Trading Strategies | TradeGuru
All RSI EMA MACD Bollinger Fibonacci ATR S/R Ichimoku Volume

RSI - Relative Strength Index

Explanation

RSI measures speed and magnitude of price movements. It oscillates between 0 and 100 and identifies overbought (>70) and oversold (<30) conditions.

Used to detect trend reversals and optimal entry/exit points.

Parameters

Period 14
Overbought 70
Oversold 30

Trading Signals

Buy Signal

RSI < 30 then rises above 30

Sell Signal

RSI > 70 then falls below 70

Divergence

When price and RSI move in opposite directions

Understanding RSI in Depth

The 3 RSI Zones
Conservative Strategy

Buy: RSI < 25 : RSI < 25

Sell: RSI > 75 : RSI > 75

For patient traders who prefer rare but highly reliable signals. Ideal in volatile markets.

Balanced Strategy

Buy: RSI < 30 : RSI < 30

Sell: RSI > 70 : RSI > 70

The classic recommended strategy for beginners. Good compromise between frequency and reliability.

Aggressive Strategy

Buy: RSI < 40 : RSI < 40

Sell: RSI > 60 : RSI > 60

For active traders seeking more opportunities. Requires strict risk management.

Advanced Tips to Optimize RSI
Adjust According to Trend

In strong bull market: use 40/80 instead of 30/70. In bear market: use 20/60. RSI must adapt to context!

Detect Divergences

If price makes new high but RSI doesn't = bearish divergence (sell signal). Opposite for bullish divergence = strong buy signal!

Combine with Other Indicators

RSI alone can give false signals. Always confirm with: Volume (important!), Support/Resistance, MACD or EMA. Triple confirmation = Solid trade.

Multi-Timeframe Analysis

Check RSI on multiple timeframes: if RSI 1H and 4H are aligned in oversold = VERY strong signal. Never trade against the higher timeframe trend!

Common Mistakes to Avoid
❌ Believing RSI > 70 = Sell immediately

In strong trend, RSI can stay > 70 for long. Wait for confirmed reversal!

❌ Ignoring market context

RSI at 30 in strong decline can still drop to 10. Look at overall trend first!

❌ Using only RSI 14

Try RSI 7 (more reactive) or RSI 21 (more stable) depending on your trading style!

EMA - Exponential Moving Average

Explanation

Exponential moving average gives more weight to recent prices. It reacts faster to price changes than simple moving average.

Used to identify trend direction and dynamic support/resistance levels.

Parameters

Fast EMA 12
Slow EMA 26
EMA Long 200

Trading Signals

Buy Signal

EMA12 crosses above EMA26 + Price > EMA200

Sell Signal

EMA12 crosses below EMA26 + Price < EMA200

Support/Resistance

Price bounces on EMA = support/resistance

Mastering EMAs in Depth

Understanding EMA Crossings
Conservative Strategy

Buy Signal : Buy: EMA12 > EMA26 > EMA200 + Price above 3 EMAs for 3 candles

Sell Signal : Sell: EMA12 < EMA26 < EMA200 + Price below 3 EMAs for 3 candles

Triple confirmation for patient traders. Rare but very reliable signals with well-established trend.

Balanced Strategy

Buy Signal : Buy: Golden Cross (EMA12 crosses above EMA26) + Price > EMA200

Sell Signal : Sell: Death Cross (EMA12 crosses below EMA26) + Price < EMA200

Recommended classic strategy. Perfect balance between frequency and signal quality.

Aggressive Strategy

Buy Signal : Buy: Price bounces on EMA12 in uptrend (price > EMA200)

Sell Signal : Sell: Price rejects EMA12 in downtrend (price < EMA200)

For active traders. Multiple entries possible but requires constant monitoring.

Advanced Tips to Optimize EMAs
Fibonacci Alternative Periods

Try EMA 9/21/55 (Fibonacci numbers) for more reactivity. These periods follow natural market cycles and give excellent results on crypto and forex.

Multi-Timeframe Analysis

ALWAYS check EMA200 on higher timeframe! If price < EMA200 on 4H but > EMA200 on 15min = weak signal. Never trade against higher TF trend.

EMA as Dynamic Support/Resistance

In strong uptrend, EMA12 acts as dynamic support. Price often bounces on it. Use for multiple entries in trend with stop below EMA26.

EMA Slope Matters!

Flat EMA = NO trend, avoid! EMA with steep slope = strong trend, ideal for trading. Slope angle indicates movement strength.

Common Mistakes to Avoid
❌ Buying at crossing without confirmation

Wait for candle close! Ongoing crossing can be false signal. Confirm with complete candle and volume.

❌ Ignoring EMA200

EMA200 is the most important trend filter. Trading against it = high risk. If price < EMA200, favor sells!

❌ Using single EMA

One EMA is not enough. Use minimum 2 EMAs for crossings, ideally 3 to filter overall trend.

MACD - Moving Average Convergence Divergence

Explanation

MACD compares two exponential moving averages to identify momentum and trend changes.

Very effective to confirm trend reversals and measure movement strength.

Parameters

Fast EMA 12
Slow EMA 26
Signal Line 9

Trading Signals

Buy Signal

MACD crosses above signal line + Positive histogram

Sell Signal

MACD crosses below signal line + Negative histogram

Zero Crossing

MACD crosses zero line = confirmed trend change

Mastering MACD in Depth

The 3 Components of MACD
📊 MACD Line (Blue)

Difference between EMA12 and EMA26. Shows momentum strength and direction.

