indicators. StockSharphttps://stocksharp.com/handlers/atom.ashx?category=tag&id=indicators&type=communityCopyright @ StockSharp Platform LLC 2010 - 20242024-03-28T12:47:33Zhttps://stocksharp.com/images/logo.pnghttps://stocksharp.com/topic/24902/How to trade follow Fibonacci Retracement Strategy.2023-07-06T18:58:19Z2023-07-06T18:58:19ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com💥💥Trading with the Fibonacci Retracement Strategy involves using the Fibonacci levels as potential support and resistance areas to identify entry and exit points. Here's a step-by-step guide on how to trade using this strategy:<br /><br />👉 1. Identify a Trend: Start by identifying a clear trend in the price movement. It can be an uptrend (higher highs and higher lows) or a downtrend (lower highs and lower lows).<br /><br />👉 2. Find the Swing Points: Locate the significant swing points that define the trend. In an uptrend, look for the lowest low (start of the swing) and the highest high (end of the swing). In a downtrend, identify the highest high (start of the swing) and the lowest low (end of the swing).<br /><br />👉 3. Apply Fibonacci Retracement Levels: Once the swing points are identified, apply the Fibonacci retracement levels to the price chart. The common retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These levels indicate potential support (in an uptrend) or resistance (in a downtrend) areas where the price may retrace before continuing in the direction of the trend.<br /><br />👉 4. Wait for a Retracement: Monitor the price movement and wait for the price to retrace towards one of the Fibonacci levels. This retracement provides a potential entry opportunity.<br /><br />👉 5. Confirm with Price Action and Indicators: Look for additional confirmation signals to validate the potential entry point. This can include bullish or bearish candlestick patterns, trendline breaks, or convergence of other technical indicators such as the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD).<br /><br />👉 6. Place Entry and Exit Orders: Once the retracement is confirmed, place your entry order near the Fibonacci level that aligns with your analysis. Set a stop-loss order below the recent swing low (in an uptrend) or above the recent swing high (in a downtrend) to manage risk. Determine a profit target based on the subsequent Fibonacci levels or other technical indicators.<br /><br />👉 7. Manage Risk: Implement proper risk management techniques by determining your position size based on your risk tolerance and adjusting your stop-loss levels accordingly. Consider using trailing stop-loss orders to protect profits as the trade progresses.<br /><br />👉 8. Monitor the Trade: Continuously monitor the trade to assess its progress. Adjust your stop-loss orders and profit targets as the price moves in your favor. If the price fails to reach your profit target and starts reversing, consider exiting the trade to limit potential losses.<br /><br />👉 9. Backtest and Practice: Before applying the Fibonacci Retracement Strategy with real money, practice and backtest it using historical price data. This helps you understand its effectiveness, identify any adjustments needed, and gain confidence in executing trades based on Fibonacci levels.<br /><br />⚡️⚡️Remember that Fibonacci retracement levels are not foolproof and should be used in conjunction with other technical analysis tools and market context. They serve as a guide to identify potential areas of support and resistance, but it's essential to consider other factors such as trend strength, market volatility, and fundamental analysis for a comprehensive trading approach.https://stocksharp.com/topic/24752/How is trading robot working?2023-05-19T18:12:59Z2023-05-21T18:57:29ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<div align="center"><a href='https://stocksharp.com/file/143086/integrating-artificial-intelligence-and-machine-learning-into-your-crypto-trading-bot_jpg/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/143086/integrating-artificial-intelligence-and-machine-learning-into-your-crypto-trading-bot_jpg/?size=500x500" alt="Integrating-Artificial-Intelligence-And-Machine-Learning-Into-Your-Crypto-Trading-Bot.jpg" title="Integrating-Artificial-Intelligence-And-Machine-Learning-Into-Your-Crypto-Trading-Bot.jpg" /></a></div><br /><br />💥💥A trading robot, also known as an automated trading system or algorithmic trading system, is a software program that executes trades in the financial markets on behalf of traders. It operates based on predefined rules and algorithms, without the need for manual intervention. Here's how a trading robot typically works:<br /><br />👉 1. Strategy Development: The trading robot is programmed with a specific trading strategy. The strategy defines the conditions for entering and exiting trades based on various indicators, signals, or algorithms. These rules can be based on technical analysis, fundamental analysis, or a combination of both.<br /><br />👉 2. Market Analysis: The trading robot continuously monitors the market using real-time or historical data feeds. It analyzes the market conditions and price movements, applying the predefined strategy rules to identify potential trade opportunities.