Wednesday, 30 October 2019

Scaling in Trading Strategy

 

scale in strategy

 

 

 

What's Scaling in?

 

It's to open multiple units at different price levels to maximize your profits . Simply, when a trader opens a position, he waits until some circumstances happen to add other positions to his current one. It's considered an advanced strategy because it rises your risks if the market goes against you.

In this article, we will discuss three conditions traders should add to their current open positions. 

  1. Moving Averages


In this approach, we use three different moving averages: 5-day EMA (black line), 20-day EMA (purple line) and 50-day EMA (orange line).

Let's take an example. Below is the ETH/USD daily chart.

Firstly, we opened a short position when 5-day EMA crossed under 20-day EMA. Then a bearish confirmation is confirmed as 20-day EMA broke down 50-day EMA. To add more short positions, we waited for any rebound from both 20 and 50 EMA. The more the price rebounds from the them, the more reliable our trades will be.

We placed our stop loss for fresh positions just above the 50-day EMA and trail the stops for old positions also above the 50-day
in order not to miss the profits.
In our trades below, we expanded our profits much and never got out of the market early.

GBP CHART

Take another example, we applied the same rules to the GBP/USD chart below and maximized our profits to its most. Notice how the rebounded from both 20 and 50 EMA gives us great opportunities to add more profitable positions.



Also, this is a Gold daily chart. We went long when 5 EMA crossed above 20 EMA. Then, we added more long positions when the price touched the 20-day EMA several times.





Moving Averages Trading Strategy







2. Breakout/ Break down


As you can see from the chart below, GBP/JPY has formed a descending channel. In descending channels, the upper line is considered as resistance while the lower line as support level. 

* Let me remind you of some basic technical analysis " When resistance breaks out, it considered as a bullish sign, whereas when support breaks down, it considered as a bearish sign"

Therefore, traders should short at the upper line of the channel and take profit at the lower line.

 However, in our example below, the price plunged below the lower line ( the support), as a consequence we added more short positions. Notice how the price rebounded from the lower line of the broken channel, so we took it as a confirmation signal to add more shorts. After our trades, we easily doubled our profits.

HT/USDT

You can take the XAU/USD chart below as another example of this method.

3. Fibonacci Retracements



Fibonacci retracement is a method of technical analysis for determining support and resistance levels. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.

In our example below, we have an earlier long position. When the price started to correct, we implemented Fibonacci retracement on the chart to determine the possible support levels.

As you can see from the chart, the 0.382 Fibonacci level provided great support. It held the pair many times. Hence, we bought more units.

Amazingly, the chart gives us another great opportunity to add more profitable units when it breaks up the previous high and
Fibonacci ratios. 0.0%.


As we discuss Scaling in strategy in this article, there is also Scaling out strategy we will go over it in future post.


Exit Strategies to Protect your Capital



Sunday, 22 September 2019

LTC/USD, LTC/BTC Price Analysis: LTC Shows Slight Gains

LTC Price Analysis

LTC/USD


LTC dipped back from the $81 level on Sept. 19. it's 23.6 Fibonacci level. It broke down the 50-day EMA. Also, it's now trading inside a small ascending channel. If the pair breaks down the channel, a fall to $62 strong support is likely. This is an important level. If the price slips below it, the downtrend will resume.

On the other hand, bulls need to push Litecoin above $81 level to change the trend.The first target is $100 and above it $114. Therefore, traders can buy on a close above $81 level.

LTC/BTC


LTCBTC PRICE ANALYSIS

LTC/BTC dipped back from 0.008 level. It's trading below the 50-day EMA. Now the pair finds support from both 20-day EMA and the trend line. A break above 0.008 level can carry the price to 0.01. Traders should wait a close above 0.008 to initiate fresh position.

Saturday, 21 September 2019

Ethereum Shows Recovery: Bulls Jump In Again

ETH BULLISH


Daily Chart


Ethereum breaks out both 20 and 50-day EMA. Also, a golden cross between moving averages is about to happen. RSI shows that the power is in bulls' hands. All of these show that the trend is changing from down to up.

ETH/USD has rebounded from the trend line shown in the chart and it found support from 0.236 Fibonacci level at $212. The bulls will try soon to propel the pair above the trend line and carry it to the next target at $240 thereafter to $265.

On the way down, the moving averages will give us a great opportunity to buy Ethereum at good levels with stop loss below them.

4h chart eth

4H Chart 

In the 4H chart, you can see clearly how the 20-day EMA provides good support. Below is the 50-day EMA that may hold any correction.The main resistance level is at $240. If bulls successfully break above it, a strong uptrend is expected to start.


