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Litecoin (LTC) Sustains Recent Rallies, Faces Resistance at $90 High

Key Highlights
Litecoin rallies to the high of $90
The crypto may be range-bound between $80 and $90

Litecoin (LTC) Current Statistics
The current price: $89.20
Market Capitalization: $5,900,735,267
Trading Volume: $7,953,660,011
Major supply zones: $70, $80, $90
Major demand zones: $50, $30, $10

Litecoin (LTC) Price Analysis November 24, 2020
Litecoin has continued its rallies as the coin reached a high of $89.86. LTC price has been making a series of higher highs and higher lows. The upward move has been facing resistance at $90. On the upside, if buyers can push LTC above $90, the coin will rally above $100 high. However, if buyers fail to resume the upside momentum, LTC will be compelled to a sideways move for a few days. If the uptrend is resisted the coin will be range bound between $80 and $90.


LTC/USD – Daily Chart
Litecoin (LTC) Technical Indicators Reading
LTC price broke the resistance line of the ascending channel. This indicates a further upward movement of the coin. The crypto is at level 74 of the Relative Strength Index period 14. It indicates that the coin is in the overbought region of the market.


LTC/USD – 4 Hour Chart

Conclusion
Litecoin has made an impressive bullish run on the upside. Nevertheless, the retraced candle body on October 31 tested the 61.8% Fibonacci retracement level. It indicates that the coin will rise to a level of 1.618 Fibonacci extension level. This extension is equivalent to $70 high. Meanwhile, the price action is above the projected price level.

Source: https://learn2.trade

XRP/USD Pulls Back at Resistance Level of $0.72

XRP/USD MARKET NOVEMBER 26
After the price retracement, it may resume its bullish trend and the resistance level of $0.79 and $0.88 may be reached. Below the current price, the level is found the support levels at $0.55, $0.44, and $0.39. However, the relative strength index period 14 is at 70 levels bending down to indicate a sell signal which may be a pullback.

KEY LEVELS:
Resistance levels: $0.72, $0.79, $0.88

Support levels: $0.61, $0.55, $0.49

XRP/USD Long-term Trend: Bullish
XRPUSD is bullish in the long-term outlook; the crypto soars towards the north by the strong bullish momentum. The bulls’ momentum breaks up the resistance levels of $0.28, $0.33, and $0.36. The price has tested the resistance level of $0.79 on October 24. The price pulls back to retest the broken level of $0.61. Today, the XRP market is dominated by the bears and the daily candle is bearish. The price may increase further after the pullback.


XRPUSD Daily chart, November 26
The two EMAs are located below the coin and it is trading far above 9 periods EMA and 21 periods EMA which indicate a strong bullish momentum. After the price retracement, it may resume its bullish trend and the resistance level of $0.79 and $0.88 may be reached. Below the current price, the support levels is found at $0.55, $0.44, and $0.39. However, the relative strength index period 14 is at 70 levels bending down to indicate a sell signal which may be a pullback.

XRP/USD medium-term Trend: Bullish
The bulls dominate the XRPUSD market. Immediately after the breakout from the consolidation zone, the bulls push the price high above the September high. It is currently pulling back at the resistance level of $0.72. The price is testing the support level of $0.55 at the time of writing this report. In case the just mentioned level does not hold, there will be a further price reduction.


XRPUSD 4-Hour chart, November 26
The price has penetrated the two EMAs downside and it is trading below 9 periods EMA and 21 periods EMA. The fast-moving EMA is trying to cross the slow-moving EMA downside. The relative strength index period 14 is pointing down at 50 levels which connotes a sell signal and it may be a pullback.

Source: https://learn2.trade

USD/JPY Is Reaching Bearish Exhaustion, May Reverse at Level 103.23

Key Resistance Levels: 111.000, 112.000, 113.000
Key Support Levels: 104.000, 103.000, 102.000

USD/JPY Price Long-term Trend: Bearish
The USD/JPY pair has been in a downward move since November 12 after a rebound above level 103.30. The pair is approaching the previous support at level 103.30. The selling pressure will resume if the current is broken. The Yen will resume an upward move if the support holds.


USD/JPY – Daily Chart
Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The pair has fallen to level 40 of the Relative Strength Index period 14. The pair is in the downtrend zone and capable of falling.

USD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair has been in a downward move after rejection at 105.00. On November 18 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the market will fall to level 1.272 Fibonacci extensions. That is the Yen will reach the low of level 103.23 and reverse.


USD/JPY – 4 Hour Chart
4-hour Chart Indicators Reading
The USD/JPY pair is currently above the 25% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The SMAs are sloping downward indicating the downtrend.

General Outlook for USD/JPY
USD/JPY has been on a downward move but the selling pressure is reaching bearish exhaustion. According to the Fibonacci tool analysis, the Yen will fall and reverse at level 103.23.

Source: https://learn2.trade

EURJPY Bearish Momentum Remains Toward 123.00 Level

EURJPY Price Analysis – November 20
The EURJPY pair is attempting to close beneath the 123.37 price zone as speculative interest stays trapped between coronavirus outbreaks and vaccine hopes. The pairs selling momentum remains toward the 123.00 level.

Key Levels
Resistance Levels: 127.07, 125.00, 123.37
Support Levels: 122.37, 121.61, 119.31
EURJPY Long term Trend: Ranging
As seen in the daily time frame, the downside pressure is expected to accelerate if EURJPY breaks below the 123.00 support, exposing the ascending trendline support and the 122.37 low. Meanwhile, the moving average 5 and 13 stays mixed for a range in the coming sessions.

If the 123.00 support holds, a surge towards the 123.40 level could be expected during the following trading session. However, a barrier around the MA 13 could serve as a limitation for bullish traders within this session. Lower here a firm breach of 119.31 level will argue that the rise from 114.42 level has completed and turned the focus back lower.
EURJPY Short term Trend: Ranging
The intraday bias in EURJPY is staying in consolidation with the current recovery. A much more decline is mildly in consideration with 123.37 minor resistance level intact. Beneath the 122.37 level will target a test on the 121.61 low level initially.

The resolute breach there may restart the trend from 127.07 level with another decline to 119.31 key support level. On the upside, though, a breach of 123.37 minor resistance level may shift sentiment back to the upside for the 125.00 level instead.

Source: https://learn2.trade

Analyst Believes Bitcoin is Working According to Plan Ahead of Six-Digit Projection

The creator of the popular stock-to-flow model, PlanB, has affirmed that Bitcoin (BTC) is going according to plan like “clockwork, “ following its third halving event. PlanB, an anonymous developer, has lauded the S2FX model and believes that BTC will be trading between $100,000 and $288,000 by the end of 2021.

The stock-to-flow model and other existing variations are some of the most used BTC prediction tools within the cryptocurrency community.

The first version of S2FX, known as the original stock-to-flow ratio, outlined the stock of existing reserves and the flow (the annual supply of BTC in the market). The ensuing version provided more complex and comprehensive Bitcoin information. Apart from stock and flow, it also showed the different phases BTC has passed through since its creation in 2009. These phases include proof-of-concept, the payment phase, e-gold, and financial assets.

The Bitcoin halving, which occurs automatically every four years, is arguably the most crucial part of the models because it cuts BTC supply in half, which decreases the flow. That said, PlanB and S2FX supporters monitor Bitcoin’s price performance assiduously after every halving.

The analyst asserted that the benchmark cryptocurrency is moving like clockwork since its third halving in May. already, Bitcoin is showing some similarities with the price dynamics in 2012.