<br /><br />👉 3. Trade Execution: When the trading robot identifies a trade setup that meets the specified criteria, it automatically generates and executes the trade orders. This includes placing buy or sell orders with the appropriate parameters, such as the asset, quantity, price, and order type (market order, limit order, etc.).<br /><br />👉 4. Risk Management: Trading robots incorporate risk management rules to protect against excessive losses. These rules may include setting stop-loss orders to limit potential losses, implementing trailing stops to secure profits, or adjusting position sizes based on predefined risk levels.<br /><br />👉 5. Order Monitoring: The trading robot continuously monitors the executed trades, tracking their performance and adjusting stop-loss levels or take-profit targets as necessary. It may also monitor market conditions to identify when to exit a trade based on the strategy rules.<br /><br />👉 6. Speed and Efficiency: One of the key advantages of trading robots is their ability to execute trades with high speed and precision. They can analyze multiple markets and assets simultaneously, identify trade opportunities faster than human traders, and execute orders instantly, minimizing latency and slippage.<br /><br />👉 7. Backtesting and Optimization: Before deploying a trading robot in live trading, it is crucial to backtest and optimize the strategy using historical market data. This helps assess the performance of the strategy over time and identify any potential issues or areas for improvement. Backtesting allows traders to validate the effectiveness of the robot before risking real capital.<br /><br />👉 8. Continuous Monitoring and Maintenance: While trading robots can operate autonomously, it is important to monitor their performance regularly. Traders need to ensure that the strategy remains effective under changing market conditions and make necessary adjustments or updates as required. Regular monitoring helps maintain the robot's performance and adapt to new market dynamics.<br /><br /><div align="center"><a href='https://stocksharp.com/file/143087/want-to-trade-automatic-see-top-10-crypto-trading-bots-in-2021_jpg/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/143087/want-to-trade-automatic-see-top-10-crypto-trading-bots-in-2021_jpg/?size=500x500" alt="Want-to-trade-automatic-See-Top-10-Crypto-Trading-Bots-in-2021.jpg" title="Want-to-trade-automatic-See-Top-10-Crypto-Trading-Bots-in-2021.jpg" /></a></div><br /><br />💥💥It's worth noting that trading robots are only as good as the strategy and rules they are programmed with. Therefore, it is crucial to develop a robust and well-tested trading strategy and regularly evaluate and update the robot's performance to ensure its effectiveness in different market conditions.https://stocksharp.com/topic/24750/What is The Trading Robot?2023-05-19T18:00:38Z2023-05-21T18:54:49ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<div align="center"><a href='https://stocksharp.com/file/143085/robot_2_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/143085/robot_2_png/?size=500x500" alt="Robot_2.png" title="Robot_2.png" /></a></div><br /><br />💥💥Trading robots, also known as automated trading systems or algorithmic trading systems, are computer programs that execute trades based on pre-defined rules and algorithms. These robots are designed to automatically analyze market conditions, identify trading opportunities, and execute trades without the need for manual intervention.<br /><br />⚡️Trading robots can be beneficial for traders as they can eliminate human emotions and biases from the trading process, execute trades with high speed and accuracy, and operate 24/7 without the need for constant monitoring.<br /><br />💥To use a trading robot, you typically need to develop or acquire a trading strategy and program it into the robot using a programming language or a dedicated platform. The strategy can be based on various indicators, technical analysis techniques, or fundamental factors. Once the robot is programmed, it can automatically execute trades based on the defined rules.<br /><br />⚡️Trading robots are commonly used in various financial markets, including stocks, forex, cryptocurrencies, and commodities. They can be used for different trading styles, such as scalping, day trading, swing trading, or long-term investing.<br /><br />💥It's important to note that while trading robots can be powerful tools, they are not guaranteed to generate profits. The effectiveness of a trading robot depends on the quality of the underlying strategy, market conditions, and proper risk management. Traders should thoroughly backtest and evaluate their strategies before deploying them with a trading robot and closely monitor their performance to make necessary adjustments.