What Is Bitcoin Halving? Here's All You Need to KnowWhat Is Bitcoin Halving? Here's All You Need to Know.
Halving is the event of slashing Bitcoin's mining rewards every 210,000 blocks, or roughly every four years. Read all about it here.
Table of Contents
Overview
What Is Bitcoin Halving?
When Is the Next Bitcoin Halving?
Deep Dive into Blockchain
How Are Miners Rewarded?
Why Halving Matters?
The Big Picture
What About Bitcoin’s Price?
Halving and the Way Forward
Overview
Bitcoin’s halving is a milestone event for the crypto space. Essentially, halving pushes back the moment we see all 21 million BTC tokens pulled out of their cryptographic hash puzzles.
Satoshi Nakamoto, the individual or group who created Bitcoin , programmed it to a fixed amount of 21 million coins. In other words, the total amount of Bitcoin can never exceed 21 million. Presently, miners have picked up just over 19 million through a process called Bitcoin mining.
This amount is over 90% of the total supply with mining having started with the creation of Bitcoin 15 years ago. That leaves just about 2 million tokens to be unearthed before the final Bitcoin enters our dimension. How long should we wait until this mammoth of a milestone happens? More than a century, or around the year 2140 , according to forecasting wizards.
The logic behind this peculiar mechanism lies in the so-called halving and this guide will help you understand all about it.
What Is Bitcoin Halving?
Halving, in its simplest form, is the process of gradually reducing the rewards of Bitcoin mining. As we mentioned, Satoshi Nakamoto originally hard-coded Bitcoin to a fixed supply of 21 million. All of them will come to life at an increasingly slower rate. More precisely, the pace at which Bitcoin is created is “halved” every 210,000 blocks.
The current block reward is 6.25 Bitcoin as the last halving occurred on May 11th, 2020.
When's the Next Bitcoin Halving?
In April 2024, miners will add the next batch of 210,000 blocks. And that only means one thing - they will have their revenue immediately slashed in half to 3.125 Bitcoin.
All halvings are evenly spread out approximately every four years, consistent with Bitcoin’s hard-coded design. This way, supply will keep increasing, just at a slower clip. The reason is simple - the Bitcoin halving rewards will continue to reduce.
Deep Dive into Blockchain
In order for new Bitcoin to come into circulation, miners need to create blocks in a chain, hence the term ‘blockchain’.
Network operators—the hardworking miners—uncover blocks through computer-powered mining operations. These crypto diggers compute hashes as quickly as possible. What they do is search for the successful fixed-length output that they add to the block.
The more hashes per second (hashrate), the more chances for hacking out new blocks and adding them to the blockchain.
How Are Miners Rewarded?
Generally, miners have two ways to reward themselves for the effort. The first one is to earn revenue from transaction fees of users who send and receive Bitcoin. That’s when they act as decentralized network operators and validate transactions without a central authority.
At their height during the crypto boom in April 2021, the Bitcoin network fees reached as much as $60 per transaction and took hours to complete. After all, the network can only handle 4-7 transactions per second. To compare, payment giant Visa can validate 24,000 transactions per second.
Average transaction fee of Bitcoin, USD
Timeframe: April, 2021
Source: bitinfocharts.com/co...transactionfees.html
The other way to reward Bitcoin miners is to let them pocket the newly-minted Bitcoin contained in the block. Halving is basically a reward system for miners.
But more broadly, halving is part of the proof-of-work model associated with high levels of energy consumption. Millions of mining rigs soak up that energy and crank out new Bitcoin.
Why Halving Matters?
Halving the block reward for mining Bitcoin is a way to protect its integrity. This immutable feature of the OG crypto makes it stand out as a unique asset class. In this light, it is also an alternative to inflation-prone national currencies, also known as fiat money.
With that in mind, in a world that craves disruptive innovation, a technology that’s rewiring the global financial system has progressively moved into the limelight. The growing role of Bitcoin as a new investment vehicle is apparent, factoring in the elevated investor appetite .
Bitcoin transacts tens of billions of dollars of daily volumes, with a peak of more than $126 billion on May 19, 2021. The figure is sufficient to prove it has piqued the interest of enough crowds to form a market around it.
Before we revisit Bitcoin as an investable asset, let’s take a breather and trace the original crypto back to its origins where halving was introduced.
The Big Picture
Just over 15 years ago, the mysterious Satoshi Nakamoto mined the initial “genesis” block . For the effort, the clandestine developer(s) earned a hefty reward of 50 Bitcoin. And also bothered to leave a message hooked to the chunk of transactions. The message read: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."
Since then, the Bitcoin network has witnessed three halving events:
On November 28, 2012, Bitcoin’s block reward was cut from 50 BTC to 25 BTC.
On July 9, 2016, Bitcoin’s block reward was slashed from 25 per block to 12.5 BTC.
The last one occurred on May 11, 2020, when the reward was axed to 6.25 BTC.
The next Bitcoin halving event is on deck for April 19, 2024. Rewards will fall to 3.125 BTC.
The Bitcoin halving dates may vary and we're yet to get a confirmation over the next one. Estimations indicate that every 10 minutes or so all network operators add a new block to the Bitcoin blockchain. With the current reward of 6.25 Bitcoin per block, miners dig out around 900 new Bitcoin a day.
At today’s prices , this is equal to around $50 million worth of Bitcoin extracted daily. This is where the halving becomes interesting not just to the geeks among us.
Halving events play a key part in shaping up supply and demand and weigh on the price of Bitcoin. Speaking of price movement, how does the rate at which new Bitcoin is churned out affect valuations?
What About Bitcoin's Price?
Bitcoin, as the world’s first cryptocurrency in a sea of many , is the quintessence of scarcity premium. Investment professionals are quick to say that Bitcoin carries a unique glamor as the only large tradeable asset with a predictable emission leading to a hard cap.
In that light, analysts consider Bitcoin to be the newest entrant in the store-of-value category. An investment product that holds its purchasing power over time. Ideally coming with consistent price increases.
This is possible thanks to halving - the brilliant mechanism hard-wired into the Bitcoin protocol. The minds behind the original digital currency conceived it as deflationary. A concept alien to the present financial system, flooded with central-bank cash and government stimulus.
The reason is that, contrary to fiat currencies that inflate over time, Bitcoin should not be debased by inflation. Satoshi Nakamoto explained this inflation-rate flaw in an online forum around the time of Bitcoin’s inception.
"The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”
Halving and the Way Forward
If there’s a need to draw broad conclusions, here are some of the more salient points to make a compelling argument.
Bitcoin’s purchasing power is likely to avoid debasement thanks to the halving mechanism. With less than 10% of Bitcoin still to come to the surface, it will take more than 100 years for the last unmined Bitcoin to pop out.
Once all the 21 million Bitcoin spring to life, miners will no longer stake their livelihood on uncovering new tokens. Instead, they will earn revenue from network fees for their work on validating transactions. But that’s only if the network sticks to the plan.
FAQ
❔ "What is the purpose of halving?"
► Halving maintains a decreasing pace of block rewards, which emphasizes on the idea of scarcity in Bitcoin.
❔"When is the next Bitcoin halving?"
► The next Bitcoin halving event is scheduled to occur on April 19, 2024. This date is approximate, and the actual date may be different, depending on the time it takes to complete one full batch of 210,000 blocks.
❔"Is halving related to price increase?"
► Technically, when the supply of new Bitcoin is cut in half, and demand remains the same, prices may go up. But the price discovery of Bitcoin does not obey archetype models of economics.
❔"When will the last Bitcoin be mined?"
► Estimates point that the last available Bitcoin will be mined in the year 2140.
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TradingView Masterclass: How To Use The Top ToolbarIn this guide, you’ll learn about all the different tools that are available to you on the chart. Specifically, we’ll be looking at the toolbars that are located at the top, bottom, left and right of the chart:
To summarize the chart above, the breakdown looks like this:
■ Top toolbar: Chart tools
■ Left-side toolbar: Drawing tools
■ Right-side toolbar: Community tools
■ Bottom toolbar: Advanced tools
Now, let’s dive into each one starting with the top toolbar where you’ll find many of the most important chart tools for all your research needs. Keep in mind that we’ve ordered each item below as if we are moving from the furthest point at the top left to the furthest point to the top right. Let’s begin!
