Being patient in forex and stock market is a very important factor to achieve financial goals.

Patience is a virtue that is especially important in the world of forex and stock market trading. It can often be tempting to make impulsive decisions based on short-term fluctuations in the market, but this can lead to costly mistakes. Instead, it is essential to take a long-term perspective and be patient in your approach to trading.

One of the key benefits of being patient in the forex and stock market is that it can help you avoid making emotional decisions. When the market is volatile, it can be easy to get caught up in the moment and make hasty decisions based on fear or greed. By taking a step back and being patient, you can avoid being swayed by short-term emotions and instead make informed decisions based on data and research.

Another benefit of patience in the forex and stock market is that it can help you identify trends and patterns more easily. By taking a long-term view, you can see the bigger picture and get a better understanding of how the market is likely to behave in the future. This can be especially helpful when making investment decisions, as you can make more informed choices about which assets to buy or sell.

Of course, being patient doesn't mean that you should sit back and do nothing. It's important to stay informed about the market and stay up-to-date with the latest news and developments. Regularly monitoring your portfolio and making adjustments as needed is also important, as this can help you take advantage of opportunities and minimize your risks.

In conclusion, patience is a critical quality for success in the forex and stock market. By taking a long-term perspective, avoiding emotional decisions, and staying informed, you can increase your chances of making sound investment decisions and achieving your financial goals.

Fear of recession is here!

 Fear of recession is here!

 

What that means for us as investors and traders?

Recession fears decrease demand for new products which leads to less production.

This includes many asset types from #OIL related products to tech #AAPL and travel industry #RCL

 

With all the troubles going around the world, especially energy shortages in Europe due to Russia and Ukraine wars, the only solution to bring OIL prices down is a recession.

What should traders do?

They should take advantage of the current market situation by opening short positions. A trader should be aware of money management and risks though!

 

What should we do as investors?

We should be patient and wait until we find another low point to add new stocks and cryptos.

#BTC

#XLM

 

Stay safe!

By Nina

MILAN OSCILLATOR INDICATOR

The most important signals are related to the divergence.

A recap for divergence from previous lessons: 

Divergence and Hidden Divergence

Positive Divergence is bullish and occurs in a downtrend when the price action prints lower lows that are not confirmed by the oscillating indicator.

Negative Divergence is bearish and occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator.

Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase.

Bearish Hidden Divergence occurs during a reaction in a downtrend when the oscillator makes a lower low while the price action does not as it is in a reaction or consolidation phase.

Other Signals can be crossing 0 lines or confirmation of change of bars colour.

Acceleration Bands

 Acceleration Bands

• Serve as a trading envelope that factors

• The standard setting is 20 candles.

• They can be used across any time period as breakout indicators outside these bands.

• Acceleration Bands are plotted around a simple moving average as the midpoint, and the upper and lower bands are of equal distance from this midpoint.

• Can be used in both growth and value trading strategies to show the potential breakouts.

McGinley Dynamic Indicator

McGinley Dynamic Indicator:

• It was invented by John R. McGinley.
• It would automatically adjust itself in relation to the speed of the market.

This future can be very helpful as it is sometimes difficult to choose the right period for the MA. 

• It also helps to account for the gap that often exists between prices and moving average lines.
• Can't be used as a single indicator and we need to combine this with other indicators or another McGinley indicator.

Price actions respect moving averages because so many traders use them in their strategies.

Because of the formula, the Dynamic Line speeds up in down markets and moves more slowly in uptrends. One wants to be quick to sell in a down market, yet ride an up-market as long as possible. 

Triangles Patterns

We have 3 different main types of triangle patterns. Symmetrical Ascending Descending

Vertical Horizontal Filter

 

I normally do not use this indicator for signals. Instead I am using this to recognise the trend as a confirmation for my signals.

• Rising values confirms continuation of a trend. (Uptrend or downtrend)
• Falling values indicate a ranging market.
• High values: Potentially end of a trend.
• Low values: Maybe start of a trend.

A volatility indicator can help you in interpreting this indicator as in a more volatile market the range will be wider!

Ultimate Oscillator

 

Buying Pressure (BP) = Current Close – Minimum (Current Low or Previous Close)

 

Ultimate Oscillator = 100 x [(4 x Cycle1) + (2 x Cycle2) + Cycle3] / (4 + 2 + 1)

 

Calculation

If:

·         Cycle 1=7

·         Cycle 2=14

·         Cycle 3=28

Then:

Ultimate Oscillator = 100 x [(4 x Average7) + (2 x Average14) + Average28] / (4 + 2 + 1)

 

Overbought and oversold signals:

In an uptrend:

Buy when the indicator rise above oversold line.