<br /><br />⚡️Trading robots can be a valuable tool for traders, offering automation, efficiency, and potential benefits. However, it's essential to understand their limitations and use them as part of a well-rounded trading approach.https://stocksharp.com/topic/24277/What is William's %R Indicator similar or different to Stochastic Indicator? And overbought and oversold signals2023-01-05T18:49:05Z2023-04-24T16:06:38ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<div align="center"><a href='https://stocksharp.com/file/142448/williams-percent-range_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/142448/williams-percent-range_png/?size=500x500" alt="williams-percent-range.png" title="williams-percent-range.png" /></a></div><br /><br />💥Williams %R, also known as Williams Percent Range, is a technical indicator used in financial analysis to measure oversold or overbought conditions of an asset. It was developed by Larry Williams and is similar to Stochastic oscillator in its calculation and interpretation.<br /><br /><b>Williams %R is calculated using the following formula:</b><br /><br />%R = (Highest High - Close)/(Highest High - Lowest Low) x -100<br /><br />💥Where Highest High is the highest price in a certain period, Lowest Low is the lowest price in the same period, and Close is the closing price.<br /><br />💥Like the Stochastic oscillator, the Williams %R fluctuates between 0 and -100. When the indicator is above -20, the asset is considered overbought, and when it is below -80, it is considered oversold. Traders may use these signals as a potential time to sell or buy respectively.<br /><br />💥One key difference between the Williams %R and the Stochastic oscillator is that Williams %R is a momentum oscillator that reflects the level of the close relative to the high-low range over a certain period, while Stochastic oscillator compares the closing price to the range of prices over a certain period of time. Additionally, the Williams %R is considered to be more volatile than the Stochastic oscillator, meaning it can provide signals for more frequent price reversals.<br /><br /><div align="center"><a href='https://stocksharp.com/file/142449/stochastic-divergence_pre0_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/142449/stochastic-divergence_pre0_png/?size=500x500" alt="Stochastic-Divergence_pre0.png" title="Stochastic-Divergence_pre0.png" /></a></div><br /><br />💥The Stochastic Indicator is a technical analysis tool used to measure the momentum of an asset's price relative to its price range over a given period of time. It compares the current price of an asset to its price range over a specified period of time and generates signals based on overbought and oversold conditions. The Stochastic Indicator consists of two lines: %K, which measures the current price in relation to the high and low range over a specified time period, and %D, which is a moving average of %K. It is similar to William's %R Indicator in that they both measure overbought and oversold conditions, but the Stochastic Indicator is based on the idea that closing prices tend to close near the high of the price range in an uptrend, and near the low of the price range in a downtrend, while Williams %R is based solely on the high-low range.<br /><br />💥Williams %R and Stochastic Indicators are both momentum oscillators used to identify overbought and oversold conditions in the market.<br /><br />💥The main difference between the two is in the way they are calculated. Williams %R uses the highest high and the lowest low of the last n periods, while Stochastic uses the current closing price in relation to the high-low range of the last n periods.<br /><br />💥In terms of overbought and oversold signals, both indicators use the same threshold levels of 20 and 80. When the Williams %R or Stochastic value falls below 20, it is considered oversold, and when it rises above 80, it is considered overbought.<br /><br />💥However, Williams %R tends to be more volatile than Stochastic, which can sometimes result in more false signals. It is also known for its ability to identify divergences between the indicator and the price action, which can be useful for predicting potential reversals in the market.<br /><br />💥This indicator is named after its inventor, Mr. Larry Williams, and is based on the same concept as the Stochastic indicator. However, the graph is inverted, with the scale climbing from 0 down to 100 or a small value above it. Therefore, the overbought area is above the 20 line and the oversold area is below the 80 line. Instead of measuring the current price in relation to the high-low range of the last n periods like the Stochastic indicator, Williams %R measures the distance between the closing price and the high in N days, usually 10 days.<br /><br />💥William's %R indicator is almost the same as the Stochastic indicator, so some people refer to William's %R as the 10-day Stochastic. However, William's %R uses the 80, 20 line instead of the 70, 30 line of the Stochastic indicator because it is more sensitive and prone to false signals. In fact, William himself suggested using a buy signal below 95% and a sell signal above 10% (keep in mind that the values run upside down from 0 to 100).<br /><br />💥Unlike the Stochastic indicator, William's %R does not offer a moving average as a signal. Some analysts use a moving average, but because William's %R is a Stochastic, it runs very fast and can sometimes give an error signal. Therefore, some technical analysts use it only in combination with other technical tools.