Database Trading Part 4Database trading is a method of using data to make better decisions in the market. It involves using data analysis to improve profits and avoid costly mistakes.
Trading data is a sub-category of financial market data. It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
A database is an electronically stored, systematic collection of data. It can contain any type of data, including words, numbers, images, videos, and files. You can use software called a database management system (DBMS) to store, retrieve, and edit data.
Technical Analysis
Database Trading Part 5Trading data is a sub-category of financial market data. It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
How does database trading work?
Data collection: Data is collected from various sources, such as stock exchanges, third-party financial data vendors, investment banks, and hedge funds
Data analysis: The data is analyzed to identify patterns and trends
Decision making: The data analysis is used to make decisions about trading, such as when to buy or sell
Execution: The decisions are executed by machines or humans
Use of RSI in tradingThe Relative Strength Index (RSI) is a technical indicator that helps traders assess the momentum of an asset's price. It's used to identify overbought and oversold market conditions, and to provide buy and sell signals
How to use RSI
Identify overbought and oversold conditions
RSI values above 70 indicate overbought conditions, while values below 30 indicate oversold conditions.
Confirm trends
Use the RSI to validate trends and trend reversals. For example, a downward trend is confirmed when the RSI crosses from above 50 to below 50.
Provide buy and sell signals
Use the RSI to determine when to enter and exit positions. For example, low RSI levels indicate oversold conditions, which may generate a potential buy signal.
Combine with other indicators
Use the RSI with other technical indicators to identify market trends and confirm signals. For example, you can combine RSI with moving averages to identify strong assets in uptrends
Macd divergenceThe indicator is calculated by subtracting a 26-period Exponential Moving Average from the 12-period moving average. There is also a histogram available on the indicator which can also be used as a divergence indicator. As a result, you will then see the MACD line, which shows as an indicator below the price chart.
For daily charts, many traders find the default MACD settings (12, 26, 9) to be very effective. This timeframe captures the broader market trends and helps filter out market noise. Combine MACD with other indicators like RSI or Bollinger Bands when analyzing a 1-day chart for a more comprehensive market view
momentum tradingMomentum trading is a strategy that aims to capitalize on the continuance of existing trends in the market. Momentum traders usually buy or sell an asset moving intensely in one direction and exiting when this movement shows signs of reversing. They also seek to avoid buying or selling assets that are moving sideways
While it can be a profitable strategy when executed correctly, it's important to manage risk and be aware of the potential downsides. What is the concept of momentum trading? Momentum trading is an investment strategy that involves buying assets that are trending upward and selling those that are trending downward
Important Timeframes in MarketThe best time frame for intraday trading depends on your goals, experience, and the stock you're trading. For beginners, mid-day hours with 15-minute charts offer a safer environment, while experienced traders can take advantage of the high volatility during opening and closing hours.
The 3 5 7 rule is a risk management strategy in trading that emphasizes limiting risk on each individual trade to 3% of the trading capital, keeping overall exposure to 5% across all trades, and ensuring that winning trades yield at least 7% more profit than losing trades.
happy trading!!!
3 Amazing swing trading idea for 26 December MarketsI daily make educational content videos for swing / positional trading
Gulf oil trade idea: This idea is about a breakout trade that went sideways at the breakout point and is currently in a no-trading zone, pink zones tell you about what to do next
Axiscades trade idea: This idea is about the weekly time frame breakout, its at a strong resistance area of a hidden parallel channel, needs a strong closing for the same
Indigo trade idea: This idea is also a breakout idea on Daily time frame but needs to follow a set of market structure from here on and price action to give a nice trade activation
RSI & ADXRSI: Used to determine overbought/oversold conditions. ADX: Measures trend strength. Keltner Channels: Provides dynamic support/resistance levels and helps identify breakouts
The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit potential by trading in the direction of a strong trend
The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) can work well together to give you insights into market momentum and potential reversals. Use the MACD to check the trend direction, and the RSI to find good entry and exit points based on whether the market is overbought or oversold.
2 Amazing swing trading ideas for 24 December MarketsI daily make educational content videos for swing / positional trading
The first stock which is Raymond, is making a symmetrical triangle pattern, It is a volume-based price action and pattern trade idea, its also making a parallel channel which is important to watch before the big breakout candle comes ( if at all )
The second stock, Star Cement, is making a random pattern but more of a solid volumes and price movement type trade. It needs the breakout of my hidden line resistance to be on a weekly time frame.
Follow the Risk management rules and good luck trading.
2 Potential Swing trading stocks for 23 December MarketsI daily make educational content videos for swing / positional trading
Both are Potential swing trading ideas that are not active yet. I have explained the setup, pattern, and line-making behind them with a solid plan. Let's see if the plan gets activated.
Technical Analysis Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
What exactly are the two types of technical analysis? Chart patterns and technical (statistical) indicators are the two main types of technical analysis. Chart patterns are a subjective type of technical analysis in which technicians use certain patterns to indicate regions of support and resistance on a chart.