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How to Trade Double Tops And Double Bottoms
 With Up to 79% Winning Percentage

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Double Tops

Many of my clients acknowledge that my FREE double top and bottom indicator is a very good indicator for intraday trading across various markets. This includes forex, stock indices, commodities and futures.

But there is a simple trick or a method that you can apply to greatly improve the performance of this Double Top/Bottom indicator. On average, my indicator currently gives a 57%-win rate. But using the methods I outline below, you can extend your wining rate of trades to as high as 79%.

This is no marketing hype but mere common sense and understanding of how the financial markets work. So, read on to know more.

As I explain this indicator, you will see why it can give you up to 79% winning trades using some simple methods.

But before we go into the details of how to use the double top/bottom indicator, I want you to understand the concept before you start using this great tool.

The reason is that, when you understand the concept that I teach, you can use this indicator to dramatically improve your trading performance. In fact, you do not need to stick to the four methods that I outline here.

You can very well experiment on your find and something that is unique to you and works for you to improve your trading.

Up to 79% winning trades with the Free Double Top/Bottom Indicator:

The double top and double bottom indicator is a simple yet robust trading indicator. It is available free of cost and you can download it to see how well it captures the double top and double bottom patterns in the market.

Forex chart

By just following my advice and reading below, you can improve your results by up to 22% with this indicator.

A simple way to understand what I’m about to teach you is by this example.

If you want to cross a street with heavy traffic and not get hit by a vehicle, then you need to be patient until you have a high probability to get to the other side safely. My trading concept is no different to this.

You already know how to cross the street. What I will teach you is when you should cross the street safely.

This is the same philosophy in my trading.

You should only trade those signals that give you a high probability of winning. In the rest of this article, you will learn how to do this.

The 1 + 1 = 3 Effect

chart

Yes, 1 + 1 is not three. But in trading, you can have the effect of 1 + 1 = 3.

This is because when you combine two edges rather than one, your trading performance will simply skyrocket. This simple tweak can improve your risk-reward ratio tremendously.

Of course, you have to put in some effort on your end as well.

The 1+1 =3 effect is the very concept behind increasing your winning percentage to up to 79%.

In my Free Telegram group, I select only those double top and bottom signals from the M30 and H1 time frame if they have an edge. How do we find this edge, you ask?

We look to the bigger time frame such as the H4 and D1 which will enable use to edge to our advantage. We combine the larger and smaller time frame charts to get this envious edge in the market.

M30/H1 Signal + H4/D1 Edge = 3 Times Better Trading!

Yes! As you can see above, we use the larger time frame charts to give us the edge to trade from the smaller time frame chart. There are of course different signals that you can trade. This combination is what I will teach you on how to improve your winning performance.

A Mechanical Winning Percentage of 57%

If you are thinking where I got the above number from, then below is an explanation. It is not made up, but rather an enthusiastic member of my group stumbled upon this when researching the winning probability of the Double Top/Bottom indicator.

Recently, a member of my Telegram group analyzed 182 signals that were sent to the community during a span of the past 10 months.

The signal was based on the double top and bottom indicator which also gave an exact entry, target and stop price level. The risk or the distance between the entry and the stop loss level had a ratio of one. In other words, the risk/reward ratio was 1:1.

A profitable trade was identified as followed for the purpose of this analysis:

  • If price moved from the entry price with at least one time the risk into profit, then this was a winning trade
  • Thus, a risk/reward ratio of 1:1 was used in this analysis.

In the next screenshot, you can see the mechanical signals from the Free double top and bottom indicator. This produced 57% of winning trades out of 182 signals over 10 months.

The 57% of winning trades is already outstanding for a mechanical trading system. Most would agree!

A mechanical trading system can be compared to a set of rules for a blind and a deaf person who wants to cross the street. They can’t hear or see the street. They only walk to the other side.

A mechanical trading system is a type of a tool that will ensure that the blind and deaf person crosses the street safely simply by following the rules.

The next chart below is a screenshot from the analysis that was done.

The conclusion of the study was that the free double top and bottom indicator had a 57%-win ratio which reached the initial profit level which was the same as the risk.

Chart

But you can greatly improve the win ratio by just using common sense 🙂

Increase your win rate to 79% with applied concepts

If you apply the concepts that I will teach you, then you can improve the win ratio from 57% to 79%. I will show you how you can use simple logic to achieve this. It is as simple as waiting for the traffic to allow you to cross the street.

