moves that occur when the price breaks out of a well-defined range. It involves identifying key levels of support and resistance and entering trades when the price breaks above resistance or below support. By catching these breakout movements early, traders aim to capture potential profits as the price continues to move in the breakout direction. Donchian Channels are constructed by plotting three lines on a price chart: the upper band, the lower band, and the middle line. The upper band represents the highest high over a specified period, while the lower band represents the lowest low. The middle line, also known as the median line, is the average of the upper and lower bands. The interpretation of Donchian Channels is relatively straightforward. When the price breaks above the upper band, it signals a potential bullish breakout, suggesting that the price may continue to rise. Conversely, when the price breaks below the lower band, it indicates a potential bearish breakout, suggesting that the price may continue to decline. The width between the upper and lower bands represents the volatility of the asset. Understanding Donchian Channels A. Explanation of Donchian Channels and their construction: Donchian Channels are constructed using historical price data and provide traders with a visual representation of market volatility and potential breakout opportunities. To calculate Donchian Channels, traders select a specific lookback period, which determines the number of bars or candles used in the calculation. This lookback period can be adjusted based on the desired trading timeframe and market conditions. The upper band of the Donchian Channels represents the highest high over the selected period, while the lower band represents the lowest low. The middle line, also known as the median line, is calculated as the average of the upper and lower bands. By plotting these lines on a price chart, traders can visualize the range within which the price has been oscillating over the selected period. It is important to note that the choice of the lookback period will impact the sensitivity of the Donchian Channels. A shorter lookback period will result in narrower channels, capturing more recent price movements, while a longer lookback period will yield wider channels, incorporating a broader range of historical price data. B. Components of Donchian Channels: – Upper band : The upper band of the Donchian Channels represents the highest high over the selected period. It serves as a potential resistance level and provides traders with a reference point for potential breakout opportunities above this level. – Lower band : The lower band represents the lowest low over the selected period and acts as a potential support level. Traders monitor the price's behavior in relation to the lower band to identify potential breakout opportunities below this level. – Middle line : The middle line, often referred to as the median line, is calculated as the average of the upper and lower bands. It serves as a midpoint between the two bands and provides traders with a reference point for the mean or average price within the selected period. The middle line can act as a potential dynamic support or resistance level, depending on the direction of the price movement. C. Interpretation of Donchian Channels: Donchian Channels provide valuable insights into market volatility and potential breakout opportunities. Traders can interpret Donchian Channels in the following ways: – Market volatility : The width of the Donchian Channels reflects the level of market volatility. Wider channels indicate higher volatility, suggesting larger price swings and potentially stronger breakout opportunities. Narrower channels, on the other hand, indicate lower volatility and may suggest a period of consolidation or low trading activity. – Breakout opportunities : Traders monitor the price's behavior in relation to the upper and lower bands of the Donchian Channels to identify potential breakout opportunities. A breakout occurs when the price breaks above the upper band or below the lower band. A breakout above the upper band suggests a potential bullish opportunity, while a breakout below the lower band indicates a potential bearish opportunity. Traders may consider entering a trade when a breakout occurs, anticipating further price movement in the breakout direction. – Squeezing Donchian Channels: When the width between the upper and lower bands narrows significantly, it is referred to as a "squeeze." A squeeze indicates low volatility and a potential upcoming breakout. Traders watch for a breakout in either direction when the Donchian Channels squeeze, as it suggests that the market is likely to enter a period of increased volatility and directional movement. Identifying Breakout Opportunities with Donchian Channels A. Breakout above the upper band: A breakout occurs when the price crosses above the upper band of the Donchian Channels, indicating a potential bullish opportunity. Traders can use different entry strategies to capitalize on breakouts above the upper band: – Buying on the close above the upper band : Traders may choose to enter a long position when the price closes above the upper band. This approach confirms the breakout and provides confirmation that the upward momentum is sustained. – Percentage deviation from the upper band : Another approach is to wait for a specific percentage deviation from the upper band before entering a trade. For example, a trader might enter a long position if the price moves a certain percentage, such as 1% or 2%, above the upper band. This method allows for a more flexible entry and can help filter out minor price fluctuations. It is important to