<br /><br />💥Using William's %R for stock prices can be seen in the example image below. An arrow below or equal to 95 represents a buy or hold moment, while an arrow equal to 10 represents a sell or drain moment. However, it should be noted that William's %R adjustment sometimes does not correspond to the share price, as seen in the example around numbers 1, 2, and 3. William's %R can also show divergence with the price, which makes the signal more significant. You can learn more about William's %R indicator from <b><a href="https://stocksharp.com/store/trading-terminal/" title="Terminal - free trading terminal and charting application for manual trading">Terminal</a></b>.<br /><br /><div align="center"><a href='https://stocksharp.com/file/136493/williamr-02_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136493/williamr-02_png/?size=500x500" alt="william%R 02.png" title="william%R 02.png" /></a></div><br /><br />https://stocksharp.com/topic/24271/Stochastic indicator for sideways market What is signals showing buy and sell points?2023-01-02T18:00:29Z2023-04-24T15:15:35ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<div align="center"><a href='https://stocksharp.com/file/136269/stochastics-oscillator-percent-k-formula-alpharithms_jpg/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136269/stochastics-oscillator-percent-k-formula-alpharithms_jpg/?size=500x500" alt="stochastics-oscillator-percent-k-formula-alpharithms.jpg" title="stochastics-oscillator-percent-k-formula-alpharithms.jpg" /></a><br /><br /><a href='https://stocksharp.com/file/136268/stochastics-oscillator-percent-d-formula-alpharithms_jpg/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136268/stochastics-oscillator-percent-d-formula-alpharithms_jpg/?size=500x500" alt="stochastics-oscillator-percent-d-formula-alpharithms.jpg" title="stochastics-oscillator-percent-d-formula-alpharithms.jpg" /></a></div><br /><br />💥The Stochastic indicator is commonly used to identify potential buy and sell signals for traders in a sideways market. In a sideways or ranging market, the price tends to move within a relatively narrow range, and the Stochastic indicator can help identify overbought and oversold conditions within that range.<br /><br />💥For a buy signal, traders will look for the Stochastic indicator to cross above the oversold level, which is typically set at 20. This suggests that the price may have reached a support level and could potentially reverse direction and start moving higher. Traders may then look for confirmation of the buy signal through other technical indicators or price action before entering a long position.<br /><br />💥For a sell signal, traders will look for the Stochastic indicator to cross below the overbought level, which is typically set at 80. This suggests that the price may have reached a resistance level and could potentially reverse direction and start moving lower. Traders may then look for confirmation of the sell signal through other technical indicators or price action before entering a short position.<br /><br />💥It is important to note that while the Stochastic indicator can be a useful tool in a sideways market, traders should still consider other factors such as trend, volume, and support/resistance levels before making trading decisions.<br /><br />💥Stochastic is a very popular tool, especially for sideways markets and those who prefer fast-paced trading. Although many people believe that George Lane invented it, this indicator has actually been around for decades. In the 1960s, it was presented in an article titled "Stochastic Process" by the Investor Educators Company, which explained both the theoretical stochastic process of prices and the indicator itself. Despite not being directly related to the theoretical process, the title of the article became part of the indicator's name.<br /><br />💥Stochastic is based on the observation that when prices are rising, the closing price tends to move closer to the high or upper boundary of the price range. Conversely, when prices are falling, the closing price tends to move closer to the low or lower boundary of the price range. The tool measures the ratio of the closing price's distance from the low to the total spread from high to low over the last N days, usually 5 (N = 5).<br /><br />💥For example, if the calculated %K value is 0.38, it means that today's closing price is 38% relative to the 5-day trading session.<br /><br />💥The threshold lines that define the overbought and oversold zone in the Stochastic indicator are typically set at 80 and 20, respectively. As for the Stochastic readings, the best buy signal is said to occur when the %D line is between the 10-15 range, while the best sell signal is formed when the %D line is between the 85-90 range.<br /><br />⚡️<b>There are 7 popular methods for determining when to buy or sell using Stochastic:</b><br /><br />👉Buy when the oscillator drops below the level 20 and resumes above it, and sell when it retraces above level 80 and reverses above it in a downward direction.