Fomc cycle trading strategy in quantstrat

Fomc cycle trading strategy in quantstratFOMC Cycle Trading Strategy in Quantstrat

Another hotly anticipated FOMC meeting kicks off next week, so I thought it would be timely to highlight a less well-known working paper, Stock Returns over the FOMC Cycle, by Cieslak, Morse and Vissing-Jorgensen (current draft June 2014). Its main result is:

Over the last 20 years, the average excess return on stocks over Treasury bills follows a bi-weekly pattern over the Federal Open Market Committee meeting cycle. The equity premium over this 20-year period was earned entirely in weeks 0, 2, 4 and 6 in FOMC cycle time, with week 0 starting the day before a scheduled FOMC announcement day.

In this post, well look to recreate their cycle pattern and then backtest a trading strategy to test the claim of economic significance. Another objective is to evaluate the R package Quantstrat for constructing trading systems and simulation.

Although the authors used 20 years of excess return data from 1994 to 2013, instead well use SP500 ETF (SPY) data from 1994 to March 2015 and the FOMC dates (from my previous post here returnandrisk/2015/01/fomc-dates-full-history-web-scrape. html ).

As there is not a lot of out-of-sample data since the release of the paper in 2014, well use all the data to detect the pattern, and then proceed to check the impact of transaction costs on the economic significance of one possible FOMC cycle trading strategy.

Cycle trading

Cycle tradingCycle Trading

There are tons of trading strategies that traders developed, some work and some dont. Some trading strategies work for some traders, but fail for others. The most common reason being traders apply the wrong trading strategies to the wrong time. There are trading strategies that work well during recession but failed miserably in a bull market, and vice versa. Today, we are going to look at two powerful trading strategies that you can use for different stock market conditions.

Cycle Trading

In short term swing trading or day trading, almost all trading strategies incorporate technical analysis and chart patterns for trade setups, profit taking and stop losses, and thats exactly what we will use for our trading strategies . Lets begin.

What is Cycle Trading?

Cycle trading is a way that traders use to find support and resistance of a stock and buy stock when the stock hit a cycle low and sell stock when the stock hit a cycle high. This strategy is best used when a stock is trading in cycles.

Cycle Trading Pattern

The Cycle Trading Pattern looks like a Sin wave. When the stock market or an individual stock is trading in a range, it is what we called a stock is trading in a cycle. It fails to drop lower than the cycle low and fails to rise higher than the cycle high. Sometimes, a stock may trade in cycles for many years. When you recognize this pattern, you should buy the stock at cycle low and sell it when it approaches cycle highs.

4 Phases of a Trading Cycle

Cycle Trading Chart

Here's the chart for AMAT which was trading in cycle in the past 2 years with a cycle low of 10.0 and a cycle high of 16.5.

Short Term Cycle Trading

There are short term cycles within long term cycles and you can literally find cycles on any daily or intraday chart. Your goal is to buy stocks at the support level or cycle lows and sell them on cycle high or the resistance level. You should set your stop loss right below the support level if you go long and the stop loss should be above the resistance level when you go short.

Trend Following Trading Strategies

During a bull market, trend following strategies work really well and it performs better than any other trading strategy. If you apply trend following strategies in the recent month, you could have pick up winners like AAPL and BAC.

If you have traded in the stock market for over half year, you must have heard “The trend is your friend”. This is exactly what trend following strategies is all about, to ride the trends.

Trending Stocks

1. Trend Line

- Draw trend lines on a chart and see if a stock is trending higher. Connect each higher lows and the trend line should be going up. The stock close of each trading day should stay above the trend line. You can draw trend lines manually or you can use a trading software like MarketClub where you can draw directly on the chart. The green triangles on the chart are buying signals generated by MarketClub and the red triangles are selling signals.

2. Moving Average Orders

- You can use a few moving averages or exponential moving averages and arrange them in ascending orders. For example, you can use a 5-day EMA, 10-day EMA and a 20-day EMA. When the 5-day EMA is above the 10-day EMA, and the 10-day EMA is above the 20-day EMA, that is a signal for a trending stock. You can use a longer or shorter period of EMA depends on what type of traders you are.

On 1/5, the following chart triggers a buy signal for BAC where the 5-day EMA is above the 10-day EMA and the 10-day EMA just crossover the 20-day EMA. The stock then went from $6.32 a share to $8.03. That is a 27% gain in 5 weeks.