consider other technical indicators, such as volume or momentum oscillators, to confirm the strength of the breakout and assess potential price targets or exit points. Traders may also incorporate stop-loss orders to manage risk and protect against potential false breakouts. B. Breakout below the lower band: A breakdown occurs when the price crosses below the lower band of the Donchian Channels, signaling a potential bearish opportunity. Traders can use various entry strategies to take advantage of breakouts below the lower band: Selling on the close below the lower band: Traders may choose to enter a short position when the price closes below the lower band, confirming the breakdown and indicating a potential downtrend. Percentage deviation from the lower band: Alternatively, traders can wait for a specific percentage deviation from the lower band before entering a trade. For instance, they might enter a short position if the price moves a certain percentage below the lower band. This approach adds a level of confirmation and helps filter out minor price fluctuations. Similar to breakouts above the upper band, traders should consider additional technical indicators to confirm the breakdown and identify suitable price targets or exit points. Stop-loss orders are essential to manage risk and limit potential losses if the breakout turns out to be a false signal. It is worth noting that not all breakouts or breakdowns lead to sustained price movements. Traders should exercise caution and conduct thorough analysis, considering market conditions, overall trend, and other relevant factors. Using Donchian Channels as a tool for identifying breakout opportunities provides a structured approach to entering trades and enhances decision-making in breakout trading strategies. Confirmation Techniques with Volume Volume plays a crucial role in confirming breakouts and validating the strength of price movements. Higher volume during a breakout suggests greater market participation and increases the likelihood of a sustained move. Traders can use volume indicators in conjunction with Donchian Channels to confirm breakouts: – On-Balance Volume (OBV) : OBV is a popular volume indicator that measures buying and selling pressure. Traders can compare the OBV trend with the breakout in Donchian Channels to assess whether volume supports the breakout movement. If OBV shows a positive trend alongside a breakout above the upper band or below the lower band, it provides additional confirmation. – Volume Weighted Average Price (VWAP) : VWAP is another useful volume-based indicator that calculates the average price weighted by trading volume. Traders can compare the current price with the VWAP to determine if volume supports the breakout. If the price moves above the upper band accompanied by a surge in volume and a deviation from the VWAP, it strengthens the breakout signal. Managing Risk in Donchian Channel Breakout Trading A. Setting stop-loss orders: Stop-loss orders serve as a protective mechanism to limit potential losses if the breakout trade fails. By defining a predetermined level at which to exit the trade, traders can control and manage their risk effectively. Traders can use various techniques to determine the placement of stop-loss orders. One approach is to place the stop-loss below the breakout candle or below the lower band of Donchian Channels. This ensures that if the price reverses and breaks back into the channel, the trade is exited to minimize potential losses. B. Implementing position sizing: Position sizing is the process of determining the number of contracts or shares to trade based on individual risk tolerance. Traders should consider their risk appetite and financial objectives when determining position size. Common methods for position sizing include the fixed percentage method (risking a certain percentage of capital per trade) or the fixed dollar amount method (risking a specific dollar amount per trade). Volatility and the characteristics of the breakout can influence position sizing. Traders may opt for smaller position sizes in more volatile markets to manage risk effectively. Additionally, if the breakout signal exhibits higher confidence, such as a wide breakout range or strong confirmation signals, traders may consider increasing their position size to capitalize on potential larger moves. Fine-tuning Donchian Channel Breakout Strategies While Donchian Channels provide valuable insights into breakouts, combining them with trend-following indicators can enhance the effectiveness of the strategy. Trend indicators, such as moving averages or trendlines, can help traders identify the direction of the prevailing trend. By aligning the breakout trades with the trend direction, traders can increase the probability of successful trades. Momentum oscillators can be used alongside Donchian Channels to provide additional confirmation of breakout signals. Indicators like the Relative Strength Index (RSI) or the Stochastic Oscillator can help traders assess overbought or oversold conditions and gauge the strength of the breakout. Combining the signals from these oscillators with Donchian Channel breakouts can offer a more comprehensive view of market dynamics. Different timeframes can have varying impacts on the frequency and reliability of Donchian Channel breakouts. Shorter timeframes, such as intraday charts, may generate more frequent but potentially smaller breakouts. Conversely, longer timeframes, such as daily or weekly charts, may produce fewer but more significant breakouts. Traders should consider their trading style, available time, and risk tolerance when selecting the timeframe for breakout trading. Backtesting is a crucial step