Today's tip. The best way you can use SLC indicator is to set your TP on those levels.
And here's why:
1. The price gravitates towards these levels, so your TP has more chances to be triggered. This happens because an accumulation of stop loss orders is a potential liquidity pool, where a big players or marketmakers can fill their positions.
2. Triggering of such a cluster immediately releases a big amount of trades that will push the price back. Often right after the cluster is triggered, we can see a reversal or at least a small pullback. So, placing your TP at these levels potentially grants you maximum amount of pips from the movement.
A.
#tips
And here's why:
1. The price gravitates towards these levels, so your TP has more chances to be triggered. This happens because an accumulation of stop loss orders is a potential liquidity pool, where a big players or marketmakers can fill their positions.
2. Triggering of such a cluster immediately releases a big amount of trades that will push the price back. Often right after the cluster is triggered, we can see a reversal or at least a small pullback. So, placing your TP at these levels potentially grants you maximum amount of pips from the movement.
A.
#tips
We often get asked about those orange diamonds in the Profit Ratio indicator and their meaning.
Probably it happens because we forgot to add this information to the indicators description đ
However, let's figure it out...
The appearance of orange diamond means that there was a surge in the amount of profit traders in the market. Let's say there were 30% of profitable traders and on the next candle there are 32% or more.
It should be a 2% increase or more for the diamond to appear. đ
Why should we consider it a reversal signal?
1. If we go into the conspiracy, we can say that the market doesn't want retail traders to be profitable, so it turns back and makes losing traders out of them. It is true if you believe that the market is 100% controlled by marketmakers.
2. On the other hand, what might happen in reality? Statistics say, traders tend to close their profitable trades twice as fast as losing trades. Let's be honest, we all like to drag stop loss and wait until the position becomes profitable, while closing profitable trades often even before they touch the TP. So we can assume, that a surge in the number of profitable traders will produce a big amount of market orders (they close their profitable positions) that will push the price back, or at least make it still for a while.
Why is the diamond sometimes above or below the price?
It is simple. If the diamond is above the price, it's a reversal signal from bullish market to a bearish one - Sell signal, and vice versa for the diamond below the price - Buy signal.
Note, that this indicator performs best on M15 timeframe.
A.
#tips
Probably it happens because we forgot to add this information to the indicators description đ
However, let's figure it out...
The appearance of orange diamond means that there was a surge in the amount of profit traders in the market. Let's say there were 30% of profitable traders and on the next candle there are 32% or more.
It should be a 2% increase or more for the diamond to appear. đ
Why should we consider it a reversal signal?
1. If we go into the conspiracy, we can say that the market doesn't want retail traders to be profitable, so it turns back and makes losing traders out of them. It is true if you believe that the market is 100% controlled by marketmakers.
2. On the other hand, what might happen in reality? Statistics say, traders tend to close their profitable trades twice as fast as losing trades. Let's be honest, we all like to drag stop loss and wait until the position becomes profitable, while closing profitable trades often even before they touch the TP. So we can assume, that a surge in the number of profitable traders will produce a big amount of market orders (they close their profitable positions) that will push the price back, or at least make it still for a while.
Why is the diamond sometimes above or below the price?
It is simple. If the diamond is above the price, it's a reversal signal from bullish market to a bearish one - Sell signal, and vice versa for the diamond below the price - Buy signal.
Note, that this indicator performs best on M15 timeframe.
A.
#tips
FXSSI - Sentiment Trading - Forecasts and Analytics
Today's tip. The best way you can use SLC indicator is to set your TP on those levels. And here's why: 1. The price gravitates towards these levels, so your TP has more chances to be triggered. This happens because an accumulation of stop loss orders is aâĻ
Another few tips on using SLC indicator.
âšī¸ Click on links in the text to see images with explanations.
1. Take profit right away as a cluster was triggered -đŧ see example. There's a high chance for the price to bounce back immediately since a large number of market orders are usually released.
2. A percentage at the end of the line shows the volume of a cluster -đŧ how it's calculated. But you should not search for some magic numbers here. I'd say all clusters are valid. Well, maybe except for those that are very thin compared to the previous ones. It may be the case when the algorithm has drawn them on the chart only because there was nothing else to draw like đŧ here.
3. Use a triggered cluster as a confirmation of reversal if you expect one. This often happens on a news release or in volatile movements. First, the price hits the clusters and then starts to move in a "desired" direction. Here isđŧ the example. Jump into the trade when you recognized this trick.
4. Often there is no way to determine which cluster will be triggered first, the upper or the lower one - like inđŧ this situation. So don't try to guess, but just wait till the situation will clear up. Here are some examples: 1) đŧ Go for a closer cluster if another one is 2-3 times farther. 2) Go for a cluster đŧ inside current price action instead of the outer one. 3) If one cluster is increasing its volume and another is decreasing, go for the first one like in đŧ this market situation.
