A random guide for scalping - Part V - Understanding Intraday Liquidity
Hi there guys, Welcome back to my weekly rants. Decided to add some info that should be pretty useful to your daily trading, thanks to the comments of u/Neokill1 and u/indridcold91. If you have not read the rest of the series, I recommend you take your time and read those before continuing with this piece (check my user activity and scroll down...) This rant is based on this little comment I posted on the last post: Price moves because of the imbalance between buying and selling. This happens all the time. Price move where liquidity is, and that seeking of liquidity makes the price to go up and down. Why price extends on a particular direction? Because longer term players decide it. So the idea behind what I'm writing about is to follow that longer-term trend, taking advantage of a counter-trend wave that is looking for intra-day liquidity. If I'm bullish on the week, I want to pair my buying with intra-day selling. Because I expect longer-term traders to push price by buying massively. And instead of riding a big wave, I want to ride that push and get out before it retraces. And also answers to this: why for example would it make sense to draw support/resistance lines on a EUUSD chart? Why would anyone "support" the price of a spread?What are you predicting to happen by drawing those lines, that someone will exchange their currency there simply because it's the same price they exchanged it for in the past and that number is special to them? A good question that deserves an answer That question is a pretty good one, and one any trader worth of that name should ask himself why. Why price reacts the way it does? Why price behaves in predetermined ways? Why if I draw a line or area on specific candle places, I expect the price to react? And the answer is simple and at the same time kinda complicated and fascinating. Why price rallies and rallies andd rallies and then suddenly it stops at a point ,and reverses? . The answer is , because there are sellers at that point. There is liquidity there. There is people at that point that decided it was worth to sell enough to reverse that rally. All the market does is to put together buyers and sellers. If you want to buy something at some price, someone must agree with you. If no ones agrees, then you will have to offer more. When buyers and sellers agree on similar terms, price is stable. Buying and selling happens on a tight range, because both consider that particular price range worth. But then, perhaps, someone wants to buy big. And there are not enough sellers. This big boy will dry the available liquidity , and it is hungry for more. So price will move from a balanced state to an imbalanced state. This imbalance in volume between buyers and sellers will cause the price to move up, taking all available liquidity till the monster is satiated. Then the exhaustion of bids, or buying, will cause the price to reverse to a point where buying interest is back. The same applies for selling activity. The main take away you should get from this is simply that the market keeps moving from balance to imbalance to balance to imbalance all the time. And the points where the big bois deploy this activity of buying , of selling, of protecting levels, of slowly entering the markets, are mostly predetermined. Surprised? Most of the institutional activity happens at : 00 ,20, 50 and 80 levels. So why drawing a line makes sense? It makes sense because when price stalls at some point, is because sellers or buyers stepped in and stopped the movement. Its a level where something interesting is happening. It's a level where liquidity was present, and the question is, what is going to happen the next time price touches the area? Is someone stepping in to buy or sell at this point? Or perharps the first touch dried the liquidity, and there is nothing preventing price from going up again?? Lets see a real example of a trade I took today on GBPUSD, where I analyze step by step the balance and imbalance of the market liquidity in real time at those levels. The only way to see this is usingfutures. Because forex is a decentralized market and blah blah blah, and futures are centralized so you can see the volume, the limit orders through the DOM and blah blah blah.... So first things first, read well this articule : https://optimusfutures.com/tradeblog/archives/order-flow-trading Understand well what is said there. Take it easy. Take your time. And then come back to me. If you have followed my work, you know how I like to ride the market. I want a retracement on the most liquid moment in the market - the NY-London Overlap, and I need a daily BIAS on the pair. For today, I'm bullish on the GBPUSD. So lets check the pics. https://imgur.com/a/kgev9lT The areas you see marked on the 30 min charts are based on the price relationships that happened last Friday. As you can see, those areas are always in a place where price stalled, retraced, pushed through,came back to the area and reacted in some way. Are those black magic? Why