BTCUSD – 4-Hour Chart

Key BTC Levels to Watch in the Near-Term — November 11

Bitcoin remains on a strong bullish trajectory, despite many projections that bullish steam might be running out. The cryptocurrency has renewed its 2020 high, after hitting $16,000 just a few hours ago. This is a good sign that the bullish momentum is still intact. That said, we could see BTC hit the $16,500 – $17,000 area soon.

However, we could see a mild pullback towards the mid-$15,000 in the coming hours.

Total market capital: $453 billion

Bitcoin market capital: $291 billion

Bitcoin dominance: 64%

Source: https://learn2.trade

Ethereum (ETH) Price Analysis: Ether Hovers Above $450 Support for a Possible Uptrend Continuation

Key Highlights
Ether fluctuates above $450 support
The coin has a target price of $488 high

Ethereum (ETH) Current Statistics
The current price: $458.89
Market Capitalization: $52,029,363,330
Trading Volume: $14,108,917,588
Major supply zones: $280, $320, $360
Major demand zones: $160, $140, $100

Ethereum (ETH) Price Analysis November 11, 2020
On November 10, the altcoin rebounded but could not break the $470 resistance. The upward move was repelled as price retraced to the $455 low. The upside momentum will always resume as long as price finds support above $450 support.

Presently, the coin is trading at $462 at the time of writing. On the upside, a strong bounce above $460 will propel price to break the $470 resistance. Ether will rally above $488 once the $470 resistance is breached. The upside momentum will be invalidated if the bears break the $450 and the $430 support level.


ETH/USD – Daily Chart
ETH Technical Indicators Reading
Ethereum is trading above the resistance line of the ascending channel. The biggest altcoin will continue to trend higher as long as price is sustained above the resistance line. The coin will resume a downward move if the price breaks below the resistance line.


ETH/USD – 4 Hour Chart

Conclusion
Ethereum bulls are close to breaking the resistance at $470. Once the resistance is broken the Fibonacci tool analysis will hold. When the coin was resisted on November 7 uptrend, the retraced candle body tested the 50% Fibonacci retracement level. This explains that the coin is likely to move up to level 2.0 Fibonacci extension which is $539.17 high.

Source: https://learn2.trade

Litecoin (LTC) Is Likely to Sink Below $51 as Bulls and Bears Tussle for Price Possession

Key Highlights
Litecoin plunges to $51 low and corrected upward
LTC risks further downward move as price reaches overbought region

Litecoin (LTC) Current Statistics
The current price: $52.49
Market Capitalization: $3,453,939,467
Trading Volume: $2,849,880,504
Major supply zones: $70, $80, $90
Major demand zones: $50, $30, $10

Litecoin (LTC) Price Analysis November 3, 2020
Litecoin has been on a downward move. Today, the bearish impulse reached a low of $51 and corrected upward. Presently, it is facing another rejection at the $53 high. There is a likelihood of a further downward move.

On the downside, if price retraces and breaks below the $51 support, the market will drop to $46 or $47 support. The coin will resume an uptrend if the price finds support above $51. The $51 support is where the coin resumes upside momentum.


LTC/USD – Daily Chart
Litecoin (LTC) Technical Indicators Reading
The coin is below the 60% range of the daily stochastic. It indicates that it is in the bearish momentum. The selling pressure of the coin will persist once the price breaks below the SMAs. The coin is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand.


LTC/USD – Daily Chart
Conclusion
Litecoin is likely to further decline as price retests the $56 high. On October 30 downtrend; a retraced candle body tested the 61.8% Fibonacci Retracement level. This indicates that the market will further depreciate to level 1.618 Fibonacci extensions or $47 low.


Source: https://learn2.trade

Will the 2020 United States presidential election upheave the markets?

Hello Traders:

The 2020 United States presidential election is here and traders are expecting high volatility in the markets.

My Take
Nothing unusual and nothing extraordinary will happen in the markets. The markets don’t surprise people when they’re looking out for such; surprises come only when people don’t expect them.


An informational traffic sign post indicating a financial market business concept – a clipping path is included to separate sign from bkg. Canon 5D MarkII and composition in Photoshop.

Let’s use an example of an eye that has seen the ocean and the sea. When that same eye observes a pool of water in the bathroom, it would be as though it has seen nothing; when compared to the ocean and the sea. The effects of the election on the markets might turn out to be a pool in the bathroom.

I forecast that the elections might bring a measure of volatility, but the volatility would pale into insignificance when compared to what happened as recent as March 2020. Those March events caught the world by surprise.

There are many examples like that. So elections are being held in the US, and you’re expecting something extraordinary? Sorry, the market has a knack for going against the expectations of the public. Because you expect storms in the markets; the storms won’t be as extraordinary as you currently imagine.



We may see a continuation in the current market directions or spikes in opposite directions, followed by trend continuations. It may even be complete and sustained changes in trends. But whatever happens, it is not going to be anything new or unusual.


What I Will Do

That is why I hold some positions. If things go against me, I can’t lose more than say, 1.5% per trade (perhaps huge slippage and spreads factored in). In case things move in my favor, then I would be grateful for whatever the markets give me. After all, my rewards are always higher than the risk.



What can you do if you disagree with this post?

The answer is simple. Stay out of the markets. But you will realize later that there is no big deal after all.



Source: https://learn2.trade

EUR/CHF Is in an uptrend, May Reach Level 1.0730

Key Resistance Levels: 1.0800, 1.0900, 1.1000
Key Support Levels: 1.0600, 1.0500, 1.0400

EUR/CHF Price Long-term Trend: Ranging
EUR/CHF has been on a downward move since September 25. On October 15 downtrend; a retraced candle body tested 78.6 % Fibonacci retracement level. This indicates that the pair will fall and reach a low of 1.272 and later reverse.


EUR/CHF – Daily Chart
Daily Chart Indicators Reading:
The pair is at level 41 of the Relative Strength Index period 14. It implies that the market is in a downtrend and below the centerline 50. The 50-day SMA and 21-day SMA are sloping horizontally. It indicates the sideways trend.

EUR/CHF Medium-term Trend: Bullish
On the 4-hour chart, the pair is also rising. On October 20, a retraced candle body tested 50 Fibonacci retracement level. This also indicates that the pair will rise and reach level 2.0 Fibonacci extension. That is the low level of 1.0730.


EUR/CHF – 30 Min Chart
4 Hour Chart Indicator Reading

The 50-day and 21-day SMAs are sloping sideways indicating the previous trend. The pair is below the 30% range of the daily stochastic. It indicates that the market is in a bearish momentum.

General Outlook for EUR/CHF
EUR/CHF is rising after breaking the initial resistance. The price rebounded at level 1.0714 to resume the upward move. According to the Fibonacci tool, the market will reach level of 1.0730.

Source: https://learn2.trade

EURUSD Risks Deeper Decline at 1.1800 Level on Surge in Europe COVID-19 Cases

EURUSD Price Analysis – October 26
Growing fears of a surge in Europe Covid-19 cases may slowdown economic recovery as new infections trigger stricter measures and prompt investors into safety. EURUSD risks a deeper decline at the 1.1800 level as buyers repeatedly failed to make a sustained break above the daily cloud top around the 1.1850 level.

Key Levels
Resistance Levels: 1.2150, 1.2011, 1.1917
Support Levels: 1.1807, 1.1612, 1.1422
EURUSD Long-term Trend: Ranging
EURUSD is under pressure, trading near the 1.1810 level, and is in danger of further falling. The EURUSD rally appears to have hit a decent barrier at recent highs around 1.1880. A break of this area is expected to push the pair higher towards the 1.1917 area as the bullish trend is expected to resume at the key level.