The member of my Telegram group also conducted this analysis to see the improvement in the performance.

I will teach multiple strategies on how to select the best double top or bottom trading signals. By using this concept, the strategy quickly improved to 79%-win rate.

forex 1

forex 2

How is this performance increased possible? Read further! You can pick and choose from any of the concepts that I will explain below. It is best that you find one concept from the below which you are comfortable with and keep practicing it.

Strategies to select high probability trading signals!

Just like there are many ways to cross a street, I will also show you the different strategies you can use to trade only the high probability setups. I will explain these multiple strategies very briefly in this article, so you can get an understanding.

You do not have to use all the strategies mentioned. Just pick one that you line and you will automatically see an increase in your trading performance with a factor of 3!

Here are the strategies we use to get that winning edge:

Strategy #1: H4 Divergence for M30/H1 signals

Strategy #2: Trading signals directly at the trend line

Strategy #3: Trading signals when a trend line is broken

Strategy #4: M30/H1 Signals After Steeper Trend Lines

Strategy #1: H4 Divergence for M30/H1 signals

The first strategy is making use of divergence on the H4 chart to trade the double bottom and top pattern on the 30-minute or 1-hour chart.

The next screenshot gives an example of an effective trading set up. This is when a double top or a double bottom pattern is formed on the smaller time frame chart such as the M30 or H1 time frame.

We trade this pattern only when there is a MACD divergence on the H4 chart.

In the article, you will come across divergence analysis of over 34 instruments on the H4 time frame.

The screenshot shows how a double bottom can be traded within the bullish divergence of a MACD on the H4 chart. It is as simple as that!

forex 9

The next chart shows a double top pattern that is formed within a bearish MACD divergence on the H4 chart.

forex 8

Strategy #2: Trading signals directly at the trend line

A trend line is probably the most important tool you can use to gauge the trend of an instrument. Double top and double bottom patterns that form directly at the trend line and in the direction of the trend can greatly improve your probability of winning trades.

This is because the trend from the larger time frame carries the price away from the entry point as you use the smaller time frame to pinpoint the trade entry with precision.

We start with drawing trend lines on the H4 or the D1 chart time frames. This becomes your major reference point.

The chart below illustrates a double bottom pattern that appears directly near the trend line.

forex 7

The next screenshot below shows a bearish double top pattern formed near the falling trend line.

forex 6

Strategy #3: Trading signals when a trend line is broken

The next strategy is using the trading signals when a trend line is broken. Finding a double top or a double bottom pattern after a trend is broken is a great way to picking successful or high probability trades.

Finding the double top and bottom pattern after a trend line break can be compared to a football that is held under water. You know that the football wants to pop up above the water line. It is the same case with this strategy.

You can expect price to rapidly rise after the double top or bottom is formed when a trend line is broken. Price action is quite volatile here and this set up can give big results very quickly.

forex 5

The screenshot above shows a double bottom pattern that is formed after a falling trend line broken. In the next screenshot below, you will see a double top pattern that is formed after a rising trend line is broken.

You can expect a big move once this pattern appears right after a major trend line break.

forex 4

Strategy #4: M30/H1 Signals After Steeper Trend Lines

Trading with the steeper trend line set up is yet another way to capture the big move in price just before it happens.

In this strategy, we look at two trend lines. The first trend line is a major trend line and is often sloped at a 45-degree angle. This is the major trend line that is respected and can potentially signal a trend reversal if it is breached.

The second trend line or the steeper trend line is smaller in scope. At the same time, this second trend line is steeper compared to the first trend line. The second trend line can slope to an extent of 60 degrees if not more.

Between the two trend lines, there is a significant space. This space is your profit potential. The entry of the double top pattern (between the two rising trend lines) or the double bottom pattern (between the two falling trend lines) is the trigger for the trade.

The following screenshot shows such a steeper trend line setup:

forex 3

Also, my trading system V-Power (a day trading system for trading reversals) can highly benefit from such steeper trend line setups.

Conclusion:

As you can see from the above, the presented “1+1 = 3” effect is a great way to increase the performance of your trading. This effect is universal in the financial markets and is not just limited to forex or futures.

In fact, this effect is not bound to the signals of just the double top or the double bottom indicator. For example, you could also use my MagicEntry-system (a momentum trading system) which will give you the same desired effect when you use the bigger picture to your advantage.

