LTCUSD 1d long, current and past Divergences, great longterm Opportunity

On March 29th a sudden Increase of Volatility happend - look at the Average True Range (ATR): this Indicator clearly shows that the daily Range of Price started to increase.

Several Divergences indicate a Reversal of the current trend. Divergences of the Commodity Channel Index ( CCI ) against Price are shown by CCIDivergence, Divergences of Momentum against Price are shown by "Jeddingen Divergence" (JDiv).

Based on those both Indicators Jeddingen Divergence and CCIDivergence, a lucrative Strategy evolves, looking at the daily Candles.

A Signal is generated when a JDiv or a CCIDiv is occurs, Support and Resistance lines can be used as Take-Profit and Stop-Loss.

In this Example, there is one Exceptions. The very first Divergence wouldn't have worked out - although Price dropped at the End of the Divergence. Maybe Volatility/ ATR was too low.

At the second Divergence (the first Trade), there was a bearish CCIDivergence with no Resistance (Price was at it's alltime high at that time) and no support Level that seemed usable (it would have been a Support somewhere at the low-volatility Area). A common Practice with those kind of Trades is to use Pivots as Profit-Targets. In this case the weekly Pivot (Fibonacci-Style) would have been a good Target. Most of my Trades do not have a Stop-Loss, but in this case, I guess I would have calculated the Stop-Loss in a Way so that the Risk-Reward-Ration would have been 1.

Recently there appeared a JDiv and a CCIDiv. According to my Strategy, the Profit-Target could be the alltime High at 94.021. Though there are other structures since September second, I don't believe that they are reliable resistance Levels, because since then, LTCUSD was in a massive Downtrend. But to play it safe, an earlier Exit could be considered, e.g. an earlier Pivot or a Fibonacci Level.

As Stop-Loss I would suggest the Resistance-Level that was used in the earlier Trades.

To learn more about my Indicators and Strategies, please check the Indicator Section.

Here is the Link to the analysis at TradingView: www.tradingview.com/chart/K2kjB4VO/

A Different Kind of Arbitrage

Arbitrage as defined by Wikipedia is "[...] the practice of taking advantage of a Price-Difference between two or more markets". The common way of using Arbitrage to gain profits is e.g. to buy a financial instrument on one exchange, transfer the asset to another exchange and sell it there at a higher Price.
Looking at Cryptocurrencies, there are a lot of Opportunities to take advantage of Price-Differences between Crypto-Exchanges, because there is no central Instance that controls the Price.
My CryptoArbitrageBreakout Indicator (Part of my CryptoArbitrage Toolkit for TradingView) can detect sudden increased Arbitrage between to Exchanges.
Another Strategy for using Price-Differences between Exchanges would be to detect Divergences or Lag between Price Movements on two Exchanges.
For example: The price on Exchange A is moving up, while the Price on Exchange B is going down. With the help of my CryptoArbitrage Toolkit you can detect Patterns that make use of those diverging Movements. In some cases the Price on Exchange B could revert and follow the Direction of the Price-Movement on Exchange A.
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My new Indicator Package for TradingView is available

I recently released my new Indicator Package "Jeddingen Divergence" for TradingView.

The indicator (or "study" as it is called at TradingView) is based on momentum vs price divergences and works best on forex, stocks and cryptocurrencies.

There is also a Strategy included to backtest the indicator settings. Backtesting can be restricted to a certain timerange, so it is possible to do a walk-forward analysis.

Strategy/ Study do include an RSI filter to get more reliable results.

My UniDivergence strategy is available as an EA for MT4

I finally wrote my own Expert Advisor that is roughly based on my TradingView strategy/ study "UniDivergence".

It is not only a re-implementation, since there are lots of additional features.

Some of them are:

  • Choose to trade on specific sessions (Sydney, Tokio, London, New York)
  • Use it to implement different trading styles, e.g. trading short-term with no stops, daytrading by going flat at the end of a trading session or trading on higher time-frames with a catastrophic-loss-protection
  • Allow/ disallow hedging

For a full list of all customization parameters, have a look at the handbook.

You can buy the EA here for only $49.

Find more information on the UniDivergence package for TradingView here.

 

 

Short video introduction on UniDivergence

I recently made a short video (approx. 10 minutes) to show some of the features of my UniDivergence indicator package to give you an impression on strategy development with this toolkit.

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