📈 Signal Line (Orange)

EMA 9 of MACD. Acts as moving average to filter false signals.

📊 Histogram (Bars)

Difference MACD - Signal. Shows momentum STRENGTH in real-time.

Conservative Strategy

Buy: RSI < 25 : Buy: MACD crosses Signal upward ABOVE zero line + Growing histogram

Sell: RSI > 75 : Sell: MACD crosses Signal downward BELOW zero line + Decreasing histogram

Double confirmation: crossing + position vs zero. Rare but very reliable signals, ideal for swing trading.

Balanced Strategy

Buy: RSI < 25 : Buy: MACD crosses Signal upward (regardless of position vs zero)

Sell: RSI > 75 : Sell: MACD crosses Signal downward

Classic MACD strategy. Good compromise between frequency and reliability. Recommended to start with MACD.

Aggressive Strategy

Buy: RSI < 25 : Buy: Histogram turns from red to green (even without complete crossing)

Sell: RSI > 75 : Sell: Histogram turns from green to red

Anticipates crossings using histogram. More opportunities but requires strict risk management and confirmations.

Advanced Tips to Optimize MACD
Zero Line: Crucial Level

MACD > 0 = Dominant uptrend. MACD < 0 = Downtrend. Zero line crossing is MAJOR trend change signal, often more reliable than MACD/Signal crossings.

Divergences: Powerful Reversal Signal

If price makes higher highs but MACD makes lower highs = MAJOR bearish divergence (strong sell). If price makes lower lows but MACD makes higher lows = bullish divergence (strong buy). Divergences are often the best MACD signals!

Histogram: Real-Time Momentum

When histogram grows = momentum accelerates. When it shrinks = momentum weakens (even if still green/red). Shrinking histogram can announce upcoming crossing = early warning signal!

Adjust Parameters According to Asset

For more reactivity (scalping/day trading): use 5/13/5 or 8/17/9. For long-term trading: keep 12/26/9 (classic). For volatile crypto: test 6/13/5. Each asset has its optimal settings!

Common Mistakes to Absolutely Avoid
❌ Trading ALL crossings without filter

In flat/range market, MACD gives CONSTANT false signals. Filter with overall trend (price vs EMA200) or wait for crossings above/below zero line.

❌ Ignoring market context

MACD is MOMENTUM indicator, not trend. In strong trend, it can stay positive/negative long. ALWAYS confirm with support/resistance or volume!

❌ Using MACD alone

MACD is EXCELLENT combined with RSI (overbought/oversold confirmation) + Support/Resistance (key levels) + Volume (strength). Alone, gives too many false signals!

Winning Combinations with MACD
🎯 MACD + RSI (The Classic Duo)

BUY signal: MACD crosses upward + RSI < 50 (confirmed bullish momentum). SELL signal: MACD crosses downward + RSI > 50.

🎯 MACD + EMA200 (Trend Filter)

Only buy if MACD crosses upward AND price > EMA200. Only sell if MACD crosses downward AND price < EMA200. Eliminates 80% of false signals!

🎯 MACD + Volume (Triple Confirmation)

Ultra-reliable signal: MACD crosses + Histogram grows + Volume > average. The perfect combination for high potential entries!

Bollinger Bands

Explanation

Bollinger Bands use volatility to create a dynamic channel around price. They consist of a central moving average and two bands based on standard deviation.

Used to identify overbought/oversold conditions and periods of high/low volatility.

Parameters

Period 20
Standard Deviation 2.0
MA Type SMA

Trading Signals

Buy Signal

Price touches or crosses lower band + Return to mean

Sell Signal

Price touches or crosses upper band + Return to mean

Squeeze

Tight bands = low volatility, major move coming

Mastering Bollinger Bands

The 3 Volatility Zones
Mean Reversion Strategy

Buy Signal : Price touches lower band + RSI < 30

Sell Signal : Price touches upper band + RSI > 70

Bet on return to mean. Ideal in trendless market (range).

Breakout Strategy

Buy Signal : Upper band breakout + High volume

Sell Signal : Lower band breakout + High volume

Ride volatility explosions. Powerful in strong trend.

Squeeze Strategy

Squeeze : Very tight bands < 10% of price

Expansion : Wait for breakout and follow direction

The calm before the storm! Major volatility imminent.

Bollinger Bands Secrets
Use %B Indicator

%B = Price relative position in bands. %B > 1 = above upper band, %B < 0 = below lower band. %B = 0.5 = exactly in middle. Perfect to quantify strength!

Monitor Bandwidth

Bandwidth = Distance between upper and lower bands. Low bandwidth (<10%) = Imminent squeeze. Increasing bandwidth = Volatility returning, powerful move ongoing!

Double Touch Pattern

Price touches upper/lower band twice = Strong reversal signal. Second touch is often best entry point! Confirm with RSI or volume.

Multi-Timeframe Squeeze

If simultaneous squeeze on 1H AND 4H = GUARANTEED EXPLOSION! Wait for breakout and enter with conviction. Move will be massive. Set wide stops!

Fatal Mistakes to Avoid
❌ Automatically shorting at upper band

In strong uptrend, price can "walk" along upper band for weeks. Wait for reversal signal!

❌ Ignoring squeeze

Squeeze is THE most powerful signal! When bands tighten < 10%, prepare. Explosion coming. Don't miss this setup!