In a broader context, the rise from 1.0635 is seen as the third phase of the pattern from 1.0339 (low). A further rally towards the cluster resistance at 1.2011 can be seen. This will remain a preferable case as long as the resistance at 1.1422 is held and turned into support.

EURUSD Short-term Trend: Ranging
EURUSD intraday trend stays neutral as consolidation from 1.1880 regions continues. Nevertheless, further growth stays in favor while maintaining the support level of 1.1685. The break into 1.1880 regions will be a test at the 1.2011 high. The 4 hours chart shows that the pair is developing below the moderately bearish 5 and 13 moving averages.

A move below 1.1800 is needed to mark an immediate (minor) high for a pullback to the bottom of the short-term channel seen at 1.1725. On the other hand, a breakout of 1.1685 is likely to extend the corrective pattern from 1.2011 by one more phase. Intraday bias will return to the downside towards 1.1612 and below.


Source: https://learn2.trade

Bitcoin Price Analysis: Could CBDCs be the End of Bitcoin?

Ever since Facebook publicized its plans to develop a digital currency called Libra, central banks across the globe have tried to counter it with their cryptocurrency. While Facebook’s Libra has come under heavy scrutiny and regulatory obstacles, more than 80% of the world’s central banks are working assiduously to develop a central bank digital currency (CBDC).

Meanwhile, the foundational basis of a CBDC is fundamentally disparate to what Bitcoin (BTC) is about. That said, the cryptocurrency community has begun speculating what the effect of a government-issued digital currency would have on the benchmark cryptocurrency.

Below are some of the possible outcomes of CBDCs on Bitcoin:

Plot A

The common expectation is that CBDCs will be bad for Bitcoin and the crypto industry at large, considering that world governments will place their weight behind CBDCs giving it a higher adoption rate compared to BTC.

Plot B

The next popular opinion is that CBDCs could give Bitcoin better widespread use and adoption, as it could spark heightened interest in digital currencies.

Plot C

Assuming that Plot A comes into fruition, there would be no use for Bitcoin as a peer-to-peer payment system. However, this doesn’t mean BTC becomes useless, instead, it becomes an excellent store of value.


BTCUSD -4-Hour Chart
Key BTC Levels to Watch in the Near-Term

Bitcoin, against popular belief, doesn’t seem to be slowing down any time soon. The cryptocurrency just recorded a new YTD high at $13,357 in the past 24 hours. BTC has been trading within a consolidation range between $13,300 and $12,895 for the past four days, as traders expect a fresh bull wave.

That said, as long as Bitcoin maintains its stance above the $12,895 support, we could see a fresh bull wave in the coming days. A sustained fall below the aforementioned support could trigger an extended retracement for the cryptocurrency.

Total market capital: $395.4 billion

Bitcoin market capital: $241 billion

Bitcoin dominance: 61%


Source: https://learn2.trade

Ethereum (ETH) Price Analysis: ETH Faces Rejection at $420, Fluctuates Between Levels $400 and $420

Key Highlights
Ethereum battles resistance at level $420 high
The coin is likely to reach another high of $434

Ethereum (ETH) Current Statistics
The current price: $415.57
Market Capitalization: $47,020,287,242
Trading Volume: $12,506,980,622
Major supply zones: $280, $320, $360
Major demand zones: $160, $140, $100

Ethereum (ETH) Price Analysis October 25, 2020
Following the breaking of the $395 overhead resistance, Ethereum resumed upside momentum. However, the coin rallied to a high of $420 and was resisted. Since October 22, the upward move has been resisted as the coin resumed a sideways trend below the resistance. On the upside, if the price breaks the current resistance, the coin will resume the uptrend. However, Ether will face another resistance at $440. The coin will rally to $480 if the current resistance is broken.


ETH/USD – Daily Chart
ETH Technical Indicators Reading
The 21-day and 50-day SMAs are sloping upward indicating the uptrend. Ether has risen to level 65 of the Relative Strength Index period 14. It indicates that the market is in the bullish trend zone. The coin is approaching the resistance line of the ascending channel. A break above it will push the coin upward.


ETH/USD – Daily Chart

Conclusion
Ethereum will rise after breaking the resistance at $420. The Fibonacci tool analysis has indicated an upward move to level 1.618 Fibonacci extensions. The market will reach another high of $434.55.


Source: https://learn2.trade

EURJPY Upside Traction Overpowers Bears, Eyes 124.00 Level

EURJPY Price Analysis – October 16
EURJPY is accelerating from a low of around 123.00 as upside potential prevails over sellers for another session on Friday. The cross has so far managed to hold above the 123.00 level. Given the uncertainty, it would be a mistake to set an end date for the response to the pandemic, European Central Bank (ECB) governing board member said on Friday.

Key Levels
Resistance Levels: 127.07, 126.46, 125.00
Support Levels: 123.00, 122.37, 119.31
EURJPY Long term Trend: Ranging
As noted on the daily chart, if selling momentum picks up additional pace, then the pair is expected to continue to the next relevant area around 123.00, where it sits low in October. Further south, there is critical horizontal support just above the 122.37 level.

While the RSI recovery from the near oversold area suggests a further recovery in the pair, a clear break of the 124.00 marks becomes necessary for the EURJPY bulls ahead of the 124.43 level and the weekly high near the 125.00 level.

EURJPY Short term Trend: Bearish
EURJPY intraday bias remains bearish, with 38.2% retracement from 114.39 to 127.07 at 122.37. A solid break there would confirm a resumption of the entire corrective fall from 127.07 and aim a 61.8% correction at 119.25, close to the pivotal support at 119.31.

On the other hand, however, a break of the 125.00 level will bring the upward trend back to retest the 127.07 level. Conversely, a clear dip below the 123.00 level could plummet towards the 120.00 psychological magnets.

Source: https://learn2.trade

When emotions get in the way of trading success – Part 2

Veterans of the markets generally agree that trading is largely psychological. That is one of the reasons why a trader with suboptimal strategy will trade profitably and another trader with a good strategy will be making losses. The method one trader uses to trader their way to financial freedom is what another trader uses and experiences pecuniary ruin.

Why are some people, who have access to excellent trading tools and strategies still struggle with the markets? It boils down to the mindset of the trader.
To throw more light on this issue, you can read below a section from an article by Dr. Van K. Tharp, titled “Mental Strategies Versus Trading Systems.”

“One of the best traders in the world told me once that he traded a simple trend-following system. He taught other traders how to trade that way and in the process, he claimed that often they developed systems that were more profitable than his! Yet he feels comfortable following his system so he sticks with it. What about the traders he has trained? Most never completed his training but a few found some success — yet none of his students has ever achieved the many years of consistent profits that he has. Why not? Great trading systems do not produce success; great traders produce success!

Years ago, I visited the office of another well-known trader to profile him and his colleagues. What struck me was that several of the people in his office were not very successful — even though they were trading the same exact methods that he had used to make hundreds of millions of dollars. Why? In part, his mental strategy was quite different from those of his colleagues. How you trade relates more to your mental strategies than to your trading system. Would you disagree? Then how do you explain the lack of success of some of the people in his office trading the same great system as that top trader…

Another well-known trader actually wants to teach people to be as successful as he has been. Thousands of traders have gone through his training yet he claims that only about 10% of his trainees will actually be successful using his methods. And the record seems to support his claim — people go through the training, but few come close to his level of success. Again, we have examples of people who know the rules of a winning system yet aren’t that successful.