⦿ Symbol Search (Keyboard shortcut: type the ticker)
- Open the symbol search at the top left-hand corner to access over 100,000 global assets across equities, forex, crypto, futures, and more.
- You can find them by their ticker (e.g., type RELIANCE for Reliance Industries) or by their description names (e.g., type the name Central to find CENTRALBK stock).
It’s also possible to find your favorite symbols with partial searches, that is, to write part of the ticker or description name and then select the corresponding asset in the search results. If you want to filter by asset type, you can select one of the following: Stocks, Funds, Futures, Forex, Crypto, Indices, Bonds and Economy (economic indicators).
⦿ Time Intervals (Keyboard shortcut: press ,)
- Select the time interval for the chart. For instance, say you’re looking at a candlestick chart and you choose a daily chart. That means each trading day will be represented by 1 candle.
- The most common time intervals are: 1m, 5m, 30m (intraday setups) 1h, 4h (swing trading setups) and 1D, 1W and 1M (long-term trading setups).
- Traders can create custom intervals as well by clicking on the Time Interval arrow and then selecting the specific parameters needed. Don’t forget to add it to your favorites if you want it to be featured in the Quick Access toolbar.
⦿ Chart types
- We have more than 15 chart types available to analyze all price movements, including the new HLC area, Line with markers and Step line.
- Most traders prefer to use Bars, Candles and Area charts, but everyone has a different approach to markets. Be sure to find the chart type that fits your style.
⦿ Indicators, Strategies, and Metrics (Keyboard shortcut: press /)
- Indicators, Strategies, and Metrics are designed to provide additional insight and information that may otherwise be difficult to see.
- We have over 200 technical and financial indicators while also supporting over 100,000 custom scripts coded by our community. The best way to get started here is to start exploring the Indicators, Strategies, and Metrics menu as soon as possible.
⦿ Indicator Templates
Here, you can save your custom indicator setups so that you can load them at any point in time. This tool is essential if you utilize different forms of analysis. For example, if you chart technicals and fundamentals, you can make two separate templates that can be loaded at any point depending on your need.
⦿ Alert (Keyboard shortcut: Alt + A)
Alerts are used to create custom price alerts. Instead of watching markets 24/7, go ahead and create an alert at a precise level and then wait for that alert to trigger. Let our alerts do the heavy lifting. They’re always watching markets for you.
It is also possible to configure them different notifications so that you can be alerted through email, our free app or with a webhook.
⦿ Bar Replay
Bar Replay is a powerful, yet simple tool for backtesting. All experience levels can use Bar Replay for backtesting, practicing or learning about price history. To get started, click the Bar Replay button and then select a historical moment to rewind the chart backward to that point in time. Then, you can press play or pause, and retrade that moment to see how your strategy performs.
⦿ Undo/Redo Scroll (Keyboard shortcut: Ctrl + Z / Ctrl + Y)
Any changes made to the charts such as drawings or indicators can be deleted or recreated. This works just like a Word document you might create on Microsoft or Google. Use the keyboard shortcuts to quickly undo or redo specific actions.
⦿ Multi-chart Layout
If you have an Essential, Plus, Premium, or Ultimate plan, you can analyze multiple charts on your screen at the same time. Simply choose one of the available layouts from the menu to get started. You can also synchronize symbols, intervals, crosshairs, time and data ranges with the selected layout.
⦿ Manage Layouts
Create, rename and load all the layouts that you save. You can also share your layout and enable the autosave option, which is very handy so that all of your work is saved automatically. Managing your layouts is an essential part of your analytical process because it enables multiple different chart layouts to be accessed as quickly and easily as possible.
⦿ Quick Search
Need to find a function or tool on your chart? Open and use Quick Search to do that. The name of the tool is just as it can be used: quickly search for the things you need to edit, add or remove on your chart, and do it in a flash.
⦿ Chart Settings
This is where you can customize all of the fine details about your chart. The Chart Settings menu has everything from the chart color, to the gridlines and labels, the text of the scales, and more.
⦿ Fullscreen Mode (Shift + F)
When this is enabled, you will see only the chart. To exit Full screen mode, click ‘Esc’.
⦿ Snapshot and Publish
Here you can download your charts as images, copy links, share tweets, publish ideas, create live streaming video content, and comment on assets with our latest feature Minds. If you want to share your expert analysis or get feedback from others, you’ll surely want to learn how these social tools work. Go ahead and give it a try - join our community of traders.
Thanks for reading and we hope this post helps all traders and investors. Whether you’re an experienced professional or someone just getting started, we plan to create more guides like this to ensure you know how to maximize the features on our platform.
Next week, we’ll share part two of this series, and cover the drawing tools menu on the left-side of the chart.
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7 Expert Risk Management Techniques for TradingRisk management refers to the techniques used to identify, evaluate, and mitigate the potential risks associated with trading and investing. Whether you are a day trader, swing trader, or scalper, effective risk management can help you minimize losses and protect your hard-earned money all while maximizing potential profits.
Let's take a look at the top 7 risk management techniques for trading! 👌
Have a Trading Plan
⦿ Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful. You should have a detailed trading plan in place before making any trades. A well-designed trading plan is an essential tool for effective risk management.
⦿ A trading plan acts as a roadmap, laying out a set of guidelines/rules that can help traders avoid impulsive decisions. It is crucial because it requires you to think deeply about your approach before you begin risking real money. Having a plan can help you stay calm under stress as your plan will have specific steps to take for anything the market throws at you.
⦿ It is essential to clearly define your trading goals and objectives. Are you aiming for short-term gains or long-term wealth generation? Are you focused on a specific asset class or trading strategy? Setting specific and measurable goals helps you stay focused and evaluate your progress.
⦿ Another important part is to describe the trading strategy you will employ to enter and exit trades. This includes the types of analysis you will employ (technical, fundamental, or a combination), indicators or patterns you will rely on, and any specific rules for trade execution. Determine your risk tolerance, set appropriate position sizing rules, and establish stop-loss levels to limit potential losses.
The Risk/reward ratio
⦿ When you are planning to open a trade, you should analyze beforehand how much money you are risking in that particular trade and what the expected positive outcome is. Here is a useful chart with some examples to understand this concept:
⦿ As you can see from the data above, a trader with a higher RR (risk-reward ratio) and a low win rate can still be profitable.
⦿ Let’s examine this a little more by looking at a profitable example with a 20% success rate, a RR ratio of 1:5, and a capital of $500. In this example, you would have 1 winning trade with a profit of $500. The losses on the other 4 trades would be a total of $400. So the profit would be $100.
⦿ An unprofitable RR ratio would be to risk, for example, $500 with a success rate of 20% and a risk/reward ratio of 1:1. That is, only 1 out of 5 trades would be successful. So you would make $100 in 1 winning trade but in the other 4, you would have lost a total of -$400.
⦿ As a trader, you need to find the perfect balance between how much money you’re willing to risk, the profits you’ll attempt to make, and the losses you’ll accept. This is not an easy task, but it is the foundation of risk management and the Long & Short Position Tools are essential.
You can use our 'Long Position' and 'Short Position' drawing tools in the Forecasting and measurement tools to determine this ratio.
Stop Loss/Take Profit orders
⦿ Stop Loss and Take Profit work differently depending on whether you are a day trader, swing trader, or long-term trader and the type of asset.
⦿ The most important thing is not to deviate from your strategy as long as you have a good trading strategy. For example, one of the biggest mistakes here is to change your stop loss thinking that the losses will recover... and often they never do.
⦿ The same thing happens with take profits, you may see that the asset is "going to the moon" and you decide to modify your take profit, but the thing about markets is that there are moments of overvaluation and then the price moves sharply against the last trend.
