Silver DivergenceDivergence and Gold/Silver Ratio
Gold and silver are thought to move together, and often they do. There are periods where the Gold Trust (GLD) and Silver Trust (SLV) move in opposite directions and periods where one metal outperforms the other.
Gold is currently outperforming silver. Such discrepancies occur and are monitored by the gold/silver ratio. The gold/silver ratio shows how many ounces of silver it takes to buy an ounce of gold. Since 1975, the average is near 60; right now it stands near 80 ($1,187 divided by $14.99).
While gold outperformance, or silver's underperformance relative to gold, was very noticeable in early 2016, this has actually been going on for a long time. The outperformance has become even more pronounced since 2016. To start 2016, gold traded at $1,069 and silver at $13.80 -- the gold/silver ratio of 77.5. As of Oct. 2018, it's at 80. Gold prices have risen relative to silver prices quite steadily for years. This is mainly due to silver price weakness since peaking near $50 in 2011 (when silver outperformed gold).
Metals
Banknifty , Crude oil and Copper Divergence Divergence is a technical analysis concept that occurs when the price of an asset and a technical indicator move in opposite directions. It's a sign that the price of an asset may be reversing, and it can help traders recognize and react to price changes.
Here are some things to know about divergence:
#Types of divergence
There are two types of divergence: negative and positive. Negative divergence happens when the price of a security is rising, but an indicator is falling. Positive divergence happens when the price of a security is falling, but an indicator is rising.
#When to use divergence
Divergence can help traders make decisions like tightening stop-loss or taking a profit.
#How to confirm reversals
Divergence can occur over a long period of time, so traders can use other tools like trendlines and support and resistance levels to confirm reversals.
#When to use convergence
Convergence is when the price of an asset, indicator, or index moves in the same direction as a related asset, indicator, or index
Stay Ahead: Essential Tips to Avoid Trading PitfallsHello TradingView Community!
I'm excited to share some valuable insights on trading pitfalls and how to navigate them effectively. Trading in financial markets can be a challenging journey, but understanding common pitfalls and methods to avoid them can significantly enhance your success. Here are 10 pitfalls traders often encounter and actionable strategies to help you steer clear of them:
Having No Trading Plan:
Entering trades without a plan can lead to impulsive decisions. Develop a clear trading plan outlining your goals, strategies, entry and exit points, and risk management.
Using Strategies That Don't Match Your Personality:
Align your trading strategies with your personality, risk tolerance, and lifestyle. A good match helps you stay consistent and focused.
Having Unrealistic Expectations:
Set realistic goals based on your initial capital and risk tolerance. Trading is not a quick path to wealth, so be patient and persistent.
Taking Too Much Risk:
Avoid over-leveraging and using excessive position sizes. Implement risk management techniques like stop-loss orders and diversification.
Not Having Rules to Follow:
Create a set of trading rules to guide your decisions. These rules provide structure and help you stay disciplined.
Not Being Flexible to Market Conditions:
Adaptability is key in trading. Monitor the markets and adjust your strategies as conditions change.
Failing to Take Responsibility for Your Results:
Own your successes and mistakes. This mindset empowers you to learn, grow, and improve your trading.
Being Addicted to Volatility:
While volatility can be exciting, avoid chasing it for thrills. Focus on making well-reasoned decisions based on your plan.
Not Having a Process to Keep Track of Your Performance:
Maintain detailed records of your trades and their outcomes. Analyze this data to identify patterns and refine your strategies.
Not Dealing with Your Emotional Risk:
Emotions can cloud your judgment in trading. Practice emotional intelligence and techniques like meditation or journaling to stay composed.
Neglecting Proper Research and Due Diligence:
Relying solely on tips or rumors can lead to poor decisions. Conduct thorough research and due diligence on potential trades and investments.
Overcomplicating Your Trading Strategy:
Complex strategies may not always lead to better results. Simplify your approach to focus on proven methods and avoid overanalyzing the market.
Ignoring the Importance of Continuous Learning:
The markets evolve, and so should your knowledge and strategies. Stay updated on market trends and continuously educate yourself to stay ahead.
There is no trade without a stop-loss:
This point emphasizes the importance of having a stop-loss in place before entering any trade. It highlights risk management as a fundamental part of trading, ensuring that you have a clear exit strategy to limit potential losses.
If you have to re-analyze charts after being in a trade, you might be going in the wrong direction:
This point underscores the importance of trusting your initial analysis and trading plan. It warns against second-guessing or changing your plan mid-trade, which could indicate you may be heading in the wrong direction.
By implementing these strategies, you can enhance your trading experience and improve your performance over time. Remember, successful trading is a journey that requires discipline, patience, and continuous learning.