❌ Using alone without confirmation

ALWAYS combine with RSI, volume or support/resistance. Bollinger alone = 50% reliability. Bollinger + 2 confirmations = 80%+!

Explosive Combinations
🎯 BB + RSI (The Classic)

Price touches lower band + RSI < 30 = Powerful BUY. Price touches upper band + RSI > 70 = SELL. Simple, effective, tested millions of times.

🎯 BB + Volume (The Explosive)

Squeeze + Exploding volume = Guaranteed move. Wait for breakout with volume 2x above average. Direction = where volume goes!

🎯 BB + S/R (The Sniper)

Price touches lower band AND major support = Perfect buy zone. Price touches upper band AND resistance = Ideal sell zone. Surgical precision!

Fibonacci Retracements

Explanation

Fibonacci retracements use mathematical ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) to identify potential support and resistance levels.

Excellent for finding pullback entry zones and profit targets.

Parameters

LONG Entry Levels 23.6%, 38.2%, 50%, 61.8%
LONG Exit Extensions 100%, 127.2%, 161.8%, 200%
Trend Automatic

Trading Signals

Buy Signal

Price reaches a retracement level (38.2% or 61.8%) + Bullish trend confirmation

Sell Signal

Price reaches an extension (127.2% or 161.8%) + Reversal signs

Golden Ratio

The 61.8% level is the strongest for reversals

Master Fibonacci Retracements

The Magic Fibonacci Levels

SHORT Position (Sell)

Fibonacci in Downtrend

RETRACEMENTS - Entry Levels
📍 23.6%

Shallow retracement - Very strong trend

📍 38.2%

Classic bounce zone

📍 50%

Powerful psychological level

📍 61.8% ⭐

THE GOLDEN RATIO - The most reliable!

📍 78.6%

Last support before reversal

EXTENSIONS - Profit Targets (the move can reach 161.8% or more!)
🎯 100%

Back to origin - Conservative TP

🎯 127.2%

Moderate extension - Balanced TP1

🎯 161.8% 🚀

GOLDEN TARGET - Optimal TP2, most likely!

🎯 200%

Strong extension - Ambitious TP3

🎯 261.8% 🌙

Extreme extension - TP4 MOONSHOT in strong trend!

Conservative Strategy

Buy Signal : Wait for 61.8% + Candle confirmation + Volume

Sell Signal : TP at 100% or 127.2% extension

For patient traders. The 61.8% level is statistically the most reliable. ~70% success rate.

Balanced Strategy

Buy Signal : Entry between 38.2% and 50% with confirmation

Sell Signal : Scaled TP: 50% at 100%, 50% at 161.8%

Good balance between opportunity and safety. Use multiple levels to average your entry.

Aggressive Strategy

Buy Signal : Enter early at 23.6% or 38.2% without waiting

Sell Signal : Ambitious TP: 161.8% or 200% extension

For scalpers and day traders. More opportunities but requires strict risk management. Tight stop mandatory!

Pro Secrets of Fibonacci
Confluence - The Secret Weapon

Draw MULTIPLE Fibonacci retracements on different swings. When 2-3 levels overlap = GOLDEN ZONE! Bounce probability >80%. This is THE pro technique.

Extensions - Your Profit Targets

After a retracement, use Fibonacci extensions for your Take Profits: 127.2% (conservative TP1), 161.8% (balanced TP2), 200% (ambitious TP3), 261.8% (moonshot TP4). Always scale out!

Combine with Support/Resistance

The jackpot: Fibonacci level + historical S/R + EMA 200 overlapping = GOLDEN Signal! Wait for these confluences for very high probability trades.

Multi-Timeframes Fibonacci

Draw Fib on 1H for precise entry, on 4H for general zone, on 1D to confirm major trend. If all 3 timeframes show bounce at same level = PERFECT TRADE!

Deadly Mistakes with Fibonacci
❌ Drawing Fib anywhere

Fibonacci ONLY works on clear and significant swings. Minimum 5-10% movement. On noise = random results!

❌ Entering blindly at 61.8%

NEVER blind entry! ALWAYS wait for confirmation: reversal candle, RSI divergence, or level rejection. Fibonacci = zone, not exact trigger.

❌ Forgetting extensions

Many only use retracements. HUGE MISTAKE! Fibonacci extensions (127%, 161%, 200%) are your best friends for Take Profits. Don't leave money on the table!

Winning Fibonacci Combos
🎯 Fib 61.8% + RSI < 30

The CLASSIC combo. Price hits 61.8% Fib + RSI oversold = Almost guaranteed bounce. ~75% reliability. Add hammer candle = 85% success!

🎯 Fib 50% + EMA 200

When 50% Fib retracement coincides with EMA 200 = MAGNETIC ZONE! Price systematically returns there. Institutions' favorite setup. High conviction trade!

🎯 Fib 38.2% + Volume Spike

Shallow 38.2% retracement + Buyer volume explosion = ULTRA strong trend resuming. Enter fast, it's taking off! Target: 161.8% minimum.

THE FIBONACCI GOLDEN RULE

61.8% IS THE MOST POWERFUL LEVEL. If price breaks below 61.8%, trend is probably over. If price bounces on 61.8% = Green Light to continue trend. It's BINARY. Respect 61.8% like your life depends on it!

Bounce on 61.8%

Trend confirmed - ALL IN!

Break of 61.8%

Trend over - GET OUT!

ATR - Average True Range

Explanation

ATR measures market volatility by calculating the average of price variations. The higher the ATR, the more volatile the market.