⦿ There is an alternative strategy to this, which is to use exit partials, that is closing half of your position in order to reduce the risk of your losses, or to take some profits during an outstanding run. Also remember that each asset has a different volatility, so while a stop loss of -3% is normal for a swing trading move in one asset, in other more volatile assets the stop loss would be -10%. You do not want to get caught in the middle of a regular price movement.
⦿ Finally, you can use a trailing stop, which essentially secures some profits while still having the potential to capture better performance.
Trade with TP, SL, and Trailing Stop
Selection of Assets and Time intervals
⦿ Choosing the right assets involves careful consideration of various factors such as accessibility, liquidity, volatility, correlation, and your preference in terms of time zones and expertise. Each asset possesses distinct characteristics and behaviors, and understanding these nuances is vital. It is essential to conduct thorough research and analysis to identify assets that align with your trading strategy and risk appetite.
⦿ Equally important is selecting the appropriate time intervals for your trading. Time intervals refer to the duration of your trades, which can span from short-term intraday trades to long-term investments. Each time interval has its own advantages and disadvantages, depending on your trading style and objectives.
⦿ Shorter time intervals, such as minutes or hours, are often associated with more frequent trades and higher volatility. Traders who prefer these intervals are typically looking to capitalize on short-term price fluctuations and execute quick trades. Conversely, longer time intervals, such as days, weeks, or months, prove more suitable for investors and swing traders aiming to capture broader market trends and significant price movements.
⦿ Take into account factors such as your time availability for trading, risk tolerance, and preferred analysis methods. Technical traders often utilize shorter time intervals, focusing on charts, indicators, and patterns, while fundamental investors may opt for longer intervals to account for macroeconomic trends and company fundamentals.
For example, If you are a swing trader with a low knack for volatility, then you can trade in assets such as stocks or Gold and ditch highly volatile assets such as crypto.
⦿ Remember that there is no one-size-fits-all approach, and your choices should align with your trading style, goals, and risk management strategy.
Here is a chart of Tesla from the perspective of a day trader, a swing trader, and an investor:
Backtesting
⦿ Backtesting plays a crucial role in risk management by enabling traders to assess the effectiveness of their trading strategies using historical market data. It involves the application of predefined rules and indicators to past price data, allowing traders to simulate how their trading strategies would have performed in the past.
⦿ During the backtesting process, traders analyze various performance metrics of their strategies, such as profitability, risk-adjusted returns, drawdowns, and win rates. This analysis helps identify the strengths and weaknesses of the strategies, allowing traders to refine them and make necessary adjustments based on the insights gained from the backtesting results.
⦿ The primary objective of backtesting is to evaluate the profitability and feasibility of a trading strategy before implementing it in live market conditions. By utilizing historical data, traders can gain valuable insights into the potential risks and rewards associated with their strategies, enabling them to manage their risk accordingly.
⦿ However, it's important to note the limitations of backtesting. While historical data provides valuable information, it cannot guarantee future performance, as market conditions are subject to change. Market dynamics, liquidity, and unforeseen events can significantly impact the actual performance of a strategy.
⦿ There are plenty of ways to backtest a strategy. You can run a manual test using Bar Replay to trade historical market events or Paper Trading to trade real examples. Those with coding skills can create a strategy using Pine Script and run automated tests on TradingView.
Here is an example of the Moving Averages Crossover strategy using Pine Script:
Margin allocation
We are not fortune tellers, so we cannot predict how assets will be affected by sudden major events. If the worst happens to us and we have all of our capital in a particular trade, the game is over.
There are classic rules such as the maximum allocation percentage of 1% per trade (e.g. in a $20,000 portfolio this means that it cannot be risked +$200 per trade). This can vary depending on your trading strategy, but it will definitely help you manage the risk in your portfolio.
Diversification and hedging
⦿ It is very important not to put all your eggs in one basket. Something you learn over the years in the financial markets is that the unexpected can always happen. Yes, you can make +1000% in one particular trade, but then you can lose everything in the next trade.
⦿ One way to avoid the cold sweats of panic is to diversify and hedge. Some stock traders buy commodities that are negatively correlated with stocks, others have a portfolio of +30 stocks from different sectors with bonds and hedge their stocks during downtrends, and others buy an ETF of the S&P 500 and the top 10 market cap cryptos.
⦿ There are unlimited possible combinations when diversifying your portfolio. At the end of the day, the most important thing to understand is that you need to protect your capital, and using the assets available to you a trader can hedge and/or diversify to avoid letting one trade ruin an entire portfolio.
Thank you for reading this idea on risk management!
We hope it helps new traders plan and prepare for the long run. If you're an expert trader, we hope this was a reminder about the basics.
Join the conversation and leave your comments below with your favorite risk management technique! 🙌
- TradingView Team
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How to get started with tradingNew to Trading? Dive in head-first with our comprehensive guide, drafted especially for beginners! 💼💡
With so many markets and strategies to choose from, it's easy to feel lost. In this post, we'll guide you through the essential steps to get started with trading and set you on the right path.
📚 Educate Yourself
Initiate your trading journey by absorbing the essentials. This includes understanding various types of assets, familiarizing yourself with market terminology, discerning different trading strategies, and grasping risk management principles.
Utilize a combination of mediums for learning. These could range from books, seminars, and online courses, to YouTube tutorials and our educational section . Get involved in online forums and groups where like-minded individuals share their trading experiences and insights. This can help cement your understanding of trading fundamentals.
💰 Choose Your Market
Once you have a basic understanding of trading, the next step is to choose a market to trade in. You have a lot of choices like the stock market, foreign exchange (forex), or the crypto market. Consider what you like, how much volatility you can handle, and what are your financial goals. This is not an easy decision to market as global markets are massive - do your research and find the market that’s perfect for you.
🖥 Practice with a Demo Account
Before you start trading with real money, it's a good idea to practice with a demo account. A demo account is a simulated trading account that allows you to practice trading without risking any real money. Use this account to test your trading strategies and get a feel for the market before you start trading with real money. This way, you get to know how to use the platform and how trading works.
We at TradingView even have a special feature called Paper trading, made just for practice. Open the Trading Panel and select Paper Trading to get started.
📖 Develop a Trading Plan
A trading plan serves as your personal guideline for conducting trades. It outlines your trading approach, your objectives, and risk management, and specifies when to enter or exit a trade. Implementing a trading plan helps in taking better decisions and avoiding emotional trading.
📑 Open a Trading Account
Once you've educated yourself and gained some understanding of the mechanics, you need to open a trading account. There are many online brokers that you can use, and you should research them to find the one that best fits your needs. Take into account factors such as fees, platform usability, interface, and the available set of tools and resources.
🕹 Start with a Small Amount
Avoid investing your entire life savings at once. Instead, start with a small amount and gradually increase it as you gain experience and develop confidence in your trading abilities.
😎 Choose Your Trading Style
There are different trading styles, and each has its own advantages and disadvantages. You can be a day trader, a swing trader, or a position trader. Day trading involves buying and selling within the same day, while swing trading involves holding onto a position for a few days or weeks. Position trading involves holding onto a position for a long time, sometimes months or even years.
✅ Manage Your Risk
Proper risk management is crucial in trading due to its inherent uncertainties. You should never risk more than you can afford to lose. Implementing stop-loss orders can help limit potential losses, and it is advisable to have a predefined exit strategy in case a trade doesn't unfold as anticipated.
📒 Journal Your Trades
Once you start trading, it becomes imperative to consistently monitor your performance. Regularly keeping tabs on your trades, analyzing your performance, and making necessary adjustments to your plan are all vital aspects. Remember that trading involves risk, and you should be prepared to accept losses as part of the process.
Getting started with trading can be intimidating, but you can use this guide as a reference to chalk out a plan for you. Remember that trading requires patience, discipline, and constant learning. By consistently educating yourself, honing your trading skills, and diligently monitoring your trades, you can progress towards becoming a profitable trader.