3. Overbought Stocks

The third method to see if a stock is trending is to use the overbought indicator. If you use a technical indicator like RSI or stochastic, you can easily check if a stock is overbought. A stock is considered overbought when the RSI rise above 70 or when the Stochastic is Indicator rise above 80. When a stock stays in the overbought area for a long term, the stock becomes a trending stock. If you look for stocks manually, it can take hour to find these overbought stocks. You can use our stock screener to find these stocks quickly and it will save you a lot of time. dojispace

Screen for overbought stocks with a stock screener

a) Find the stochastic crossover scan

4. ADX Indicator

- ADX is a technical indicator that measures the strength of a trend. When ADX rise above 25, the stock is in a strong trend. If the value is over 30, that means the trend is even stronger. ADX below 25 means the trend is weak and any value under 20 means there is no trend for the stock. Again, you can scan stocks for free on dojispace

b) Select ADX Value >= 25 (You can set this value to 30 or 35 for extremely strong trends)

c) Click the submit button next to it and you will get a list of stocks with strong trend.

5. Daily Trending Stocks

- This is a free service by INO where you can get the daily top 50 trending stocks. These are great stocks for day traders and swing traders.

Day trading forex with cci indicator

Day trading forex with cci indicatorDay Trading Forex With CCI Indicator

In this trading strategy, we use Donald Lamberts original article on the Commodity Channel Index (CCI) as a starting point to create a day trading strategy for forex markets .

Formulating our CCI Day Trading Strategy

Many traders use the CCI indicator to find oversold and overbought markets. Buy when it is below -100 and sell when it is above +100.

However, Donald Lambert did the complete opposite.

If the CCI goes above the + 100 line, thats a signal to establish a long position. When the CCI drops below the + 100 line, the long position is closed out. The same techniques apply to short positions at the -100 line.

Following his words, we will look for long trades when CCI moves above 100 and short trades when CCI falls below -100.

Regarding the period of CCI, he mentioned that:

data base (look-back period) should be less than one third of the cycle length to produce a reasonable level of theoretical efficiency.

Instead of performing complex cycle analysis, we assume there are daily cycles in forex markets. Hence, the cycle length is 24 hours.

We trade with 30-minute bars. In 24 hours, we have 48 bars. One third of the cycle length is 16 bars.

Hence, the typical CCI setting of 14 period is adequate.

Donald Lambert also cautioned that:

Too short a data base will produce whipsaws as the index interprets daily price fluctuations as being cycle tops or bottoms.

To avoid whipsaws, we will not enter immediately after a CCI signal. We will wait for a retracement and a clear trend bar before entering.

Trading Rules Day Trading with CCI

Based on the above, we have come up with clear trading rules for day trading with CCI.

Training plan for sportives and charity cycle rides

Training plan for sportives and charity cycle ridesTraining plan for sportives and charity cycle rides

Training for sportives and charity cycle rides

10 week training plans for sportives are becoming more and more popular, year on year, with new ones popping up throughout the UK on a regular basis. It is possible to find a sportive event any month of the year, with the majority in the summer for obvious reasons.

If you are new to cycling or have been doing it occasionally for a while, then this programme is for you.

First thing to do is find a sportive - there are lists on websites such as CTCs events page . Cycling Weekly or cyclosport . Select one at least 10 weeks away.

Next, work out how much time you have available to train. Take into account work, family time, rest etc. Its always a good idea to underestimate the time you have to train - that way you dont put any pressure on yourself if you get busy with work etc.

Also, bear in mind that if you are starting the programme in the winter youll need suitable clothing for the conditions and lights. Always take a spare tube, puncture kit, and a pump with you on your rides. Make sure your tyres are pumped up to the correct pressure before each of them.

Like any training plan, please make sure you have your doctors permission before starting, especially if you have not done any exercise for a while. It is important to remember to eat and drink at regular intervals while training.

Monday Day Off

Tuesday 30 mins: Easy effort. You should be able to hold a conversation.

Wednesday Day Off

Thursday 30 mins: Easy effort. You should be able to hold a conversation.

Friday Day Off

Saturday 10-15 miles on flat roads (if possible): Easy effort. You should be able to hold a conversation.