<br /><br />👉Buy when %K cuts %D up and sell when %K cuts %D down. This case can also be separated into 2 sub-cases. %K cuts %D where %K (which is faster) crosses first. (So crossing the left side of the %D line is called Left Crossing) and if %K crosses %D, it's true, but %D (which is slower) crosses the head first (so %K cuts %D on the right side of the line). The %D line is called Right Crossing. In both cases, they read the same value, but the latter is more certain than the former, since the %D is overturned first, indicating a quick change of direction. It's sweeter and more stable.<br /><br />👉A divergence can occur when %D is above the 80 line but cannot create a new higher top while the price continues to follow the uptrend. It happens while the %D line is below the 20 line and creates a new higher bottom. This is an early warning. The price may run in that direction. So hurry up and look for an opportunity to sell (when there is a divergence at the top) or buy (when there is a divergence at the bottom) because soon there may be a reversal. This style is also known as a setup.<br /><br />👉A sharp drop in %K or %D (which George Lane called Hinge) shows that the market is weak. It's a signal to be careful that tomorrow's market may change direction.<br /><br />👉A rapid (faster) and severe (2-12%) deflection of %K is a warning sign that the market is almost exhausted. The original direction of the price can stand well for no more than 2 days.<br /><br />👉The %K value ranges from 0 to 100, and when %K reaches both extremes, it's often a signal to collect (%K=0) or drain (%K=100). The price must close at the highest or the lowest for at least 5 consecutive days (see the formula of %K to understand), and the number of days may need to be more if we use the slower Stochastic.<br /><br />👉If %K crosses %D and tries to turn around to find %D again but does not reach it (or maybe just touching, but not breaking) %D, this confirms a clear signal that it had just intersected a while ago. It's a sure sign.<br /><br /><div align="center"><a href='https://stocksharp.com/file/136494/stochastic-oscillator-02_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136494/stochastic-oscillator-02_png/?size=500x500" alt="Stochastic Oscillator 02.png" title="Stochastic Oscillator 02.png" /></a></div><br /><br />💥 The example presented below demonstrates the use of Stochastic to determine the timing of entering and exiting trades with the SET index. A downward arrow indicates a buy signal or to hold more, while an upward arrow indicates a sell signal or to gradually make short-term profits (depending on the case). Beside the arrow, there will be the word "Buy" or "Sell." It may be noticed that there are moments to buy or sell more than once, which may prompt the question of why there are multiple points. The answer lies in the principle that the tool is only used to find a cutting rhythm (as mentioned earlier), as some people only see an upward trend (without confirmation from another stroke), leading to a possible loss. Due to the quick movement of the pointer, false signals may appear, so some people prefer to use the line crossing rhythm to gradually buy or sell stocks, similar to signaling in terms of moving averages.https://stocksharp.com/topic/24268/What is the difference between the Relative Momentum Index (RMI) indicator and the Relative Strength Index (RSI) indicator when overbought and oversold?2023-01-01T16:09:19Z2023-04-23T17:21:43ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<br /><div align="center"><a href='https://stocksharp.com/file/136257/kwit9ogq_mid_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136257/kwit9ogq_mid_png/?size=500x500" alt="kwIt9OgQ_mid.png" title="kwIt9OgQ_mid.png" /></a></div><br /><br />💥The Relative Momentum Index (RMI) and the Relative Strength Index (RSI) are both momentum indicators that are commonly used to analyze financial markets. However, there are some differences between the two indicators when it comes to overbought and oversold conditions.<br /><br />💥The RSI indicator is typically used to identify overbought and oversold conditions in a market. It oscillates between 0 and 100 and is considered overbought when it reaches 70 or higher, and oversold when it reaches 30 or lower. When the RSI is in overbought territory, it suggests that the market is overextended to the upside and may be due for a correction. Conversely, when the RSI is oversold, it suggests that the market is oversold and may be due for a rebound.<br /><br />💥On the other hand, the RMI indicator is a more recent innovation that aims to improve on the shortcomings of the RSI. While the RMI also oscillates between 0 and 100, it is designed to be more responsive to changes in market conditions. The RMI uses a different calculation method that incorporates both the positive and negative momentum of price changes, as opposed to the RSI which only considers the magnitude of price changes.<br /><br />💥When it comes to overbought and oversold conditions, the RMI can be interpreted differently than the RSI. The RMI is considered overbought when it reaches 70 or higher, and oversold when it reaches 30 or lower, just like the RSI. However, the RMI may reach these levels more frequently than the RSI, due to its more responsive nature. Therefore, it may be necessary to adjust the overbought and oversold levels when using the RMI in order to get more accurate signals.