Used to size positions and place stop losses adapted to volatility.

Parameters

Period 14
SL Multiplier 2.0
TP Ratio 1:3

Trading Signals

High Volatility

High ATR = Wide movements expected - Be careful

Low Volatility

Low ATR = Calm market - Explosion coming

Expanding Volatility

Rising ATR = Strong movement in progress - Accelerating trend

Master ATR - The Market Thermometer

Read Volatility in Real-Time
🔥 High ATR (>150% average)

Strong volatility - Wide movements - Increased risk, use wider stops

📊 Normal ATR (80-120% average)

Normal volatility - Balanced conditions

😴 Low ATR (<80% average)

Low volatility - Calm market, tighten stops, expect breakout soon

Rising ATR

Meaning : Increasing ATR indicates growing volatility and strong movements

Market Context : Strong trend in progress or beginning

Use wider stops, ride the trend

Falling ATR

Meaning : Decreasing ATR indicates calming market, potential breakout ahead

Market Context : Market consolidating, calm before storm

Tighten stops, prepare for breakout

ATR Spike

Meaning : Sudden ATR spike indicates major event or explosive move

Common Causes : News, earnings, breakouts, liquidations

Stay out or reduce position size

Advanced ATR Tips
Detect Compression (Squeeze)

When ATR reaches its lowest in 30-50 periods = Market in MAXIMUM COMPRESSION. The calm before the storm. An explosive move is imminent within 1-3 days. Prepare your orders!

Relative ATR (ATR% of price)

Calculate ATR% = (ATR ÷ Current Price) × 100. Allows comparing volatility between different assets. Bitcoin ATR%=3% vs Altcoin ATR%=8% = Alt is 2.5x more volatile. Essential for multi-asset trading!

ATR Cycles and Patterns

ATR follows cycles: Low volatility → Breakout → High volatility → Exhaustion → Back to low. Trade breakouts from low ATR zones for best risk/reward!

Multi-Timeframe ATR

Compare ATR across multiple timeframes: If Daily ATR + 4H ATR + 1H ATR are ALL expanding = Volatility confirmed on all levels = Massive move in progress. If divergence between timeframes = Local volatility only.

Common ATR Mistakes
❌ Using fixed stop loss in all conditions

ATR-based stops adapt to volatility. In high volatility (high ATR), use wider stops. In calm markets (low ATR), tighten them. Dynamic = smart!

❌ Ignoring ATR when sizing positions

High ATR = smaller position size to maintain same risk. Low ATR = can use larger size. Always calculate: Risk = Position Size × ATR × Multiplier

❌ Trading high ATR without preparation

Spiking ATR = extreme conditions. Either stay out or reduce size dramatically. Never use normal position sizing in extreme volatility. Recipe for disaster!

Combining ATR with Other Indicators
🎯 ATR + Bollinger (Double Confirmation)

When ATR is low AND Bollinger Bands squeeze = massive breakout coming. Combine both for highest probability explosive moves. Best trading setup!

🎯 ATR + Support/Resistance (Breakout Trading)

Breakout from low ATR zone at major S/R level = highest win rate setup. ATR will expand massively after breakout. Place TP at 3-5x initial ATR!

🎯 ATR + EMA Trend

Price in uptrend + ATR rising progressively = HEALTHY and powerful trend. More participants joining the move. Stay in the trade! If ATR falls in trend = Exhaustion coming soon.

The Golden Rule of ATR

Always set your stop loss at 2x ATR minimum. This gives the trade room to breathe while protecting your capital. Anything less = high probability of premature stop-out!

🟢
Low ATR = Breakout Opportunity

When ATR reaches 6-month lows, prepare for massive move. The longer the calm, the bigger the explosion. These are the best setups!

🔴
High ATR = Reduce Position Size

When ATR is 2x normal, cut position size by 50%. High volatility = higher risk. Protect your capital by sizing down, not avoiding the trade!

📊
Adapt to Market Context

Crypto: ATR higher than stocks. Weekend: ATR drops. News events: ATR spikes. Always compare current ATR to historical average for that specific asset and timeframe.

Support & Resistance - Dynamic S/R

Explanation

Support and resistance are price zones where the market tends to bounce or break. They are key psychological areas.

Used to identify optimal entry and exit points, and for stop placement.

Parameters

Analysis Period 50-200
Method Pivots + EMA
Min Validations 2-3

Trading Signals

Buy Signal

Price bounces on validated support + Confirmation (volume or candlestick)

Sell Signal

Price rejects validated resistance + Signs of weakness

Breakout

S/R breakout with volume = Strong continuation signal

Master Support & Resistance - The Foundation

Understanding S/R - Market Psychology
🛡️ What is SUPPORT?

Price area where DEMAND is strong. Buyers step in massively, preventing further declines. It's a psychological "floor".

⛔ What is RESISTANCE?

Price area where SUPPLY is strong. Sellers take profits, preventing further rise. It's a psychological "ceiling".

Why Does It Work?

The market has MEMORY. Traders remember key prices (entries/exits/liquidations). When price returns there, they react the same way. A self-fulfilling prophecy!

Visualize Support & Resistance
The 3 Types of S/R
Horizontal S/R

Classic levels where price has bounced multiple times. The more touches, the stronger the level. Draw them clearly!

Dynamic S/R

Moving averages (especially EMA 200) act as dynamic support/resistance. They move with price, adapting to trend.