Profitable forex scalping system with2ema-s and trading oscillator

Profitable forex scalping system with2ema-s and trading oscillatorProfitable Forex Scalping System With 2 EMAs And Trading Oscillator

Heres another profitable forex scalping system with 2 EMA cross and the Schaff Trend Cycle oscillator. We aim for 15 pips per trade. Simply no greed. Just 15 pips.

Indicators: 40 exponential moving average, 110 exponential moving average, schaff-trend-cycle

Preferred time frame(s): M1

Trading sessions: Euro, US

Preferred Currency pairs: GBP/USD, GBP/JPY

Example: GBP/JPY 1 Min Chart

Heres is a 1 min chart of GBP/JPY with the 3 indicators and system applied. We had two nice entries along the up trend both closed for 15 pips. Click the chart to enlarge.

Trading Rules

EMA 40 crosses EMA 110 from below (bullish trend)

Wait for the schaff-trend-cycle indicator to turn back above 5 from below (oversold)

EMA 40 crosses EMA 110 from above (bearish trend)

Wait for the schaff-trend-cycle indicator to turn back below 100 from above (overbought)

Sell now. Place stop-loss order 1 pip above the declining EMA 110 line.

Price objective: 15 pips

Support and resistance trading tactics

Support and resistance trading tacticsSupport And Resistance Trading Tactics

Support And Resistance Trading Methods Work In Range Bound Markets

One of the best ways for beginners to get their feet wet is to learn simple support and resistance trading strategies. Often times beginners who know very little about financial markets begin with advanced techniques that can land them in hot water very quickly if they are not careful. In September of last year, I wrote an article about Market Cycles and how financial markets alternate between trending cycles and range bound cycles. If you did not read this article I suggest you do so because it will help you match the correct trading cycle to your strategy and increase your odds of success tremendously.

Wait Till Trend Ends

The first thing you want to do is identify the correct market conditions that lend themselves to range bound trading. The biggest mistake beginners make is trading range bound techniques when markets are trending. The key is to monitor the markets that are trending and wait till the trend ends. Once the trending cycle ends, markets usually enter a prolonged stage of consolidation or range bound activity. So make sure you start out monitoring markets that are trending but dont enter markets that are trending. In this example Im monitoring and waiting for the trend cycle to end.

If you continue to monitor specific stocks or other markets such as futures or commodities you will begin to notice how the trend becomes weaker and eventually the market enters a different type of trading cycle. This is the correct time to initiate support and resistance trading tactics. The longer the market stayed in one cycle the longer it will stay in the other cycle. In this example you can see how Devon Energy Corporation slowly transitioned from trending cycle to range bound cycle.

Taking Advantage Of Range Bound Trading Cycle

When you isolate the range bound cycle you want to make sure to give it a week or two to develop so that you can see if there is any directional bias. In simple terms you want to see if the range bound cycle has a directional slope. Even when markets are range bound and trend-less there is often times some degree of directional movement that the market has bias towards. This bias is usually a sign that the consolidation is a reversal and more often than not the range bound price action leans in the opposite direction from the previous trending cycle. You can see in this example how the stock favors the upside and leans upwards. The previous trending cycle was downtrend so its not surprising for the range bound cycle to lean in the opposite direction.

After you isolate the range bound cycle and determine in which direction the market is leaning, you can begin planning your entry and exit levels strategically. Your best opportunities will occur if you only take trades in the direction of the slope that the market is leaning towards. This tip will increase your profit to loss ratio as well as increase the size of the winners.

Second Example

I want to provide you with another example so you can get a good idea of how to isolate support and resistance areas as well as know which direction to take your entry and exit signals. Notice in this example Goldman Sacks is trending strongly upwards for extended period of time. A good way to begin your analysis is to start monitoring stocks or other markets you trade that are trending strongly in one direction. Usually cycles alternate so you can anticipate with a high degree of certainty that a trending phase will end and consolidation cycle will begin.

Begin Your Research By Finding Strong Trending And Volatile Markets

Once you find the right market and notice that the trend is coming to an end you can begin looking for range bound trading to begin. The next step is to isolate the range bound trading action and see which way it slopes. You only want to take trades in the direction the market is sloping so give the market some time to show you which way to position yourself.

Once you isolate the range bound cycle and determine which direction it favors you can begin to plan your entry and exits around that information. In this example you can see how the slope is trending down and my entries are always in the direction of the trend or slope in this case.