price reacts so smoothly today on them? Ah you Criptochihuahua, this is 20/20 insight, you are lying.... Those points are marked before today's open, simply because of the price relationship I described earlier. And if you remember the earlier rant, price stalls in there because sellers or buyers were present. So I would expect that the levels are still interesting, and we should be watching carefully how price reacts in real time. Now, today I got at 1.2680 and got out at 1.2725. Let's check the 2nd pic, keep following the narrative with your own charts. What you are seeing is the first touch at the big figure with the total volume chart, and the bid/ask order flow chart. You can see how the price is pulled toward that level through the exhaustion of offers being filled. You can see how exactly they are depleted at 15:51. Why? Because at the next min, you can see how there are no offers being filled, compared to the bids. Remember, when offers are getting filled , price pulls up. When the bids are predominantly being filled, price is pulled down. And also take a look on the volume. This is key. If an imbalance is to happen, is because there should be a huge difference between bids and asks. Good volume on such a level, good sign. Price hugging the level without good volume, the level will most likely be broken. Look at the next pic. See the price behavior in combination with the volume? Price is hugging the level on low volume. Great signal. That means the level is not that greatly defended, at this point. What are we looking for? We are looking for the bids to be exhausted at our next level with a good volume reaction. Watch what happens. Next pic is our retracement , and we are watching carefully. And look at that beauty. Do you see the volume? Do you see the bids exhaustion? Do you see how the market orders are getting absorbed by the limit orders at that point? Someone does not want the price to go down. Price jumps as a result. It does not huge the level. Do you see? I'm all in, I want to take part of this trade. But wait, there is more.... look at the next pic, because you yet have another opportunity to get into this train.... at 17:23.. Even a bigger reaction, while on the other side.... we got more hugging... No more pics for today. You see what happens next. The level gets broken and price rallies to take the previous day high. Trade was a success. So I hope this added some value, and explained why drawing lines is useful, and how levels are indeed defended. P.S - I lied: Extra Pic, you got a VWAP chart with Standard Deviations. You can see how the pullback nicely fits in our long framework as well and adds confluence to the trade. Research about this :)
I looked this up in the thread, I hope this isn’t redundant. What are your favorite indicators to use in your scalping strategy? What has worked well for you? What hasn’t worked? Any insight is appreciated, thanks guys
Strategies are a natural way to get the maximum benefit out of algorithmic Trading. Based on the duration of holding the investment, Algo Trading Strategies are classified as Long term and short-term strategies. Automated TradingTrading has been enhanced with specific rule-based decision making. Long Term Strategies
Pricing Strategies are more focused on the expected returns
Mathematical model-based Strategies are developed purely based on mathematical calculations, models.
Trend Based Strategies follow market trends. By using the statistics, patterns are studied, and further strategies are developed.
Arbitrage strategies use algorithms to figure out price differences and trade according to opportunities for profit.
VWAP (Volume Weighted Average Price) & strategies, break the large volume of stock into smaller and later issues them according to market conditions to earn more yield.
Implementation shortfall strategy uses algorithms to target involvement in dealing when stock prices are high and vice versa.
Short-Term Strategies Short term strategies are generally executed in Intraday Trading strategies, where assets are bought and sold on the same day. Here stocks are not purchased for investment purpose but to earn the profit by connecting with the stock market trend. Algo trading strategies are incorporated in Intraday Trading to reap more benefits. Following are the Intraday trading strategies using algorithmic TradingTrading:
Reversal trading strategies use algorithms to find out the highest and lowest points of the day. Based on these points as the secure time, price and quantity start reversing; it gives alerts to either buy or sell the assets.
Trend based strategies analyse the trends using Algorithms, and further strategy is developed.
Bull flag trading strategy based on the highest peak and steady decrease in trend during the day. To get the target prices on the patterns of bull flag shape, algorithms are used. Based on these trends, ' strategies are developed.
Pullback Trading Strategy develops the low-risk buying opportunity.
Breakout trading strategy enables us to enter the market when prices change outside a specific range.