I hope you find these insights helpful. Feel free to share your thoughts and experiences in the comments. Let's continue to support each other and grow as a community!
Happy trading!
RK💕
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Option's By Professionals Player's 🤑👑👑Royal Trend👑
Topic Trading Things
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Option and Market By Pro Trader's 👑🤑👑💸💸💸👑Royal Trend👑
Topic Trading Things
In this video we try to understand the Option and Market By Pro Trader's 👑🤑👑💸💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Why People Use Indicators 👑Royal Trend👑Royal Trend👑
Topic what Why People Use Indicators
In this video we try to understand the Actual Trading in Intraday and Long Term Treading
How market really work with number's
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Determining trend and consolidation through wave cycles.MCX:GOLD1!
In past, we have discussed how to know the quality of a trend and how to know a chart pattern's extrinsic nature according to the market phase.
If you haven't read that then I want you to read that before to have a better understanding of this idea.
Let's get started!!
How to determine the trend or consolidation through the wave cycles and degrees.
The trend moves in 3 different wave degrees:- For example , think of it like a multi-timeframe analysis.
1. Higher wave cycle (HWC) - This is a 1-month time frame trend.
2. Medium wave cycle (MWC) - This is a 1-day time frame trend.
3. Lower wave cycle (LWC) - This is 30 min time frame trend.
So Without knowing which wave cycle is being traded one can encounter these problems:-
1. Inability to select consistent breakout levels.
2. Inability to select effective stop loss levels.
3. Inability to apply effective stop sizing.
4. Inability to distinguish between trend and consolidation mode.
5. Inability to determine the direction of the predominant trend.
How can we eliminate these complications?
1. Consolidation and Trend Action in Terms of Wave Cycles and Degrees.
A market may be both in trend and consolidation modes at the same time, depending on the wave cycle being observed.
2. We may also define breakouts via the degree of the wave cycles.
Different degrees of waves help in determining whether a breakout will gonna be valid or not as a range formation near the higher wave cycle resistance zone will likely fail.
In the above figure:-
we have breakouts based on waves of lower, medium, and higher degrees. In other words, the breakout level will depend on the wave degree being traded. Being aware of the wave degree being traded will allow the trader to size the stop-loss effectively, according to the average wave amplitude and volatility associated with that particular wave degree.
3. Significance of higher wave degree reversals
When big market trends change direction, it affects smaller trends as well. This is because all the smaller trends are part of the bigger trend. So, when the big trend changes, the smaller trends also change in the same direction. This is important to understand because it means that when you see a change in a big trend, it's a sign that many smaller trends are also changing. However, smaller trends changing doesn't necessarily mean the big trend will change too.
Conclusion:- Always know which wave cycle you are trading and at what point you stand in that wave cycle.
Note: In upcoming Ideas, we will cover how Waves are used in the Elliott Wave concept.
I hope this short idea on trend or consolidation determination has added some knowledge and helped in improving your trading.
please like and comment with your views on this idea.
Keep learning,
Happy trading.
Thank you for reading.
Right direction is more important than speedHello Friends,
Hope you are doing well,
Today I am sharing a very little and simple fact, which is very much needed to survive long life in market and to be a profitable trader in market,
here we are talking about direction and speed because, when you’re heading towards right direction, every single step you take is real progress, but if you’re going in the wrong direction, every single step is pushing us in minus.
Direction can be decided by analyzing charts and Speed (position sizing) is decided as per money management rules,
One should always digest the initial level first, where he is, and also where he reaches next, one can only survive in market until capital is wiped out, so always remember, to save capital from losses is also gain.
The journey of a thousand miles begins with one single step, make sure that first step is in the right direction.
When making important decisions that have long-term implications like financial decisions, slow down and check carefully risk reward ratios and money management rules and carefully evaluate your available options before starting or executing it.
This post is just for educational purpose,
See you all next week. 🙂
RK 💕
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Disclaimer.
I am not sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
RISING TREND - EXPLAINED
Education
Rising trend line:
Rising trend line is the type of trend line which helps a trader to identify the bullish moment or bullish range (Upward Trend).
The rising trend line or ascending trend line should be connected from the last lower of the asset value to the last highest value or price of an asset.
The rising trend line should have multiple prices touched to be considered as valid, (at least 2 price point touches).
Traders may anticipate trading pullback where confirmation come, they can use additional indicators to have clear understanding of right entry point and exit points.
RELIABLE CANDLESTICK PATTERNPattern Name: Bullish Engulfing
Pattern Type: Bullish Reversal
No. of Candles: 02
How to Identify it?
1)There must be a preceding Downtrend.
2)A short Red candle followed by a long green candle.
3)The Green candle should open lower & closes higher than the Red candle.
4) The Green candle should completely engulf the Red candle.