<br /><br />💥Overall, while both the RMI and RSI can be useful for identifying overbought and oversold conditions in the market, the RMI may provide more timely and accurate signals due to its more responsive calculation method. However, traders should still use caution and look at other indicators and factors when making trading decisions.<br /><br />💥Relative Momentum Index (RMI) One of the disadvantages of the RSI is that the RSI itself is not always evenly distributed between the overbought and oversold areas due to the effect of calculating the parameter and denominator in the formula, which can sometimes skew the distribution of the RSI toward the overbought or overbought areas. Too much oversold in either way, making the signal unsuitable for short-term use. Some people solve this problem by using a moving average as a supplement to send trading signals, some people use a trend line charting technique to supplement.<br /><br />💥To address this disadvantage, Roger Altman proposed an idea to improve the RSI with one more parameter: instead of measuring today's price change compared to yesterday's gain or loss, it measures the change in price. Today versus 3 days ago, which is a measure of y-day Momentum. Therefore, Altman calls this updated RSI the y Relative Momentum Index (RMI) indicator.<br /><br /><div align="center"><a href='https://stocksharp.com/file/136258/rmi-1491674567cp48l_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136258/rmi-1491674567cp48l_png/?size=500x500" alt="rmi-1491674567cp48l.png" title="rmi-1491674567cp48l.png" /></a></div><br /><br />💥We can also say that the RSI is a special case of the RMI, that is, the RSI is the RMI in case y=1. Since the RSI compares today's price with yesterday's price, the value of the RMI ranges between 0 to 100 and its interpretation or analysis is exactly the same as RSI, but has the advantage that If we choose a good y value for Momentum calculations, it will help the RMI to spread well overbought and oversold ranges and deliver a more accurate signal.https://stocksharp.com/topic/24255/How to read Momentum and Rate of Change indicators to find buy and sell signals in uptrends and downtrends?2022-12-28T14:42:06Z2023-04-18T12:47:24ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<div align="center"><a href='https://stocksharp.com/file/136495/momentum-02_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136495/momentum-02_png/?size=500x500" alt="Momentum 02.png" title="Momentum 02.png" /></a></div><br /><br />💥The Momentum and Rate of Change indicators are both momentum indicators that help traders identify the strength of a trend and potential trend reversals. They can be used to find buy and sell signals in uptrends and downtrends.<br /><br />💥💥In an uptrend, the Momentum indicator should be above its centerline and rising, indicating upward momentum. A crossover of the Momentum indicator's centerline from below to above can be a buy signal. Traders may also look for bullish divergences between the price and the Momentum indicator, where the price is making lower lows but the Momentum indicator is making higher lows. This can signal a potential reversal and a buy signal.<br /><br />💥Similarly, in a downtrend, the Momentum indicator should be below its centerline and falling, indicating downward momentum. A crossover of the Momentum indicator's centerline from above to below can be a sell signal. Traders may also look for bearish divergences between the price and the Momentum indicator, where the price is making higher highs but the Momentum indicator is making lower highs. This can signal a potential reversal and a sell signal.<br /><br /><div align="center"><a href='https://stocksharp.com/file/136496/rate-of-change-02_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136496/rate-of-change-02_png/?size=500x500" alt="Rate of Change 02.png" title="Rate of Change 02.png" /></a></div><br /><br />💥The Rate of Change indicator is similar to the Momentum indicator and can also be used to find buy and sell signals. In an uptrend, the Rate of Change indicator should be above its centerline and rising, indicating upward momentum. A crossover of the Rate of Change indicator's centerline from below to above can be a buy signal. Traders may also look for bullish divergences between the price and the Rate of Change indicator, where the price is making lower lows but the Rate of Change indicator is making higher lows. This can signal a potential reversal and a buy signal.<br /><br />💥💥In a downtrend, the Rate of Change indicator should be below its centerline and falling, indicating downward momentum. A crossover of the Rate of Change indicator's centerline from above to below can be a sell signal. Traders may also look for bearish divergences between the price and the Rate of Change indicator, where the price is making higher highs but the Rate of Change indicator is making lower highs. This can signal a potential reversal and a sell signal.