Qqe current timeframe forex trading strategy

Qqe current timeframe forex trading strategyQQE Current Timeframe, Symphonie Extreme Cycle Indicator (Turbo) and TTM Trend Forex Trading Strategy

1 Hour 4 Hour

QQE Current Timeframe *Symphonie Extreme Cycle Indicator (Turbo Version)

TTM Trend.

Enter a LONG position when the QQE Current Timeframe indicator crosses when below the 50 horizontal line (the blue line crosses the dotted line upward). The Symphonie Extreme Cycle indicator forms a blue candle within its indicator window and the TTM Trend forms a blue vertical stroke that cuts through the candlestick.

Place your stop loss below the TTM Trend indicator.

Exit Strategy/Take Profit:

Take profits on this strategy or exit open positions when the TTM Trend indicator changes to red. Once the first stroke shows up, you can exit this trade as it signals a new trend direction.

QQE Current Timeframe, Symphonie Extreme Cycle Indicator (Turbo) and TTM Trend Trading Strategy Buy Signal

The chart above shows the various conditions for our BUY entry as the QQE Current Timeframe indicator crosses whilst below the 50 horizontal line. The Symphonie Extreme Cycle displays a blue candle and a corresponding blue vertical stroke cuts through the candlesticks (TTM Trend indicator). An exit is considered when a red TTM Trend indicator forms in the place of a blue vertical stroke.

Enter a SELL position when the QQE Current Timeframe indicator crosses when above the 50 horizontal line (the blue line crosses the dotted line downward). The Symphonie Extreme Cycle indicator forms a red candle within its indicator window and the TTM Trend forms a red vertical stroke that cuts through the candlestick.

Place your stop loss above the TTM Trend indicator.

Exit Strategy/Take Profit:

Take profits on this strategy or exit open positions when the TTM Trend indicator changes back to blue. Once the first stroke shows up, you can exit this trade as it signals a new trend direction.

QQE Current Timeframe, Symphonie Extreme Cycle Indicator (Turbo) and TTM Trend Trading Strategy Sell Signal

The chart depicts a SELL example where the TTM trend indicator forms a red vertical stroke through the candlesticks. The Symphonie Extreme indicator forms a red candle within the indicator window, signaling a SELL trigger and the QQE Current Timeframe crosses from above the 50 horizontal line. Our exit strategy is based on the theory of the TTM Trend indicator changing into a blue vertical stroke.

How to develop an erp strategy

How to develop an erp strategyNot a Gartner Client?

Want more research like this?

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Stocks day trading using alternating cycles

Stocks day trading using alternating cyclesStocks Day Trading Using Alternating Cycles

Cycle Analysis For Stocks Day Trading Techniques

In this article Im going to show you a great way to analyze markets. This method of analysis will help improve your stocks day trading technique as well as improve your overall trading results. One of the first things I teach traders is to look at the big picture and work down from there. When analyzing markets from a long term view you gain insight into past trading history and more importantly clues as to how the market may behave in the future. The first thing I usually pay attention to is the current conditions of the underlying market. In other words I want to see if the market is trending or range bound. Once I determine the current trading characteristics I immediately look back to see when the market exhibited the opposite characteristics.

Remember The Golden Rule

One of the most important rules every trader should know is the longer markets trends and exhibits one way momentum the higher the odds that a range bound period is approaching. Conversely, the longer the market is trend less or range bound the higher the odds that strong directional momentum is approaching. There are exceptions to this rule but typically, when you see a long trend that lasts for several months you almost always see a trend less consolidation period immediately following the end of the trending cycle. Similarly, when markets are range bound for extended periods of time a strong breakout out accompanied by volatility and momentum typically follows this pattern.

Applies To Different Time Frames

Since markets are driven by people and people are emotionally driven this pattern tends to apply across stocks, futures, commodities, currencies and most other traded financial markets. Moreover, this pattern of alternating between range bound and momentum tends to apply to different time frames as well. Notice in this example how Hyatt Hotel stock alternates between range bound and trending periods, once you start paying attention to this alternation pattern you will begin taking it into consideration when planning your entry and exit strategies.

