Binary options group

[ADRIAN1991]

4. The entry


As mentioned we enter in the trade, after the pullback, price begins to turn again in the direction of the original breakout.
The idea is to wait for the pullback to come completed so, once price begin to spike around once again in the direction of the original breakout trust, we jump onboard.(as tight as possible)


There is no particular forumula or price pattern to trigger the trade.We simply try to be as nimble as possible in order to trigger the entry as the bounce begins to take place.
It's important to enter the trade as close as possible to the bounce point, but without actually getting ahead of it :
a) we wait for the pullback to end
b) we wait the bounce
c) we trigger the trade immediatly

 

[ADRIAN1991]

5. Examples with the strategy at work


Here are some live examples of the "Collapsing trend trading strategy" applied to Forex and Binary Option charts.


The strategy will work on :


- Any currency pair
- Any timeframe (best used on H1 charts and above though)
- Any market direction, both after a down trend or after an up trend, the market dynamics and the way to trade this techniques are exactly the same

 

[ADRIAN1991]

Hello traders.

I was thinking alot lately regarding an important aspect of trading: "the initial experience, education and training of each of us."
Therefore, I will want to introduce you useful materials regarding technical aspects of trading, and later, after you will aquire that,
I will want to present a huge collection of trading strategyes, with rules, timeframe to work with, and of course the resources (tools)
needed to apply them with success.

So, starting today, I will start "this journey."


Sincerly Adrian.

 

[ADRIAN1991]

Introduction


A proper approach to this trading world is not that complicated to build, if you are going to take a step by step procedure.
It is well known that in order to get into this you will need some fundamental education, then training.


So, the logical scheme is quite simple to understand:


INPUT
1) We, the traders


PROCESS
2) The interface platform (user interface), between us and the market


OUTPUT
3) The market

All simple and clear, until we start to trade, and we will soon find out that is not that simple as we initially thought.


The reason : we skipped and important step : understanding what we are doing.
With that said, in order to complete this gap, definetly we need a starting/refference point.



Introduction to technical terminology and environment (working space)understanding


1)CHARTING
- Chart modes : Area Chart

Area chart - shows aggregated close price.
Area between the current close price and the zero price level is filled with a pre-defined color which can be customized.


Sample

Colors
The following table exemplifies default colors for the Area chart type depending on Look and Feel.

 

[ADRIAN1991]

Bar Chart

Bar chart shows aggregated data for open, high, low, and close price values using a vertical line with two horizontal dashes. The bottom end of the line indicates the low price, the top of the line indicates the high price. Left dash is used to show the open price, right dash shows the close price.

Algorithm

A bar is drawn in Up tick color if the current close price is higher than that on the previous time period. On the contrary, if the current close price is lower, the bar is displayed in Down tick color. If close prices on the current and the previous time periods are equal or if the bar is the first on the chart, the bar is then drawn in Neutral tick color.

Sample
Bar chart

Bar explanation

Colors
The following table exemplifies default colors for the Bar chart type depending on Look and Feel.

 

[ADRIAN1991]

Candle Chart


Candle chart is represented by a candle-shaped bar. Top and bottom sides of the bar indicate the high and low prices on the aggregated period. The lower and the upper sides of the candle body are used to indicate the open and close prices respectively.

Candle chart considers open and close price values only on the current aggregation period when applying colors.

Algorithm

Candle bar is outlined in Border up color if the close price is greater than the open price on the current aggregation. Otherwise, it is outlined in Border down color. If the open and close prices on the current aggregation period are equal, then the candle is outlined in the Neutral Tick color.

You can fill candles using Fill up and Fill down colors depending on their open and close price values on the current time period. If the close price is higher than the open price then Fill up color is applied to the candle, otherwise Fill down color is used. You can disable displaying Fill up and Fill down colors on Candle chart.

Note that as Candle chart zoom level becomes smaller, it becomes harder to distinguish candle border and fill colors. For this reason, on small chart zoom levels, fill colors are used for filled candles and border colors are used for unfilled ones.

Sample:
Candle chart

Filled & Hollow Candles

Colors
The following table exemplifies default colors for the Candle chart type depending on Look and Feel.

 

[ADRIAN1991]

Candle trend Chart

Visually, Candle trend chart is a complete copy of the Candle chart. However, their coloring algorithms are different: Candle trend chart considers open and close price values on the current aggregation period and on two adjacent aggregation periods when applying colors.

Algorithm

A candle is outlined in Border up color if the current close price is higher than that on the previous time period. On the contrary, if the current close price is lower than that on the previous period, the candle is outlined in Border down color. If close prices on the current and the previous time periods are equal or if the candle is the first on the chart, the candle is then outlined in Neutral tick color.
If the candle outlined in Border up color has the close price lower than the open price, it is filled with Fill up color. Otherwise, it is left unfilled.
If the candle outlined in Border down color has the close price lower than the open price, it is filled with Fill down color. Otherwise, it is left unfilled.
If the candle outlined in Neutral tick color has the close price lower than the open price, it is filled with Neutral tick color. Otherwise, it is left unfilled.

