In this short lesson we will review the bullish divergence trading strategy and demonstrate how it can be used to predict intraday reversals and price movements. This strategy uses a combination of indicators including multiple time frames, candle sticks, moving averages, trend lines, and relative strength. This strategy can be used on nearly any time frame you choose, but this example will use intraday charts…
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Volume is an important technical indicator that should be used on every price chart. The volume indicator represents the total trading activity for a specified time period, meaning how many actual units of an instrument have been exchanged. This information is usually represented by vertical columns at the bottom of the chart. Higher volume bars mean trading activity was heavier for the particular time period,…
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Trendlines are one of the most simple and perhaps the most fundamental tool in technical analysis. The significance of a trendline is determined by how many times it has been successfully tested and the length it has been intact. The more times a trendline is successfully tested, the more confidence traders will have in that trendline in terms of support or resistance. Likewise, the penetration…
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Moving averages are some of the most fundamental and versatile of all indicators used for technical analysis. The purpose of a moving average is to identify or signal that a new trend has begun or that an existing trend has reversed. While chart patterns may be subjective and hard to follow, moving averages are precise and easy to interpret. This is what makes them so…
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Your money is the item at risk in the financial markets. When you enter a trade you are “risking” your money because it can be lost (very quickly). Think of trading as a game of what you can keep rather than what you can earn. The goal is to suffer as little loss as possible, i.e. reduce your risk. You can’t control the market, but…
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In this quick lesson I will show you how the relative strength index can be used to anticipate potential moves in the market and pick up some nice profits. We will be looking at a Bitcoin/USD chart, I like to use the 30 minute timeframe for gauging momentum when day trading. This trade setup was easy to spot once the first two lower lows formed…
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Unlike horizontal support and resistance, trendlines are diagonal or slanted areas of value. Trendlines do behave like support and resistance in that price action can be confined between two trendlines that form a channel. Trendlines are considered one of the most fundamental tools in technical analysis, they are easy to draw and simple to understand. Traders use trendlines to identify which direction price is moving…
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Are you stuck in a losing streak from trading and don’t know how to get out? The problem is most likely your state of mind. Here are some words of wisdom to keep you consistent from someone who’s been there. 1. Don’t worry about making money, focus on making good technical trades. This idea may seem ludicrous because you trade to make money but the…
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One of the most devastating mistakes a new trader can make is not setting a stop-loss order. This usually happens because new traders like to think they know exactly what the market is about to do. Why else would they have taken the trade in the first place? Consistently profitable traders on the other hand never enter a trade without a stop-loss. They understand that…
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If you are new to the cryptocurrency space, or trading in general, it is my hope these tips help you avoid many of the common mistakes I faced when starting out. 1. Trading is a psychological game and your only opponent is yourself. Emotions like fear and euphoria are your biggest hurdles. Fear causes debilitation as you watch the market move against you resulting in…
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