in fine-tuning Donchian Channel breakout strategies. By applying historical data to the strategy on various timeframes, traders can assess the performance and identify optimal parameters. Through backtesting, traders can refine their entry and exit rules, determine the most suitable lookback periods, and validate the strategy's effectiveness across different market conditions. Limitations and Considerations A. False breakouts and whipsaws: Despite the effectiveness of Donchian Channel breakout strategies, false breakouts can occur, leading to potential losses. False breakouts happen when the price briefly moves beyond the channel but quickly reverses back into the range. Traders must be aware of this possibility and implement risk management techniques to mitigate potential losses. To minimize the impact of false breakouts, traders can employ confirmation techniques, such as volume analysis or candlestick patterns. These tools can provide additional validation before entering a trade, reducing the risk of being caught in false breakout scenarios. By layering Donchian Channels of varying lengths over each other, range-bound or trending markets can become clearer and reduce the potential for trading a false breakout. Here we have channel lengths of 25, 50, 100, 150, and 200 overlaid to help determine the state of the market and identify take profit and stop loss levels: B. Market conditions affecting breakout trading: During periods of low volatility, price movements can become sluggish, resulting in fewer and less significant breakouts. Traders should be mindful of market conditions and adjust their expectations and strategies accordingly. It may be necessary to explore alternative trading approaches or consider other indicators that perform better in low volatility conditions. Donchian Channel breakout strategies work best in trending markets where price movements exhibit clear directional biases. In ranging markets, where prices oscillate within a defined range, breakouts may be less frequent and less reliable. Traders should exercise caution and consider alternative strategies when faced with prolonged ranging market conditions. C. Psychology and discipline in breakout trading: Breakout trading requires discipline and emotional control. Traders must be prepared for periods of drawdowns, missed opportunities, and potential losses. Maintaining a disciplined mindset, sticking to predetermined rules, and avoiding impulsive decisions are essential for long-term success in breakout trading. Successful breakout traders understand the importance of patience and following their predefined rules. It is crucial to wait for confirmed breakouts and not chase every potential trade. Adhering to risk management strategies, position sizing rules, and maintaining a consistent approach are key to managing emotions and maintaining discipline in breakout trading. Conclusion Donchian Channel breakout trading strategies hold immense potential for traders. By effectively utilizing Donchian Channels and incorporating appropriate risk management and confirmation techniques, traders can enhance their trading decisions and potentially realize substantial profits. The systematic approach offered by Donchian Channels enables traders to spot breakouts early and participate in significant price moves. To fully harness the power of Donchian Channels in breakout trading, it is essential for readers to engage in further exploration and practice. Backtesting historical data, paper trading, and implementing real-time trades based on Donchian Channel breakout strategies can provide valuable insights and hands-on experience. Continuous learning and refining of strategies will pave the way for improved trading outcomes. By understanding the construction and interpretation of Donchian Channels, incorporating confirmation techniques, managing risk effectively, and honing their skills through practice, traders can unlock the potential for consistent profits. Embrace the power of Donchian Channels, continue to explore, and adapt your strategies to evolving market conditions. May your journey with Donchian Channel breakout trading be filled with success and prosperity. Happy Trading, Tyler
Education
by LeafAlgo
18
NQ Power Range Report with FIB Ext - 7/19/2023 SessionCME_MINI:NQU2023 - PR High: 15965.25 - PR Low: 15944.50 - NZ Spread: 46.25 Economic Events 08:30 – Building Permits 10:30 – Crude Oil Inventories Grinding closer to ATH - Volume declining for the week - Volatile supply run in prev afternoon session Evening Stats (As of 12:15 AM) - Weekend Gap: Irrelevant - Session Open ATR: 214.31 - Volume: 16K - Open Int: 258K - Trend Grade: Neutral - From ATH: -4.7% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
GOEV pulled back and is re-entry ready LONGGOEV on the 30 min chart had a big trend up from June 30th through July 5th- then pulled back for two day before a huge momentous move up on Friday July 7th. where it moved from the support of the mean VWAPs anchored in mid June into overbought territory two standard deviations above that level. On Monday July 10, price dropped precipitiously back to those mean anchored VWAPs. The past day was marked by sideways consolidation. The volume profile shows the heaviest trading volume at just below the VWAPs which is cross-validating. The Chris Moody MTF RSI indicator shows the lower TF RSI in the past day has crossed above 50 and now at 60 meeting the higher TF RSI. The zero-lag MACD has the lines crossing over the zero horizontal line and parallel suggesting a bullish continuation. Overall, I see a long trade setup with possible significant price movement anticipated perhaps in the range of 20% targeting the pivot high last Friday.