<br /><br /><div align="center"><a href='https://stocksharp.com/file/136499/momentum--rate-of-change-02_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136499/momentum--rate-of-change-02_png/?size=500x500" alt="Momentum & Rate Of Change 02.png" title="Momentum & Rate Of Change 02.png" /></a></div><br /><br />💥As with any technical indicator, it's important to use these indicators in conjunction with other technical analysis tools and to consider the overall market conditions and the underlying fundamentals of the security being traded.https://stocksharp.com/topic/24247/Let’s understanding the words Overbought, Oversold, Convergence and Divergence for basic indicator readings. 2022-12-24T18:42:34Z2023-04-18T12:21:39ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com<br /><div align="center"><a href='https://stocksharp.com/file/136185/screenshot_19-3_jpg/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/136185/screenshot_19-3_jpg/?size=500x500" alt="Screenshot_19-3.jpg" title="Screenshot_19-3.jpg" /></a></div><br /><br />💥Technical analysis has introduced various statistical and mathematical techniques to apply in analyzing stocks, which have become indicators of stock prices in many forms. In this text, we will discuss some of them, but those interested in other indices can read more as most of them use similar concepts.<br /><br />💥In the use of technical tools to analyze stocks, oscillators are the commonly used instruments that measure oscillation. Among them are RSI and Stochastic, which can serve as indicators of the market direction in the short to medium term, especially during times when the market moves without direction, also known as sideways or fluctuations within a narrow band. During these times, oscillators can closely follow prices, enabling traders to use them as tools for buying or selling in the short term. Even in market conditions that are not clearly uptrending or downtrending, oscillators can help determine if the trend will continue to strengthen or weaken.<br /><br />👉Introduction to Overbought, Oversold, Convergence, and Divergence👈<br /><br />💥Most indicators are derivatives that measure changes in stock prices. A simple analogy is to compare the price to the speed of a car and the indicators to the car's acceleration when we press the accelerator or decelerate when we press the brakes. Acceleration increases the speed of the car, and we see the acceleration and top speed rise simultaneously.<br /><br />💥When we release the accelerator, the car continues moving due to inertia, but the acceleration is zero. When we gently tap the brake, the car still moves forward, but the braking force gradually slows it down, and the acceleration becomes negative. In this case, the acceleration and velocity of the car move in opposite directions because the car continues to move forward, but with negative acceleration (becoming a deceleration).<br /><br />💥Similarly, in the stock market, we may see that the price is still rising, but the market lacks momentum (which is like acceleration), and this is called overbought. This happens when traders have bought stocks to the point where almost everyone is holding stocks, but fewer people want to buy them. During a market crash, everyone rushes to sell, causing the price to drop rapidly due to strong selling pressure. But at a certain point, the selling pressure starts to decrease, and the market becomes oversold, even though the price is still declining.<br /><br />💥Indicators are also used to measure buying or selling pressure, which determines the direction of the price. Therefore, during a market acceleration, indicators will move in the same direction as the price, which is called Convergence. But when the market starts to run out of acceleration, although the price is still running in the same direction, some indicators will start to move in a different direction from the price, which is what we call Divergence. This serves as a warning signal that the market is starting to run out of steam, and traders need to be careful as the direction may soon reverse (Reversal) since there is no other support to keep the market going.<br /><br />💥Some traders are very quick and apply other technical principles to the indicator, such as using trendline charting techniques or finding the Moving Average of the indicator as a trading signal, which can give good signals. However, the best approach is to gradually start buying or selling little by little when there is a signal, using other technical tools with the indicator, and gradually buying or selling until the actual signal is confirmed. Some traders overreact to small indicator movements and buy or sell, which is not recommended.<br /><br />💥General rules for reading indicators include that if the indicator reaches the upper or lower band, known as Overbought and Oversold, it indicates that the stock is overbought or oversold. If the indicator and the price move in different directions, this is usually a warning that a reversal may follow, and an important signal will be generated when the oscillator is in the OB/OS zone. For some indicators, crossing the zero line is a signal to buy or sell according to the trend.<br /><br />💥Overbought and Oversold refer to indicators used to determine periods when market prices are too high or too low. When the indicator reaches the overbought level, it means that the asset is overbought and the price may start to fall. When the indicator reaches the oversold level, it means that the asset is oversold and the price may start to rise. Traders use these signals to make buying or selling decisions.