The reason that these top traders make money while others who use the same systems do not is — systems don’t make money, traders do.

Then Do You Need a Trading System?
Since the trader, not the system, is responsible for success, do you need a trading system? Top traders use systems so yes, you still need to use a trading system. What then is the purpose of a trading system? My research indicates that trading systems are an essential shortcut for human decision making.

You have probably discovered that most human decision-making strategies are complex and slow. For example, think about the last time you bought a car and had to decide on the make, model, color, dealer, price, etc. You probably took several days at minimum to decide. Traders cannot afford that kind of time to make a decision. They need a shortcut or system in order to make quick decisions.
Ideally, your trading system should signal an action and you should go through a quick “see/recognize/feel/act” strategy and take the trade. That is, you see the signal, recognize that it is familiar, and because it matches what you are looking for, you feel good about it and act on it. This is the simple mental strategy for action mentioned in the tasks of trading — but most traders cannot do that! They were successful in some domain (engineering, business, medicine, etc.) using a particular decision strategy and they want to continue to use that strategy in the market. As a result, when they see a signal to trade, they use their well learned decision-making strategy to decide if signal is valid and whether or not to act on the signal. Their “normal” strategy that worked well for them for so long does not work well at all in the markets. They end up feeling some emotions when they trade and they lose money….

….I believe that any trader or investor can win in the markets if he or she uses his or her mind properly. Nothing in my experience to date has given me any reasonable counter examples. Some people just operate at a level that requires a much greater degree of change in their mental strategies than other people.

Mental strategies are not the kind of things most traders are interested in normally. They’d much rather learn a new indicator or system. Understanding that mental strategies are a huge edge, however, directs your attention away from external factors and leads you to explore your internal processes. Understanding and leveraging those processes can help you turn any good system into trading success….

Source: Vantharp.com

Note: What are the solution? You need to work on your trading mindset and mental strategies. We will explore how to do this in coming articles.


Source: https://learn2.trade

Teach Yourself Technical Analysis

THE TECHNICAL ANALYST HAS BECOME AN ENDANGERED SPECIES
According to Investopedia.com, technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analysing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts, who attempt to evaluate a security’s intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security’s strength or weakness.

Given the definition above, you can see the important of technical analysis as far as trading is concerned. However, many people do not understand what it is, not to mention how to apply it in their trading. Most readers and visitors to shares, cryptocurrencies, forex, commodities, etc, news websites, do not understand technical analysis, and so they prefer to ignore it and read the articles they understand instead (such as those about fundamental market news and briefs).

Even in the nascent cryptocurrency industry, demand for the technical analyst is drying up, especially amid crypto winters, as well as protracted bear markets.

No wonder the technical analyst has become an endangered species, because most members of the public do not understand our work and therefore are not interested in our analyses. This is one of the reasons why the technical analyst’s career is threatened.

When the general public know more about technical indicators, they will be inclined to read technical analysis of the markets, whenever they come across such online. They will appreciate what the technical analyst does and the effort behind those technical productions. They will be able to understand what the technical analyst has in mind and how their thoughts can be applied to financial instruments.

More importantly, people will be able to apply technical analysis to their own speculation and investment, with satisfactory results. The truth is, when applied correctly and objectively, technical analysis works.

This book is also for those who want to consider a career as a technical analyst. It is very easy to use and understand; very easy to familiarize oneself with. It contains step-by-step explanations and it will launch you into the fascinating world of technical analysis.

The content of this book were originally published in TRADERS’ (https://www.traders-media.de/), and have been reproduced by their kind permission.

Teach Yourself Technical Analysis: https://www.advfnbooks.com/books/techanalysis/index.html
Teach Yourself Technical Analysis. UK Kindle: https://www.amazon.co.uk/dp/B08GPGS5GJ
Teach Yourself Technical Analysis. US Kindle: https://www.amazon.com/dp/B08GPGS5GJ
Teach Yourself Technical Analysis. UK paperback: https://www.amazon.co.uk/dp/1912741067
Teach Yourself Technical Analysis. US paperback: https://www.amazon.com/dp/1912741067

Teach Yourself Technical Analysis, Kobo: https://www.kobo.com/gb/en/ebook/teach-yourself-technical-analysis

Teach Yourself Technical Analysis, Apple: https://books.apple.com/us/book/teach-yourself-technical-analysis/id1534690445?ls=1

Teach Yourself Technical Analysis

THE TECHNICAL ANALYST HAS BECOME AN ENDANGERED SPECIES
According to Investopedia.com, technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analysing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts, who attempt to evaluate a security’s intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security’s strength or weakness.

Given the definition above, you can see the important of technical analysis as far as trading is concerned. However, many people do not understand what it is, not to mention how to apply it in their trading. Most readers and visitors to shares, cryptocurrencies, forex, commodities, etc, news websites, do not understand technical analysis, and so they prefer to ignore it and read the articles they understand instead (such as those about fundamental market news and briefs).
Even in the nascent cryptocurrency industry, demand for the technical analyst is drying up, especially amid crypto winters, as well as protracted bear markets.

No wonder the technical analyst has become an endangered species, because most members of the public do not understand our work and therefore are not interested in our analyses. This is one of the reasons why the technical analyst’s career is threatened.

When the general public know more about technical indicators, they will be inclined to read technical analysis of the markets, whenever they come across such online. They will appreciate what the technical analyst does and the effort behind those technical productions. They will be able to understand what the technical analyst has in mind and how their thoughts can be applied to financial instruments.

More importantly, people will be able to apply technical analysis to their own speculation and investment, with satisfactory results. The truth is, when applied correctly and objectively, technical analysis works.

This book is also for those who want to consider a career as a technical analyst. It is very easy to use and understand; very easy to familiarize oneself with. It contains step-by-step explanations and it will launch you into the fascinating world of technical analysis.

The content of this book were originally published in TRADERS’ (https://www.traders-media.de/), and have been reproduced by their kind permission

Teach Yourself Technical Analysis: https://www.advfnbooks.com/books/techanalysis/index.html
Teach Yourself Technical Analysis. UK Kindle: https://www.amazon.co.uk/dp/B08GPGS5GJ
Teach Yourself Technical Analysis. US Kindle: https://www.amazon.com/dp/B08GPGS5GJ
Teach Yourself Technical Analysis. UK paperback: https://www.amazon.co.uk/dp/1912741067
Teach Yourself Technical Analysis. US paperback: https://www.amazon.com/dp/1912741067

Teach Yourself Technical Analysis, Kobo: https://www.kobo.com/gb/en/ebook/teach-yourself-technical-analysis

Teach Yourself Technical Analysis, Apple: https://books.apple.com/us/book/teach-yourself-technical-analysis/id1534690445?ls=1

Silver Price: Bulls to Re-Attempt the Prior Week’s High at $24.40 Level for New Entries

XAGUSD Price Analysis – October 5
Silver (XAGUSD) price prints a $24.04 intraday high level with 0.50% gains during Monday’s session. Buyers may re-attempt the prior week’s high at $24.40 level for new entries. Traders also resumed accumulating Silver on price correction as safe-haven demand reemerged amidst the second wave of coronavirus outbreak in Europe, and political uncertainty in the US.

Key Levels
Resistance Levels: $28.90, $26.50, $24.50
Support Levels: $23.50, $21.38, $19.65
XAGUSD Long term Trend: Ranging
Silver (XAGUSD) has staged a dramatic decline to $21.66 low level and rebounded to trade at $24.40 level prior week high but still failed to close above the daily moving average 13. The failure to close beyond the MA 13 could increase that level’s importance as resistance going forward.