3 Efficient Intraday Trading Strategies Used in Algorithmic Trading Algo trading is an automated practical approach to TradingTrading. Strategies make the trading process very fast and much more result-oriented. The trades can be executed to the point of specified price and volume in minimal time. It reduces the losses due to the time lag between the sale and purchase of securities. When the algo trading is used with specific intraday trading strategies, it works amazingly well. Here are a few back-tested strategies used by successful traders as a part of Algo trading. These strategies can undoubtedly lead to maximize profits with the correct execution. 1.Momentum and Trend Based Strategy: It is the most commonly used and most straightforward strategy. There are no complex interpretations or predictions to be made. It is the momentum and trend-based strategy. You need to follow the trends, and the energy in the market and the trades will be executed accordingly. Trade will be based on technical indicators - the moving averages, the price level movements, channel breakouts, etc. If a set of conditions is fulfilled, then automated trading is generated. 2.Arbitrage Strategy: When there is a difference in the cost of the securities on different stock exchanges, Arbitrage profits take place. The algorithm identifies the price difference immediately using the computers and executes a trade to enable buying on the low-priced exchange and sell on the high-priced exchange. Although the cost difference is not too much, here, we can compare the speed and accuracy of Algo trading and manual TradingTrading. This strategy is mostly applicable to forex trading. Once the trade gets executed, arbitrage profits will be credited to the trader. 3.Weighted Average Price Strategy: This is also one of the most popular and efficient strategies. The objective of this strategy is to quick-execute the order to the volume-weighted average price or the time-weighted average price. The orders are executed in small parts. The order is based at either volume-weighted average price or the time-weighted average price in specific opening price in defined time slots. The algorithms are successful in releasing the orders in small parts with efficiency and accuracy in nanoseconds, which may not be possible by human traders. To know more strategies, refer to our Algorithmic Trading Strategies - Part 1.
Why I moved on from Robinhood to a proper broker (and am not looking back)
Hello fellow autists. It has now been around two weeks where I've moved on from Robinhood and am now using a proper broker (TD Ameritrade, using their "Think or Swim" mobile app / desktop app). I had been using Robinhood for about 1.5 years, but didn't realize the vast amounts of benefits you get at a proper broker (described below). I wish someone had told me about all this when I first started trading, so now I'm passing on this knowledge to youuuuuu. Perhaps other brokers have most if not all of these benefits, but I don't got experience with them.
Pretty cheap trades - While the main benefit of Robinhood is that its free - you can actually get pretty cheap trades with TDA. What you have to do is open a support request with them, and ask them to price match "Tastyworks" (https://tastyworks.com/pricing.html). You TELL them that you want them to price match their fees, or you'll leave etc... Can even ask for cheaper fees if you want. You can also get 300 free trades when you first sign up , and even free money (up to $600) if you deposit a LOT.
Practically unlimited day trades (for stocks and options) - this one was a big one for me, as I’m poor and have less than $25,000 in my trading account. You can ask for a “tier 2 cash account”, and you can do as MANY day trades as you want … but only if the money is “cleared”. Every time you make a trade, the money will clear the next day. What this means is that you can place a trade with 50% of your money in the morning, and then later in the day make another trade with the other 50%, then you can sell out of both positions. The next day the money will be cleared and you can continue trading. I went from doing that dumb 3 day trades every 5 days… to about 5-20 day trades every single day.
Charts have superb indicators in them - Here’s what my “charts” setup looks like - https://i.imgur.com/EiiWEHe.png - You can see I can monitor multiple charts at once (HUGELY beneficial), and I can see the 200d ma, VWAP, EMA clouds, and low and high of day. Hundreds of others to add if you want, and they all work on mobile too.
Combine having “unlimited” day trades with seeing proper indicators on a chart . . . and you can do my new day trading strategy of buying a few options when you see a setup occur (such as a stock going below the low of the day, or buying after it breaks the 200d ma). Then when the price hits a resistance point (such as the pre market highs), you can sell 50-75% of the contracts and lock in profits. Then you can add to your positions on pullbacks or just let the rest ride.