Thanks for reading! Hope this was helpful. 🙂
– Team TradingView
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What are Bollinger Bands and How to Use themBollinger Bands are a widely used technical analysis tool traders rely on to gauge market volatility and identify potential entry and exit points. Developed by John Bollinger in the 1980s, they provide a simple yet effective method to analyze price trends and determine potential movements.
In this post, we'll cover the fundamental concepts of Bollinger Bands, including how they work and how you can use them to your advantage . This post will also lay the groundwork for future posts about more advanced topics on Bollinger Bands.
Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading!
What are Bollinger Bands?
Bollinger Bands are composed of three lines that are plotted on a price chart. The first line is a simple moving average (also known as the basis line), and the other two lines are standard deviation lines, one located above the SMA and the other below it.
When plotted, the SMA appears at the centre of the chart, flanked by the upper and lower bands. The width of the bands is determined by market volatility; the bands will expand as volatility increases and contract as volatility decreases
Components of Bollinger Bands
Basis line: The basis line is the middle line in the Bollinger Bands and represents the simple moving average (SMA) of the closing prices of an asset over a defined period.
Upper Band: The upper band is calculated by adding a specified number of standard deviations to the SMA. Typically, traders use two standard deviations from the SMA, making it the most common setting used. However, these settings are not universal and vary as per the trading style.
Lower Band: The lower band is calculated by subtracting the same number of standard deviations from the SMA. This results in a channel of three lines, with the upper and lower bands fluctuating around the SMA, reflecting volatility.
Usage:
👉 Overbought and Oversold Conditions
Bollinger Bands can help in the identification of overbought and oversold conditions. Generally, when the price of an asset touches or exceeds the upper band, it may suggest that the asset is overbought, and a pullback or reversal could be on the horizon.
In contrast, when the price touches or falls below the lower band, it may indicate that the asset is oversold and could be due for a bounce or reversal.
However, it's worth noting that in strong trends, the price may remain at the upper or lower band for an extended period. This occurrence is not a signal for a pullback or reversal, and traders should consider other factors to confirm the actual trend.
Exhibit: Strong Uptrend
Exhibit: Strong Downtrend
👉 Volatility Indicator
Bollinger Bands serve as a measure of volatility. As the bands widen, it indicates that the volatility is increasing, which means that price swings are likely to be more significant. Conversely, when the bands become narrower, it suggests that the volatility is decreasing, which could result in smaller price fluctuations.
👉 Bollinger Band Squeeze
A squeeze occurs when the bands contract and move closer together, indicating decreased market volatility. This phenomenon is often a precursor to a significant price movement or breakout, as periods of low volatility often precede periods of high volatility in the market.
👉 Trend Confirmation
Bollinger Bands can also be used to confirm the direction of a trend. During an uptrend, prices often stay within the upper half of the Bollinger Bands, while in a downtrend, prices tend to remain in the lower half of the bands.
In addition, when prices repeatedly bounce off the basis line or keep getting rejected from it, it could indicate the continuation of a trend.
Exhibit: Trend continuation in a Bullish trend
Exhibit: Trend continuation in a Bearish trend
Thanks for reading! Hope this was helpful.
As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use.
See you all next week. 🙂
– Team TradingView
Be sure to follow us on Twitter , Instagram , and Telegram for more valuable content! 💘
How To Follow Market News Like a ProAs a member of TradingView, you have access to more than 100 news providers. Our excellent news providers cover every asset class. Learning how to manage market news is an important informational edge that takes time and practice - always know the latest stories about your favourite symbols and be in the know about what traders are talking about.
In this post, we want to share a few tips for managing your news flow. 🗞️🎯
Before we get started, let us remind everyone how we recently enhanced our news by giving our members access to one of the world's preeminent news organizations - Dow Jones Newswire including the Wall Street Journal, Marketwatch, Barron's, Dow Jones Commodity Trader, and more.
Where To Find News On TradingView 📰
To get started with news, first make sure you're logged into your account. Once you're logged in, there are several ways to access news. Let's take a look at each method.
- Symbol pages have dedicated news sections that cover that symbol in great detail. For example, here's every important story about Apple and here's the latest breaking news about Tesla . Go to any symbol page of your choice, click News, and start reading.
- Check out our global news flow page that brings all of our sources to one place. Once you've arrived, filter by the asset class of your choice.
- Our corporate news page brings insider buying & selling, company press releases, and official financial filings all to one page. As an equity trader or investor, this page will keep you updated about key events happening in the corporate world.
How To Find News On The Chart 📈
News can also be accessed directly from the chart. As everyone knows, breaking news can impact markets in a variety of ways. Open the chart and watch price, volume, and news all at once. This is an effective combination of tools that combines the biggest headlines with real trading activity. Here's how to get started:
- Open your watchlist, select a symbol, and then look for the latest news headline as demonstrated in the image below. Click the headline to open a dedicated news feed for that symbol. And just like that you'll have markets news and the chart open at once:
- Another way to add news to your chart is to open the Settings menu, click Events, and then check the box that says "Latest news." This box will display the latest market news directly on the chart you have open. Follow the instructions shown on the image below to get started.
Go Deeper With Specific News For Your Needs 🌐
Depending on your style of trading or desired asset class, there are additional news resources for you to harness. Check out the list below for more pages where market news can be found:
- Bond market news
- Futures market news
- Global market news
Read News From Anywhere With Our App 📱
The official TradingView mobile app for iOS and Android is free to download and market news is available to all members. Once downloaded, you can follow global market news or news about your favourite symbols. The app allows you to sort by top stories, asset class, and the world economy.
If you still don't have our app, get it here !
Thanks for reading!
We hope this post helps you become a market master for following the latest news. Please let us know if you have any questions or comments.
— Team TradingView ❤️
Feel free to check us out on Instagram , Telegram , and Twitter for more awesome content! 🙂
Automatically identify chart patterns using built-in indicatorsHey everyone! 👋
This chart showcases a few of the Automatic Chart Patterns indicators recently announced in this blog post . If you are a technical trader who relies on chart patterns to make trading decisions and hold a paid TradingView plan, check them out. They automatically identify these popular technical setups:
Bearish and Bullish Flags
Double Bottom
Double Top
Elliot Wave
Head and Shoulders
Inverse Head and Shoulders
Bearish and Bullish Pennants
Rectangles
Triangles
Triple Bottom
Triple Top
Falling and Rising Wedges
You can add the indicators to your chart from the "Indicators, Metrics & Strategies" search window by selecting "Patterns" from the "Technicals" tab in the left pane and choosing an indicator from the list:
Once you have selected a chart pattern, the indicator will automatically draw it on the chart for you when it detects the pattern.
The chart pattern indicators are easy to use and customize. You can alter the pattern detection criteria and visible attributes like colour, line thickness, and style of the lines.
We hope you enjoy these new indicators.
— Team TradingView ❤️
Feel free to check us out on Instagram , Telegram , and Twitter for more awesome content! 🙂
Types of Alerts on TradingViewHey Everyone! 👋
While alerts have a ton of potential applications when it comes to trading, they are often underutilized because it can take some time and ingenuity to build a system where they can work well.
Alerts can turn the experience of trading from a constant search for ideas - and always feeling behind - into a relaxing job of waiting for your own pre-approved conditions to trigger before taking action. In short, alerts can make you much more well-prepared for the market’s ups and downs. 🔍
In this post, we will look at the two distinct types of alerts available on our platform.
Our alerts are categorized into two types based on resource requirements:
➡ Price alerts
➡ Technical alerts
Each alert type has a separate limit on the number of active alerts based on the subscription. We are happy to announce that we have recently doubled the combined limit for both alert types. 🎉
The current limits for active alerts are as follows:
As shown in the table, the Basic plan includes one price alert and one technical alert, while the Premium plan provides access to a much higher number of alerts. Specifically, users on the Premium plan can enjoy up to 400 price alerts and 400 technical alerts.
Now, you might be wondering about the distinction between price and technical alerts. What sets these two apart? Let's dive into the specifics of each type to gain a better understanding of their unique features and benefits.