Tuesday, 10 September 2019

ONT Price Prediction: ONT Saw Some Gains

ONT(Ontology) Price Outlook


ONT has finally broke up the 20-day EMA which is the first sign of recovery. RSI is still showing bullish divergence. As we stated in our last analysis, the trend line and the 50-day EMA will be the next resistance zones. Today the price has rebounded from the trend line. Traders should go bullish when the pair closes above the 50-day EMA. Above this level, a rally to $1 is probable.

In the downside, 20-day EMA will be the first support now, thereafter $0.68 level.

ontology analysis

ONG Price Outlook

ONG is in consolidation now. It is trading below the moving averages which is negative. The area between the moving averages will act as a stiff resistance. If the bulls succeed to break above it, a move to $0.25 is likely.

ong analysis

Friday, 6 September 2019

ONT (Ontology) : Moving Averages Fight Any Recovery

ONT ANALYSIS CHART 2


 

After the breakdown of the uptrend line, ONT/USD is trading in a range-bound condition. The main resistance right now is the 20-day EMA. Look at the chart and see how this moving average is a great hurdle for any recovery. This shows that the trend is down. Above the 20-day EMA there are the trend line and 50-day EMA. We suggest traders open long positions only if the price breaks out the 50-day EMA.
If the bulls successfully carry the pair above both the moving averages, a rally to $1 level is likely. Thereafter to $1.20.

On the other hand, bears weren't be able to drag the price below $0.68 level, this shows that the selling pressure isn't strong yet. However, if the buyers don't come in soon, the bears will try to sink the pair below this level and extend the fall to $0.50. 

Therefore, we don't recommend open fresh positions at current  conditions.


BTC, ETH and LTC Price Analysis

Cryptocurrency Analysis

Bitcoin Price Outlook


Bitcoin breaks above the moving averages which is positive. A golden cross between 20-day EMA and 50-day EMA is about to happen. Moreover, the pair has formed a huge symmetrical triangle. Traders should wait for a break out above the downtrend line to initiate fresh long positions. The price target of the breakout is around $13,000. The RSI is in favor of the bulls.

In the downside, $9080 is proved to be good support. The bulls will defend this level aggressively. If it breaks down, it may indicate a change in the trend.


bitcoin analysis chart

Ethereum Price Outlook


Unlike Bitcoin, Ethereum looks less bullish. It's still trading below the moving averages. The 20-day EMA is a real hurdle for the pair to advance. Most importantly, ETH/USD breaks down the uptrend line, which is negative. Traders should carry the price above the 20-day EMA to start the recovery. Above this level, 50-day EMA will be the next hurdle. For now, we can't see any reliable buy set up.

For supports, $163 will be the first one, thereafter $147.

ethereum price analysis

Litecoin Price Outlook


Litecoin is in the hands of the bears. The price has corrected below the 0.618 Fibonacci retracements of the entire rally from the low of $22 to the high of $146. Other resistance can be seen from the downtrend line and moving averages. A successful break out of the downtrend will resume a strong uptrend.

On the downside, if bulls can't clear the resistance, a revisit to the recent low at $62.20 is more likely to happen.

ltc price analysis


Sunday, 1 September 2019

GBP/USD, EUR/USD Technical Analysis


General overview of GBP/USD

Prime minister Boris Johnson intends to suspend Parliament from September 12 until Oct. 14. The opposition party said it could trigger an emergency debate in parliament next week to try to prevent Prime Minister taking Britain out of the EU without a withdrawal deal. This is a negative environment for GBP.


Daily Chart Technical Analysis

 

GBP/USD Chart

 

The major trend is still bearish. GBP/USD is trading below the moving averages. They are behaving as  stiff resistance for the pound to advance. On the upside, $1.23 will be the first hurdle for the bulls if it is broken it may trigger a rise to $1.2345 and to 50-day EMA.

However, $1.2100 will be the first support as it's the Psychological level. A break below it may carry the sterling to $1.2020.

 

General overview of EUR/USD

EUR plummeted against USD as German inflation slowed in August and unemployment rose. This shows that the largest economy in EU is slowing. Additionally,  traders priced in a rate cut by the European Central Bank as its policy meeting on September 12.

Daily Chart Technical Analysis

 

EUR/USD Chart

 

 The main trend is bearish. If the fall continue the first support will be at $ 1.0960, thereafter  $1.0900 level.

On the upside, EUR/USD will face resistance from $1.1060 level. If it breaks out, it may go to $1.1100 the Psychological level. It's very important level as the 20-day EMA is located there too.