<br /><br />💥Overbought and oversold refer to the levels at which an asset's price has moved too far in a particular direction, either upward or downward. Overbought conditions occur when an asset's price has increased too quickly and too far, and may be due for a pullback or correction. Oversold conditions occur when an asset's price has decreased too quickly and too far, and may be due for a rebound or rally.<br /><br />💥💥Traders can use various technical indicators, such as the Relative Strength Index (RSI) or Stochastic Oscillator, to identify overbought and oversold conditions. In general, when an asset is considered overbought, traders may consider selling or taking profits. When an asset is considered oversold, traders may consider buying or taking a long position.<br /><br />💥Convergence and Divergence refer to indicators used to determine trend changes. When the convergence indicator starts moving towards the X-axis, it means that the trend is starting to change and a buy can be expected. When the divergence indicator starts moving towards the X-axis, it means that the trend is continuing and a sell can be expected.<br /><br />💥Convergence and divergence are terms used to describe the relationship between an asset's price and a technical indicator. Convergence occurs when the asset's price and the indicator are moving in the same direction, indicating a strong trend. Divergence occurs when the asset's price and the indicator are moving in opposite directions, indicating a potential reversal in trend.<br /><br />💥💥Traders can use convergence and divergence to identify potential buy and sell signals. In an uptrend, traders may look for bullish convergence, where the indicator is rising while the price is also rising, indicating a strong trend. In a downtrend, traders may look for bearish convergence, where the indicator is falling while the price is also falling, indicating a strong trend. Conversely, traders may look for bullish divergence in a downtrend or bearish divergence in an uptrend, as these may signal a potential reversal in trend.<br /><br />💥Traders should use these indicators in combination with other tools and analyze data from multiple sources to obtain the most accurate buy and sell signals.https://stocksharp.com/topic/24134/Reversal Patterns (V-Shape)2022-11-11T15:46:37Z2023-04-13T11:22:06ZPannipahttps://stocksharp.com/users/164332/info@stocksharp.com💥V-shape is a chart pattern that signals a potential reversal in the trend of an asset. As the name suggests, the pattern looks like the letter "V".<br /><br />💥The V-shape pattern occurs when an asset's price experiences a rapid decline, followed by a sharp recovery. This creates a V-shaped pattern on the price chart. The pattern is significant because it suggests that the asset's price has reached a low point and is now likely to reverse its trend and move upwards.<br /><br />💥The key to identifying a V-shape pattern is to look for a sharp drop in price, followed by a sudden rebound. The rebound should be strong enough to push the price back up to at least the halfway point of the decline.<br /><br />💥Traders often look for V-shape patterns as they can provide a good opportunity to enter a trade at a low price and ride the upward trend. However, it is important to note that not all V-shape patterns will result in a reversal, and it is always wise to use other indicators and analysis to confirm the trend before making a trade.<br /><br /><div align="center"><a href='https://stocksharp.com/file/135668/fig-1_1_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/135668/fig-1_1_png/?size=500x500" alt="FIG-1.1.png" title="FIG-1.1.png" /></a></div><br /><br />💥There are two types of V-shape reversals: the top V and the bottom V. Let's start with the bottom V. The key is to point out that there will be a V-shape pattern at the bottom of the chart at the very bottom. What does that bar graph tell us? It tells us that on that day, the price was smashed down to close near the lowest price level, which reflects high sales demand. For the next day, at the opening of the market, the male force that remained the day before burst out again, resulting in the price quickly falling to a new low, as seen from the lowest price in the next bar, which is lower than the previous bar. After that, the demand for buyback began to come in and pursued a big buyback until the closing price in the next bar was above the closing price in the previous bar. This means that buying pressure can overcome selling momentum in the last curve. Therefore, bars 1 and 2 are key indicators of a quick transition from a downtrend to an uptrend, similar to the V.<br /><br />💥As for the top V in the figure, there is a key located at the bar graph before the highest top and the highest top. It can be seen that the highest price in the bar graph of the top is higher than the previous bar, but its closing closed at a lower level than the previous bar's close. This is a signal that indicates a sharp shift from an uptrend to a downtrend.