💸 Price Alerts
An alert is considered a price alert when the following two conditions are met:
1. Only a symbol is used in the alert (for any type of chart: Bars, Renko, PnF, etc) and a price value
2. One of the following is selected as the trigger condition:
• Crossing
• Crossing Up
• Crossing Down
• Greater Than
• Less Than
For example , the following alert on a candlestick chart would be considered a price alert:
👨💻 Technical alerts
An alert is considered a technical alert if any of the following conditions are met:
1. The alert uses an overlay symbol, indicator, drawing or strategy
2. One of the following is selected as the trigger condition:
• Entering Channel
• Exiting Channel
• Inside Channel
• Outside Channel
• Moving Up
• Moving Down
• Moving Up %
• Moving Down %
For example , the following alert will be considered a technical alert since the trigger condition is set as “Moving up %”.
We hope that this post has provided you with a clearer understanding of the distinct types of alerts available on TradingView. However, if you require further assistance with setting up or managing your alerts, we recommend visiting our Help Center .
Thanks for reading! Hope this was helpful.
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and Twitter for more awesome content! 💘
5 Tips For Managing Losing Trades (It Happens To Everyone)Losing trades happen. They are a part of the journey. There is simply no such thing as a trader or investor who wins all the time. All the famous investors or traders you know have LOST many times in their careers. It is perfectly normal. Did you know the famed hedge fund manager Ray Dalio lost everything in his 30s? He went broke. He had to start over from scratch.
This post will address what losing trades really mean and how to deal with it.
Before we begin, let us state the obvious:
- Be careful of people who claim they don't lose.
- Avoid people who flaunt win rates or success rates that are simply not possible.
- Losing trades happen to everyone! You are not alone.
Now, let's talk about what bad trades mean and 5 tips for managing them:
Number 1: A losing trade is different from a bad trade
The most experienced traders are well aware of their risk before they ever place a trade. Each losing trade is a small component of a bigger process that relates to a system, plan or strategy that has been thoroughly tested and studied. A losing trade is a calculated event for experienced traders. They defined their risk, position size, stop loss, and profit target. 🎯
A bad trade is very different. A bad trade implies someone risked their hard-earned money with no plan or process. A bad trade is reckless and indiscriminate trading. This often happens to new investors or traders who do not yet understand the time, studying, and research that goes into making a rock-solid plan. Be sure to remember the difference between a calculated losing trade and a bad trade with no plan or process.
TradingView Tip: there are several ways to get started with a plan, system or process. Paper trading, backtesting and/or working with proficient traders who give valuable feedback are all ways to get started. Don't risk your money without first doing research.
Number 2: Every losing trade provides data to get better
As we've mentioned several times now, losing trades happen to everyone. But remember, losing trades are also filled with insightful information and data. You can learn a lot from analyzing losing trades. 🔍
At the end of each trading day, week or month, experienced traders will analyze their losing trades in detail. What patterns are appearing? What do they share in common? Why did they happen? With this information, a trader or investor can adjust their strategy based on what they've uncovered.
Number 3: Do not let losing trades impact your health
Your mental and physical health are just as important as your financial health. Do not let losing trades impact either of those.
If your system is breaking down or several losing trades are starting to impact your emotions, step away from the computer or phone. Turn everything off and walk away. The markets have been open for hundreds of years and are not going away. When you're ready to come back, they'll be there.
Get up, get some fresh air, and get back in the arena when you're ready.
Number 4: Share your experiences with others
Traders and investors across the globe want to learn from your stories and losing trades. These are invaluable experiences that we all share in common. Social networks allow you to chat, share, and meet people who are going through similar things. We can all learn from each other.
Sure, the temptation to share your winners or act like the best trader who ever existed is tempting 😜 - but it's clear we learn together and get better when we share lessons from the loses. This is where the deepest insights are found, and together, it's where we can grow as a community of traders all trying to outperform the market.
Share and ask for constructive feedback!
Number 5: Keep Going
Markets are a game of learning, relearning, and progressing forward. New themes, trends, and stories appear and disappear daily. The journey is long and it never stops. When implementing your trading plan or investing plan, it's important to do it with the long-term in mind. One or two losing trades in a single day or week is a small fraction of what's to come many months and years down the road. 🌎
Keep going. Keep building. Keep refining your plan. Study the data.
We hope you enjoyed this post!
We hope you learned something new or informative!
Please leave any comments below and our team will read them.
- TradingView ❤️
Feel free to check us out on Instagram , and Twitter for more awesome content!
A practical guide to Risk management Hey everyone! 👋
While trading and investing offer the opportunity for profit, there is always the potential for loss. The most experienced traders know this best and in today’s post, we’re going to share several time-tested tips to help new traders and investors better understand financial risk and intelligent planning.
📝 Develop a Trading Plan
• Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful.
• You should have a detailed trading plan in place prior to engaging in any trades.
• Having a plan can help you stay calm under stress and ensure that you are trading within your risk tolerance.
🧘♂️ Understand your risk tolerance
• Risk is subjective. Different traders have different personalities and systems, hence a different risk tolerance.
• There is no “One-size-fits-all” approach.
• Find out what suits your needs based on your account size, age, long-term plan, and other key variables that are specifically unique to your circumstances. Then, implement it accordingly.
📚 Follow your trading system
• A trading system lays down a set of rules that can help a trader avoid impulsive decisions.
• A trading system is essential because it requires you to think deeply about your approach to markets before you begin risking real money.
• Traders should backtest and research their system under different market conditions. Ask yourself how you would perform in a bear market? Have you tried paper trading your system to see if it works? Have you discussed your system with others or asked for feedback?
• Some traders hop strategies after a series of losses. This usually leads to more losses and is unproductive in the long term.
• If your system has a verifiable edge, then sticking to it will help you in generating consistent returns over time. It will also help you stick to your original long-term plan as mentioned above.
🚨 Use a Stop-Loss
• A stop-loss order is an order that is placed at a predetermined price level and can help in limiting your losses if the trade goes against you. It’s also used to ensure you’re sticking to your original trading plan or trading system.
• In general, this predetermined price level is the level at which your trade idea gets invalidated.
✂️ Manage your position size
• It's important to take an optimal position size so that there isn’t too much risk exposure in any given trade.
• Trading is a game of probabilities. Hence, a trader should never put all his eggs in one basket and if he does, then he should be well aware of it.
❌ Don't overtrade or revenge trade
• Although it can be tempting, it's never a good idea to try to recoup the losses by taking higher risks.
• It's easy to feel strong emotions while trading. However, making decisions based on emotions rather than rational analysis can be a recipe for disaster. If you fear that this is happening, walk away from your computer.
📔 Maintain a trading journal
•A trading journal can help you in identifying the shortcomings in your trading.
• Evaluation of this journal at regular intervals will help you in understanding and in improving yourself. The trading journal is a tool to self-reflect on your journey.
Thanks for reading! We hope you enjoyed this post. Please feel free to write any additional tips or pieces of advice in the comments section below!
Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading!
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and Twitter for more awesome content!
How to add tweets to your TradingView charts?Hello everyone!
Did you know that you can integrate tweets into your TradingView charts? If not, you're in for a treat! In this visual guide, we will show you how you can enhance your charts by seamlessly incorporating tweets. 🙂
But first, let us show you an example of how incorporating tweets in your charts can make them more interactive and informative.
Adani Enterprises after the release of Hindenburg’s report:
Pretty cool, right? Now without further ado, let’s get started.
1. On your chart window, go to the toolbar on the left side of the screen and select the "Text" option, which is 5th from the top.
2. You will see a few options once you click on it. Select the “Tweet” option.
3. It will ask you to insert the link of the tweet that you want to add to your chart. All you have to do is just "paste" the link and click "ok" .
4. Upon adding the link, the tweet will show up on the chart along with the timestamp that denotes the precise time of its posting.
5. To adjust the tweet's placement, simply click and drag the tweet window to the desired location.
Thanks for reading! Hope this was helpful.