Note that in Candle trend chart, you cannot disable filling of the candles, as it is a part of the coloring algorithm.
Note that as Candle trend chart zoom level becomes smaller, it becomes harder to distinguish candle border and fill colors. For this reason, on small chart zoom levels, fill colors are used for filled candles and border colors are used for unfilled ones.

Sample

Colors
The following table exemplifies default colors for the Candle trend chart type depending on Look and Feel.

 

[ADRIAN1991]

Equivolume Chart

Equivolume chart is represented by rectangle-shaped bars (boxes) without gaps between them. The top side of each box is drawn at the level of high price defined on the aggregation period, and the bottom side at the low price level. Widths of boxes are proportional to the volume traded during the aggregation period: the higher the volume the wider the box. If volume data is not available for the specified symbol, all boxes are plotted having the same width. Equivolume chart does not show the open price, however, the close price level can be displayed, if preferred, as a horizontal line within the box.

Incorporating volume into price data makes it easier to search for confirmation of trend reversals, support and resistance breaks, or buying/selling pressure. The latter is best estimated with close price display on as multiple studies use its position within the range as indication of whether the buyers or sellers are in control. Plotting the close price within Equivolume boxes also serves as a visual evidence of trend strength or weakness.

Algorithm

In Equivolume charts, bars are filled with the same color as the borderline: Up tick color if close price is higher than that of the previous bar, or Down tick color if it is lower. If these two values are equal, the box is outlined and filled with the Neutral tick color.

Sample
Equivolume chart

Equivolume with close price

Colors
The following table exemplifies default colors for the Equivolume chart type depending on Look and Feel.

 

[ADRIAN1991]

Heikin Ashi Chart


Coloring of the Heikin Ashi Chart is similar to the Candle chart but the open, close, high, and low price values are calculated differently. The formulas converting actual price values into Heikin Ashi price values are shown in the following table:

haClose = (open+high+low+close)/4 Average price of the current bar.
haOpen = [haOpen(Previous Bar) + haClose(Previous Bar)]/2 Midpoint of the previous bar.
haHigh = Max(high, haOpen, haClose) Highest value in the set.
haLow = Min(low, haOpen, haClose) Lowest value in the set.

Like the rest of the chart types, you can customize colors of the Heikin Ashi Chart.

Note that as Heikin Ashi chart zoom level becomes smaller, it becomes harder to distinguish candle border and fill colors. For this reason, on small chart zoom levels, fill colors are used for filled candles and border colors are used for unfilled ones.

Sample

Colors
The following table exemplifies default colors for the Heikin Ashi chart type depending on Look and Feel.

 

[FreeRider420]

what is the purpose of this thread? is this a trade group or intended for SEO/making money with binary options? I'm confused, fill me in on the info... throw a dog a bone... isn't this a forum for how to make money with SEO and online marketing? , not a forum for how to trade?

 

[ADRIAN1991]

what is the purpose of this thread? is this a trade group or intended for SEO/making money with binary options? I'm confused, fill me in on the info... throw a dog a bone... isn't this a forum for how to make money with SEO and online marketing? , not a forum for how to trade?

Hello.
As I previously announced , all this is about learning how to trade (so is about making $) .
And yes, is also about a trading sharing group, for the one who want to join, free of course, no sneaky stuff.

 

[ADRIAN1991]

Line Chart

This type of chart connects close prices aggregated on the selected time period forming a line plot. This chart does not provide any information about the open, high, and low prices.

Algorithm
If the current close price is lower than that aggregated on the previous time period, the plot is drawn in Down tick color. Otherwise, it is drawn in Up tick color. In case there is no price change between the close price on the current and the previous time periods then the Neutral color is used.

Note that the line chart is not displayed on the interval between the close price on the previous aggregation and the current aggregation if the price on the previous aggregation is out of range of the current chart.

Sample

Colors
The following table exemplifies default colors for the Line chart type depending on Look and Feel.

 

[ADRIAN1991]

Monkey Bars
Description


The Monkey Bars chart mode displays price action over the time period at specified price levels.

The data is accumulated on the chart's time period. When the time period is compound (e.g., 3 Months, 4 Years), it is divided into unit periods (e.g., 1 Month, 1 Year), and the data is accumulated on each one.

The time period is split into aggregation periods, each one is assigned a digit. If a certain price or a price range is traded within a given aggregation period, it is assigned the corresponding digit. The first aggregation period is denoted with digit 1, the next is denoted with digit 2 - and so forth (up to 10, displayed as 0). Note that if the number of aggregation periods exceeds 10, each following decade is represented by a sequence of digits starting with 1 and highlighted with a different color. The sequence of colors used to distinguish the decades is shown in the left upper corner of the chart.

