ερωτησεις:
Υπάρχει ένα νεφέλωμα όσον αφορά από που ξεκινάω και που καταλήγω.
Από DMI για να καθορίσω αν ένα security είναι trending ή όχι?
Με τριπλή οθόνη για ξεκαθάρισμα του trend?
Και τους oscillators έπειτα πως χρησιμοποιώ?
Κινούμενοι μέσοι όροι, exponential ως επιβεβαιώση ή trigger?
Δεν πας κόντρα στο trend. Απλά πρέπει να βρεις την κατάλληλη στιγμή για να εκμεταλλευτείς το trend.
Ποια είναι αυτή?
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TRENDLINES & SUPPORT AND RESISTANCE
Trendlines (source: link_investopedia)
Τhey can be used by traders to help predict areas of support and resistance. This means that trendlines are used to identify the levels on a chart beyond which the price of an asset will have a difficult time moving.
The price will bounce off the trendline and continue in the direction of the prior trend, or it will move through the trendline, which can then be used as a sign that the current trend is reversing or weakening.
Once a technical trader has entered a position near the trendline, they would keep the position open until the price moved below the support of the trendline. Most traders will constantly adjust their stop-loss orders by moving them higher, as the trendline continues to slope upward.
A support level is the price level that an asset doesn't fall below for a period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price.
Support level is the level at which buyers tend to purchase or enter into a stock. It refers to the stock share price that a company rarely goes below.
Traders will generally want to see the support band rather than a single line connecting the lowest lows because there's always a chance that support will move up and the order for a long position will go unexecuted.
Fibonacci retracement
it clearly identifies levels of potential support/resistance.
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STYLES OF TRADING
The four main styles
Position trading or investing
Timeframe: Long term
Holding period: Weeks / months / years
Trading activity: Low
Swing trading
Timeframe: Medium term, i.e. Daily chart, Weekly Chart, 4-hour chart, 1-h chart (link, link2)
Daily Chart: This is a popular choice for swing trading as it provides a balance between detail and broader market trends. It allows traders to identify trends and make informed decisions without being overwhelmed by minute-by-minute fluctuations.
Weekly Chart: This timeframe is useful for swing traders who want to focus on longer-term trends and are less concerned with short-term market noise. It can help identify larger market movements and provide a clearer view of the overall market direction.
4-Hour Chart: This timeframe is also commonly used for swing trading as it offers a good balance between detail and broader trends. It can help identify reliable swing trading opportunities and is less susceptible to random price action.
1-Hour Chart: While this timeframe can be useful for swing trading, it is generally considered less reliable due to the increased noise and potential for overreactions to news events
Holding period: Days to weeks
Trading activity: Medium
Day trading
Timeframe: Short term
Holding period: Intraday
Trading activity: High
Scalping
Timeframe: Very short term
Holding period: Seconds to minutes
Trading activity: Very high
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DIVERGENCE
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Leading και lagging indicators (Trend indicators, Momentum, Volume, Volatility)
Always choose indicators that complement each other
A leading indicator is designed to help traders anticipate future price action.
Examples:
Relative Strength Index (RSI) - momentum indicator
Stochastic Oscillator - Momentum indicator
Support and Resistance
Pivot Points
Donchian Channels
Fibonacci retracement
Williams %R
Awesome oscillator
Commodity chanel index - Momentrum indicator
A lagging indicator is designed to help traders confirm a trend or reversal in the market.
Examples:
Moving Averages - Trend indicator
Bollinger Bands - Volatility indicator
Average Directional Index (ADX) - Trend strength Indicator
Parabolic Stop and Reverse (Parabolic SAR) - Trend indicator
MACD - Trend Indicator - Momentum = Hybrid
Keltner Channel
ATR - Volatility
source: Link1 of definitions , Link2 of definitions
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TRADING PLAN
5 Elements of a Smart Trade Plan
1. Your time horizon
2. Your entry strategy
3. Your exit plan
4. Your position size
5. Your trade performance
Source: link of a trading plan. What is a trading plan.
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Trade sizing
In simple words, here’s how trade sizing works:
Determining risk tolerance
Traders must first assess their level of risk tolerance. Knowing how much of their cash they are prepared to risk on a single deal is essential for this. Risk tolerance varies from person to person and is influenced by things like experience, financial objectives, and psychological fortitude.
Determine position size
Traders utilise their defined risk tolerance to determine the position size for a transaction. This entails figuring out how much money will be at stake in the deal, often expressed as a percentage of the entire trading capital.
Create stop-loss orders
For every trade, traders need to specify a stop-loss order. The stop-loss is a pre-set price level below which the deal will be closed off in order to prevent further losses. The separation between the entry point and the stop-loss level influences the position size.
Risk/reward ratio
Traders weigh the risk vs the potential profit. They seek a favourable risk-reward ratio in which the possibility of profit outweighs the possibility of loss.
Execute the trade
The trader completes the transaction having established the position size and risk criteria. This entails entering the market at a particular price, and the size of the position guarantees that the calculated risk remains intact.
Source: Link 1 trade sizing,
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Strategy / Entry exit rules / Trade criteria.
Stop loss και Risk reward ratio δεν επιλέγονται τυχαία. Ειδικά το profit ΔΕΝ είναι το επιθυμητό αλλά το προσδωκόμενο / ΥΠΟΛΟΓΙΣΜΕΝΟ
Σε ανοδικό trend πρέπει να μπεις με long όταν ένας RSI είναι oversold. (source:
Σε καθοδικό trend πρέπει να σορτάρεις όταν ένας RSI είναι overbought.
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SWING TRADING
This type of short- to medium-term trading seeks to take advantage of price “swings” or changes within the price trend of an underlying asset.
Swing trading often lasts from a few days to several weeks as opposed to day trading, which includes starting and closing positions inside a single trading day or long-term investment, when assets are maintained for a lengthy period.
Swing trading is taking trades that last anywhere from a few days to a few weeks – usually no longer than a month. The goal is to capitalize on price swings in the market.
Swing traders try to profit from price fluctuations that take place between support and resistance levels. Their judgments are based on the research of technical and fundamental indicators.
The best time frame for swing trading in particular is typically the daily or weekly charts. This gives you enough information to make informed decisions without being overloaded with data.
Stock swing trading example
For swing trading, a trader observes a well-defined uptrend in a particular stock. Then the trader identifies a support level and anticipates a price bounce off that support. The trader goes long (buys) when the stock approaches the support level. The trader then sets a stop-loss order slightly below the support to manage risk and a profit target at a resistance level. Once the stock reaches the resistance, the trader exits the position, realising a profit.
Forex swing trading example
A swing trader in the forex market picks out a currency pair that has been trading in a range-bound pattern for a while. The trader believes that prices will break out of this area. The trader then opens a position (long or short) in the breakout direction when the price makes a move. The trader establishes a stop-loss and a profit objective and keeps track of the trade’s development. The trader closes the transaction when the price hits the profit objective.
*There are two types of opportunity that a swing trader will use indicators to identify: trends and breakouts.
Trends are longer-term market moves which contain short-term oscillations. Breakouts mark the beginning of a new trend.
TOP SWINGING INDICATORS
Moving averages
Volume
Ease of movement
Relative strength index (RSI)
Stochastic oscillator
source: Link1 για swing trading, Link2,
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2 comments:
Trading journal https://in.tradingview.com/chart/NIFTY/j4pYFdJj-Maintaining-Trading-Journal/
calculate the spread. it is the equivalent of taxes.
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