Although the overall daily market trend is currently in a near-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish. Buying could accelerate should prices move above the close-by swing high at 24.50 level where further buy stops might get triggered.

XAGUSD Short term Trend: Ranging
The momentum indicators are painting an optimistic short-term picture as well. The RSI has extended its rally into the positive area, while the moving average 5 and 13 are forcefully stretching towards the continuation of the rebound.

Should the $23.50 level give way, the bears may need to remove the $22.83 support level to pick up steam towards the $21.38 key area. In brief, silver may remain under consolidation control in the short-term if it fails to break past the $24.50 level, with the sell-off expected to gain fresh momentum beneath the $23.50-21.83 region.

Source: https://learn2.trade

XAU/USD Price Analysis — October 7

Gold (XAU/USD) has refreshed its daily highs around $1898 and is currently trading at $1891 (+0.5%) in the early European session.

The precious metal regained bullishness following reports that US President Donald Trump was willing to give aid to airlines and small businesses. However, charters concerning the European Union’s steel tariff on several Asian countries are starting to contend with the risk-on market mood.

Meanwhile, President Trump has recently rejected the proposed $2 trillion stimulus package, following his return from Walter Reed military hospital. However, the president has proposed a $160 billion collective help. The news helped the S&P Futures pare back its previous losses.

The ongoing rift between the EU and Asia, the ever-increasing worries over the Coronavirus, and the Brexit tensions are the major fundamental factors dictating trading sentiment across markets.

Moving on, the markets’ dynamics will be heavily influenced by updates from Trump—either relating to either his COVID-19 infection or the stimulus—as the markets look for clues. Also, traders will be focused on speeches from US Fed policymakers and the ECB’s Chair Christine Lagarde for additional clues.


XAUUSD – 4-Hour Chart
Gold (XAU) Value Forecast — October 7

XAU/USD Major Bias: Bullish

Supply Levels: $1917, $1923, and $1939

Demand Levels: $1876, $1849, and $1813

Gold has reacted aggressively to the $1923 resistance, after reaching a $1921 high yesterday. The commodity fell by $45 over a few hours but was strongly supported by the $1876 line.

Currently, the XAU/USD has rebounded from that level and is going to attempt to take the $1923 barrier again. Yesterday’s fall was strongly aided by some fundamental factors (as mentioned in this article), which means scaling the resistance this time should be easy. Meanwhile, gold has to break back into our expanding channel for this to be possible.

Source: https://learn2.trade

When emotions get in the way of trading success – Part 1

Guinness World Records documents a chimpanzee named Raven (Raven the chimpanzee), who became the 22nd most profitable funds manager in the United States. She picked her stocks by throwing darts at 133 online companies.

According to the Records, the chimp created her own index, dubbed MonkeyDex, and in 1999 delivered a 213 per cent gain, outperforming more than 6,000 professional brokers on Wall Street. The animal, who was aged 6, was dubbed the most successful chimpanzee on Wall Street.

It was noteworthy that a chimp outperformed even highly intelligent and highly educated traders that year… That makes me also to remember Paul the Octopus, a sea animal which outperformed great sports analysts at predictions.

Wikipedia states that Paul’s keepers at the Sea Life Centre in Oberhausen, Germany, mainly tasked him with predicting the outcomes of international matches in which the German national football team was playing. Paul correctly chose the winning team in four of Germany’s six Euro 2008 matches, and all seven of their matches in the 2010 World Cup—including Germany’s third place play-off win over Uruguay on 10 July. He also correctly chose Spain as the winner of the 2010 FIFA World Cup final (Source: Wikipedia.org).

Overall, the octopus won 12 out of 14 forecasts – a hit rate of 85.7%
Figuratively, even an animal can make money by pressing a computer keyboard, while human beings ruin their own trading by trying to overreach themselves. The rules for successful trading are too simple; but they are extremely difficult to follow faithfully, because we are often made helpless by irrational emotions.

Humans are remarkable for violating laws and rules, in spite of penalties that will follow that. In trading, we can do anything we like, as often as you want, within the limits set by your broker. We can violate principles of safe trading as much as we want to satisfy our emotions.

Anything we get in trading is the result of our own doing.

Why do most humans find trading to be difficult while even certain animals are achieving excellent results? The second part of this article would address the issue.

Source: https://learn2.trade

The ultimate secret to everlasting success in the markets

WHEN THE MARKET BECOMES INTRACTABLE
Especially in the short-term, anyone can make money in the market. However, beating the markets consistently and for the long-term is what most traders find difficult. While trading management and risk control tools are present for prudent traders to employ, they are not the ultimate secret.

You can use a good strategy plus good risk management tools to play the markets, but you will get frustrated from time-to-time if you ignore the secret mentioned in this article. Please mark my word and write today’s date down.

I have been in the markets for around 13 years and I have tested more than 600 strategies and methodologies, mechanical or discretionary (whether manual, semi-automated or fully automated). I have traded various types of financial markets. I can tell you that it is completely impossible to beat the markets consistently with only one strategy.

There are times when you make money by buying at support levels and selling at resistance levels. There are times when you thrive by going long in oversold markets and going short in overbought markets. Sometimes, doing this does not work, as the markets may later defy demand and supply levels and continue dropping in an oversold condition (or continue rallying when the market is already overbought).

Sometimes, you just see a direction the market is going and simply follow it and make money. For instance, you see a very weak market and open a sell order and you make money. Nonetheless, after days, weeks or months (or even years), you will see that most of the positions you open in the direction of the market turn negative and never come to positive regions again.

What most traders would have noticed is that they make money, then lose money and make money again, only to lose again. This vicious circle goes on and on, and most will eventually lose more than they gain. When a particular market condition is no longer in favor of your strategy, the more you trade that strategy the more losses you sustain.

IS THERE ANY SOLUTION?
For many years, veterans of the markets like Dr. Van K. Tharp, have been emphasizing the need to develop different strategies for different market types, since a single system cannot work in all market types. Recognize the current market type and then switch to an effective strategy that is OK for that market type.

Failure to accept this reality is the main reason why majority of traders end up being frustrated. A method that works well in ranging markets may perform poorly in volatile bear markets. A method that works well in strong bull markets will fail if used in ranging markets. A scalping method may work well in a ranging market, but fail ignominiously in a trending market. A trend-following system can suffer seriously in choppy markets.

While there are many market types, a market will either be trending or ranging. A trend may be transitory or protracted; a sideways market may also hold out longer or play out temporarily. How do you survive all these without being completely sure of what can happen next?

HERE IS THE SOLUTION
As mentioned earlier, no single system can work in all market condition, because markets dynamics change from time to time. What I have figured out: I have 2 strategies. One works well in a trending market and another one works well in a trendless market.

I use the one that works well in a trending market as long as I make money and I do not go down by 10% maximum (I risk 1% – 2% per trade). Once I get a roll-down of 10% or less (that is several losing trades), I know the strategy does not work again and I change to my mean reversion strategy, which works well in a trendless market. I use the mean-reversion system as long as I do not go down by 10% loss or less.

I do not change strategies blindly; I ensure that the present market type is also in favor of the strategy I switch to.

That is how I make sure that I make profits on monthly basis – no matter what happens in the markets. The profits in some months are smaller than expected and the profits in some months are bigger than expected. The bottom line: There is no month in which I do not make profits.