In this example you can see how this pattern applies to intra-day price fluctuations as well. You always have to keep in mind that markets are driven by emotions. This will help you gain better perspective of how markets really work and whats really behind each move. Also keep in mind that there is some correlation between the length of time of each stage and the following stage. In other words if the range bound stage lasted 2 months the odds are the trending momentum stage or cycle will last a few months as well.

How Can You Benefit From Alternating Cycles

Once you become aware of alternative trading cycles you will begin to look and analyze markets a bit differently. Not only will you pay attention to what the market is currently doing you will also start looking at the past few cycles to gain clues to help you determine how long the current cycle will last. For example, the U. S. Stock Market is just entered what appears to be range bound market conditions after trending for several months. You can see by looking at this chart that the stock market was previously trending strongly since September of last year. It appears that sometimes during the first week of April of this year, the Stock Market entered a trading range cycle. Since the previous cycle lasted several months, It would be reasonable to assume that this stage will last several months as well. Keep in mind that this analysis is done based on probabilities and not certainty so no one knows for sure what the future holds. However historically alternative cycle analysis has worked for over 100 years now and the odds are it will continue to work in the future just as well.

The U. S. Stock Market May Stay Range Bound For Several Months

When you see that Markets are changing from one cycle to the next you should seriously reconsider how you trade that market and the type of strategies that are working in the current cycle; once the cycle changes the techniques that were used effectively and once that worked in the previous cycle will not work in the current cycle. Therefore you must adjust your trading style and learn to trade both trending and range bound trading cycles.

How Can You Tell If Current Cycle Is Ending

Plan-do-check-act(pdca)cycle

Plan-do-check-act(pdca)cyclePlan-Do-Check-Act (PDCA) Cycle

Looking for more on the PDCA model?

Also called: PDCA, plandostudyact (PDSA) cycle, Deming cycle, Shewhart cycle

The plandocheckact cycle (Figure 1) is a fourstep model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement.

Figure 1: Plan-do-check-act cycle

When to Use PlanDoCheckAct

As a model for continuous improvement.

When starting a new improvement project.

When developing a new or improved design of a process, product or service.

When defining a repetitive work process.

When planning data collection and analysis in order to verify and prioritize problems or root causes.

When implementing any change.

PlanDoCheckAct Procedure

Plan. Recognize an opportunity and plan a change.

Do. Test the change. Carry out a small-scale study.

Check. Review the test, analyze the results and identify what youve learned.

Act. Take action based on what you learned in the study step: If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.

PlanDoCheckAct Example

The Pearl River, NY School District, a 2001 recipient of the Malcolm Baldrige National Quality Award, uses the PDCA cycle as a model for defining most of their work processes, from the boardroom to the classroom.

PDCA is the basic structure for the districts overall strategic planning, needsanalysis, curriculum design and delivery, staff goal-setting and evaluation, provision of student services and support services, and classroom instruction.

Figure 2 shows their “A+ Approach to Classroom Success.” This is a continuous cycle of designing curriculum and delivering classroom instruction. Improvement is not a separate activity: It is built into the work process.

Figure 2: Plandocheckact example

Plan. The A+ Approach begins with a “plan” step called “analyze.” In this step, students needs are analyzed by examining a range of data available in Pearl Rivers electronic data “warehouse,” from grades to performance on standardized tests. Data can be analyzed for individual students or stratified by grade, gender or any other subgroup. Because PDCA does not specify how to analyze data, a separate data analysis process (Figure 3) is used here as well as in other processes throughout the organization.

Figure 3: Pearl River: analysis process

Do. The A+ Approach continues with two “do” steps:

“Align” asks what national and state standards require and how they will be assessed. Teaching staff also plans curriculum by looking at what is taught at earlier and later grade levels and in other disciplines to assure a clear continuity of instruction throughout the students schooling. Teachers develop individual goals to improve their instruction where the “analyze” step showed any gaps.

The second “do” step is, in this example, called “act.” This is where instruction is actually provided, following the curriculum and teaching goals. Within set parameters, teachers vary the delivery of instruction based on each students learning rates and styles and varying teaching methods.

Check. The “check” step is called “assess” in this example. Formal and informal assessments take place continually, from daily teacher “dipstick” assessments to every-six-weeks progress reports to annual standardized tests. Teachers also can access comparative data on the electronic database to identify trends. High-need students are monitored by a special child study team.