Good referral system - Refer someone and you can get either $50 or 10 free trades (with Robinhood I only ever for like $5 - $10 stocks)
Paper trading - Think or swim has paper trading, so you can practice losing money before you actually lose your real money
Stop loss on options - In a position but have to step out to a meeting? You can have little fear of the market going against you as you can put in stop losses for your options. As you set the stop loss for the price of the contract, it will even tell you what approximate price the stock will be
Market buy in and out of options - With Robinhood, if I wanted to get out of an option I’d put in a sell and it would put the price in between the bid and ask. Half the time it wouldn’t sell right away, so I’d have to cancel it then put in another (all the while the price keeps tanking). Now I can easily market sell something and boom it’s sold. You usually only want to do this if the option has high open interest / volume / tight bid & ask, which you can easily see. Also there’s no “this option can only be bought in 5 cent increment” bullshits
Buy today’s SPY option - lose your money even faster by getting same day expiry for SPY etc…
Easily see the prices for multiple options - Here’s what I see to buy into options (https://i.imgur.com/Ug8pskt.png). I can easily browse multiple strikes for today, and click into other dates to see those. No more clicking into an option… then clicking into it again to see the open volume etc… You can also see the IV on the very right of the tab name (with the date on it)
Excellent customer support, can live chat - Compared to RH where its practically 0 support and GG if you run into an issue
Transfer your IRA and day trade or do options on it - Lose your retirement funds too if you want. If it's a Roth IRA, gains are tax free (but losses aren’t a tax right off)
You can also link all of your accounts... And then trade with them all at once. So in a few clicks I can take a single trade that gets executed on my day trading account, my Roth IRA, and my traditional IRA
Excellent mobile app and desktop app that syncs - Tons of other features I’m leaving out too
Forex and futures - If you want, you can do forex and futures
Just download “Think or swim” and try out the “paper trading” at least, it's all free. You can also open a regular account and just do all of your chart viewing and option browsing, then go into RH if you want to buy in there. PM me if you have any questions :D
Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information: Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions: Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected? The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA is best used for short term trading, but can also be used for long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks Terminology
Indicator - a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator
trade signals - when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)
lagging indicator - based on past prices, for example the Moving Average indicator
leading indicator - typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals
oversold - a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying
overbought - the opposite of oversold; for RSI it's above 70
divergence - when an indicator and stock price move inversely which foreshadows a coming change in the price
whipsaw - when trade signals & price suddenly reverse either stopping you out or making you exit your trade
resistance - an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.
support - an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.
breakout/breakdown - when price breaks support or resistance
alerts - a notification for when price hits your desired target, some software allows you to place the alert direction on a chart
level ii - This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading
trend line - can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example
Market participants - also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).
Useful indicators
Moving average (MA) - lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.
RSI - relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)
VWAP - intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw
MACD - combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other
ATR - Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.
Bollinger Bands (BB) - takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.
Ichimoku clouds - Combines even more indicators, good for beginners, see here
Pivots - these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines
Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information: Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions: Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected? The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA is best used for short term trading, but can also be used for long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks Terminology
Indicator - a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator
trade signals - when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)
lagging indicator - based on past prices, for example the Moving Average indicator
leading indicator - typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals
oversold - a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying
overbought - the opposite of oversold; for RSI it's above 70
divergence - when an indicator and stock price move inversely which foreshadows a coming change in the price
whipsaw - when trade signals & price suddenly reverse either stopping you out or making you exit your trade
resistance - an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.
support - an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.
breakout/breakdown - when price breaks support or resistance
alerts - a notification for when price hits your desired target, some software allows you to place the alert direction on a chart
level ii - This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading
trend line - can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example
Market participants - also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).
Useful indicators
Moving average (MA) - lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.
RSI - relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)
VWAP - intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw
MACD - combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other
ATR - Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.
Bollinger Bands (BB) - takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.
Ichimoku clouds - Combines even more indicators, good for beginners, see here
Pivots - these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines
Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information: Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions: Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected? The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA is best used for short term trading, but can also be used for long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks Terminology
Indicator - a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator
trade signals - when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)
lagging indicator - based on past prices, for example the Moving Average indicator
leading indicator - typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals
oversold - a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying
overbought - the opposite of oversold; for RSI it's above 70
divergence - when an indicator and stock price move inversely which foreshadows a coming change in the price
whipsaw - when trade signals & price suddenly reverse either stopping you out or making you exit your trade
resistance - an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.
support - an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.
breakout/breakdown - when price breaks support or resistance
alerts - a notification for when price hits your desired target, some software allows you to place the alert direction on a chart
level ii - This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading
trend line - can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example
Market participants - also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).
Useful indicators
Moving average (MA) - lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.
RSI - relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)
VWAP - intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw
MACD - combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other
ATR - Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.
Bollinger Bands (BB) - takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.