📈 Oblique (Trendlines)

Inclined trendlines - Follow trend direction

How to IDENTIFY Real S/R
Method 1: PIVOTS (Major Highs/Lows)

Look for obvious peaks and valleys on the chart. The more visible the pivot, the more important it is!

Method 2: MULTIPLE TOUCHES (2-3 minimum)

An S/R is VALID when price touches 2-3 times and bounces. After 4-5 touches, high breakout risk.

Method 3: ZONES, not LINES (CRUCIAL!)

NEVER draw an exact line! Draw ZONES of 1-2% width. Use rectangles, not lines.

Method 4: ROUND NUMBERS (Psychological)

Round numbers (10,000, 20,000, 100) act as natural S/R. Humans love round numbers. They create self-fulfilling prophecies!

BOUNCE Strategy (Conservative)

Entry : Entry: Wait for CONFIRMED bounce on Support + Reversal candle (hammer, engulfing)

Stop Loss : Below support zone (1-2% below)

Take Profit : Next resistance or R:R 1:2 minimum

Safest setup. Wait for confirmation; miss 20% of the move but win 70% of the time!

BREAKOUT Strategy (Balanced)

Entry : Entry: Resistance breakout + Volume 2x above average + Candle close above

Stop Loss : Below old resistance (now support)

Take Profit : Projected range distance upward

Powerful but beware of FAKE breakouts! Volume is key. Better: wait for RETEST.

RETEST Strategy (The Best!)

Entry : Entry: After breakout, price retests old R (now S). Confirmed bounce = GO!

Stop Loss : Below retest (tight stop, excellent R:R)

Take Profit : Next resistance (often R:R 1:4+)

ULTIMATE setup! 80–90% of breakouts retest. Patience = perfect entry, tight stop, big profit!

Master BREAKOUTS - True vs False
TRUE Breakout
  • Volume 2x+ average
  • Candle CLOSE above/below level
  • Strong impulse (large candle)
  • Immediate continuation
  • Favorable context (trend, news)
FALSE Breakout (Fakeout)
  • Low or normal volume
  • Wick only (no close)
  • Small indecisive candle
  • Immediate return to range
  • Against main trend
KEY Concept: Support becomes Resistance (and vice versa)

After an upward breakout, old Resistance becomes Support. After breakdown, old Support becomes Resistance. THE BASICS! Price often returns to "test" this flip. That retest = best entry opportunity!

Pro S/R Techniques
CONFLUENCE - The Ultimate Weapon

When MULTIPLE elements align = GOLDEN ZONE! Example: Historical S/R + EMA 200 + Fib 61.8% + Round number (50000$) = 90%+ success setup! Always seek confluence. 1 factor = 50%, 2 = 65%, 3+ = 80%+.

What Makes S/R Strong?

An S/R is STRONGER if: (1) 3+ touches, (2) higher timeframe, (3) older level, (4) bounce volume high, (5) large distance since last test.

Supply & Demand Zones (Advanced)

Advanced version of classic S/R. Demand zone = where price exploded up (aggressive buyers). Supply = where price dropped fast (aggressive sellers). Represents real imbalances.

Multi-Timeframes - Full Vision

DAILY S/R are 10x more powerful than 1H S/R. Pro method: Identify S/R on Daily/4H for MAJOR zones. Then zoom 1H/15min for precise entry. NEVER trade against Daily S/R! It always wins over 1H S/R.

Critical S/R Mistakes
❌ Drawing too many lines

Only mark MAJOR levels where price has clearly reacted 3+ times. Too many lines = analysis paralysis. Keep chart clean. Quality over quantity!

❌ Ignoring higher timeframe levels

Daily and Weekly S/R levels are 10x stronger than 15min levels. ALWAYS mark HTF levels first. They override everything else. Never trade against them!

❌ Entering exactly at the line

Wait for confirmation! Price can spike through S/R before reversing. Use limit orders slightly inside the zone or wait for confirmation candle. Patience pays!

❌ Entering BEFORE confirmation

Price approaches Support, you buy in anticipation... and it breaks. Classic MISTAKE! ALWAYS wait for confirmed bounce (candle, volume). Better to miss 10% of the move than lose 100% of capital.

S/R Power Combinations
🎯 S/R + RSI Oversold/Overbought

Price touches Support + RSI < 30 = GOLDEN BUY! Price touches Resistance + RSI > 70 = Perfect SELL. Technical + price confluence = 80%+ success. Add hammer candle = 90%+!

🎯 S/R + Candlestick Patterns

Hammer at support = bullish reversal. Shooting star at resistance = bearish reversal. Engulfing at S/R = strongest signal. Pattern + Level = High probability!

🎯 S/R + Volume (The Ultimate Confirmation)

High volume at S/R = strong level. Low volume = weak, likely to break. Volume breakout through resistance = real move. No volume = fake breakout!

🎯 S/R + EMA 200 (ULTIMATE)

When historical S/R aligns with EMA 200 = SACRED ZONE! This is institutions' favorite setup. Add RSI oversold = 95% success setup. NEVER miss these confluences!

THE GOLDEN RULE OF S/R

🎯 S/R are ZONES, not LASERS. The market isn’t precise to the cent. Draw 1–2% rectangles, not thin lines. Wicks matter. Valid breakout = CLOSE + VOLUME. Retest = Golden setup. Patience always pays! S/R are the foundation of everything: Fib, EMA... master them = master 80% of trading!