Throughout the school year, if assessments show students are not learning as expected, mid-course corrections are made such as re-instruction, changing teaching methods and more direct teacher mentoring. Assessment data become input for the next step in the cycle.

Act. In this example the “act” step is called “standardize.” When goals are met, the curriculum design and teaching methods are considered standardized. Teachers share best practices in formal and informal settings. Results from this cycle become input for the “analyze” phase of the next A+ cycle.

Excerpted from Nancy R. Tagues The Quality Toolbox. Second Edition, ASQ Quality Press, 2004, pages 390-392.

Futures trading strategies-tested-proven

Futures trading strategies-tested-provenFutures Trading Strategies Tested Proven

Our Futures Trading Strategies

Momentum Trading Strategy: Using short term analysis the system can identify overbought and oversold conditions in the futures market. This futures trading strategy focuses on capturing price action as the market has short term dips and spikes in price.

Swing Trading Strategy: Through cycle analysis the system identifies the most active cycle in the market and looks to profit from 6-12 day swings in price.

Trend Trading Strategy: It is critical to always trade with the longer term trend and what makes trend trading so powerful, is the fact that the winning trades can be huge. And AlgoTrades makes sure its participating with the underlying trend.

Topdogtm trading strategies

Topdogtm trading strategiesTrend Following Market Index Stock Investment

Why Taking Control Urgently Matters

Diversify and Rebalance? Why Be Average?

The financial industry has hypnotized us into believing diversification and rebalancing is the only worthy investment strategy. But diversification inherently means owning a little bit of everything — which is the formula for achieving precisely average performance! Rebalancing further ensures we wont stray far from average. No other industry proclaims average performance is the best you can achieve. Fortunately, its not true here either.

What is True Sector Rotation?

The Trend is Your Friend

Trends and fads are an inherent part of human character. It takes time for information to spread, to be understood, and to be acted on. This creates momentum. Price momentum is found in all capital markets, including stocks, bonds, treasuries, and currencies. By its very definition, trend means that information from the recent past tells you something about the near future. SectorSurfer's trend analysis algorithms use modern digital signal processing theory to optimally extract trend signals from noisy market data.

True Sector Rotation

The market cycle is tied to the economic cycle. Each market sector performs best during a portion of the economic cycle. If you think of each market sector as a piston in your investment engine, the smoothest, most powerful ride will be achieved when each of the major market sectors is represented in your portfolio. but only while each is delivering its power stroke.

1hour forex trading strategy

1hour forex trading strategySymphonie Extreme Cycle, Market Emotions & Symphonie Sentiment Forex Trading Strategy

Symphonie Extreme Cycle Indicator

Market Emotions V2 (7)

Symphonie Sentiment Indicator

Enter a LONG position when the Symphonie Extreme Cycle indicator forms a downward arrow head below the zero horizontal mark, with increased in the BUY intensity when a blue bar divides the arrow head. The corresponding color of the histograms of the Market Emotions and Symphonie Sentiment indicator turns blue. This is a LONG position.

The stop loss for this strategy should be based on your money management rule, but I’ll advice a +45 pips stop loss plus spread.

Exit Strategy/Take Profit:

Exit your position when the Symphonie Extreme Cycle indicator forms an upward arrow head above the zero mark.

Symphonie Extreme Cycle, Market Emotions Symphonie Sentiment Forex Trading Strategy Buy Signal

The chart above shows the various conditions for our BUY entry, as the Symphonie Extreme Cycle forms a downward arrow below the zero mark and at the same time the Sentiment Direction and Market Emotions both display blue histograms in a corresponding manner. This is a BUY trigger.

SELL on your position when the Symphonie Extreme Cycle indicator forms an upward arrow head above the zero horizontal mark, with increased in the BEARISH intensity when a red bar divides the arrow head. The corresponding color of the histograms of the Market Emotions and Symphonie Sentiment indicator turns red, signaling for a SELL entry.

The stop loss for this strategy should be based on your money management rule, but I’ll advice a +45 pips stop loss plus spread.

Exit Strategy/Take Profit:

Exit your position when the Symphonie Extreme Cycle indicator forms alower arrow head below the zero mark.