Make use of the “1+1 = 3” effect and see the results with your own eyes.

This article was contributed by Mike Semlitsch, founder of PerfectTrendSystem. 

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to the company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this paid sponsored post.

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PrimeXBT Research: What Is Behind Ethereum’s Recent 333% Rally?

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PrimeXBT Research

Move over, Bitcoin, Ethereum is coming through. While the top ranked cryptocurrency has rallied nearly 200% since its Black Thursday bottom in March 2020, the number one altcoin, Ethereum is up over 333% in the same timeframe.

Ethereum has been outperforming the rest of the crypto market for most of the year, and considering how far the asset remains down from its all-time high compared to Bitcoin, it likely has a lot more momentum cooking.

But what’s behind the sudden resurgence in Ethereum, and can it sustain into a new long term uptrend? PrimeXBT research has revealed data supporting Ethereum’s current demand and how to take advantage of the renewed interest and rally.

DeFi Bandwagon and Uniswap Crypto Casino

The recent decentralized finance craze has become boiling hot, with a variety of DeFi tokens going on insane rallies and causing tons of buzz across the industry. Each passing week, a new DeFi project is making headlines.

DeFi

At the center of the DeFi bandwagon, is Ethereum. Nearly all DeFi tokens are Ethereum based ERC20 tokens. The amount of ETH itself being locked up in DeFi applications is currently at an all-time high and growing by the day.

PrimeXBT Research

Over the last few weeks, coinciding with Ethereum’s rally from $250 to $400, there has been a boom in the dApp Uniswap. The crypto community often compares Uniswap to a casino, where new projects are launched and investors take high risks in unproven tech. The trend is reminiscent of the ICO boom that propelled Ethereum to over $1,400 a token.

Early Bitcoin Fractal and Silver A Step Ahead

Bitcoin was the first cryptocurrency ever, and Ethereum was created to solve issues like scaling and add in smart contracts and other more advanced tech.

Ethereum is following a price pattern fractal from the early days of Bitcoin. Bitcoin went through a similar bottoming process as Ethereum now is against the dollar. Interestingly, the price levels are also similar.

If the asset can get through resistance at $400, a push to $750 and higher is possible. That’s nearly another 100% ROI from current levels and after an already 300% rally. When Bitcoin finally broke above $750, it took off to $20,000 a coin. Could Ethereum do the same?

Silver

Silver, a precious metal also has been following a similar path, is one step ahead than Ethereum. Silver’s fractal shows that Ethereum may be just days away from a similar breakout and surge to $750. If the altcoin can take out that key level, it may see the same success as Bitcoin did years ago after its bullish breakout.

Bear Market Over: A Rising Tide Lifts All Boats

The aphorism “a rising tide lifts all boats” is true with Ethereum and the current state of the crypto market.

Looking at the top ten cryptocurrencies by market cap and their past 7-day performance is clear as day: the bull market is back. Or at the very least, the dreaded bear market and crypto winter is over. Altcoins are booming once again. Bitcoin is trading above $10,000. Even XRP has recovered from lows. Only Tether, a stablecoin backed by the dollar, is in the red.

Ethereum trading is not only benefiting from its own fundamental and technical reasons, but interest in the crypto market and a return to risk appetite has helped push the altcoin higher.

PrimeXBT: Finding Success In Ethereum’s Uptrend

Ethereum is one of the five cryptocurrencies offered by PrimeXBT, an award winning Bitcoin margin trading platform, including Bitcoin, Litecoin, Ripple, and EOS. The advanced trading platform also provides CFDs on forex, stock indices, gold, silver, oil, and much more.

PrimeXBT

All assets are available for trading with long and short positions, or can be used to develop a diverse trading portfolio. Built-in technical analysis tools from TradingView are provided, and the platform offers key competitive differentiators such as the upcoming Covesting copy-trading platform.

Traders can load up Ethereum price chart and perform their own technical analysis and execute a trading plan to profit from the current crypto market rally and interest in DeFi and other trends. With Ethereum in an uptrend, finding support and setting long orders on PrimeXBT is the ideal strategy for success.

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Conflux Ecosystem Grants Program: With Over 2.4 Billion CFX In Rewards

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Conflux Ecosystem

We are pleased to announce the launch of our Conflux Ecosystem Grants Program.

