As with virtually any trading scenario, we must first determine the direction that we need to trade the pair for the greatest likelihood of success.
By looking at the 4 hour chart of the GBPUSD below, there are several reasons we know that we want to go long (buy) the pair. Price action is above the 200 Simple Moving Average and is pulling away from it; the pair has been making higher highs and higher lows (green lines) which indicates an uptrend; and, at the time of this chart, the GBP was the strongest currency and the USD was one of the weaker currencies.
All these point to a buying opportunity. But when do we enter the trade?
Let’s take a look at the trendline…
We can see that price action has come in contact with trendline support at several points..note the blue boxes. (Since price has tested and respected the trendline at more than three points we know that our trendline is valid.)
Our entry strategy to buy this pair using trendline support will be to wait for price to trade down to the trendline…into the “Buy Zone”. If price trades into the Buy Zone and stalls and a candle does not close below trendline support, just as in our “blue box examples” , we can take a long position on the pair with our stop just below the trendline or just below the lowest wick that penetrates the trendline.
The trader could exit the trade if price reaches resistance, the previous high, or by employing a simple 1:2 Risk Reward Ratio.
Now let’s take a look at a 4 hour chart of the USDCHF for selling against Trendline Resistance in a downtrend…
This trading scenario will be virtually the opposite of what we did in the previous buy example.
We want to sell this pair as it has been making lower lows (red lines) and lower highs; price action is below the 200 SMA and pulling away from it; and, at the time of this chart, the USD was weak and the CHF was strong.
Again, price action has tested our resistance line at several points (the blue boxes) so we know the trendline to be valid. In this example we would wait for price to trade up to trendline resistance in the Sell Zone. As long as a candle does not close above the trendline, we would sell the pair with a stop just above the trendline or just above the highest wick to penetrate the trendline.
The trade could be closed should price reach the previous low or we could use a 1:2 Risk Reward Ratio to exit the trade.
Next: Trend Line Support and Resistance (32 of 47)
Previous: Here's How to Validate and Trade a Channel
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View all attachments- 4 - NASDAQ-Giornaliero.png
- 3 - volatility-Support-Resistance-Indicator.png
- 2 - support-resistance-lines-with-bollinger-bands.png
- 1 - SR-Band-Indicator.png
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- Remind me these topics:Your version/interpretation of this indicator is easier to code.Online Image Watermark Remover is a free tool to batch remove watermark from image online. It supports various image formats, including JPG, JPEG, PNG and more. Online Image Watermark Remover is a free tool to batch remove watermark from image online. It supports various image formats, including JPG, JPEG, PNG and more. Oct 10, 2018 best and free online watermark removal for different file and document types. Remove any type of watermarks from your document and pictures. See here How to Remove Watermarks from Images and document online and offline both methods. How to Remove Watermarks from Images. Removing a watermark from a photo comes in handy when you lost the last remaining copy of the original picture and desperately need to return it no matter what. Now take Inpaint-Online and remove any number of watermarks from your photos in just 3 steps, regardless of whether the photo is on your desktop or on mobile phone! Step 1: Upload the image. Remove watermark from image free. The watermark of the photo are usually some identity or in most links of their websites. Anyone who wants to delete watermarks from images, often look for a tool who can erase it. Remover for android,watermark remover in filmora,watermark remover in pdf,watermark remover online,watermark remover online tool,watermark remover online free. Jan 05, 2012 Pixlr is a free online photo editor which allows you to remove watermark from images like a breeze.Pixlr is basically an online photo editor with powerful photo editing tools. One of it’s main feature is to remove watermark. This Online service consists of several user-friendly tools like drawing tool, sponge tool, clone stamp tool, gradient tool, color replace tool, smudge tool, dodge tool.So, each time the condition 1 is met, we update the whole lines calculation? right?Ok, so this is the indicator that plot the upper and lower bollinger bands as support/resistance lines when they quit the expansion phase (phase 2). Other lines are calculated with an ATR 10 periods. Sometimes lines are overlapping and it is a bit confusing IMO.2468101214161820//https://www.prorealcode.com/topic/volatility-support-resistance-indicator/upper=BollingerUp[20](close)atr=averagetruerange[10]ifupper<upper[1]andupper[1]>upper[2]thenrr2=upper-atrr4=upper-3*atrs1=lowers3=lower+2*atrendifreturnr1coloured(200,200,0)style(line,2)as'r1',rr2coloured(100,100,100)style(dottedline,1)as'r2',r3coloured(100,100,100)style(dottedline,1)as'r3',r4coloured(100,100,100)style(dottedline,1)as'r4',s1coloured(200,200,0)style(line,2)as's1',s2coloured(100,100,100)style(dottedline,1)as's2',s3coloured(100,100,100)style(dottedline,1)as's3',s4coloured(100,100,100)style(dottedline,1)as's4'
Attachments:
Change the last line of your indicator by this one and you’ll have an “all-in-one” indi.returnr1coloured(200,200,0)style(line,2)as'r1',rr2coloured(100,100,100)style(dottedline,1)as'r2',r3coloured(100,100,100)style(dottedline,1)as'r3',r4coloured(100,100,100)style(dottedline,1)as'r4',s1coloured(200,200,0)style(line,2)as's1',s2coloured(100,100,100)style(dottedline,1)as's2',s3coloured(100,100,100)style(dottedline,1)as's3',s4coloured(100,100,100)style(dottedline,1)as's4',upper,lowerNon ho capito come fare ad unire i due indicatori, potete riscriverlo voi il codice finale?Could you give some explanation about how this indicator is used ? Is he part of a trading method described in the book ?Non ho capito come fare ad unire i due indicatori, potete riscriverlo voi il codice finale?Nel forum in lingua Inglese si prega di usare l’inglese. Grazie.1 user thanked author for this post.