It is very childish and illogical to predetermine your profits in advance when you cannot control the markets. Thinking in that way is a recipe for eventual frustration. In December 2019, airlines could as well predetermine their profits in 2020 based on historical returns, not knowing there was going to be a worldwide lockdown

Yes, I cannot know in advance how much I will make on a monthly basis. That is revealed only in hindsight, (unless I want to dwell in a fool’s paradise, as most traders do). But I know full well that every month will be profitable for me, no matter the profits in terms of percentage.

Source: https://learn2.trade

Bitcoin Strengthens Correlation With Stock Market

Over recent days, Bitcoin (BTC) has been forging a strong correlation to the equities market once again and it has been observed that this occurs usually when global uncertainty is rife.

Currently, investors are wracked with fears over the dwindling prospects of second domestic stimulus measures in the US, coupled with the weaning possibility of a sharp economic recovery.

Also, the upcoming US presidential elections are adding to the growing uncertainty surrounding the markets. These fears will likely remain unsolved in the near-term, making further choppiness in the equities market very possible.

That said, Bitcoin will likely get caught up in the mix, giving its correlation to the stock market.

Meanwhile, an On-Chain analyst has said that he expects the Bitcoin-Equities correlation to fade in the coming months. He explained that subsequent sharp declines in equities will eventually stop pulling Bitcoin lower as the crypto reaches its lowest technically possible levels.


BTCUSD – 4-Hour Chart

Key BTC Levels to Watch

At press time, Bitcoin trades at $10,511, about 0.8% increase in the day. However, it remains trapped in its weekly consolidation range.

Last week, bulls attempted to pull the benchmark cryptocurrency out of its downward spiral and ended up taking the price to highs of $11,200. The rejection from that level was decisive and sharp, causing Bitcoin to fall to the level it currently trades at.

Meanwhile, the equities market was able to post a modest recovery today, which, as an extension, has given Bitcoin a reprieve for the near-term.

Still, the absence of any significant positive development around the US stimulus program or the pandemic-induced economic crisis may continue to burden the cryptocurrency market from rising in the near-term.

Total market capital: $333.6 billion

Bitcoin market capital: $194 billion

Bitcoin dominance: 58%

Source: https://learn2.trade

Ethereum (ETH) Price Analysis: Battles the Resistance at $390, Eyes the High at $420

Key Highlights
Ethereum has a fresh target price of $420
The coin is still battling the resistance at $390

Ethereum (ETH) Current Statistics
The current price: $381.78
Market Capitalization: $43,016,171,550
Trading Volume: $12,067,100,125
Major supply zones: $280, $320, $360
Major demand zones: $160, $140, $100

Ethereum (ETH) Price Analysis September 20, 2020
From the rejection at the $390 resistance, Ether is falling to the previous low at $378. Each time the market falls it will retrace to the low of $378 and $381. ETH will rise again to retest the $390 resistance. The coin is rising and it has reached $381 at the writing. The crypto has resumed an upward move as it found support above $380. On the downside, if price has retraced and broken below $350, the selling pressure would have persisted.


ETH/USD – Daily Chart
ETH Technical Indicators Reading
The price has earlier broken above the resistance line of the ascending channel. This assures that the rise of the coin will continue. Another aspect is that price has remained above the EMAs. This also indicates that the coin is rising.


ETH/USD – 4 Hour Chart

Conclusion
From the price action on the 4-hour chart, Ethereum is likely to rise if the current resistance is breached. On September 17, the coin was in an upward move. It was resisted at $390 but the last retraced candle tested the 61.8% Fibonacci retracement level. This indicates that the market will rise and reach a high of 1.618 Fibonacci extension level or $420 high.

Source: https://learn2.trade

USDCHF Sustains Selling Bias Towards Sub 0.9100 Level As the US Dollar Stays Under Pressure

USDCHF Price Analysis – September 11
USDCHF drops beneath 0.9100 level, down 0.25% on a day, during the European session on Friday. The USDCHF pair sustains selling bias falling sharply for the third day in a row. The Swiss franc holds onto recent strength after the ECB meeting as the US dollar stays under pressure.

Key Levels
Resistance Levels: 0.9902, 0.9467, 0.9200
Support Levels: 0.9050, 0.8845, 0.8639
USDCHF Long term Trend: Bearish
As seen on the daily, USDCHF extended weakness below the moving average 5 and 13 while sellers are likely to keep the reins and target a retracement level of 0.9075 level during the immediate declines.

The 0.9050 area is the immediate support, and a break lower would expose the 0.8998 level that registers as the multi-year low. On the upside, now 0.9116 level is the immediate resistance followed by 0.9181 and 0.9200 levels.

USDCHF Short term Trend: Ranging
Intraday bias in USDCHF stays slightly on the downside for validating the 0.8998 thresholds. A dip may restart a larger downtrend. Even so, the 0.9200 level break may revive the turnaround from 0.9902 to 0.8998 at 0.9321 levels to 38.2 percent retracement.

Continuous selling underneath the 100% forecast of 1.0342 to 0.9181 from 1.0231 at 0.9075 levels sets the stage for a forecast of 138.2 percent at 0.8639 levels. To be the first sign of short-term bottoming, a breach of the 0.9370 resistance level is required on the upside.


Source: https://learn2.trade

EUR/GBP Resumes Uptrend, May Break Above Level 0.9250

Key Resistance Levels: 0.9200, 0.9400, 0.9600
Key Support Levels: 0.8800, 0.8600, 0.8400

EUR/GBP Price Long-term Trend: Bullish
The EUR/GBP pair is on an upward move since September 3. The price has broken level 0.9150 and reached a high of level 0.9250. The price reached the overbought region. Sellers may emerge to push prices downward. In the trend market, an overbought condition may not hold.


EUR/GBP – Daily Chart
Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping upward indicating the uptrend. The pair is at level 71 of the Relative Strength Index period 14. This indicates that price has reached the overbought region.

EUR/GBP Medium-term Trend: Bullish
On the 4-hour chart, the EUR/GBP pair is in an uptrend. The price is breaking the resistance at level 0.9250. A break above level 0.9250 will mean a further upward move.


EUR/GBP – 4 Hour Chart
4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping upward. It indicates the present uptrend. The pair is above the 80% range of the daily stochastic. It is in the overbought region of the market. The pair is now in a strong bullish momentum.

General Outlook for EUR/GBP
The EUR/GBP pair is now in an upward move. The pair is likely to move up as the current resistance at 0.9250 has been broken.

Source: https://learn2.trade

Gold Price Analysis — September 2

Gold (XAU/USD) traded through yesterday’s North American session with a mild negative bias and was last spotted trading around the $1970 level.

The mild negative bias from yesterday continued into the European session on Wednesday after extending its overnight correction slide from its two-week highs. The bearishness was induced by a combination of factors.

A better-than-expected US ISM Manufacturing PMI data released on Tuesday rescued the US dollar (DXY) from its recent bearish journey, which in turn weighed heavily on the dollar-denominated commodity.

The dollar index was further strengthened by a decent pickup in the US Treasury bond yields. This, coupled with the growing risk appetite thwarted demand for the precious metal. However, plans by the Fed to keep interest rates lower for longer helped the non-yielding commodity from increased decline.

Gold’s price has now fallen closer to its weekly low which makes it advisable to wait for more downside extension before placing aggressive bets.

Moving on, market participants will be looking at the US economic docket today—which features the US ADP report—for clues. Meanwhile, the market’s focus remains on the incoming NFP data release scheduled for Friday.


