INDICATORS Bollinger Bands 2 standard deviations up and down capturing 95% price actions. IW ercISULCIMVe) cla iO Narrow/tighter bands usually means explosion in price action up or down. e@ Dependent on whether cabdles are above or below YAO WAL Wider bands mean greater volatility and soon a correction towards 20 MA. Again, direction is dependent on whether candles are above or below Good to use as buy and sell points as lower band acts as good support and upper band as potential resistance. Relative strength index (RSI) 10 to 14 day is usually setup Works out how many days price has been up vs how many days down over past 10-14 days Apart from being a good indicator of when to sell and buy it can also indicate bearish divergence. BEARISH DIVERGENCE. Occurs when price is moving up whilst RSI is moving down (opposite direction). This divergence usually marks the onset of a rapid drop in price. I.e. Lower high shown on RSI. Whilst price moves upe@ The strength of bearish divergence is further increased if RSI is above 80. BULLISH DIVERGENCE. Price is dropping. Hitting lower lows. But RSI is making higher lows. Indicates price is about to move up. SWING REJECTION. 1,2,3,4. Price goes into overbought/ oversold territory, then dips above 30 or below 70. Rises then dips without going back into overbought/sold. Then either breaks higher or create new low. 15-20 is strong buy, 30 medium buy. 70 medium to strong sell, 80-85 strong sell Cae e-em sem COMMIT MICReU i Conl momentum when RSI is 15-20 or 80-85. Thus making it a good signal to buy or sell @ Good to view multiple time frames before making a (ol felts (ela) If the RSI frequently goes above 70 on a price swing its a good trend. If it can't reach 70 on consecutive price swings but then drops below 30, the trend has weakened. If down trend fails to reach 30 but hits 70 multiple times then its a good uptrend. Really good indicator of setting up stop losses (SL) when BULLISH divergence is produced. First pic shows new lower where a SL can be placed. RSI is best used as a trend indicator, above 50 uptrend. Below 50, down trendUL pave ee la a i‘ hoe i A My i A reo oT are Stochastic RSI e@ Similar to RSI. However it is quicker in giving signals for overbought and oversold. e@ This quickness, however, is more prone to errors e@ 14 day is common length. e 50or0.5 can be used as support. If [Link] is on support and then moving upwards may indicate an upward trend starting. If it is below centre and heading down can indicate a down trend. e It's also usually accompanied by 3 day moving average to help reduce false signals e Across on the SRSI in conjunction with downward price action means price is about to drop e@ Use in conjunction with RSI to determine entry and exit.Moving Average Convergence Divergence (MACD) CROSSOVER METHOD e@ When lines cross over from top red histograms begin to TAI e@ When lines cross over from the bottom green histograms show up e As the lines move up if the two lines diverge histograms get bigger e Find trend, look for support, then look to see if MACD has crossed over. e@ If downward trend, support broken, macd cross, then big move down. e If uptrend, bounces of support (ideally multiple times) macd cross, then big up move e@ Upward cross (bullish), downward cross (bearish) DIVERGENCE METHOD e Higher high on price, lower high on MACD corresponding the new higher high on price action. And downward crossover. Means price will move down. RAPID RISE, RAPID FALL @ When the MACD line has pulled away from the signal line (rapid rise) a fall in price is set to occur (rapid fall) Volume The relationship of volume bars to most recent volume is agood way to use this indicator. For example on a downward trend as volume starts to Decline compared to previous bar/bars and the bar/s following is a bigger green volume it could indicate reversal and move Upward. If a market breaks on low volume that could be a concern. If it breaks on high volume usually a good indicator Volume is usually used as a confirmation. Letting you know that there is some meat behind this move. Hakeem Uae 0.23, 0.38, 0.5, 0.61are the levels. You take the fib from bottom of one position to the top of another. Then see how far the retracement has gone. I.e. what level it could bounce back If it breaks 0.61 it's assumed that it will go back to or below the recent bottom that was selected for the retracement Buy pullback on uptrend. Sell rallys on downtrend.CHART PATTERNS Wedges Rising and falling wedge indicates trend reversal. Rising wedge = BEARISH Falling wedge = BULLISH Bullish wedge is a better indicator of reversal than the rising one e A breakout up or down out of the wedge is seen more often than 2/3rd of the time “rat Le t 'L ‘ntbe: e 3characteristics define Pee e@ Converging trend lines e@ Decline in volume towards the convergence e@ Anda breakout from one of the trend linesCandlesticks @ Morning and evening doing star indicate trend reversal e@ Shooting star and hamner e@ Inverted hamner, hanging man Coast Teale el amen e Bearish and bullish engulfing Fibonacci 0.618 retest after trend break. 1 hour time frame and above up to 1D. In a bear market short Look for trend line break and retest or level break and retest Look for formation of chart and candle patterns. Engulfing, morning star, Hammer etc. MA 100 and 200 play. RSI, Stochastic Rsi, MACD Impulse candle above trend/level. Wait for breakout candle to form, when this candle breaks the high of impulse candle this will be the CONFIRMATION. Then stop loss below the break out candle. Inside bar and mother bar or pin bar + inside bar as continuation or reversal patterns. Useful for entries and stop losses1:4 Risk to reward. Never risk more than 2% per trade of your whole account. l.e. if you have 100k and you are entering a trade with 4% stop loss. Put only 50k into that trade so you only lose 2% of your account. Bear markets are for building slowly and then buying spot bags that will go parabolic in bull run. For breakout to candle needs to CLOSE above level. O) ta TAMU som rel cree Parabola breaks: Draw the parabola, look at lower time frame charts for break/ retest/close above high of capitulation candle. Enter trade ride up to 0.232-0.382 fib levels. Usually 0.382 is guaranteed Parabola usually retrace 80% so once fib levels are reached shave of 75% profit and maybe keep rest to moon to 80% retracement (not always guaranteed) These moves are quick so trade in and out rapid and keep really tight stop losses. Works both uptrend and downtrend Buy red candles sell green candlesTop down analysis to find confluence for high quality trade: Start at daily/weekly and work your way down to 1 hour time frame. Looking for trends, chart patterns, candle patterns, lole-r-1