Ichimoku clouds - Combines even more indicators, good for beginners, see here
Pivots - these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines
WeGen (WGC) will be launching its token sales with ProBit Exchange from March 18, 2019, to March 22, 2019. The IEO price of WGC will be determined by discounting WGC’s volume weighted average price (VWAP) at BitForex (www.bitforex.com) for the period from March 11, 2019 to March 15, 2019 by 15%. Quote currencies that will be accepted are USDT, BTC, ETH, XRP,and PROB. Buy WGC using PROB, Get 10% Bonus Users will gain 10% more WGC by purchasing WGC through PROB. PROB is the exchange token of ProBit Exchange, which offers its holders multiple airdrops and benefits. Buy WGC using USDT, BTC, ETH, XRP, Get 7% Bonus Users will gain 7% more WGC by purchasing WGC through BTC, ETH, XRP, and USDT. KYC Verification Notice All participants of Wegen's token sale are required to complete KYC verification. Korean users are able to complete the KYC verification process conveniently at ProBit Korea (www.probit.kr). KYC verification for global users is being set up by ProBit. Non Korean users may participate in WGC token sales prior to KYC verification, but the WGC tokens bought by non-KYC users without KYC verification will be delivered after KYC verification is completed. About WeGen (http://www.wegen.io/) WeGen provides the world’s first Blockchain-based product authentication-compensation platform. Powered by 3D security labeling technology (G-MOV), WeGen provides anti-counterfeit measures in order to protect and incentivize the entire supply chain to help prevent the widespread penetration of counterfeit products. About ProBit ProBit Exchange is a global cryptocurrency exchange. ProBit Exchange only lists promising, qualified and deserving cryptocurrency projects. ProBit Exchange boasts order matching speed of over 1.5 million orders per second, superb security which supports hardware security keys and a customizable user interface. ProBit Global: www.probit.com ProBit Korea: www.probit.kr IEO at ProBit Exchange ProBit Exchange is able to support an IEO with more than 5 currencies, multiple sales round, different bonus rates and various lock-up structures. The funds received are stored with the same high level protections that ProBit Exchange uses for exchange's deposits. Preferential listing treatment is given to projects that conduct IEO on ProBit Exchange. For more information on running an IEO on ProBit Exchange, please send an email to [email protected]
Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information: Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions: Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected? The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA is best used for short term trading, but can also be used for long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks Terminology
Indicator - a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator
trade signals - when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)
lagging indicator - based on past prices, for example the Moving Average indicator
leading indicator - typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals
oversold - a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying
overbought - the opposite of oversold; for RSI it's above 70
divergence - when an indicator and stock price move inversely which foreshadows a coming change in the price
whipsaw - when trade signals & price suddenly reverse either stopping you out or making you exit your trade
resistance - an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.
support - an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.
breakout/breakdown - when price breaks support or resistance
alerts - a notification for when price hits your desired target, some software allows you to place the alert direction on a chart
level ii - This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading
trend line - can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example
Market participants - also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).
Useful indicators
Moving average (MA) - lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.
RSI - relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)
VWAP - intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw
MACD - combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other
ATR - Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.
Bollinger Bands (BB) - takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.
Ichimoku clouds - Combines even more indicators, good for beginners, see here
Pivots - these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines
I listen to a number of different trading podcasts. I've heard forex traders looking for volume data putting together their own ea's/indicators that collect this information externally and bring them into mt4. What sources offer this information? I know Quandl (for a $1250/mo cost) will allow you to pull information from CLS. However, that is day old information. Still useable for intraday but am I missing other potential sources? I cant imagine where they'd get it. I'm interested along Market and Volume Profile purposes. Also, VWAP. Thoughts? EJ
Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information: Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions: Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected? The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price. TA is best used for short term trading, but can also be used for long term. Intro to technical analysis by Stockcharts chartschool and their article on candlesticks Terminology
Indicator - a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator
trade signals - when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)
lagging indicator - based on past prices, for example the Moving Average indicator
leading indicator - typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals
oversold - a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying
overbought - the opposite of oversold; for RSI it's above 70
divergence - when an indicator and stock price move inversely which foreshadows a coming change in the price
whipsaw - when trade signals & price suddenly reverse either stopping you out or making you exit your trade
resistance - an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.
support - an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.
breakout/breakdown - when price breaks support or resistance
alerts - a notification for when price hits your desired target, some software allows you to place the alert direction on a chart
level ii - This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading
trend line - can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example
Market participants - also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).