About the Conflux Ecosystem Grants Program

ConfluxThe Conflux Ecosystem Grants Program aims to fund entrepreneurs, engineers, and evangelists who have the vision to catapult innovations in software development, research, education, and community building for the Conflux Network ecosystem.

Our grants program application process will be launched in waves. In the first wave, we are looking to support submissions that are focused on supporting infrastructure tools for developers to build highly scalable products and DApps that drive the innovations and augment the composability of our technology stack to bring more users and developers to the decentralised world.

The categories we are interested in funding through this grants program are mentioned below.

Grant Categories

Tools and Infrastructure

Development tools and infrastructure components that will make the Conflux Network easily accessible and composable.

  • Development Environments like frameworks, IDEs, and security tools to attract existing developers to build on Conflux and tools that bridge the gap for new programmers to become blockchain developers. 
  • Blockchain Bridges to other established networks for asset and state transfers and facilitate the interoperability and cross-chain composability of blockchains that are crucial to the growth of Web3.
  • Oracles for prices, identity, land management, intellectual property, etc. that are a key component in facilitating the transition from Web2 to Web3 and a critical link to real-world information. 
  • Mobile Development tools like SDKs, Key Management, Wallets, and others that can put blockchain applications on devices across the world in a safe, secure, and reliable manner.
  • Token standards for NFTS, RFTS, fungible token equivalents, presenting novel ways of tokenising assets or information, with the potential to form methodologies and standards that can be applied to various use cases.

Decentralised Applications

DApps to drive user adoption, liquidity, and composability on Conflux Network.

  • DEXs for Swap/AMM (Automated Market Making), perpetual swap (futures), leverage trading, exotic derivatives (options and synthetic assets) that will be crucial for next-generation DeFi and grow our DEX ecosystem through new types of exchanges and swappable assets.
  • Token projects like non-USD Stablecoins, Cross-chain BTC, ETH, Gold custodian backed tokens, others backed by different assets in order to diversify the economic activity on Conflux Network.
  • Payment channel on Conflux with USDT (or other Stablecoins) for micropayments and settlement scenarios like gaming, tipping, gifts, etc. by leveraging our super-low transaction fees and fast confirmation time, reducing the barriers of adoption.
  • Identity Solutions like Decentralised ID, user control data exchanges, automated KYC that are integral to create new applications for broader adoption of the Web3 space. 
  • Lending & Borrowing platforms as they are powerful components of our growing DeFi ecosystem that will give users the ability to lend and borrow, and grow their assets.

Grant Funding Tiers

The projects applying for grants are eligible for funding of up to $50k based on the grants category, market potential, and alignment with the Conflux Network’s vision. The grant amounts mentioned below are in USD and the funds will, subject to eligibility and the terms and conditions of the Program, be disbursed in CFX post full Mainnet launch.

Tiers

Tier 1 – Grant amount up to $15k per project that can be completed in 0-2 months

Tier 2 – Grant amount up to $50k per project that can be completed in 2-6 months

The approval process for Projects applying for Tier 1 grants is faster than projects applying for Tier 2. Preference will be given to projects that are not planning on having 100% of their early-stage funding covered through the Conflux Ecosystem Grants.

Eligibility Requirements

We are looking for tangible outcomes in a fixed timeframe from the projects that apply for the grants. Few important points that would make a successful application are: 

  1. The project work should be in progress and open-source for community use. This will be helpful for transparency and quicker due diligence for decision making.
  2. The teams should have experience in delivering blockchain solutions in the past and strong track records that are quantifiable.
  3. Projects should be working towards tangible outcomes that can be achieved in a set timeframe, preferably 6 months or less. We are looking for sharpshooters with a precise, actionable aim in mind.
  4. Projects should be able to clearly disclose what the grant shall be used for with a detailed breakdown of costs.
  5. The teams need to demonstrate a long term commitment to build and operate the solutions on the Conflux Network, thus mutually beneficial for the growth of the platform and the products that are built.

How to Apply For a Grant

To apply for the Ecosystem Grants Program, please visit grants.confluxnetwork.org

Get in Touch With Us

If you have any questions about the grants process, please email us at grants@conflux-chain.org

Disclaimer: This is a paid sponsored post. Readers should do their own due diligence before taking any actions related to any company, product or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this post. 