Symphonie Extreme Cycle, Market Emotions Symphonie Sentiment Forex Trading Strategy Sell Signal

The sell alert was triggered when the Symphonie Extreme Cycle formed an upward arrow head with a red stroke dividing it (showing a high sell probability), while the Market Emotions Indicator and Symphonie Sentiment both form red histograms. Our exit strategy is triggered when the Symphonie Extreme Cycle forms a downward arrow head as shown in the chart above.

Download Indicators and Templates (Metatrader)

Stoch, StepMA and Tro Tunnel Dragon Forex Trading Strategy

Parabolic SAR (0.02, 0.20)

Enter a Long position when price breaks above the upper outer boundary of the TRO Tunnel Dragon indicator as well as the StepMA indicator line.

Place your stop loss below the lower outer boundary of the TRO Tunnel Dragon indicator.

Exit Strategy/Take Profit:

Take profit or exit your position when the Parabolic SAR forms its first dot above the candlestick.

Stoch, StepMA and Tro Tunnel Dragon Forex Trading Strategy Buy Signal

Our example depicts the various indicators used for our BUY entry, price went above the StepMA and further above the TRO Tunnel Gragon channel. Our LONG entry was closed when the Parabolic SAR formed on the reverse side as shown on the chart.

Go SHORT when price breaks below the lower outer boundary of the TRO Tunnel Dragon indicator as well as goes below the StepMA indicator line.

Place your stop loss above the upper outer boundary of the TRO Tunnel Dragon indicator.

Exit Strategy/Take Profit:

Take profit or exit your position when the Parabolic SAR forms its first dot below the candlestick.

The underlying concept of Inside Bar Breakout Trading Strategy is based on the. 2 hour or 1 hour. Anatasius, forex trading, Inside Bar Breakout. Стратегия форекс 10 пунктов по eurusd имеет бесчисленное множество разновидностей и чем H Trader Forex Trading System;. 538# The Best Contrarian Forex Strategy; 539# 1 hour and 4 hours trading; 540# Dolly Breakout trading system;

Trading systems based on fast moving averages are quite easy to follow. Let's take a look at this simple system. Currency pairs ANY Time frame chart 1 hour or 15. Интернет трейдинг на Forex через компанию Forex4you имеет множество преимуществ удобство. You Might Also Like Support And Resistance Forex Trading Strategy. Double Oscillator Forex Trading Strategy. Forex SlingShot 30M Trading Strategy.

Menu. ОБУЧЕНИЕ. ОТЗЫВЫ о курсе Безопасный форекс 2/2014? ПЛАТНОЕ ОБУЧЕНИЕ. Курс молодого. Trading Made Easy. All you need is a computer and an internet connection. Forex Trading Online. Trade online with the worlds ultimate platform Browse Home / 1 hour forex trading strategy. 1 hour forex trading strategy. Stoch, StepMA and Tro Tunnel Dragon Forex Trading Strategy. By admin on May 23, 2014.

By no means make it an automated Forex trading system based just on one Forex. let’s say on 4 hour chart one may assume that a swing has exhausted.

The80

The80The 80/20 Rule For Traders

In this weeks drill for trader the Disciplined Trader describe the 80/20 rule and how it can be applied to traders.

WATCH THIS WEEKS TRADING EDUCATION DRILL HERE:

Read the full video script:

I was thinking today about the 80/20 rule and how it may apply to traders.

The 80/20 rule says that 20% of the effort you put out results in 80% of the results that you get…

…and it’s applied in a lot ways… a salesman, for instance… if he analyzes the way he spends his 8 hour day, he’ll likely see that 20% of certain activities results in 80% of his sales, and he’s just kind of spinning his wheels with 80% of his activities.

If he gives those 20% of activities, more attention, he’ll sell more.

A corporation may take a look at their employee pool and see that 20% of the workforce is achieving 80% of the corporate goals and make adjustments accordingly.

And it even goes deeper…more seasoned entrepreneurs may take that more productive 20% and break THAT down according to the 80/20 rule and see that of that productive 20%, there are 20% of super-prime activities, that if expanded, would turbo-charge results.

AND, on other side, most of us are spending 80% of our time on activities that are not really producing much in the way of results.

Maybe it’s because those 80% of tasks are not our favorite things to do. or we’re not really good at. so maybe it’s best to delegate those tasks.

BUT let’s talk about us… let’s talk about traders… and I think you know what I’m going to say…

It’s my opinion, having worked with thousands of traders, that the most important activities of a trader’s day involves those activities that improve your mental and emotional discipline.