🛡️
Support = Floor

Buy zone - Strong demand

Resistance = Ceiling

Sell zone - Strong supply

🔄
Flip = Reversal

S becomes R, R becomes S

🎯
Confluence = Power

More alignment = Stronger zone

Ichimoku Kinko Hyo

Explanation

Ichimoku is a complete technical analysis system that provides information about trend, momentum, and support/resistance in a single glance.

Used to identify trend direction, key support/resistance levels, and generate trading signals.

Parameters

Tenkan-sen (Conversion Line) 9
Kijun-sen (Base Line) 26
Senkou Span B (Leading Span B) 52
Chikou Span (Lagging Span) 26

Trading Signals

Buy Signal

Price above cloud + Tenkan crosses Kijun upward + Chikou > Past price

Sell Signal

Price below cloud + Tenkan crosses Kijun downward + Chikou < Past price

Cloud

Green cloud (Senkou A > B) = Bullish trend, Red cloud = Bearish trend

Master Ichimoku - The One Glance Cloud

Understanding the 5 Components

Ichimoku is a complete Japanese system created in the 1930s. It's THE only indicator that shows EVERYTHING at a glance: trend, momentum, dynamic support/resistance, and entry/exit signals. Complex at first but INCREDIBLY powerful once mastered!

🎯
All-in-One

Tenkan (9), Kijun (26), Senkou A & B (Cloud), Chikou (lag 26). You have EVERYTHING on a single chart: trend, momentum, dynamic support/resistance, confirmation. Stop juggling between 10 different indicators! Ichimoku = The trader's Swiss Army knife.

🔮
Predictive

The cloud is projected 26 periods INTO THE FUTURE! You see where support/resistance will be BEFORE price gets there. It's like having a roadmap of the market. Nobody else can do that!

🛡️
Dynamic S/R

Forget frozen horizontal lines. The Ichimoku cloud MOVES with price, adapts to volatility, thickens in strong trends and tightens before breakouts. Smart S/R that breathes with the market.

Cloud Thickness = Trend Strength

THICK cloud (wide) = VERY STRONG trend, hard to break. Powerful Support/Resistance. THIN cloud (narrow) = WEAK trend, imminent breakout. When cloud tightens = Prepare for breakout! It's a signal of coming volatility.

The 5 Components - Complete Breakdown
Complete Ichimoku Chart - The 5 Components

Interactive chart with ALL Ichimoku indicators - Tenkan, Kijun, Senkou A & B (Cloud), Chikou

Tenkan-sen (Conversion Line) -
Kijun-sen (Base Line) -
Senkou Span A (Leading Span A) -
Senkou Span B (Leading Span B) -
Chikou Span (Lagging Span) -
Tenkan-sen & Kijun-sen

Tenkan (Red) : FAST Line (9 periods) - Reacts quickly to changes

Kijun (Blue) : SLOW Line (26 periods) - Main trend + Dynamic S/R

The Kumo (The Cloud)

🟢 Above the cloud : Strong BULLISH signal

⚠️ Inside the cloud : INDECISION zone

🔴 Below the cloud : Strong BEARISH signal

The Chikou Span

💡 Confirmation line : Current price shifted 26 periods BACK.

ABOVE past price = Confirms bullish signal | BELOW = Confirms bearish signal

Tenkan-sen (Conversion Line) - Period 9

Formula : (Highest 9 + Lowest 9) ÷ 2

Role : Measures SHORT TERM momentum. It's the "fast line". When Tenkan rises = bullish momentum. When it falls = bearish momentum. Serves as early signal.

Kijun-sen (Base Line) - Period 26

Formula : (Highest 26 + Lowest 26) ÷ 2

Role : Indicates MEDIUM TERM trend. It's the "slow line". Price above = bullish trend. Price below = bearish trend. Also acts as VERY POWERFUL dynamic Support/Resistance.

Senkou Span A (First Cloud Line) - Projected +26

Formula : (Tenkan + Kijun) ÷ 2, projected 26 periods AHEAD

Role : Forms the FAST EDGE of the cloud. More reactive to price changes. When Senkou A > Senkou B = GREEN cloud (bullish). When Senkou A < Senkou B = RED cloud (bearish).

Senkou Span B (Second Cloud Line) - Projected +26

Formula : (Highest 52 + Lowest 52) ÷ 2, projected 26 periods AHEAD

Role : Forms the SLOW EDGE of the cloud. Based on 52 periods = more stable. Represents LONG TERM support/resistance. The cloud between A and B = price conflict zone.

Chikou Span (Lagging Line) - Shifted -26

Formula : Current CLOSING price, displayed 26 periods BACK

Role : Compares CURRENT price to PAST price. If Chikou > past price = bullish momentum. If Chikou < past price = bearish momentum. ESSENTIAL trend confirmation. NEVER trade against Chikou!

☁️ THE KUMO (Cloud) - The Centerpiece

The cloud = space between Senkou A and Senkou B. It's the BATTLE zone between buyers and sellers projected 26 periods ahead! GREEN cloud (A > B) = Bullish trend. RED cloud (A < B) = Bearish trend. Cloud thickness = trend strength. Thick cloud = STRONG trend. Thin cloud = weak trend, breakout imminent.

The 7 Ichimoku Strategies
① TK Cross (Tenkan/Kijun Cross) - The Simplest

Buy Signal : Tenkan crosses Kijun UPWARD

Sell Signal : Tenkan crosses Kijun DOWNWARD

💡 Tip : Like Golden/Death Cross of EMAs but faster. Better if cross occurs ABOVE cloud (buy) or BELOW cloud (sell). Avoid crosses INSIDE cloud = confusion zone.