XAUUSD – 4-Hour Chart
Gold (XAU) Value Forecast — September 2

XAU/USD Major Bias: Sideways

Supply Levels: $1977, $1983, and $2000

Demand Levels: $1940, $1923, and $1909

Gold has fallen back into our $1983 – $1960 pivot zone after it failed to take the $2000 yesterday when it recorded a high of $1992. The commodity looks like it is going to make another attempt at the $2000 target but might fail to break out of the current pivot zone as a result of the prevailing global risk sentiment.

That said, XAU/USD will likely remain in a consolidation range in the coming days with the $1940 support being a key level that could trigger a sell-off.

Source: https://learn2.trade

Silver Price: XAGUSD Bulls Re-Attempts Resistance at $28.15 Level

XAGUSD Price Analysis – September 2
Silver price increases past the $28.15 hurdle, up 0.45 percent on a day, during Wednesday’s session. The white metal leaps forward to the sixth month of gains also since it swung off in April. While the recent weakening risk-tone bias might contest the initial trajectories of the bullion, wide US dollar vulnerability and risk-safety chase retain the metal investors steady.

Key Levels
Resistance Levels: $30.00, $29.50, $28.15
Support Levels: $27.15, $26.50, $25.00
XAGUSD Long term Trend: Bullish
Considering the sustained break of the $28.15 resistance level, the August 18 high near $28.50 level and $29.00 round-figures are on the bulls’ radars ahead of the previous month’s peak near $29.85 level. Meanwhile, the MA 13 level of $27.37 questions the short-term sellers.

If at all the bears manage to sneak in around the $27.15 level, the August 25 low near $26.50 level and August 12 bottom close to $23.25 level could regain market attention. Meanwhile, the $28.00 mark and MA 13 near $27.37 level may offer immediate supports to the metal ahead of an ascending trend line from March 19 in the event of a bear market.

XAGUSD Short term Trend: Ranging
Looking at the 4-hour chart, the price looks to be heading to test the resistance at $28.15 level. A break of this level could mean that the recent high of $29.85 level might be the target for the bulls.

If this fails then the $26.20 level may stay as big thorn in the side for the bears as it is a very stubborn support zone. The indicators are staying in the positive zone at the moment as the MA 5 and MA 13 exhibit intact upside traction. The Relative Strength Index is beyond its 50 midlines with more space for a move higher.

Source: https://learn2.trade

What is the most important thing in trading?

Let us face it, the basic reason why people trade is to make profits. Our main goal is to engage the financial markets and end up making money by doing so.

Sadly, many traders are too obsessed with making money that they tend to ignore safety of their trading capital. They think of how much they can make per day, per week or per month, without thinking about how they can keep their capital safe in worst-case scenarios.

Yes, worst-case scenarios do happen, and ironically, they are the best-case scenarios for certain traders. These are some recent examples of such scenarios.

Subprime mortgage crisis of 2007 – 2010
Flash crash of May 2010
Major earthquake and subsequent nuclear fallout in Japan, 2011
Unprecedented volatility in CHF pairs, 2015
Unusual, transitory accelerated bear markets of 2020, which was followed by strong bullish rage. 2020
And the list can continue.

Each of these scenarios resulted in colossal gains for some traders as well as massive losses for some. It is known that the market has symmetry; when you go in one direction and make money, those who go in your opposite direction will see negativity in their positions. For instance, when the unprecedented volatility happened on all CHF pairs in 2015 (the reasons behind that are beyond the scope of this short article), I know a trader who just funded his account with 1000 USD that week and the capital went kaput. I also know another female trader who was having less than 30,000 USD in her account, only for her to wake up and see over 800,000 USD equity in her account!

That brings us to the most crucial thing, I know traders who survived these scenarios or even made huge gains from them. The reason is because they took the safety of their funds seriously.

When you have money in your account, you can trade and expect gains. However, if the money is gone, what would you use to make additional speculation? Nothing. The only option you will have is to fund the account again, so that you can resume trading.

Profit and risk

I do not have a guarantee that the next trade will win, or lose. There is no guarantee that worst-case scenarios cannot happen anytime, which may have effects on my trading capital. What someone calls a bad scenario may be a good scenario for you. What brings losses to others is what bring profits to you.

But I have assurance that once I take the safety of my account seriously and I apply prudent risk control techniques to my trading, bad scenarios cannot have adverse effects on me, and good scenarios will always bring satisfactory results.

If I plan to gain 500 USD on a single day, having only 2000 USD in my account, would I want to think of what could happen, should the market move against me? Would I want to accept 25% loss on a single trade? If I cannot accept 25% loss on that trade, then I need to reduce the amount at stake significantly further.

In reality I risk 2% or less on each trade.

The safety of your account is the primary thing: profits are only secondary. Preserve your account with risk management and profits will come naturally. Just ensure that you survive in the markets for the longer-term and you will have testimonies to share. You will have profits to show as a result of your victory.

No matter how good or skilled or experienced we are, we cannot avoid occasional losses, and that is what makes trading interesting as well as challenging. The aim of every triumphant trader is thus to have losses that are smaller than profits. If I make a total losses of 3500 USD in a month, and I also make a total profits of 8000 USD in the same month, then that is a profitable month for me.

Really, if you keep your money safe in the face of the vagaries of the market, you will eventually end up being richer than you currently are.

NB: Watch out for an article that reveals the single most important factor that will guarantee consistent profits, coming soon.

Source: https://learn2.trade/

What Exactly Is DeFi? All You Need to Know

Decentralized Finance (DeFi) is the fusion of traditional banking services with decentralized technologies like blockchain. DeFi may also be called Open Finance due to its inclusive format. It is important to note that the DeFi community is committed to creating alternatives to every financial service currently available. These services include items such as savings and checking accounts, loans, asset trading, insurance, and more.

Decentralized Finance (DeFi) Significance
DeFi continues to play an important role in the development of the financial sector for many reasons. First, DeFi expands the functionality and availability of money. Since all you need to participate in the DeFi sector is a smartphone, there is huge potential for the expansion of the global economy. Consequently, analysts consider this sector to be one of the most important ones in the crypto space at present.
This commitment to developing the DeFi ecosystem is easy to understand. It is important to note that DeFi is the fastest growing sector in the blockchain. According to the latest reports, DEFI tokens consistently outperform their peers. Besides, since this time represents the beginning of this stage of integration, the market now has a unique opportunity to see an entirely new heyday of the industry.

Decentralized Applications (dApps)
DeFi relies heavily on Dapps. To understand the power of DeFi, you need to understand the concept of Dapps. Dapps are programs designed to run on decentralized networks. These networks can be blockchains, Tor networks, or distributed ledger technologies (DLT). A key component of these protocols is their decentralized nature. There are no central bodies, corporations, or agencies that oversee and approve the business functions of these applications.

Dapps require very little human intervention. Instead, these platforms integrate advanced smart contracts to optimize their business systems. Smart contracts are pre-programmed protocols that run when you receive cryptocurrency to your address. It’s important to note that smart contracts can perform a wide variety of tasks, from client approval to making payments.

In Conclusion
As the main systems of our society transform decentralization, the demand for DeFi Dapps will increase in the future. These next-generation applications continue to remarkably disrupt existing business systems.

Source: https://learn2.trade

New Pattern Suggests That Bitcoin Could Crumble To the $10,000 Level If Bulls Don’t ”Save the Day”

Bitcoin (BTC) and the rest of the cryptocurrency market have been swept by intense volatility in today’s session, with the benchmark cryptocurrency plunging below the key $12k support.