The psychology behind it :
1)The Bears lose momentum & the Bulls take charge and manage to close above the red candle.
2)It implies the bulls have fully overridden the bears.
How to trade it?
1)Look for the Bullish Engulfing at the bottom of the Downtrend.
2)Upon confirmation, open a Long position in the 3rd Candle.
3)Place a Stoploss below the low of the Green candle.
Gold's Golden Rule Of 89% (Pack Your Bags For Big Ride)Gold's Golden Rule Of 89%
Golden history of last 50 years have shown that Gold has give big move whenever there is a minimum 89% move from bottom. Chart is self explanatory. There are three successful incident of min 89% move and two unsuccessful incident of less than 89% move.
Successful Incidents
1. 1970 - 1972
2. 1976 - 1978
3. 1999 - 2005
Unsuccessful Incidents
1. 1982 - 1983
2. 1985 - 1987
Fourth move in the making from 2015 - till date. So Gold is getting ready to fly again.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
METAL INDEX: BullishMETAL INDEX: Formation of HH HL on daily time frame. Bottom formation is done in metal index. We need to see impulsive price action to confirm for a new high as a continuation of the larger uptrend. Till then it is confirm that there should be a bounce at least in all metals. STOCKS TO WATCH: TATA STEEL (MY FAV.) , SAIL , HINDALCO , jindal steel is also about to turn, but there is a possibility of one more low
Best Trade setup for Forex pairs tradingStrategy to execute trades in forex market, works for all pairs (please do back testing to gain confidence) :
What we need :
Candle Sticks
Timeframe – 1 hr
Bollinger Band – Length 20 and StdDev 2.5
Bollinger Band – Length 20 and StdDev 2
RSI – Length 6
Stochastic Oscillators – 14,3,3
MACD – 8,21,5
Confirmation with indicators should be in same trend with candle stick trend
1. RSI (For trend identification)
2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations)
3. MACD (For trend identification with convergence/divergence)
Risk Reward Ratio : 1:3 and above or as per your risk appetite
Rules of the game :
Whenever candle stick crosses Std Dev 2 and touches/crosses Std Dev 2.5 above/below then we have to find the entry. Any candle after this should be used as entry point which reverses the previous candle trend. At the same time RSI, Stoch and MACD should also reverse from their respective over sold or over bought positions. Stoch will give first hint of reversal followed by RSI and MACD. If RSI is at 20 or 80 (extremes) then it’s a perfect setup and find the reversal trend along with Candle sticks for entry. If RSI is not at extremes but at 30/40 and 60/70 levels then the setup can work but may not be so accurate, this gives scope for less RR. Stop loss should be the candle stick (candle stick which crossed) high or low (sell/buy respectively) or below the Std dev 2.5 band which ever are nearer or as per your risk appetite.
Take profit : First target will be middle band, Second target will be other end once candle sticks touches Std 2 or take profit @ 1:3 or when Stoch blue line touches red line and reverses or when MACD blue line touches red line and reverses or as per the risk appetite.
Avoid when :
>Confluence of candlesticks trend with RSI/Stoch/MACD is missing (all should be in following same trend path)
>RSI is in between 40 to 60 range
>If Candle stick do not touch Std dev 2.5 band and reverses
>If entry candle sticks are near to the middle line of the Bollinger band as room for uptrend is less
>If you do not understand the strategy
>If you do not understand how candle sticks are behaving
>If candle stick pattern is not respecting high and low lines marked as mentioned above
>If there is no confluence of the setup with indicators
>When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle)
>When there is no confidence on the setup
>Fear of Missing Out
>In a sideways market, hitting of SL will be high
Story behind this setup : Trend will be in between Bollinger band upper and lower bands and entry is sought whenever trend reverses after touching Stddev 2.5 upper or lower band. As per Empirical Rule 95% of Data will fall within 2 Standard Deviation 99% of Data will fall within 2.5 Standard Deviation, reversal happens after this and we try to take confluence with other indicators help for entry and exit. Sometimes an exit can also trigger entry for next trade if the setup gives confluence with mentioned parameters above.
Stop Loss : Stop loss is the key here, please do not enter unless you understand how to calculate stop loss. Calculate Stop loss first before entry and it should be below Std dev 2.5 or just below the previous candle of the entry candle whichever is acceptable loss or as per your risk appetite.
Please do let me know if you have any questions would be happy to respond.
Please do like and share this idea. Thanks
Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
Copper: Change in polarity1. support and resistance spotted
2. support broken
3. support now acts as resistance
4. falling gap from the resistance
5. Use the gap in your trading plan
P.S. Trade at your own risk, this is for educational purpose only! Do not treat this as TIPS! TIPS=SPIT
LEARN AND EARN YOURSELF .... INDEPENDENTLY