Table of Contents:

  1. Start HERE!
  2. Chart Indicators
  3. Degrees Defined
  4. Elliot Waves
  5. Entry/Exit Strategies
  6. Fibonacci is the “Key”
  7. Money Management
  8. Retracements & Projections
  9. Step-by-Step Trading
  10. Trading Chaos
Page last updated: June 24, 2017 @ 16:40

Chart Indicators

Accelerator Indicator (AC) – Leading

The accelerator indicator calculates the strength of the acceleration of the market price movement. It will indicate the direction before the market changes the direction. The zero level is the area which the accelerator and decelerator are in balance. If the indicator line trades above the zero level, it means the market is in a bullish trend and if the accelerator indicator line trades below the zero level, it means the market is in a bearish trend.

You shouldn’t interpret the zero line cross as a bullish or bearish signal. The easiest way to use the accelerator indicator is when it gives three consecutive green bars as a bullish signal or three consecutive red bars as a bearish signal.

Accelerator Indicator

Accelerator(AC) Indicator

References:

Acceleration/Deceleration Technical Indicator (AC)

Appearance of the BWI Accelerator Oscillator

Trading with Accelerator Oscillator Indicator

Accelerator indicator

 

Awesome Oscillator (AO) – Lagging

The Awesome Oscillator is a momentum indicator reflecting the precise changes in the market driving force which helps to identify the trend’s strength up to the points of formation and reversal.

The AO shows the difference in between the 5 SMA and 34 SMA. To be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows to see the market momentum.

Awesome Oscillator Indicator

Awesome Oscillator Indicator

References:

Awesome Oscillator

Awesome Oscillator (AO)

Awesome Oscillator Technical Indicator

 

TDR’s Oscillator (TDROsc) – Lagging

The Daedalus Report’s Oscillator is used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Relative Strength Index (RSI) values rather than standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold – a measure that becomes specifically useful when the RSI value is confined between its signal levels of 20 and 80.

The ideal parameters I use are: 3/3/5/8, 5/5/8/13, 8/8/13/21, 13/13/21/34, 21/21/34/55, and 34/34/55/89. (And YES they are all Fibonacci numbers!)

Choose the group that makes the TDROsc indicator closely match the wave of the price history for the period (15min, 1hr, 4hr, daily, weekly, monthly, etc) you are viewing.  Then you can use it to forecast properly.

Until TDR releases this indicator, the closest substitute is a StochRSI.

TDR’s Oscillator

TDR’s DMI (TDRDMI) – Confirming

The indicator was developed by J. Welles Wilder, and shows the strength of a trend- either up or down. A trend is present when the ADX is above 25.

If DI+ is above DI-, an ADX reading of 25 or higher indicates a strong uptrend. If DI- is above DI+, an ADX reading of 25 or higher indicates a strong downtrend. The ADX may stay above 25 even when the trend reverses. Since ADX is non-directional, this shows the reversal is as strong as the prior trend.

Personally I use 13/13/21.

tdrdmi

TDR’s DMI

Only use this indicator to confirm the forecast of the above leading indicators.

Heikin-Ashi

Heikin-Ashi Candlesticks are an offshoot from Japanese candlesticks. Heikin-Ashi Candlesticks use the open-close data from the prior period and the open-high-low-close data from the current period to create a combo candlestick. The resulting candlestick filters out some noise in an effort to better capture the trend. In Japanese, Heikin means “average” and “ashi” means “pace” (EUDict.com). Taken together, Heikin-Ashi represents the average-pace of prices. Heikin-Ashi Candlesticks are not used like normal candlesticks. Dozens of bullish or bearish reversal patterns consisting of 1-3 candlesticks are not to be found. Instead, these candlesticks can be used to identify trending periods, potential reversal points and classic technical analysis patterns.

References:

Heiken Ashi Indicator Explained – What are Heiken Ashi?

Heikin-Ashi Trading

Heikin-Ashi Technique

 

Moving Averages (MA, EMA, SMA)

A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations. A moving average (MA) is a trend-following or lagging indicator because it is based on past prices. The two basic and commonly used MAs are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential moving average (EMA), which gives bigger weight to more recent prices. The most common applications of MAs are to identify the trend direction and to determine support and resistance levels.

I usually display three moving averages on my charts: 20-bar, 50-bar and 200-bar (or 21, 55 and 233 for Fibonacci purists 🙂 )

 

Price Retracement Lines (RET)

Refers to areas of support (price stops going lower) or resistance (price stops going higher). The Fibonacci retracement is the potential retracement of a financial asset’s original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100% (also 78.6%, 88.6% and 94.1%).

 

Alternate Price Projection Lines (APP)

Measures the price range of swings in the same direction. The most frequently used percentage alternate price projections are 61.8%, 100%, and 161.8%. An APP is made from three pivot points. The price range between two pivots is measured and projected from a third pivot.

 

Psychological Price Levels

Most crypto players like to only pay particular attention to key price levels. This so called “Psychological Price Levels” are prices that can cause anxiety and expectation on the people. They are self-fulfilling, meaning that people will take some course of action based solely on the price reaching those levels.

Four that are usual are: Dollar Parity, Rounded Numbers, Historical and Daily Levels, and Prices that appear in the Media.

 

Bollinger Bands

Because standard deviation is a measure of volatility, Bollinger Bands adjust themselves to the market conditions. When the markets become more volatile, the bands widen (move further away from the average), and during less volatile periods, the bands contract (move closer to the average). The tightening of the bands is often used by technical traders as an early indication that the volatility is about to increase sharply.

This is one of the most popular technical analysis techniques. The closer the prices move to the upper band, the more overbought the market, and the closer the prices move to the lower band, the more oversold the market.

 

-=Daedalus=-

AKA Wolfgang M. Bentz III

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