Useful indicators
Moving average (MA) - lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.
RSI - relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)
VWAP - intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw
MACD - combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other
ATR - Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.
Bollinger Bands (BB) - takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.
Ichimoku clouds - Combines even more indicators, good for beginners, see here
Pivots - these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines
XTRD is a technology company that are introducing a new infrastructure that would allow banks, hedge funds, and large institutional traders to easily access cryptocurrency markets. XTRD is launching three separate products in sequential stages to solve the ongoing problems caused by having so many disparate markets. Firstly a unified FIX API followed by XTRD Dark Pools and finally the XTRD Single Point of Access or SPA. Our goal is to build trading infrastructure in the cyptospace and become one of the first full service shops in the cryptocurrency markets for large traders and funds.
A single FIX API for trading across all connected exchanges
A robust GUI for manual cross execution on all crypto markets
A large liquidity pool, based on orders books from all connected exchanges
Best prices and best top of book execution net of fees
Low transaction fees
99.99999% reliability and uptime
Fast execution
Parent/child orders on multiple exchanges to minimize individual market impact
Advanced order types common in the equity and FX trading space
Establish XTRD as a premier market-making entity to mitigate spreads and increase liquidity in the cryptocurrency space
Derivative trading - XTRD plans to connect to LedgerX (US based, approved by the CFTC) for cryptocurrency options and swaps to offer unified hedging and derivate trading strategies
Robust, US based technical support
Reliable and familiar deployment methods for institutions:
IPSec as a connectivity option across the Internet
Cross connection options
Collocation space or VPS (Virtual Private Servers) that clients can rent from XTRD
UAT/Sandbox environment for testing
What are the industry issues?
COMPLEX WEB OF EXCHANGES. A combination of differing KYC policies, means of funding, interfaces and APIs results in a fragmented patchwork of liquidity for cryptocurrencies. Trading in an automated fashion with full awareness of best pricing and current liquidity necessitates the opening and use of accounts on multiple exchanges, coding to multiple API’s, following varying funding and withdrawal procedures. Once those hurdles are cleared, market participants must convert fiat currency to BTC or ETH and then forward the ETH on to an exchange that may not accept fiat, necessitating yet another transaction to convert back to fiat. Major concerns for market participants range from unmitigated slippage and counterparty risk to hacking prevention and liquidity. HIGH FEES. Execution costs are even more of a factor. Typical exchange commissions are in the 0.1% – 0.25% range per transaction (10 to 25 basis points), but the effective fees are much higher when taking into bid and ask spreads maintained by the exchanges. As most exchanges are unregulated, there is generally no central authority or regulator to examine internal exchange orders that separate proprietary activity from customer activity and ensure fair pricing. THIN LIQUIDITY. A large institutional order, representing a sizable percentage of daily volume can move the market for a product, and related products in an exchange by a factor of 5-10%. That means a single order to buy $1,000,000 worth of bitcoin can cost an extra $50,000-$100,000 per transaction given a lack of liquidity if not managed correctly and executed on only one exchange. By way of comparison, similar trades on FX exchanges barely move markets a fraction of a percent; those price changes cost traders money, and deter investment.
What are the XTRD solutions?