Ask me in comments if there is anything else you want to know about this indicator!?
A.
#tips
âšī¸ Click on links in the text to see images with explanations.
1. Take profit right away as a cluster was triggered -
2. A percentage at the end of the line shows the volume of a cluster -
3. Use a triggered cluster as a confirmation of reversal if you expect one. This often happens on a news release or in volatile movements. First, the price hits the clusters and then starts to move in a "desired" direction. Here is
4. Often there is no way to determine which cluster will be triggered first, the upper or the lower one - like in
Ask me in comments if there is anything else you want to know about this indicator!?
A.
#tips
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đ MVP and MVO Concepts in FXSSI indicators.
âĄī¸ MVP (Middle Volume of Positions):
The MVP is a pivotal concept, referring to the middle volume of positions on the right side of the order book. It ingeniously splits open positions in half, allocating 50% above this line and the other 50% below, see the picture above. Monitoring the MVP can give a clear indication of the market sentiment. If the current price is below this line, it signifies a downtrend, and conversely, if it's above, it suggests an uptrend.
âĄī¸ MVO (Middle Volume of Orders):
Similar to MVP, the MVO is focused on the left side of the order book, analyzing the middle volume of pending orders. This split helps gauge the prevailing sentiment based on the distribution of orders. If the price is below the MVO line, it signals a potential downtrend, while being above suggests a potential uptrend.
â What is the Difference?
Positions are changing faster than orders, thus MVP can be considered as a middle-term indicator, while MVO as a long-term one. Generally, like a slow and fast MA.
By incorporating MVP and MVO concepts into your trading strategy and leveraging insights from FXSSI's Derivatives indicator, you gain a nuanced understanding of market sentiment.
#tips #MVO #MVP
The MVP is a pivotal concept, referring to the middle volume of positions on the right side of the order book. It ingeniously splits open positions in half, allocating 50% above this line and the other 50% below, see the picture above. Monitoring the MVP can give a clear indication of the market sentiment. If the current price is below this line, it signifies a downtrend, and conversely, if it's above, it suggests an uptrend.
Similar to MVP, the MVO is focused on the left side of the order book, analyzing the middle volume of pending orders. This split helps gauge the prevailing sentiment based on the distribution of orders. If the price is below the MVO line, it signals a potential downtrend, while being above suggests a potential uptrend.
Positions are changing faster than orders, thus MVP can be considered as a middle-term indicator, while MVO as a long-term one. Generally, like a slow and fast MA.
By incorporating MVP and MVO concepts into your trading strategy and leveraging insights from FXSSI's Derivatives indicator, you gain a nuanced understanding of market sentiment.
#tips #MVO #MVP
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đ Trading Activity Indicator Explained: Basic information
Hey there! Many of you've been curious about the Trading Activity Indicator we use in our forecasts. Let's break it down into basics.
đ Increase and Decrease Tabs:
First off, there are two tabs - Increase and Decrease. Increase (1) shows trades entering the market, opened manually or triggered by pending orders, in the last 20 minutes candle. Decrease (2) shows the number of trades leaving the market, whether closed or stopped out. You can choose to display either increase or decrease data.
đš Display Options:
Now, for each group, you have display options:
(3) Percentage (%): Separately shows the increase in buyers and sellers. Blue and orange graphs represent the rise in buyers and sellers over the past 20 minutes.
(4) Delta: Similar data, but sellers are subtracted from buyers and displayed as a bar chart. Helps you see which group was more active. A green bar indicates that buyers were more active, while a red bar represents the prevailing activity of sellers.
(5) Cumulative Delta: Takes the delta and sums it up, showing trends of increase or decrease over time.
In our upcoming post, we'll dive into the specifics of analyzing this data.
#tips #TradingActivity
Hey there! Many of you've been curious about the Trading Activity Indicator we use in our forecasts. Let's break it down into basics.
đ Increase and Decrease Tabs:
First off, there are two tabs - Increase and Decrease. Increase (1) shows trades entering the market, opened manually or triggered by pending orders, in the last 20 minutes candle. Decrease (2) shows the number of trades leaving the market, whether closed or stopped out. You can choose to display either increase or decrease data.
đš Display Options:
Now, for each group, you have display options:
(3) Percentage (%): Separately shows the increase in buyers and sellers. Blue and orange graphs represent the rise in buyers and sellers over the past 20 minutes.
(4) Delta: Similar data, but sellers are subtracted from buyers and displayed as a bar chart. Helps you see which group was more active. A green bar indicates that buyers were more active, while a red bar represents the prevailing activity of sellers.
(5) Cumulative Delta: Takes the delta and sums it up, showing trends of increase or decrease over time.
In our upcoming post, we'll dive into the specifics of analyzing this data.
#tips #TradingActivity