The longest row of Monkey Bars defines the price level which was the most frequent during the specified time period; this level is called Monkey Bar (MB). The price range surrounding the MB level where the specified percentage of the trading activity took place for the specified time period is called The Playground (PG).

Note that the volume subgraph is turned off for the Monkey Bars chart mode.

Sample
Monkey Bars chart

Monkey Bars chart with Volume Profile

Volume Profile
Description

The Volume Profile study represents trading activity over a time period at specified price levels. Considering the input-defined aggregation period, the Volume Profile plots a histogram showing price distribution, revealing the dominant price values in terms of volume. The width of histogram's row represents the number of actual transactions made within the price interval defined by the row's height.

 

[ADRIAN1991]

Monkey Bars Expanded

The Monkey Bars Expanded chart mode converts regular bars/candles to the Monkey Bars style view.
Its algorithm is similar to that of Monkey Bars, but the columns are not collapsed. In contrast to Monkey Bars, the chart does not resemble a bell-shaped curve but actually repeats the regular price action pattern.

Sample

 

[ADRIAN1991]

Aggregation types : Range Charts
Range charts represent price action in terms of price accumulation. Three modes of range aggregation will be described below : Range Bars, Momentum Bars, and Renko Bars.

1. Range Bars
In Range Bars mode, a new bar (or candlestick, line section, etc.) is plotted after the specified price range has been accumulated. Each new bar opens at the previous bar's close price. You can use the following chart types when this aggregation mode is enabled: Bar, Candle, Candle trend, Heikin Ashi, Line, Area.

2. Momentum Bars
Momentum Bars mode is very similar to Range Bars, however, each new bar (or candlestick, line section, etc.) is plotted one tick above or below the previous close, depending on whether the price movement was upwards or downwards. You can use the following chart types with this aggregation mode: Bar, Candle, Candle trend, Heikin Ashi, Line, Area.


3. Renko Bars
As opposed to previous two modes, Renko Bars are plotted with "bricks". Bricks can be hollow or filled, depending on whether the price moves more than the specified range above the top or below the bottom of the last brick on chart. Another difference between the Renko Bars and two previous modes is that new bricks do not appear until the specified range is accumulated. For example, on a 5 point chart, price rising from 98 to 102 will produce a hollow brick from 95 to 100, however, the hollow brick ranging from 100 to 105 will not be drawn. Note that you cannot customize chart type for this aggregation mode: price action will always be displayed as bricks.


Time factor is ignored in Range charts, only price is taked in consideration.

 

[ADRIAN1991]

Tick Charts

Tick charts represent intraday price action in terms of quantity of trades: a new bar (or candlestick, line section, etc.) is plotted after completion of a certain number of trades (ticks). This aggregation type can be used on intraday charts with time interval not greater than five days. For example, the 2d 133t bar chart plots the price action for two days, defining open, high, low, and close prices every time the number of trades becomes equal to 133.

Note: although time factor is ignored in tick charts, at the beginning of a new trading session, currently aggregated bar will be closed and a new one will be generated.

 

[ADRIAN1991]

Time Charts

Time charts represent price action in terms of time: a new bar (or candlestick, line section, etc.) is plotted after completion of a certain time period (called aggregation period).
For example, the 1y D bar chart plots the price action for one year, marking open, high, low, and close prices on the daily basis.

 

[ADRIAN1991]

Drawings in platform

As we all know drawings are a great tool when we talk about technical analys.

For example, a chart can be displayed in the foreground or in the background. Color output on the screen will depend on the chart display. Some graphical objects may change color in the overlapping or intersection areas.

From my point of view, implementation of transparency is very important, which can bring to life an image.
For example, transparency can be used to implement a more attractive interface with smooth color transition or shadows. Shadow adds up dimension to a graphical object and visually softens the object edges.

Vertical Line - Time Level
Description:

Time level is a simple vertical line marking a certain time point.

Overlapping with an underlying object :

> No repainting

Sample :

Symbol:

In the following posts I will focus on this aspect : useful drawing tools for making our trading easier.

 

[ADRIAN1991]

Horizontal Line - Price Level
Description:
Price level is a simple horizontal line marking a certain price value. It might be useful for marking specific price targets and support or resistance levels.

Overlapping with an underlying object :

> No repainting

Sample :

Symbol:

 

[ADRIAN1991]

Trend Line
Description:

The basic trendline is the simplest drawing used by technical analysts. It is used for revealing trends and their acceleration, applying the fan principle, analyzing relative steepness, and many other purposes.
Bullish trendlines have positive values of the price change and the slope, while bearish trendlines show the negative ones.

Overlapping with an underlying object :

> No repainting

Sample :

Symbol :