② Kijun Bounce - Bounce on Base Line

Buy Signal : In uptrend, price touches Kijun and BOUNCES upward

Sell Signal : In downtrend, price touches Kijun and BOUNCES downward

💡 Tip : Kijun acts like a MAGNET. Price regularly returns to test it. High probability setup if Kijun is FLAT (consolidation over). If Kijun angled = strong trend ongoing.

③ Kumo Breakout - Cassure du Nuage

Buy Signal : Price breaks ABOVE cloud + CLOSE confirmed

Sell Signal : Price breaks BELOW cloud + CLOSE confirmed

💡 Tip : MAJOR SIGNAL! Trend change confirmed. The THINNER the cloud, the easier and faster the breakout. Thick cloud = strong resistance, powerful breakout if successful. 70-80% of prices retest cloud after breakout.

④ Kumo Twist - Cloud Twist (PREDICTIVE!)

Buy Signal : FUTURE cloud changes from RED to GREEN (Senkou A crosses Senkou B upward)

Sell Signal : FUTURE cloud changes from GREEN to RED (Senkou A crosses Senkou B downward)

💡 Tip : ANTICIPATED setup! Twist visible 26 periods in ADVANCE. You see change coming before everyone. Powerful combined with TK Cross. Twist + TK Cross = GOLDEN Signal!

⑤ Chikou Confirmation - La Validation Ultime

Buy Signal : Chikou above past price + Chikou above past cloud

Sell Signal : Chikou below past price + Chikou below past cloud

💡 Tip : Chikou is the ULTIMATE FILTER. Use it to CONFIRM other Ichimoku signals. TK Cross signal but opposite Chikou? DON'T TRADE. Golden rule: Chikou must ALWAYS be in trade direction.

★ ⑥ PERFECT SETUP - Les 5 Conditions (90%+ Réussite)

Pour un ACHAT Parfait, IL FAUT:

  1. ✅ Price ABOVE cloud
  2. ✅ GREEN cloud (Senkou A > Senkou B)
  3. ✅ Tenkan above Kijun
  4. ✅ Chikou above past price
  5. ✅ Chikou above past cloud

🎯 Description : When all 5 conditions are met = ULTRA STRONG trend confirmed on ALL timeframes. It's the most reliable Ichimoku setup. Success rate 85-95%. Don't expect this setup every day, but when it appears = ALL IN with confidence!

⑦ Kumo Shadow - Trading in Cloud (Advanced)

Buy Signal : Price INSIDE cloud + Bounce on Senkou B (lower edge) + Tenkan rising

Sell Signal : Price INSIDE cloud + Rejection on Senkou A (upper edge) + Tenkan falling

⚠️ Never INSIDE the Cloud : RISKY setup for experienced traders only! Cloud = confusion zone, price can go any direction. Use TIGHT stops. Scalping only. Beginners: AVOID trades in cloud!

Advanced Ichimoku Mastery
Cloud Thickness = Trend Strength

THICK cloud (wide) = VERY STRONG trend, hard to break. Powerful Support/Resistance. THIN cloud (narrow) = WEAK trend, imminent breakout. When cloud tightens = Prepare for breakout! It's a signal of coming volatility.

FLAT Kijun = GOLDEN Setup

When Kijun becomes HORIZONTAL = Market exits consolidation and seeks direction. If Tenkan crosses flat Kijun = ULTRA POWERFUL signal! It's the start of new movement. Flat Kijun + TK Cross = 80%+ success rate.

Multi-Timeframe Analysis

Use Ichimoku on MULTIPLE timeframes: Daily for overall trend, 4H for momentum, 1H for precise entry. If Perfect Setup on Daily AND 4H simultaneously = TRADE OF THE YEAR! Never trade against Daily Ichimoku.

Read the Future Cloud

Cloud projected 26 periods ahead shows FUTURE support/resistance! Look where price is heading: toward thick cloud = expected slowdown. Toward thin cloud = easy breakout. Use it to anticipate your Take Profits!

Common Ichimoku Mistakes
❌ Trading every Tenkan/Kijun cross

Only trade TK crosses ABOVE cloud (for buys) or BELOW cloud (for sells). Crosses inside cloud = choppy, no clear trend. Wait for price to be outside cloud!

❌ Ignoring the Chikou Span

Chikou is the MOST important confirmation! If Chikou can't break above price from 26 bars ago, the trend is weak. Always check Chikou before entering!

❌ Using Ichimoku in ranging markets

Ichimoku is a TREND system. In sideways markets, it gives constant false signals. Use it only when there's a clear trend. Otherwise, switch to Bollinger or RSI!

❌ Impatience in flat markets

When all lines are tangled = WAIT. Ichimoku shines in trending markets. Don't force trades in choppy conditions.

Powerful Ichimoku Combos
🎯 TK Cross + Kumo Twist

Tenkan crosses Kijun + Future cloud changes color simultaneously = GOLDEN COMBO! Double confirmation: short-term momentum + long-term anticipation. 85%+ success rate. Enter with confidence!

🎯 Kumo Breakout + Retest

Price breaks cloud + Returns to test it + Bounces = PERFECT SETUP! Like S/R retest. Cloud becomes support after bullish breakout. Precise entry, tight stop under cloud. Excellent R:R 1:5+.

