Highlights

Collin Seow Remisier Blog

Author: Collin Seow   |   Latest post: Fri, 9 Aug 2019, 2:00 PM

 

SMT TV Episode 39 - How to Trade Index CFD? - Part 2

Author: Collin Seow   |  Publish date: Fri, 9 Aug 2019, 2:00 PM   |  >> Read article in Blog website


What is CFD trading?

Let Collin share with you his take on it.

Just Click on the image below to watch the video and remember to like and subscribe to Collin’s Channel!

If you want to learn more about trading,

Click here.

The post SMT TV Episode 39 – How to Trade Index CFD? – Part 2 appeared first on The Systematic Trader | Trading Courses | Collin Seow.

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My two BEST uses of Bollinger Bands

Author: Collin Seow   |  Publish date: Thu, 8 Aug 2019, 11:53 AM   |  >> Read article in Blog website


Best uses of bollinger bands

Bollinger bands consist of a moving average, an upper band and a lower band. A total of 3 simple lines.

If you are a technical trader but you haven’t tried using this indicator, you really need to dig in and check it out.

Here I’d like to share my two best uses of Bollinger Bands.

Bollinger bands are ranked among the most useful indicators in the arena of trading.

Consisting of a moving average and 2 bands above and below, take a look at the chart above.

This indicator was created by John Bollinger back in the early 1980s and has taken the world by storm since.

One of the most difficult challenges in trading, is managing volatility.

This is exactly what Bollinger bands can help us with, by providing one of the simplest ways to keep tabs on volatility. Giving us a pretty good idea of where we are in the markets and how we can trade.

There are many viable ways to use Bollinger bands to trade the markets, regardless of whether it’s ranging or trending.

Bollinger bands are one of the most extensively explored indicators in the world of trading.

So I doubt there's a good way to use them which hasn't already been discovered by some trader out there.

But let me share with you a couple of my favourite ways to use the Bollinger Bands. Amongst all the ways to use Bollinger Bands, I find these to be the most useful ways for me to process market information.

Do note that these are NOT full strategies on their own.

They must be augmented with additional factors and rules for entry and exits, before they can actually be a full trading system.

 

Double Top/Bottom Reversal

I use this to identify potential market reversals.

This is a contextual analysis so I'll apply these to higher timeframes such as H4 or daily charts form my big picture before I dive in looking for my entries. It's good on more volatile markets like FX and indices.

  • We look for the end of a directional move to pierce through the Bollinger band.
  • Then after price retraces and pauses, look for another push in the same direction where the highest/lowest point does not pierce through the Bollinger band.

Ideally this 2nd push will exceed the first push as well, but if it doesn't, it's alright too.

For example below,

Part 1: We see a directional movement upwards. The end of the move pierces the upper Bollinger band.

Part 2: Price pauses.

Part 3: Price makes another push upwards. This time the price movement does not pierce the Bollinger band.

Part 4: When the low of the pause is broken, we look to get short on this market, and this is where your other shorter timeframe strategy's entry and exit rules come into play.

 

Here are a few more examples on the EURUSD H4 chart:

For FX, I find that a 50 period Bollinger Bands with a deviation of 2 gives me better signals than the standard 20 period.

 

Bollinger Squeeze

This is a crowd favourite, used to capture potentially large impulse moves.

There are a few methods of trading this, so I’ll just be sharing the way which works best for me. (Different from Collin’s way)

These are mostly used in the H4 or Daily charts.

The concept is basically that volatility cycles between periods of low volatility and high volatility.

This means a period unusually low volatility is regularly followed by a period of high volatility, which again is then followed by a period of low volatility.

The Bollinger Squeeze aims to identify when the market is at a period of unusually low volatility, then we can get ready to take advantage of the coming period of high volatility.

For the Bollinger Squeeze, I use the standard 20 period Bollinger Bands with a deviation of 2.

Part 1: Identify that the bands are significantly closer than usual (the Squeeze). Usually price would have been trading in a fairly tight range as well.

Part 2: Keep track of the highest and lowest price of the MOST RECENT past 20 periods.

Part 3: If price breaks through this highest or lowest price of the past 20 periods, then you're looking to trade in that direction. You can then implement your entry and exit rules on the lower timeframes.

Part 4: If during the current candle, price does NOT break the highest or lowest value in part 2, repeat step 3 until price finally breaks either the highest or lowest value which you are tracking.

I've illustrated this with an example below.

Note: Day 1 is the day after the squeeze has been formed.

Day 1: We have identified a squeeze. So we count back 20 candles (red box) and identify the highest and lowest prices of those 20 candles.