This drop saw BTC drop as far as $11,600 before bulls stepped in to prevent further declines.

Many analysts believe that this sharp decline has disrupted Bitcoin’s price action in the near-term. A bearish divergence has now emerged on Bitcoin’s ‘Renko’ chart, confirming the fresh BTC weakness. Worth mentioning is that the last time this pattern emerged, the cryptocurrency fell by $1,300.

If history repeats itself, which it usually does, Bitcoin could see a further extension of this correction. One analyst points out that if the crypto failed to bounce off its current level, we could see $10k again.


BTC – Hourly Chart
Key Levels To Watch

At press time, Bitcoin is trading at $11,770, roughly 1.6% down from its previous high.

As projected in our last analysis, the benchmark cryptocurrency dropped to $11,600 before finding a strong bounce from that area. After this, the crypto appeared to enter a consolidation range just like the one it was in before we broke the $12k mark.

Bulls are now tasked with reclaiming dominance above $12k again or risk handing over control to bears.

On the hourly chart, we can see that BTC needs to get back on top of the prevailing trendline and continue on that trajectory. Our MACD indicator shows that we are now heading into oversold conditions, making a bullish comeback more feasible.

If the $11,600 support caves, Bitcoin could head towards the $11,200-000 region fairly quickly. A further decline from that level should be strongly supported by the $10,800-500 pivot zone (colored in purple).

On the flip side, a good recovery from this level would send Bitcoin back into the $12,000’s and higher.

Total market capital: $365.6 billion

Bitcoin market capital: $217 billion

Bitcoin dominance: 59.4%

Source: https://learn2.trade

Ethereum Price Analysis:ETH Faces Rejection, May Revisit $400 Support Level

Key Highlights
Ethereum faces rejection at $440, may continue selling presure
Ethereum has the chance of reaching its target price of $480

Ethereum ( ETH) Current Statistics
The current price: $412.58
Market Capitalization: $46,308,157,897
Trading Volume: $12,328,754,634
Major supply zones: $280, $320, $360
Major demand zones: $160, $140, $100

Ethereum (ETH) Price Analysis August 19, 2020
Ethereum is on a downward move as it faces rejection at the $440 overhead resistance. Buyers have thrice attempted to break the $440 resistance but to no avail. Each time ETH faces rejection at the $440 resistance; price will fall to $420 support and resumes a fresh uptrend.


ETH/USD – Daily Chart
The price has continued its downward move. After falling to the $420 support, it retested the $430 resistance and continued selling pressure. Ethereum risks falling to the low of $375 if price continues its fall. On the upside, a break above $440 will propel price to reach a high of $480.


ETH Technical Indicators Reading
Sellers have pushed price below the support line of the ascending channel. The implication is that price may continue its downward move. However, if price breaks below the EMAs, the selling pressure will continue downward.


Conclusion
Ethereum is falling after facing rejection at the $440 resistance. It is unclear to which level price will fall and resume the uptrend. According to the Fibonacci tool, in the August 5 uptrend, a retracement candle body tested the 78.6% Fibonacci retracement level. It indicates that price will reach 1.272 extension level and reverse. If it reverses, it will return to the 78.6% retracement level where it originated.

Source: https://learn2.trade

How do I control my trading risk?

RISK CONTROL TECHNIQUES IN TRADING

Risk is ever present in trading, just as it is in other areas of life. The good news is that the risk inherent in trading can be controlled effectively, thus enabling you to be permanently triumphant.

No-one on earth can trade repeatedly without any loss, no matter the trading strategy adopted. If you had a speculative method that could not lose a single trade, all the money in the world would eventually go to you, and that would be completely unfair. If there was no possibilities of losses in the market, then the market would not exist at all.

For you to make money in the markets, you need to be smarter than many other traders, and employing effective risk control methods will also give you a huge edge over other traders.

For every good strategy, there are periods of losses and there are periods of winnings. There would be a period when everything you touch in the market will become gold; whereas there are periods when the market will let you know that you are not hot, even if you think you are. What can you then do?

RISK CONTROL METHODS

Small Lot Sizes:
Risk as small as possible per trade. Go for small, but consistent profits, not home runs. Betting big pays richly if you win, but what happens if you lose. There is no 100% guarantee that your next trade will be a winner, and you do not want to lose big, in case you are wrong. The trick is to lose as small as possible during a losing streak and gain as much as possible during a winning streak (good risk to reward ratio). Small losses are easy to recover: big losses are not. So make sure you do not have large losses in the first place. With an account balance of 1000 USD or less, I use 0.01 lots. With an account balance of $20,000, a position size of 0.2 lots would be used. This is conservative, but it has worked well for me.

Stop Loss:
In case a trade is not going your way, this is an order that takes you out of the market at a predetermined price level. A stop loss should not be too wide, so that normal market fluctuations will take you out of the market prematurely. A stop loss should not be also too wide, so that there would not be a painful loss in case price decides to go protractedly against you. An optimal stop is thus better (not too wide and not too close to the current price). Some traders hate stop loss because one can sometimes be taken out of the market and then see price going in one’s direction. Nonetheless, there would be times when stops will save your capital from total ruin, some market may go decidedly against you and will not come back to your entry level again (not in your lifetime). So stops are your life insurance ploicy. Get stopped out at a small loss and look for next opportunities.

Take Profit:
That is the target you set for your trade – a stop put in place to take you out of the market once price reaches a certain level in your favor. Even when you are not online and your trading platform is closed, Take Profit will close your profit for you once price reaches your targeted level. The downside, is that price may sometimes reverse before it reaches your target; or price may continue going in your direction once it has taken you out, albeit with a profit.

Breakeven Stop:
This is a tool that helps you remove the risk on a trade. Let us say you place a “sell” trade on Gold (XAUUSD) at 2060.06, and place your Stop Loss at 2085.00, and Gold begins to trend downwards, now trading at 1950.63. You will then adjust your Stop Loss to 2060.06, which is your entry price. That is breakeven stop. You have removed the risk of loss on that trade, and the worst that can happen is for you to be stopped out with no profit and no loss, in case the market reverses against you. If the market does not reverse, you will then enjoy your risk-free trade!

Trailing Stop:
A trailing stop can be defined as a modification of your Stop Loss that can be set at a defined percentage or pips amount away from the market price. In June and July 2020, USDCHF dropped by over 500 pips. If I entered the market at 0.9607,and price later moved to 0.9360 (over 240 pips), I might want to lock some of the profits while riding the bearish trend further. Therefore I would set a trailing stop of 80 pips or 110 pips. Should the market continue moving in my favor, I would make more gains, as more of the profits are locked, until my target is hit or I close the trade myself. In case of a reversal against me, I would be taken out of the market, but some of the profits would be salvaged as well.

Staying Aside:
Another great way to control your risk and reduce drawdowns is to know when to be in the market and when not to be in the market. There are months of the year when trend following works and there are months when it does not work. There are times when mean-reversion trading works and there are times when it does not work. Recognize when your system is temporarily out of sync with the markets, and stay out of the market. Know when you are supposed to be in the market, and when you are not supposed to open trades. This comes only with years of experience.

Conclusively, there are no perfect risk control tools, for each tool has its pros and cons. But when you employ the risk control measures explained above, you will enjoy everlasting success in the markets. Sure, there would be occasional, transitory setbacks, but it would be easier for you to recover them eventually and surge ahead with more profits.

It is not easy to be green… May your trades be green.


Source: https://learn2.trade/