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and Telegram for more awesome content! 💘
Risk-Reward ratioHey everyone!👋
Risk management is an essential part of successful trading as it helps in identifying, assessing, and mitigating potential risks that may arise from various factors such as volatility.
Whether you are a day trader, swing trader, or scalper, effective risk management can help you in protecting your capital, and minimising losses while maximizing potential profits.
Before we move ahead, please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading!
One of the key pillars of risk management is Risk-Reward (RR) ratio. Traders can use this concept for optimising their entries and exits.
📚 What is Risk-Reward ratio?
→ The RR ratio measures your potential risk to the potential loss for a given trade.
→ A Risk:Reward of 1:3 means that you are risking 1 point in order to gain 3 points.
→ Conversely, some traders like to visualise it as Reward:Risk, in which case, the same proportion is written as 3:1.
🔍 What's an ideal Risk-Reward ratio?
→ In general, some traders consider 1:2 or higher as a good RR ratio.
→ However, this is not written in stone and should not necessarily be taken at face value.
→ There is no “One-size-fits-all” approach. Different traders have different systems and winning rates.
→ The risk-reward ratio combined with the win rate determines a trader's profitability.
🚨 Risk-Reward versus Win rate %
For a trader to stay breakeven,
→ A low RR requires a higher winning rate
→ A high RR requires a lower winning rate
As evident from the above data, a trader using a higher RR with a low win rate can still be profitable.
Hence, traders must combine their winning rate with an optimal RR to reach their desired profitability target.
Need for a balanced approach
→ A high risk-reward ratio seems attractive because it allows traders to make more profit than they stand to lose.
→ Similarly, a low risk-reward seems less attractive because it gives less reward as compared to the risk.
Example: Buying the horizontal breakout (Higher risk, higher RR)
Example: Buying the horizontal breakout (Lower risk, lower RR)
Risk is subjective and no two traders have the same risk tolerance. Therefore, it is advisable to use a RR as per your own trading system and the winning rate so as to ensure that the potential reward justifies the potential risk.
Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful!
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and YouTube for more awesome content! 💘
How to fail as a traderHey Everyone! 👋
Over the last few months, we've looked at a couple of the best ways to improve your trading, including learning to adjust to market conditions, building a proper trading mindset, and more. Today, we thought it would be fun to do the opposite. Instead of trying to help the community build up solid, professional trading practices, let's design a losing trader from the ground up! What attributes/decisions will we have to encourage to get a losing result?
Theoretically, the market is just a game of probabilities. How can we guarantee that our trader will lose? As it turns out, there are a couple of easy behaviours we can combine to ensure that a losing outcome is a foregone conclusion.
Number 1: They never define risk 🤷🏼♂️
In trading, people often say things about "Risk management" , "Defining your risk" or "Defining your out", but it can sometimes be difficult to determine, as a new trader, what the heck people are talking about. Define my risk? How? What are you talking about? What does this actually mean?
Put simply, defining your risk is figuring out *where* you are wrong on a trade/investment.
👉 For active traders, it can be as simple as picking a recent low or high and saying "If this price is hit, then I'm exiting the trade. The short-term read I had on this asset is no longer valid. I don't think I know what's going to happen next."
👉 For someone who is more of a position trader, it can be as simple as saying "I don't want to lose more than 10% (or some percent) of my capital at any point when I am in this position. I think that I have selected my entry well enough that a 10% drop (or x%) would mean that, for some reason or another, my thesis is no longer valid."
👉 From a cash management/portfolio management perspective, defining your risk has another dimension: How much of your total capital do you want to potentially lose in a worst-case scenario? Should each trade risk 50% of your capital? 20%? 5%? 1%? How much of your total bankroll will you lose before you stop?
In order to ensure that we have a losing trader, it's important that they don't have a plan for position sizing, setting stop losses, or setting account stop losses. This way, they won't have any consistency and will inevitably take a few big losses that knock the out of the game forever.
Number 2: They use lots of leverage 🍋
👉 When combined with Number 1, using lots of leverage is a great way to accelerate the process of losing money. Given that a strategy that wins 50% of the time will statistically face a 7-trade losing streak in the next 100 trades, sizing up and using leverage is a great way to ensure that when a rough patch strikes, you lose all your capital.
👉 Letting trades go past how much you expected to lose is a great way to speed this process because, with the addition of leverage, things only need to go against you 50%, 20%, 10%, etc, before you're wiped out. You can't risk to zero.
Considering that the most aggressive hedge funds in the world typically don't use an excess of 5-8x leverage, even in FX trading, we will need our losing trader to use at least 10-20x leverage in order to speed up their demise.
Number 3: They hop from strategy to strategy 🐰
Bruce lee once said, “I fear not the man who has practised 10,000 kicks once, but I fear the man who has practised one kick 10,000 times.”
👉 In this example, sticking to one strategy, even if suboptimal, is the man who has practised one kick many many times. The trader who strategy hops is the one who has tried almost every kick out there but mastered none. In order to ensure that our trader is a losing trader, we need to ensure that they never develop any mastery and keep switching from strategy to strategy.
👉 We need to constantly dangle a new strategy, indicator, or trading style constantly in front of our traders. Thus, no matter what strategy the trader picks, they will lack the hours necessary to have anything but suboptimal trade execution, poor overall market sense, and a general lack of nuance & understanding.
Combined with number 1 and number 2, it's going to be nearly impossible for this trader to be profitable.
--
So there you have it; 3 ways to ensure that the trader will fail. Recognize any of them?
Our hope in writing this is not to discourage anyone from getting involved in the markets, but rather to continually shine a light on some of the bad habits we can get into when starting out. Avoiding rookie mistakes and bad practices that can stunt a career as a trader & create bad habits!
Let us know if you enjoyed it, and we will continue to make more of these posts that go through some trading "best practices" .
Have a great week!
-Team TradingView ❤️
Do check us out on Instagram , and YouTube for more awesome content! 💘
How to subscribe to the TradingView newsletter?Hey everyone! 👋
Our weekly newsletter is built for one purpose: to keep you up to date in the markets. We include educational posts and ideas from our community, top scripts, an earnings calendar, an economic calendar, and more to prepare you for each week.
How to subscribe to our weekly newsletter?
1. Go to the top right-hand side of your screen, click on the display picture, and then select “Profile settings”.
2. Then click on the “ Notifications ” tab.
3. Once you open the notifications, you will see various options under the “ Email preferences ” tab. Just check the “ Weekly digest ” option and save changes. That’s it, you are good to go!
4. Once you are done subscribing to the newsletter, just sit back, and relax. We send our newsletter each Monday morning at 9 AM . Make sure to open the next newsletter! ❤
Oh, and please feel free to send us any feedback about our newsletter. We especially want to hear if you enjoy it or if there’s anything you would like to see added!
Let’s go! ❤
– Team TradingView
Introduction to market structureHey everyone!👋
In this article, we'll dive into market structure, providing insightful examples to enhance your understanding of this concept.
Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading!
Market structure is a basic form of understanding how markets move. It can be seen as the flow of the price between a series of swing highs and swing lows.
The market moves in trends. These trends are nothing but a combination of different structures.
The market structure allows you to be in sync with the market and avoid counter-trend trading, which enhances the probability of your setups.
There are broadly 3 types of structures:
1. Bullish (Uptrend)
2. Bearish (Downtrend)
3. Ranging (Sideways)
Illustration: Bullish market structure
Illustration: Bearish market structure
Illustration: Range market structure
📈 What is an uptrend?
✅ Characterised by a bullish market structure.
✅ Formation of higher highs followed by higher lows.
✅ For an uptrend to stay intact, it must preserve its ascending structure - higher highs must follow higher lows.
✅ Lower highs are allowed if the price goes into compression or re-accumulation.
📉 What is a downtrend?
✅ Characterised by a bearish market structure.
✅ Formation of lower highs followed by lower lows.
✅ For a downtrend to stay intact, it must preserve its descending structure - lower highs must follow lower lows.