FIX API An API is an “Application Programming Interface”, a set of rules that computer programs use to communicate. FIX stands for “Financial Information eXchange”, the API standard used by most financial organizations as the intermediary protocol to communicate amongst disparate systems such as market data, execution, trade reporting, and order entry for the past 25 years.XTRD is fixing the problem of having 100 different APIs for 100 exchanges by creating a single FIX based API for market data and execution – the same FIX API that all current financial institutions utilize.XTRD will leverage our data center presences in DC3 Chicago and NY4 New Jersey to host FIX trading clients and reduce their trading latencies to single milliseconds, a time acceleration of 100x when it comes to execution vs internet. More infrastructure and private worldwide internet lines will be added in 2018 and beyond to enable secure, low latency execution for all XTRD clients, FIX and PRO. XTRD PRO XTRD PRO is a professional trading platform that will fix the basic problems with trading across crypto exchanges – the need to open multiple web pages, having to click around multiple windows, only being able to use basic order types, and not seeing all your positions, trades, and market data in one place.XTRD PRO will be standalone, downloadable, robust end-to-end encrypted software that will consolidate all market data from exchanges visually into one order book, provide a consolidated position and order view across all your exchange accounts, and enable client side orders not available on exchanges – keyboard macro shortcuts, VWAP/TWAP, shaving the bid and offer, hit through 1% of the inside, reserve orders that bid 100 but show 1, SMART order routing to best exchange and intelligent order splicing across exchanges based on execution costs net of fees, OCO and OTO, many others. XTRD SPA XTRD SPA is the solution to bridge cross-exchange liquidity issues. XTRD is creating Joint Venture partnerships with trusted cryptocurrency exchanges to provide clients on those exchanges execution across other exchanges where they do not have accounts by leveraging XTRD’s liquidity pools.An order placed by a client at CEX.IO, XTRD’s first JV partner, can be executed by XTRD at a different exchange where there may be a better price or higher liquidity for a digital asset. Subsequently, XTRD will deliver the position to CEX.IO and then CEX.IO will deliver the execution to the client, with XTRD acting as just another market participant at the CEX.IO exchange.XTRD does not take custody of funds, we are a technology partner with exchanges. All local exchange rules, procedures, and AML/KYC policies apply. XTRD DARK Institutions and large market participants who have large orders of 100 BTC or more generally must execute across multiple markets, increasing their counterparty risk, paying enormous commissions and spreads, and generally having to deal with the vagaries of the crypto space. Alternatives are OTC brokers that charge multiple percents or private peer-to-peer swaps which are difficult to effectuate unless one is deeply in the space.XTRD is launching XTRD DARK – a dark liquidity pool to trade crypto vs fiat that matches buyers and sellers of large orders, discreetly and anonymously, at a much lower cost. Liquidity is not displayed so large orders do not move thin markets as they would publicly. The liquidity will come from direct XTRD DARK participants as well as aggregation of retail order flow into block orders, XTRD’s own liquidity pools, connections with decentralized exchanges to effectuate liquidity swaps, and OTC broker order flow.XTRD is partnering with a fiat banking providebroker dealer to onboard all XTRD DARK participants for the fiat currency custody side with full KYC/AML procedures.
XTRD Tokenomics
TOKEN USAGE. XTRD will generate the XTRD utility tokens via smart contact during the Token Generation Event (TGE) in Q1 of 2018. The XTRD utility token will be utilized on the XTRD network by market participants to pay for execution, VPS, market data, software licensing, and other fees. Market participants will be able to purchase XTRD tokens directly from XTRD’s liquidity pool. The TGE will be preceded by a private institutional sale and a SAFT (Simple Agreement for Future Token) Platform based presale. The XTRD token will be fully ERC20 compliant to ensure that it functions properly on the Ethereum blockchain, similarly to other ERC20 tokens.
XTRD TOKEN LIQUIDITY AGGREGATION. The XTRD token will be used to create liquidity in the overall cryptocurrency market. Along with the utility of the XTRD token to pay for fees on the XTRD platform of products, most of the XTRD token revenue will be used to increase the inventory of other cryptocurrencies that are in demand by our customers. This will create points of liquidity for our customers to access across the worldwide crypto exchange ecosystem. These liquidity points will be created using XTRD tokens that are paid back into the system for fees. 70% of funds raised in the token sale will be used for liquidity aggregation.
XTRD STAKING. Discounts of 25% on XTRD services (execution, colocation, market data, software licensing) will be available for token holders in general and discounts of 40% on XTRD services will be available for token holders who maintain an average monthly stake of at least 50,000 XTRD tokens. Fiat will be accepted at no discount to par. Execution fees will generally be set as a percentage of the gross trade amount, based on a combination of factors such as liquidity, the pair being traded, market conditions at the time of the trade, and so on. All charges will be marked to market and remain constant, no matter the value of the XTRD token (a $10 charge will be 2 XTRD if $5 each or 0.5 XTRD if $20 each).