In a downtrend:

Sell when the indicator falls below the overbought line.

Divergence signals:

Buy signal normally at the end of a downtrend: Wait for the bullish divergence in the market. This means, the price should make a lower low, but the indicator should display a higher low.

Sell signal normally at the end of an uptrend: Wait for the bearish divergence. This means, the price should make a higher high, but the indicator should display a lower high.

Typical Price

 

Typical Price is an approximate arithmetic average. Some people call this a Pivot point

How to calculate:

High: H

Low: L

Some people use this Open: O      TP= (H+L+O+C)/4

Close: C

The formula is as below:

TP= (H+L+C)/3

Strategy:

Combine this with a moving average.

Signal: Every time TP crosses above MA it gives us a buy signal

A TP crossing below the MA produces a sell signal.

Triple Exponential Average (TRIX)

 

Triple Exponential Average (TRIX)

·       TRIX is an Oscillator: Oscillates around zero

o   Overbought if it is above zero - I do not like this definition!

o   Oversold when it is below zero - I do not like this definition!

·       When TRIX is used as a momentum indicator

o   Positive value means the momentum is increasing.

o   Below zero line suggests the momentum decreasing.

·       When TRIX is used as a trend indicator

o   More time staying above the zero means uptrend.

o   More time below the zero line means downtrend.

·       Signals

o   Many analysts believe that when the TRIX crosses above the zero line it gives a buy signal, and when it closes below the zero line, it gives a sell signal.

o   I prefer combining TRIX with a moving average with smaller time period

§  Buy only if in an uptrend and you see the TRIX crosses above MA

§  Sell only if in a downtrend and you see the MA crosses above TRIX

·       Divergence

o   A divergences between price and TRIX can indicate significant turning points in the market.

Time Series Forecast Indicator (TSF)

 The Time Series Forecast tries to calculate a best-fit line over a specified time period using Linear Regression. This line is then plotted forward for a user-defined time period.

I use this in an identical way as I use 2 moving average indicators.

So the same setups will be used here. You can watch the video for how to use moving averages here .

The advantages of using TSFs over MAs are:

1. Moving average has more delays.
2. TFS also tries to forecast the price.

Swing Index Indicator (SI)

1. Swing Index is used to compare a price movement to price swing 
2. The purpose is to defining the strength of price movement.
3. Positive SI reading can be a sign of a price up-move and negative SI readings considered as a sign of price down-move. 
4. Swing Index is based on the 2-bar data
5. I prefer to use SI on shorter time frames as it is only reliable to predict just several bars into the future. 

Signals:

• Buy signal: when the Swing Index crosses over zero. (Duration of trade only next few candles)
• Sell signal: when the Swing Index crosses below zero. ( Stay in trade or change SL after only a few candles)
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Stochastic Momentum Index (SMI)

We can use this indicator to get the following information.

Overbought or Oversold: Above the overbought and below the oversold lines.

Trend: More oversold in compare to overbought indicates a downtrend.

More overbought in compare to oversold areas indicates a downtrend.

Trading Signals: Crossing the lines inside the extreme areas.

Random Walk Index Indicator (RWI)

This is a perfect indicator to determine the trend direction! 💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲💲 ✅ Uptrend strategy: When RWI high (purple in this video) is above the RWI low then the trend is up. Combine this indicator with the Fisher Transform indicator, then open long positions as per the Fisher Transform when the trend is up. ✅ Downtrend strategy: When RWI high (purple in this video) is below the RWI low then the trend is down. Combine this indicator with the Fisher Transform indicator, then open short positions as per the Fisher Transform when the trend is down.

Prime Number Bands

1- Trend analysis: 

Higher prime numbers mean we are in an uptrend. When the bands are moving upward direction, the market has a Bullish Direction. 

Lower and lower prime numbers mean we are in a downtrend. (If the bands are moving Downward direction) 

2- Volatility: 

Narrower bands mean stock price is less volatile. 

Wider bands indicate share price is volatile. 

3- Signals:

 In an uptrend look for a spike down in prime band for a long position entry.

 In a downtrend look for a spike up in a prime band for a short position entry.(Not my favourite scenario, though!)