✅ Lower highs are allowed if the price goes into compression or re-distribution.
⚡ What is a range?
✅ A range is a zone where the price finds itself bouncing between two levels.
✅ These levels are - range high and range low.
✅ The size of the range is dependent on different factors such as asset class, demand-supply, volatility, etc.
A lot of times, the structure won’t be as clear as you want it to be. Conversely, sometimes the structure will replicate the textbook. Hence, you need to be flexible in your approach.
Sometimes, trading in range-bound markets can be challenging due to the choppiness in price movements. However, when the price action is more defined, some traders may prefer to trade the range by executing breakout trades or mean reversion trades from the range high to the range low or vice versa.
It is better to combine market structure with other concepts/indicators for better results.
Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful!
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and YouTube for more awesome content! 💘
The 2022 TradingView Community AwardsHey everyone! 👋
🥳 Welcome to the 2022 Community Awards! 🥳
It’s that time of year again, which means it’s time for us to shine a light on some of the best content shared on TradingView in 2022. Roll back the clocks with us as we dive deep into the best trade ideas, educational posts, and videos that you shared on our network. Without further ado, let’s jump in!
Starting us off, here were the top 3 most popular written trade ideas (by likes).
TeamTaurus, with their idea “Nifty Prediction”
Wolf-AD7, with their idea “The Bitcoin Cycle: A guide to time the next major entry”
Here were the top 3 most popular educational ideas:
RK_Charts, with their idea “How and when you should apply which Option strategy”
Chaser30, with their idea “'Verse' of 'Reverse' Candlestick Pattern”
johntradingwick, with their idea “How to find High Probability trades?”
Here were the top 3 most popular Video ideas:
piyushrawtani, with their idea: “Gap up/gap down intraday strategy with simple entry/exit”
priceNpedia with their idea: “HCL Tech: Coming out of downward channel”
StockEngineers_ with their idea: “Volume Analysis Series Part-3”
Here were the top 3 most popular scripts:
mallu-trader, with their script “ADR + CPR By MT”
bharatTrader, with their script “Alpha-Returns”
VinayKumarKV, with their script “Super Scalper - 5 Min 15 Min”
Here were the top 3 most active streamers of 2022 (by # of streams)! Be sure to check them out:
🥇 Stoxway
🥈 SathishChandrasekaran
🥉 AlphaBulls
And finally, the honorable mentions. These were users who were selected by a bunch of different criteria, impressed the editors, and had at least one idea selected for Editor’s Picks. Please put your hands together for the following awesome community members!
🥇 Bravetotrade
🥈 TRADEWITHFUN247
🥉 Charts_insiders
And there you have it! Our 2022 community award winners. Think we missed a good user, idea, script, or comment? Let us know in the comments below 😎
Let’s all have a fantastic 2023 together.
-Team TradingView ❤️❤️
Introducing Minds! 5 Things you need to know.Social media has evolved to become an essential tool for traders and investors. Staying up to date with market narratives, sharing and reading top ideas, and directly collaborating with others all serve to make the medium an extremely important part of the research process. That’s why today we’re thrilled to announce the next step in that evolution - Minds!
In today’s post, we’re going to highlight a few ways to use Minds to improve the way you follow, share, and chat about your favorite symbols. After all, in markets, information is everything and this is another tool to build into your workflow:
1.) Think of Minds as a feed created by your peers – full of their opinions, notes, and shared news topics, all relevant to whatever ticker you’re currently looking at.
2.) Minds can be used to quickly measure the general sentiment for any symbol. Ask yourself what people are talking about and if it’s bullish or bearish.
3.) Accessible from any symbol page, or from the right rail (with the thought bubble icon), this unique format allows you to chat with other members of the community alongside your chart. Watch the chart and social conversation at the same time.
4.) Want feedback about a specific symbol? Head to the Minds feed for that symbol and share your questions or comments. Other traders will eventually see your posts on the Minds feed. They can then comment, upvote, and downvote to let you know what their initial reaction is. This feedback can be used to improve your understanding of a symbol.
5.) Minds can be used to quickly catch up on all the news about your favorite symbols. Head to a Minds feed and examine what people are saying. Is there breaking news? Links? Charts? Something else? Over time these feeds will become essential newsfeeds for you.
Minds is currently in beta, so please send us any feedback you have! Know that we are working diligently to improve it.
Finally - while Minds is open to all users to read, follow, and vote, only paying members (Pro, Pro+, and Premium) can currently post to the Minds feed and leave comments, similar to the other social tools on our site.
Let us know how you like it, and get out there and post your first Mind today!
Happy Holidays! 😎🌲
-Team TradingView ❤️❤️
5 Things to remember about bull marketsHey everyone! 👋
Bull markets are a time of optimism and growth, and they can be a great opportunity for making substantial gains. However, it's important to remember that bull markets don't last forever, and it's crucial to approach them with a healthy dose of caution while keeping your eye on your long-term goals. 🙂
Here are a few things to keep in mind when dealing with bull markets:
🚨 Don't get caught up in the speculative frenzy
It's important to remain level-headed and avoid making impulsive decisions based on short-term gains. Take time to thoroughly research any trades you're considering. It’s always good to focus on ideas with strong fundamentals as well as technicals.
📚 Keep an eye on valuations
In a bull market, it's common for stock prices to rise, sometimes to levels that may not be justified by a company's fundamentals. For investors, it can be important to keep an eye on valuations and make sure the stocks you're investing in are reasonably priced.
🔔 Be prepared for reversals
Like all good things, the Bull markets too eventually come to an end. Hence, it's essential to be prepared for a downturn. It’s always good to manage risk exposure by employing techniques such as diversification and hedging.
💸 Control your risk
It's natural to want to hold on to the positions that are performing well, but it's important to remember that bull markets eventually come to an end.
If you've made substantial gains, trailing may be a good option to lock in profits should things change quickly. Letting the winners ride by continually trailing your positions is one good strategy for improving a trade’s Risk-Reward ratio.
📈 Keep a long-term perspective
Trading is a marathon, not a sprint. Bull markets can be a great opportunity for gains, but it's important to keep a long-term perspective about your goals. Did you miss the big moves? Don’t get angry and make bad decisions. There will be more opportunities down the road to apply what you’ve learned.
Bull markets can provide excellent opportunities, however, they must be approached with caution and with defined personal goals. Consider the risks and rewards of each investment, keep an eye on valuations, and always be prepared for a downturn.
We hope you enjoyed this post! Please feel free to write any additional tips or pieces of advice in the comments section below.
See you all next week. 🙂
– Team TradingView
Do check us out on YouTube and Instagram for more awesome content!
10 Reasons why Most traders lose moneyHey everyone!👋
Trading & investing is not easy. If it were, everyone would be rich.
Here are a couple of time-honored tips to help you get back to basics.
Lack of knowledge 📘
Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful. As a result, they make costly mistakes and quickly lose money.
Poor risk management 🚨
Risk is an inherent part of trading, and it's important to manage it effectively in order to protect your capital and maximize your chances of success. However, many traders don't have a clear risk management strategy in place, and as a result, they are more vulnerable to outsized losses.
Emotional decision-making 😞
It's easy to feel strong emotions while trading. However, making decisions based on emotions rather than rational analysis can be a recipe for disaster. Many traders make poor decisions when they are feeling overwhelmed, greedy, or fearful and this can lead to significant losses.
Lack of discipline 🧘♂️
Successful trading requires discipline, but many traders struggle to stick to their plan. This can be especially challenging when the market is volatile or when a trader is going through a drawdown. Create a system for yourself that's easy to stay compliant with!
Over-trading 📊
Many traders make the mistake of over-trading, which means they take on too many trades and don't allow their trades to play out properly. This leads to increased risk, higher brokerage costs, and a greater likelihood of making losses. Clearly articulating setups you like can help separate good opportunities from the chaff.
Lack of a trading plan 📝
A trading plan provides a clear set of rules and guidelines to follow when taking trades. Without a plan, traders may make impulsive decisions, which can be dangerous and often lead to losses.