 

Day 2: Price did not break the highest or lowest values in Day 1, so now we recount the past 20 candles again (updated red box) and identify the highest and lowest prices.

 

Day 3: Price finally breaks the lowest price of the most recent 20 candles. We are now looking for Shorts.

 

 

Bonus pro tip:

If it doesn't work out the first time in the direction of the breakout, you can flip to trade in the opposite direction.

 

I hope you'll enjoy these 2 ways to use Bollinger bands and may they bless your pockets with gold!

 

 

 

The post My two BEST uses of Bollinger Bands appeared first on The Systematic Trader | Trading Courses | Collin Seow.

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SMT TV Episode 38 - How to Trade Index CFD? - Part 1

Author: Collin Seow   |  Publish date: Thu, 1 Aug 2019, 3:30 PM   |  >> Read article in Blog website


What is CFD trading?

Let Collin share with you his take on it.

Just Click on the image below to watch the video and remember to like and subscribe to Collin’s Channel!

If you want to learn more about trading,

Click here.

The post SMT TV Episode 38 – How to Trade Index CFD? – Part 1 appeared first on The Systematic Trader | Trading Courses | Collin Seow.

  Be the first to like this.
 

Using Price Volume Analysis to Forecast Reversals (Examples)

Author: Collin Seow   |  Publish date: Mon, 22 Jul 2019, 6:04 PM   |  >> Read article in Blog website


When it comes to finding their edge in the markets, traders will explore every single tool in the world.

This comes as no surprise, considering the pot of gold at the end of the rainbow is substantial.

One of the earliest tools which traders use to solidify their edge, is Volume.

Even until today, this tool has extraordinary insight to the market analysis.

Many professional traders continue to use volume in their trading analysis.

So what is volume?

Volume is the number of shares that have been traded during a time period, and it truly shows the significance of changes in price.

Volume reveals whether buying or selling interest is rising or falling.

You can basically think of volume as the fuel that drives the market.

The best deals in the market are when you trade side by side with institutional/smart money. Large volumes done in the market are definitely not by retailers such as you and me!

I like to use volume as it tends to be a leading indicator, which can warn of a potential price reversal. Note it does not confirm price reversal but increases the odds of it happening.

Now you must understand that volume price analysis is not a science, but an art.

Which is why automation does not necessarily lend the correct analysis to this.

It might take a little while before you are acquainted with this analysis method, but the rewards are certainly worth its weight in gold.

In this article I'll cut to the chase and show you some of the volume patterns that I use frequently in my trading.

Note that I realize many of you would like the "thesis" or explanation behind these patterns but to me that is not important.

What matters to me is that it works, the rest don't matter!

This is the principle I've learned in professional gaming previously and it's the same core principle that I've brought forward in trading the markets.

If this shit works, don't question or over-analyse, the markets don't care about your thesis or logic!

 

Pattern 1A: High Volume Bars after a Prolonged Downtrend

This is a classic potential reversal pattern.

Stock goes into a prolonged downward trend, significant high volume suddenly comes into play, indicating that the stock’s selling could have reached it’s climax.

It is imperative that after you see this pattern, you must still wait for confirming trend indicators such as moving averages etc. to confirm that the trend has turned before executing the trade.


Pattern 1B: High Volume Bars after a Prolonged Uptrend

Similar potential reversal pattern, but in reverse.

Stock is in a prolonged uptrend, significant volume comes in (use your eyes to spot!), signifying possible early distribution/selling by institutions or smart money.

Rolls over accordingly after Moving averages confirmed the trend reversal.


Pattern 2A: High Volume Bars with Narrow Ranged Bar (During Uptrend)

Another potential reversal pattern, but with stronger warning.

Stock is in a prolonged uptrend, significant volume comes in with the bar having a narrow range/spread.

This is very suspect price volume action and should be taken seriously if you are currently in a long position.

Pattern 2B: High Volume Bars with Narrow Ranged Bar (During Downtrend)

Same as the above pattern, but in the context of a downtrend instead.

Stock is in a prolonged uptrend, significant volume comes in with the bar having a narrow range/spread.

This is very suspect price volume action and should be taken seriously if you are currently in a short position.

And there you have it, 4 examples of how volume can help you predict potential reversals and stronger moves when the trend of the stock/asset changes.

Remember to use these techniques on equities and not Forex as they do not have clean volume information.

There are of course more volume patterns that can be used to augment your trading decisions, but learning and training your eyes on these current patterns will take your trading a long way.

As always, trade awesome!

The post Using Price Volume Analysis to Forecast Reversals (Examples) appeared first on The Systematic Trader | Trading Courses | Collin Seow.

  Be the first to like this.
 