NASDAQ:GOEVLong
by AwesomeAvani
NQ Power Range Report with FIB Ext - 7/18/2023 SessionCME_MINI:NQU2023 - PR High: 15835.00 - PR Low: 15816.00 - NZ Spread: 42.5 Not much of a change from prev session - Still trading inside Friday's range 08:30 - Retail Sales Evening Stats (As of 12:05 AM) - Weekend Gap: Irrelevant - Session Open ATR: 210.38 - Volume: 19K - Open Int: 255K - Trend Grade: Neutral - From ATH: -5.7% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15533 - Short: 15247 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
NQ Power Range Report with FIB Ext - 7/17/2023 SessionCME_MINI:NQU2023 - PR High: 15691.00 - PR Low: 15675.00 - NZ Spread: 36.0 Tiny technical gap down over the weekend - Irrelevant IMO based on Friday COB structure Evening Stats (As of 12:05 AM) - Weekend Gap: Irrelevant - Session Open ATR: 210.33 - Volume: 19K - Open Int: 252K - Trend Grade: Neutral - From ATH: -6.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
Educational: Grid Trading, What is it? How it works?Grid trading is often marketed as a way to win every trade. People usually get away with this type of marketing of the trading style due to the fact that grid trading does not care for market execution in the sense of market direction because you will close profitable trades if the market goes up or down. But it's not as simple as that. What is Grid trading? Grid trading is a type of trading strategy that makes use of market price variations by placing buy and sell orders at regular intervals around a base price. The foreign exchange market is where grid trading is most frequently employed, but it can also be used on other markets, like those for futures contracts. How to execute trades on a grid The image above explains exactly how positions that run in the upper direction are executed. Let's break down the process: (1) At the start of your grid trading system, you execute a buy and a sell position with the same lot size. (2) You will only set a take profit and a buy limit/sell limit, but no stop loss. (3) Assuming the price runs in the direction of the buy and you have a 10-pip stop loss, once the price hits your 10-pip stop loss, you will also execute a sell position via the sell limit. This sell position will have a 10-pip take profit in the opposite direction. See demonstration below: There is no restriction on the size of the grid. It does not have to be 10 pips apart. The distance of the grid is explained further in the publication. Here is a video using a trading simulator to show you how these positions would be executed : So, as you can see, with this style of trading, you can potentially make money whether the price goes up or down. However, it can be quite challenging to execute and maintain a large number of trades. Therefore, individuals typically employ automated systems or use trading software to manage and monitor these trades. Trending Market Grid trading can be used to profit from both trending and ranging markets. In a trending market, grid trading involves placing buy orders above the base price and sell orders below the base price. This way, the trader can capitalize on the price movement in a sustained direction. For example, if the base price of Bitcoin futures is $60,000, the trader can place buy orders every $1,000 above the base price. This is also sometimes wrong referred to as dollar cost averaging or compounding your trade which are very different investment strategies. Grid trading's key benefit is that it can be readily automated using trading bots and does not require a lot of forecasting of market direction. Grid trading's main disadvantage is that, if the market goes against the grid and the trader does not apply appropriate risk management strategies like stop-loss limits or position sizing, it may result in significant losses. Grid Size Choosing a grid spacing is one of the most important aspects of grid trading. This depends on a number of elements, including: - The volatility of the market: The more volatile the market is, the wider the grids should be to avoid frequent executions and commissions. - The personal preference of the trader: The trader should choose a grid size that suits their trading style and risk tolerance. Technical indicators like moving averages or Bollinger bands are sometimes used to calculate the spacing between the grids. These indicators can be used to determine the market's volatility and average price over a specific time frame. You can also use basic price action to determine what range the market is likely to tstay within and then calculate the grid in-between Ranging or Trending: Identifying whether the market is trending or range is another important aspect of grid trading. This can be used to determine whether to employ grids that move with the trend or against it. There are a number of approaches to determine