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Tradingideas

How to create high quality trade ideas?Hey everyone! 👋 This week, we will be taking a look at the ingredients that go into creating and posting high-quality trade ideas. While many think that a good trade idea begins and ends with finding a high probability chart setup in a liquid, volatile asset, the *best* trade ideas often combine multiple disciplines - which could include macroeconomic analysis, fundamental analysis, technical analysis, or some combination therein - into one cohesive unit. Getting in the habit of incorporating all of these factors into your thought process can lead to much higher quality setups, whether or not you choose to share them with the community. Let’s jump in! There are a couple of questions that you should ask yourself when trying to come up with high-quality ideas, and they boil down to the familiar five: Who, What, Where, When, and Why. Let's start with Who. WHO: Who is this trade idea meant for? When posting a trade idea, don’t assume that the idea is one-size-fits-all. The most obvious way TradingView helps in this regard is by categorizing posts by asset class, so FX traders are looking mostly at FX ideas, and crypto investors aren’t constantly exposed to commodity futures spreads. However, there are more subtle ways this happens as well. Different traders and investors often have different styles of trading, and so even within a single asset class, a long-term investment idea may not be applicable to a short-term trader. When creating a trade idea, it may make sense to identify to readers (and yourself) who this idea is for, and within what strategy it might best fit. WHAT: Most ideas do a great job at answering this question! It’s very simple: at its core, what does this idea want to do? Whether that idea boils down to shorting the stock market or building a long/short cryptocurrency spread, make sure that your idea clearly identifies what the core thrust of the trade is. WHY: This is the crux of any good trade idea. Why should someone commit capital and risk money according to your vision? It is common for traders, especially new traders, to think that answering this question comes down to building up a confluence of price patterns, indicators, and chart drawings until they line up and it is all systems go. In some cases, this serves as a reasonable answer to the “why” question - especially when assets have strong momentum. However, oftentimes this approach may not go deep enough. What if the long technical setup on your chart is in a stock where the company’s business outlook is worsening? What if the descending triangle you’re looking at trading occurs within a larger bull market? This is where incorporating multiple disciplines, whether it’s fundamental analysis or macroeconomic understanding, can improve the quality of your trade ideas. Understanding some of the context surrounding the asset you’re trading can serve to layer probability in your favor. Here’s the bottom line: the current price in any market is a reflection of the consensus view of the future. It’s important to illustrate *why* that pricing might be materially incorrect. WHERE / WHEN: It’s important to illustrate why *right now* is the right time to act on the idea, and this is where technicals can come in very handy. Broadly speaking, fundamental data on most assets only comes out once every couple of weeks, if that. It’s even longer between fundamental data releases for stocks. Because of this, utilizing price patterns, indicators, candlestick charting, and other technical analysis can be extremely helpful in defining risk, pinpointing entries, and trading more efficiently overall. This is also where clean charting comes in. It’s important to identify how trader positioning, supply and demand zones, and other factors (that technicals help illustrate) affect the timing and risk of the idea. In addition, when publishing an idea on TradingView, the chart is one of the most visible and prevalent ways of communicating this information. Making these items clearly defined can significantly improve the quality of a trading idea and ensure clear communication of the important information. So there you have it - the key questions that are at the core of any good trading idea! We look forward to seeing how this framework is incorporated into future posts. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
TVC:USOILEducation
by TradingView
4
Nifty: Bullish Harami Cross pattern in daily charts & F&O data - On charts we observe a Bullish Harami Cross in daily charts pattern F&O trade data analysis Futures - Retail traders squared off 10.2K Long position and squared off 12.88K Short position - FIIs added 10.5K Long contracts and squared off 1.22K Short position - Proprietary traders squared off 13.77K Long contracts and squared off 1.10K Short contracts Call Option - Retail traders added 2.07 Lakh Call Long contracts and added 2.25 Lakh Call Short contracts - FIIs squared off 14.40K Call Long contracts and squared off 6.83K Call Short position - Proprietary traders added 65.55K Call Long contracts and added 39.33K Call Short contracts Put Option - Retail traders added 4.0 Lakh Put Long contracts and added 3.36 Lakh Put Short contracts - FIIs squared off 14.12K Put Long contracts and squared off 4.98K Call Short position - Proprietary traders added 52.7 K Put Long contracts and added 1.06 Lakh Put Short contracts FIIs have added Net Long in Index Futures on 16 May 2022 On a gross Position basis FIIs Long::Short ratio has come down from 1::5 to currently at 1::2.5 Retail traders have added Net Call Short and have been Net Put buyers on 16 May 2022 Prop traders have squared off Index Futures Long position and have added Net Put Short and have been Net Call buyers on 16th May 2022 Trading view : Continue to hold our trade position suggested in the previous post with same terms and conditions - 15720-15680 critical support zone Take care & safe trading...!!! To trade with me Like & Follow! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be
NSE:NIFTY
by indiamarketoutlook