TOKEN LEGAL CONSIDERATIONS. XTRD tokens are ERC20 compliant utility tokens functioning on the Ethereum blockchain. The value of XTRD is derived purely from serving as a medium of payment for services by market participants in the XTRD trading ecosystem. XTRD tokens confer no voting rights, profit participation, equity, ownership of intellectual property, revenue sharing, rights to dividends, transfer of ownership upon company sale, control of company assets, or any decision-making ability regarding XTRD or its’ operations. XTRD tokens are not designed for speculation. In summary, XTRD tokens are not securities. XTRD Digital Assets, Inc has obtained a qualified legal opinion concurring that XTRD tokens are not to be considered “securities” under applicable U.S. securities laws given their failure to meet all prongs of the Howey Test.
Who is XTRD intended for?
XTRD is mainly aimed at major institutions, hedge funds, algorithmic traders who are currently unable to enter the crypto markets. These firms include companies such as Divisa Capital run by XTRD Advisor Mushegh Tovmasyan.
More information will be added to this thread as the project develops. We are currently looking for key community members to assist in building out this thread. If you are interested please email [[email protected]](mailto:[email protected])
Advice on how to know which MT4 account type is best suited for your trading system?
I am going to begin demo trading and I want my experience to be as realistic as possible. The choice is between these accounts: a) MT4 b) MT4 Instant c) MT4 Fixed Spreads And I understand what fixed spreads are allthough I've read that with fixed spreads they tend to be bigger spreads. I received this explanation from fxpro live chat:
MT4 is a Market account, this means that your orders will be executed at the VWAP price which is the available price at the time of the execution. MT4 instant, you will receive the single price you see there
But first of all, I don't completely understand that and secondly, I'm not sure how to know which trading style is best suited for which of these MT4 account types? I think I would like to have a trading style that uses perhaps the hourly or 4h or maybe even the daily timeframes.. I know that is a lot of different options though.. It most likely won't be the daily though because that will first of all need a much bigger capital to trade with than what I have and secondly, it will take so much time to wait for trade setups. I think 4h sounds the best. The thing is that I will also work full time job and do forex trading with the savings on the side. I guess another option is to go really scalp timeframes.. so that I don't need to watch or worry about the charts while at work or when I don't want to, then when I have a couple hours to spare, I can do some scalping.. I think even if I just have like a few scalping sessions per week, it should be more effective than doing just a few 4h timeframe trades per week?
Home Forex MT4 Indicators VWAP Bands Indicator. VWAP Bands Indicator. The VWAP Bands Indicator is similar to Bollinger bands, but it uses volume weighted average as the central value of the bands. You can also notice three periods of the bands (red, green and blue). [VWAP and MVWAP are among many technical tools that you can use to maximize the profitability of your trading strategy. To learn more, check out the Technical Analysis course on the Investopedia ... Using The 24-hour VWAP Tool for Forex Trading. by Tradesight Dec 16, 2010 Tradesight 0 comments. There are a variety of ways to use the 24-hour VWAP (Volume-Weighted Average Price) as we teach it. This is a unique tool to Tradesight in the FX arena (although commonly used in stocks and futures). The importance of the VWAP level as it ... In the chart below, we have the Volume & Price column. The first step is to multiply Price with Volume to get (Volume*Price) column. Second step is to add this column to get Σ Price*Volume. Third Step is to take sum of Total Stocks Traded Σ Volume. Last step is to divide both Σ Price*Volume/Σ Volume to get the VWAP Value. In the example below, VWAP Value is 38000/200 = 190. In the world of retail forex trading, of course, traders use the VWAP simply as a way to sell when price is above the VWAP or to buy when price is below the VWAP. However, looking at the example chart shown previously, you will see that VWAP constantly changes.
VWAP Trading Strategies for Day Trading Beginners (Long ...
The VWAP pullback trade entry strategy. http://www.financial-spread-betting.com/course/volume.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! This o... How to Trade using VWAP (the right way) PREMIUM CHATROOM LESSON We do education like this every day in our live trading room, Come join us or take a trial at... Using the VWAP indicator, spot intraday long and short trades by combining with MACD crossover. MACD is applied on the VWAP price, instead of stock price. Fi... Best way to use VWAP Indicator Trading Strategy!!! A tutorial on How to use VWAP Indicator Intraday Trading Strategy / Day Trading Strategies that will work ... This is the ultimate guide to using the VWAP indicator in 2020. By following this guide, you'll be able to implement VWAP into your day trading right away an...