if the market is trending or fluctuating, including: - Using trend lines or channels: A trend line or channel is a line that connects higher highs or lower lows in a trending market. A break of a trend line or channel can indicate a change in trend or a range-bound market. - Using trend indicators such as ADX or MACD: The average directional index (ADX) measures the strength of a trend on a scale from 0 to 100. A high ADX value (above 25) indicates a strong trend while a low ADX value (below 20) indicates a weak trend or a range-bound market. The moving average convergence divergence (MACD) measures the difference between two moving averages of different lengths. A positive MACD value indicates an uptrend while a negative MACD value indicates a downtrend. A crossover of MACD lines or zero line can indicate a change in trend or a range-bound market. Link to a publication on MACD : - Using range indicators such as RSI or Stochastic: The relative strength index (RSI) measures how overbought or oversold a market is on a scale from 0 to 100. A high RSI value (above 70) indicates an overbought market while a low RSI value (below 30) indicates an oversold market. A reversal of RSI from extreme levels can indicate a change in trend or a range-bound market. Link to related publication:
COINBASE:ETHUSDEducation
by ChristopherDownie
2
NQ Power Range Report with FIB Ext - 7/14/2023 SessionCME_MINI:NQU2023 - PR High: 15715.50 - PR Low: 15697.50 - NZ Spread: 40.0 NO SIGNIFICANT EVENTS Breaking back into balance zone from Dec 2021 - Balance zone for NQ ATH, 15690.25 ~> 16656.50 - Opened Friday session holding NZ range - Inside prev session high leading into London hours Evening Stats (As of 12:35 AM) - Weekend Gap: N/A - Session Open ATR: 213.66 - Volume: 26K - Open Int: 250K - Trend Grade: Neutral - From ATH: -6.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
1
Tight Consolidation in Advanced MicroAdvanced Micro Devices rallied in May and early June. A pullback followed, and now trend followers may return to the name. The first pattern on today’s chart is the drop toward $107 in late June. That represented a 50 percent retracement of the initial thrust. Holding that zone could validate the direction of the move. Second is the tight consolidation pattern that subsequently appeared. AMD made higher lows while staying below the May 25 low. The result is a potentially bullish ascending triangle continuation pattern. Third, Bollinger Band Width narrowed as the pattern formed. Will price expansion follow that period of compression? Finally, the chip stock touched its 50-day simple moving average (SMA) on Tuesday but closed above it. That may confirm its intermediate-term trend is still bullish. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
NASDAQ:AMD
by TradeStation
NQ Power Range Report with FIB Ext - 7/13/2023 SessionCME_MINI:NQU2023 - PR High: 15485.50 - PR Low: 15455.75 - NZ Spread: 66.75 Margins raised again ahead of PPI 08:30 – Initial Jobless Claims - PPI Daily range broken, making new year high - Supply response over prev session high - Ranging in prev session high into London hours - PR+1 broken with retrace for inventory Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Open ATR: 212.31 - Volume: 31K - Open Int: 251K - Trend Grade: Neutral - From ATH: -7.6% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
NQ Power Range Report with FIB Ext - 7/12/2023 SessionCME_MINI:NQU2023 - PR High: 15274.25 - PR Low: 15253.25 - NZ Spread: 46.75 AMP raised margin req ahead of CPI 08:30 – CPI 10:30 – Crude Oil Inventories Mechanical inventory response off daily 20 Keltner Avg - Prev session maintained non-directional volatile PA - Slight break over PR+1 leading into London hours Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Open ATR: 205.90 - Volume: 17K - Open Int: 252K - Trend Grade: Neutral - From ATH: -8.9% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15533 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
GEOV a penny stock in the rising EV SectorAs shown on the 1H chart, GOEV printed a head and shoulder pattern June 16 to 19 and then trended down consistent with that pattern. The trend was supported by the 2nd VWAP line under the mean in a VWAP anchored at the beginning of the descent. H & S. The volume volume profile shows that trading volume is distributed widely across a big range of prices showing high volatility. Price has trended through a round bottom reversal. I see the likely scenario as price crossing the mean VWAP and ascending toward the horizontal resistance of the neckline of the H & S. I will take this long trade with a potential upside of nearly 50 % (0.47 to target of 0.69). As an aside, the EV sector is general is on the heat map. I have uploaded ideas on FSR NKLA WKHS and PLUG (LCID NIO and TSLA are of interest.)
NASDAQ:GOEVLong
by AwesomeAvani