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How to Trade Stock Indices with Bitcoin on TradeConnect

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TradeConnect

When you hear people talking about “the market”, they are often talking about Stock Indices. Even if you haven’t ever traded a Stock Index before, there’s a good chance that you will have heard the name of some of the more famous US, European, and Asian Stock Indices such as the Dow Jones or the NASDAQ in the US, the ASX200 in Australia, the DAX 30 in Germany or the Nikkei 225 in Japan.

Finding ways to trade Stock Indices with bitcoin isn’t easy. This is mostly due to the fact that if you want to trade both traditional and new digital markets, it is expensive and time consuming to move in and out of fiat on multiple trading platforms.

TradeConnect removes these barriers to entry by connecting crypto traders with over 60 different global financial assets including Forex, Stock Indices, Commodities and Cryptocurrency CFDs using bitcoin or ethereum as margin collateral in a single, easy-to-use trading network.

Trading Stock Indices on TradeConnect is quick, easy and secure. TradeConnect uses a central limit order book to ensure all trades on the platform are transparent and fulfilled at the best price, at the best time. It also has a $100 million dollar insurance policy to ensure security is the highest priority.

TradeConnect also has some of the lowest fees in the industry due to its unique ‘Connect Fee’ model and daily fee rebates of up to 75% for active Makers and Takers.

BONUS PROMOTION: New traders also get $50 USD in BTC, ETH or TCO free when they complete their first 10 trades on TradeConnect.

So let’s take a closer look at what a Stock Index is, why you would trade it and how you can trade Stock Indices using bitcoin on TradeConnect.

What is a Stock Index?

A Stock Index, also known as a Share Index or a Stock Market Index, tracks and measures baskets of related stocks from a particular country.

Stock Indices are created by combining the value of several Stocks to highlight one aggregated value that is then used to compare current market price levels with historical price levels in order to calculate the overall market performance within a specific country.

Stock Indices are powerful indicators for global and country-specific economies worldwide and are used by economists, politicians and analysts to help understand how well the financial markets, and companies within those country-specific markets, are performing.

Types of Stock Indices

Stock indices can be made up of many different factors. Some are grouped by geographical location, others industry sector or even company size. Different stock exchanges deal with different types of stocks.

For example, the NASDAQ Index only lists technology stocks. The ASX200 consists of Australia’s largest 200 companies by market capitalization. The S&P 500, in contrast, measures the stock performance of the top 500 companies in the US.

There are approximately 5000 US indexes in the US alone and the 3 most followed stock indices, by both the media and investors, are generally thought to be the S&P 500, Dow Jones Industrial Average and the NASDAQ Composite. In 2018 it was reported that there are nearly 3.3 million stock market indices around the world.

Advantages of Trading Stock Index CFDs

The advantage of trading a Stock Index over individual stocks is that firstly, they offer exposure to an entire industry rather than a single Stock; Secondly, you do not need to conduct research on every individual company report as you would if you traded a single Stock; Thirdly, the price movement of Stock Indices is generally known to be much less volatile and a smoother experience than trading individual Stocks as an individual Stock can’t cause an extreme price spike within a Stock Indice.

How to Trade Stock Indices with Bitcoin on TradeConnect?

TradeConnect LogoOn TradeConnect you can trade over 15 different Stock Index CFDs using bitcoin, including: Australia 200 (AUS200), BOVESPA Future (BRAZIL 60), China A50 (CHINA50), Euro Stoxx 50 (ESTX50), French CAC 40 (FRA40), German DAX 30 (GER30), Hong Kong H250 (HK50), Japan Nikkei 225 (JPN225), Nasdaq (NAS100), SPAIN 35 (SPAIN 35), US S&P 500 (SPX500), UK 100 (UK100), Dow 30 (US 30), US Dollar Index (USDINDEX), and the South Africa 40 Index (ZAR40)

To get started trading Stock Indices with bitcoin on TradeConnect all you need to do is follow these 5 simple steps:

Step 1: Download the TradeConnect app

Step 2: Select the Stock Index that you want to trade

Step 3: Deposit bitcoin into your TradeConnect wallet

Step 4: Open your trading position

Step 5: Monitor and close your trading position

That’s it!

Want to trade Stock Indices with bitcoin on TradeConnect? Download the TradeConnect mobile app today!

Disclaimer: This is a paid sponsored post. Readers should do their own due diligence before taking any actions related to any company, product or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this post. 

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