🎯 Ichimoku + RSI (Filter)

Only take bullish Ichimoku signals when RSI > 50, bearish when RSI < 50. This filters out weak signals and keeps you with momentum. Powerful combination!

🎯 Ichimoku + Volume (Confirmation)

Price breaks cloud with huge volume = strongest signal. Volume confirms the cloud breakout is real, not a fake-out. Always check volume on cloud breaks!

Quick Reading Guide - "At a Glance"
✅ STRONG BULLISH TREND: :

Price > Green cloud • Tenkan > Kijun • Kijun sloping upward • Chikou > Past price • Chikou > Past cloud

❌ STRONG BEARISH TREND: :

Price < Red cloud • Tenkan < Kijun • Kijun sloping downward • Chikou < Past price • Chikou < Past cloud

⚠️ CONFUSION ZONE (DON'T TRADE): :

CONFUSION ZONE (DON'T TRADE):

ICHIMOKU GOLDEN RULE

☁️ NEVER TRADE INSIDE THE CLOUD. Wait for price to exit CLEARLY. Chikou is your ABSOLUTE FILTER - never trade against it. Perfect Setup happens 5-10 times/year maximum - when it appears, JUMP ON IT with conviction! Ichimoku shows you EVERYTHING at a glance: trend (cloud), momentum (TK), confirmation (Chikou), and even the FUTURE (cloud projection). It's the most complete system that exists. Master it = you master trading!

☁️
Cloud Decides

Price > Cloud = Buy | Price < Cloud = Sell

🚫
Never INSIDE Cloud

Confusion zone = 70% failure

🔮
Chikou = Ultimate Filter

Always trade with Chikou

Perfect Setup = Rare

5-10x/year - Seize it!

Volume - Trading Volume Analysis

Explanation

Volume represents the number of assets traded during a given period. High volume confirms the strength of a price movement.

Crucial indicator to validate breakouts, identify reversals and confirm trends.

Parameters

MA Period 20
High Volume Threshold 1.5x
Type Automatic

Trading Signals

Buy Signal

High volume + Resistance breakout = Confirmed breakout

Sell Signal

High volume + Support break = Confirmed bearish breakout

Climax Volume

Extreme volume = Probable exhaustion, watch for reversal

Master Volume Analysis

Essential Volume Patterns
📊 High Volume (Green Bars)

Volume > Average: Strong interest, confirmed move

📊 Low Volume (Red Bars)

Volume < Average: Low interest, suspicious move

📈 Moving Average (Orange Line)

Average volume over 20 periods - Reference

Volume Breakout Strategy

Buy Signal : Price breaks resistance + Volume > 2x average

Sell Signal : Price breaks support + Volume > 2x average

Volume validates breakouts. Without high volume, it's probably a false breakout! Golden rule of trading.

Volume Climax Strategy

Climax Volume : Extreme volume > 3-5x average = Exhaustion

Reversal : After climax, wait for price reversal

Extreme volume = Everyone has entered. No more fuel to push price. Reversal imminent!

Volume Confirmation Strategy

Uptrend : Volume ↑ on rise + Volume ↓ on fall

Downtrend : Volume ↑ on fall + Volume ↓ on rise

Analyze which candle has the volume: Volume on green candle = Buyers. Volume on red candle = Sellers.

Professional Volume Secrets
Volume Divergence - Powerful Signal

Price rises but volume falls = Bearish divergence, trend weakening. Price falls but volume falls = Low selling pressure, bounce possible. Volume MUST confirm price!

Accumulation and Distribution Phases

Accumulation: Ranging price + High volume = Pros buying. Distribution: High ranging price + High volume = Pros selling. Watch where volume concentrates!

Relative vs Absolute Volume

Don't compare 1M Bitcoin volume with 100K altcoin! Use RELATIVE volume: Current volume / Average volume. > 1.5 = Strong. > 2.5 = Very strong. > 5 = Climax!

Higher Timeframe Volume Matters More

Daily volume spike more important than 5min. Weekly volume more important than daily. Big timeframe volume = big money moving!

Deadly Mistakes with Volume
❌ Trading breakout without volume

This is mistake #1! Breakout without volume = FALSE breakout 80% of the time. Price will return to range. ALWAYS wait for volume!

❌ Ignoring volume on weekends/night

Volume is lower on weekends and at night. Price movement with low volume = unreliable. Wait for high liquidity hours (London + NY open).

❌ Confusing volume and momentum

High volume ≠ Price rising. Volume = Interest. Check if volume accompanies buyers (green candles) or sellers (red candles)!

Key Volume Patterns
🎯 On-Balance Volume (OBV)

If OBV rises but price stagnates = Hidden accumulation. If OBV falls but price stagnates = Hidden distribution. The indicator that sees the invisible!

🎯 Volume Exhaustion

Series of growing volume spikes + Price slowing = Exhaustion. Last giant spike = Climax. Prepare for immediate reversal!

🎯 Volume Test / Spring

Price breaks support with LOW volume then quickly rises back = Successful test! Big players test if sellers remain. Strong buy signal!

Volume + Indicators Combinations = GOLD
🚀 Volume + S/R Breakout

Break resistance + Volume > 2x + Close above = Perfect trade! Probability >75%. This is THE king setup.

🚀 Volume + RSI Divergence

RSI divergence + Volume climax = 90% GUARANTEED reversal. The moment when everything aligns. Don't miss this setup!

🚀 Volume + MACD Cross

MACD golden cross + Growing volume = Strong bullish trend start. MACD death cross + Growing volume = Violent bear market start.