To be FOCUSED as a trader, to be PATIENT as a trader, to be UNAFRAID to take your losses when your trading plan instructs you to…to not be GREEDY or REVENGEFUL…

….these are the activities, that if you work on and master, will result in a quantum leap in your results.

These are facets of trading that you can control… a mentally sharp trader is one who can win consistently.

Sure, you can spend you time testing and re-testing a trading system and new methods of approaching the market… you need that.

But the engine behind making those systems work is YOU… your ability to stay sharp, stay focused, stay patient.

Sadly, most traders are spending no time at all on their mental and emotional game.

What do YOU think?

What is that 20% of a traders time that yields 80% of the results? I want to hear YOUR opinion!

I”m just one guy who has worked with a lot of traders and have drawn my conclusion from what I’ve personally seen and experienced.

What have you seen and experienced? Personally.

Take a couple of minute and share your thoughts. This is important. This is about getting us all to be the best that we can be as traders by spending our time wisely.

BUCK UP and leave a comment!

OK. That”s it for this addition of 4 Minute Drill for Traders… so, until next week… STAY DISCIPLINED!

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Trading sideways definition,examples,making money

Trading sideways definition,examples,making moneyTrading Sideways: Definition, Examples, Making Money

By Kimberly Amadeo. US Economy Expert

Kimberly Amadeo clarifies economic and business news. She explains how these trends affect you and, most important, the steps you need to take so you can profit now.

She is the author of The Ultimate Obamacare Handbook: A Definitive Guide to Your Benefits, Rights, Responsibilities, and Potential Pitfalls . Order now at Barnes and Noble and Amazon. She also wrote Beyond the Great Recession: What Happened and How to Prosper . also available on Amazon.

Sign up for the free 5-day U. S. Economy ecourse here. By this time next week, you'll understand how the economy works as explained in five daily emails.

Definition: Trading sideways is when investment prices remain within a range for any period. They dont make higher highs or a breakout above the previous highest price. That would indicate a bull market .

Prices dont make lower lows, or drop below the previous level of support. That suggests a correction or even a bear market when prices pursue a downward trend.

A sideways trend usually refers to the stock market .

A sideways market usually means prices are getting ready to continue forward in the same direction they had been in before. Its unlikely that a sideways market will occur before a significant change in direction.

Thats why its also known as consolidation. Its a normal part of trading action. Traders are uncertain as to which direction the market could make next, and so are consolidating gains by being cautious.

They wait for the market to reverse course. The longer they hold on, and there is no definite change, the more confident they become.

Usually, consolidation occurs as the market gets ready to make higher highs or lower lows. There is a critical exception. If it occurs during a transition of the business cycle, it could signal that the next phase of the business cycle is beginning. Thats why you also want to pay attention to leading economic indicators .

For example, it there has been a period of irrational exuberance. that signals the peak of the business cycle.

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A sideways market could occur before a downturn. Similarly, a recession marks the bottom of the business cycle. A sideways market at that time might signal a new bull market.

Examples of a Sideways Trend

A sideways trading pattern occurred at the end of the contraction phase of the cycle in 2011. Gold prices hit $1,895 an ounce. Investors boosted gold prices on fears of a further contraction. They were worried about Congressional threats of a debt ceiling crisis and potential debt default. Once fears subsided and the bull market in gold was over, the commodity traded sideways throughout 2012. As the economy continued to improve, gold prices entered a bear market in 2013. Prices continued falling in 2014.

A sideways trend can also mean that one asset class is turning over to another one. For example, a consolidation can occur when traders move away from small-cap stocks to large-cap stocks. That typically happens in the middle of the expansion phase of the business cycle.

How to Make Money in a Sideways Market

A sideways market is a difficult environment to make money for day traders. It is a welcome sign for those who are more likely to buy and hold. With patience, the market will reveal which direction it will head into next. Its especially important to watch when the economy has been at any business cycle phase for an extended period of time.

The best way to make money in a sideways market is to be diversified . That way, you wont lose too much or gain too much when the market breaks out.

Most studies show that its more important to have the right asset allocation than to try and correctly time the market. When the market is drifting sideways, its a great time to rebalance your allocation. For more, see Stock Market Tips: How to Profit from the Business Cycle. Article updated October 21, 2015.