We are absolutely not violating copyright here, and as I said your code is not near to the original version. If we can’t plot lines on a chart based on standard deviation from a mean, because someone already did it in a book, well . a lot of codes around here should de deleted also ?Advantages and disadvantages of serial processing operating system. Ivan, can you explain the strategy then. Thanksanybody knows why Trading View does not accept this script ? - Posts
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Register or LoginMarket profile charts are convenient tools that can be used by both short-term investors and long-term traders. They're typically based on price and volume information, and they combine these factors in a way that displays price, volume, and time frame on a single chart. You can gather a multitude of information with a glance.
Market profile charts use standard market data so they don't require level 2 market data or any additional market information such as separate time and sales. Market profile charts are sometimes known by other names, such as Sierra Chart's TPO, the Sierra chart scale, or volume profile charts. They all do largely the same thing.
How to Read a Market Profile Chart
Market profile charts display the price on a vertical scale just like most graphical charts. The volume appears on a horizontal scale and the timeframe uses a combination of letters and/or colors. Understanding the price is quite straightforward but the volume and time frame segments are slightly more complicated.
- Price: Market profile charts display the price in the same manner as any other day trading chart, with the price scale being displayed on the right side of the chart.
- Volume: The volume on a market profile chart is displayed as a horizontal histogram with the longest horizontal lines showing the greatest amount of volume. This means that the price that has the longest horizontal line is the price where most of the volume has been traded. This price is also known as the point of control because it's the price that had control of the market most of the time.
- Time Frame: The time frame on a market profile chart uses letters and/or colors. Each letter represents one unit of the time frame when letters are used, such as 5 minutes or 1 hour. Each color also represents one unit of the time frame when colors are used. A 15-minute chart would use colored squares, each of them representing 15 minutes of trading. A trader can easily see which prices have been traded most recently if he knows which color is the most recent.
Trading Using a Market Profile Chart
Metastock Dt Support Resistance (longer How To Work
Market profile charts can be used as a complete trading system or as part of a larger trading system that also uses other charts. Either way, market profile charts are usually traded based on support and resistance and on how the price interacts with the point of control, which would be the most traded price.
A day trader might trade bounces off the most recent point of control, while a swing trader might trade breakouts of yesterday's point of control. As with all techniques and methods, using a market profile chart well takes practice. You might want to give it a dry run—or two or three dry runs—before you jump in. You'll know when you feel comfortable enough to invest with 'real' dollars.
Note: Always consult with a financial professional for the most up-to-date information and trends. This article is not investment advice and it is not intended as investment advice.
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- 10: How to copy backtest trade list to a spreadsheet
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- 03: How to verify if EOD data is available for download at Google Finance
- 03: Table of Contents
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- 28: How to restrict trading to certain hours of the day
- 27: How to synchronize backtesting setup on different computers
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- 18: How to plot daily High and Low on intraday chart
- 14: How to export quotes to separate text files per symbol
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- 12: How to configure alerts to work with SSL e-mail accounts
- 10: Troubleshooting procedure when backtest shows no trades
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- 12: Position sizing based on risk
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- 05: What are constants in AFL and how they work
- 03: How to setup automatic periodic scans & explorations
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- 29: Debugging techniques – Part 1 – Exploration (0)
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- 24: Make icons larger on high DPI displays
- 23: Do NOT use “registry cleaners” to avoid problems
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- 22: Do NOT make assumptions on number of bars
- 21: A function with multiple return values
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- 07: AmiBroker on tablets and smartphones
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- 07: Lost activation key
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