Not keeping up with important data and information ⏰
The market and its common narratives are constantly evolving, and it's important for traders to stay up-to-date with the latest developments in order to make informed decisions.
Not cutting losses quickly ✂️
No trader can avoid making losses completely, but the key is to minimize their impact on your account. One of the best ways to do this is to cut your losses quickly when a trade goes against you. However, many traders hold onto losing trades for too long, hoping that they will recover, and this can lead to larger-than-expected losses.
Not maximizing winners 💸
Just as it's important to cut your losses quickly, it's also important to maximize your winners. Many traders fail to do this, either because they don’t have a plan in place, telling them when and how to exit a trade. As a result, they may leave money on the table and miss out on potential profits.
Not Adapting 📚
Adapting to changing market conditions is paramount to success in the financial markets. Regimes change, trading edge disappears and reappears, and the systems underpinning everything are constantly in flux. One day a trading strategy is producing consistent profits, the next, it isn't. Traders need to adapt in order to make money over the long term, or they risk getting phased out of the market.
Overall, the majority of traders make losses because they fail to prepare for the challenges of the market. By educating themselves, developing a solid trading plan, and planning out decisions beforehand, traders can improve their chances of success and avoid common pitfalls.
We hope you enjoyed this post. Please feel free to write any additional tips or pieces of advice in the comments section below!
See you all next week. 🙂
– Team TradingView
Do check us out on YouTube and Instagram for more awesome content!
Alerts: 3 reasons they can make you a better traderHey Everyone! 👋
We hope you’re enjoying Black Friday week and have helped yourself to some of the great discounts we are offering. We only do this once a year, so it really is the best time to get a plan!
Now, let’s jump into today’s topic: Alerts.
While alerts have a ton of potential applications when it comes to trading, they are often underutilized because it can take some time and ingenuity to build a system where they can work well. Let's take a look at some reasons why that investment is well worth it.
1. They can help build good habits 💪
Stop us if this sounds familiar: you hear an awesome investment story, and then immediately go out into the market and purchase the asset, with no plan in place.
While this can work, it’s not a great strategy for long-term success, because in reality, it can be extremely hard to sit in that position without a plan and trade it efficiently. You may choose to exit the position based on nothing more than momentary greed or fear, and moves like that can prevent consistency and long-term profitability.
Alerts are great because they can take out the guesswork of entering and exiting a position. Simply set alerts for the prices you would like, then place a trade if, and only if, the conditions are met. Then, let the market do its thing and let the probabilities work in your favor.
Alerts can turn the experience of trading from a constant search for ideas - and always feeling behind - into a relaxing job of waiting for your own pre-approved conditions to trigger before taking action. In short, alerts can make you much more well-prepared for the market’s ups and downs.
2. They increase freedom and reduce anxiety 🧘
There is a well-known maxim in trading and in life that states that negative emotions are felt twice as strongly as positive emotions. This factoid has lots of applications, but it can be especially useful to understand as a trader.
Consider the following investors:
- A dentist who checks quarterly reports from his brokerage
- A position trader who checks his positions once a month
- A swing trader who checks his positions once a week
- A Day trader who checks his positions once a day, if not more
Given the natural volatility that markets experience, which market participant is least likely to be mad or upset? The dentist. Why? Because he is receiving fewer data points from the market. Even world-class day traders are exposed to tens or hundreds of negative situations in their positions on a day-to-day basis as a result of volatility, which they cannot control. This level of negative stimulation can reduce mental health and trading effectiveness.
Alerts allow well-prepared traders with some edge to step back from the markets and allow the trades to come to them.
3. Our alerts don’t let anything fall through the cracks ✅
While the previous two points are benefits when it comes to price alerts, our alerts also step the game up considerably when it comes to user utility. Once you have setups that you like to trade, you can set alerts on trendlines, technical indicators, customizable scripts, and so much more, so you can ensure that your favorite setups aren’t being missed.
This can be as simple as a long-term investor setting RSI alerts on Dow 30 stocks, in order to buy dips in strong names, to as complex as an intraday futures spread scalper setting alerts for pricing inefficiencies within his top 40 contracts.
Our customizable alerts can really allow well-organized traders to capture every opportunity as they see it.
And there you have it! 3 reasons to take advantage of alerts, and all of the awesome benefits they bring.
Thanks for reading and stay well!
Love,
Team TradingView ❤️❤️
Do check us out on YouTube and Instagram for more awesome content!
Introduction to Volume profile If you have been in the market for some time, you may have heard of a study called the “Volume profile” . Today we are going to take a deeper look at volume profile, along with a few example strategies. This post will also lay the groundwork for future posts about more advanced volume profile topics.
Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading!
The post will shed some light on the following topics:
→ What is volume profile?
→ Difference between traditional volume indicator and volume profile
→ Volume profile terminology
→ Different types of volume profiles
→ Example strategy
👉 What is Volume profile?
Volume Profile is an advanced charting study that displays trading activity at specific price levels over a specified time period. On the chart, it plots a horizontal histogram to reveal significant price levels based on volume.
Volume Profile, in essence, takes the total volume traded at a specific price level during the specified time period and divides it into either buy volume or sell volume, making that information easily visible to the trader.
👉 Difference between volume profile and traditional volume indicator
The core difference between the traditional volume indicator and the volume profile is how they consider volume with respect to time and price.
The traditional volume indicator plots histograms at specific times, without giving any relevance to the price levels. On the other hand, the volume profile gives importance to price levels without emphasizing on the time scale.
👉 Volume profile terminology
■ Point of Control (POC) – The price level for the time period with the highest traded volume.
■ Profile High – The highest reached price level during the specified time period.
■ Profile Low – The lowest reached price level during the specified time period.
■ Value Area (VA) – The range of price levels in which a specified percentage of all volume was traded during the time period. Typically, this percentage is set to 70% however it is up to the trader’s discretion.
■ Value Area High (VAH) – The highest price level within the value area.
■ Value Area Low (VAL) – The lowest price level within the value area.
■ High Volume Nodes (HVN) – Peaks in volume around a price level.
■ Low Volume Nodes (HVN) – Valleys in volume around a price level.
👉 Different types of volume profiles
TradingView currently provides 5 types of volume profiles. These are:
1. Auto anchored - Specifies the anchor of the volume profile calculation, i.e. how often the volume profile recalculates and where it starts.
2. Fixed range - Builds a profile using the custom anchors provided by the user.
3. Periodic - Sets the period for which the indicator builds volume profile, one profile for each new period.
4. Session (Normal and HD) - SVP displays a profile for all the market action that occurs within a session. If set to "All" (default), the indicator will consider the pre-market, main trading session and post-market as one session.
5. Visible range - Builds a profile considering all the visible data on the screen.
Please note that the Volume Profile is a paid-only feature that can be accessed by subscribing to one of our paid plans. If you need to upgrade your account, be sure to check out our Black Friday sale . You can get up to 60% off on subscriptions.
Example strategy
Just like with most other tools or studies, Volume Profile has a number of uses. There are many trading strategies out there using Volume Profile as a key component. Below are the basics of one such strategy which is based on comparing the current day’s opening price to the previous day’s Volume Profile.
👉 If the current day opens above the previous day’s value area (but still below the Profile High)
A sample setup is to look for the price to retrace back toward the Point of Control and then proceed to rise (the direction of the day’s open). Therefore during the retracement to the Point of Control, there is a buying opportunity.
👉 If the current day opens below the previous day’s value area (but still above the Profile Low)
Some traders may look for price to retrace back towards the Point of Control and then proceed to fall (the direction of the day’s open). Therefore during the retracement to the Point of Control, there is a selling opportunity.
👉 If the current day’s opening price is completely outside of the previous day’s profile (above the Profile High or below the Profile Low)
In general, this is seen as a possible runner in the direction of the opening price relative to the previous day’s profile range but different traders may look at it differently.
Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful!
See you all next week. 🙂
– Team TradingView
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