Using Price Volume Analysis to Forecast Reversals (Examples)

Author: Collin Seow   |  Publish date: Mon, 22 Jul 2019, 6:04 PM   |  >> Read article in Blog website


When it comes to finding their edge in the markets, traders will explore every single tool in the world.

This comes as no surprise, considering the pot of gold at the end of the rainbow is substantial.

One of the earliest tools which traders use to solidify their edge, is Volume.

Even until today, this tool has extraordinary insight to the market analysis.

Many professional traders continue to use volume in their trading analysis.

So what is volume?

Volume is the number of shares that have been traded during a time period, and it truly shows the significance of changes in price.

Volume reveals whether buying or selling interest is rising or falling.

You can basically think of volume as the fuel that drives the market.

The best deals in the market are when you trade side by side with institutional/smart money. Large volumes done in the market are definitely not by retailers such as you and me!

I like to use volume as it tends to be a leading indicator, which can warn of a potential price reversal. Note it does not confirm price reversal but increases the odds of it happening.

Now you must understand that volume price analysis is not a science, but an art.

Which is why automation does not necessarily lend the correct analysis to this.

It might take a little while before you are acquainted with this analysis method, but the rewards are certainly worth its weight in gold.

In this article I'll cut to the chase and show you some of the volume patterns that I use frequently in my trading.

Note that I realize many of you would like the "thesis" or explanation behind these patterns but to me that is not important.

What matters to me is that it works, the rest don't matter!

This is the principle I've learned in professional gaming previously and it's the same core principle that I've brought forward in trading the markets.

If this shit works, don't question or over-analyse, the markets don't care about your thesis or logic!

 

Pattern 1A: High Volume Bars after a Prolonged Downtrend

This is a classic potential reversal pattern.

Stock goes into a prolonged downward trend, significant high volume suddenly comes into play, indicating that the stock’s selling could have reached it’s climax.

It is imperative that after you see this pattern, you must still wait for confirming trend indicators such as moving averages etc. to confirm that the trend has turned before executing the trade.


Pattern 1B: High Volume Bars after a Prolonged Uptrend

Similar potential reversal pattern, but in reverse.

Stock is in a prolonged uptrend, significant volume comes in (use your eyes to spot!), signifying possible early distribution/selling by institutions or smart money.

Rolls over accordingly after Moving averages confirmed the trend reversal.


Pattern 2A: High Volume Bars with Narrow Ranged Bar (During Uptrend)

Another potential reversal pattern, but with stronger warning.

Stock is in a prolonged uptrend, significant volume comes in with the bar having a narrow range/spread.

This is very suspect price volume action and should be taken seriously if you are currently in a long position.

Pattern 2B: High Volume Bars with Narrow Ranged Bar (During Downtrend)

Same as the above pattern, but in the context of a downtrend instead.

Stock is in a prolonged uptrend, significant volume comes in with the bar having a narrow range/spread.

This is very suspect price volume action and should be taken seriously if you are currently in a short position.

And there you have it, 4 examples of how volume can help you predict potential reversals and stronger moves when the trend of the stock/asset changes.

Remember to use these techniques on equities and not Forex as they do not have clean volume information.

There are of course more volume patterns that can be used to augment your trading decisions, but learning and training your eyes on these current patterns will take your trading a long way.

As always, trade awesome!

The post Using Price Volume Analysis to Forecast Reversals (Examples) appeared first on The Systematic Trader | Trading Courses | Collin Seow.

  Be the first to like this.
 

How Do You Know if You Are Trading In The Zone?

Author: Collin Seow   |  Publish date: Thu, 11 Jul 2019, 6:06 PM   |  >> Read article in Blog website


trading in the zone

 

What does it mean to be "trading in the zone"?

I'm sure many of you have heard of a trading book called "Trading in The Zone" by Michael Douglas, which focuses on the psychological challenges that traders face.

If you're keen on becoming a solid trader, reading this book is a must. It will highlight trading psychology and likely shorten your learning curve.

But in the meantime, let me give a brief over view to the topic of trading psychology.

"Trading in the zone" means that your psychological state is in a certain place, which allows you to allocate risk appropriately, recognize what the market is telling you and adapt accordingly.

All this is easier said than done of course.

Getting into "the zone" will come with experience, a solid understanding of your trading edge and understanding risk.

Don’t worry, this isn’t a specific point, as the name suggests, this is a “Zone”.
This means there is a range where your mindset can be considered to be in the right place.

Here are some markers which indicate when you're "in the zone":

 

You accept that losses are part of the business

I believe many of you have heard this before, but I just can't drill it into you enough.
You may think you accept this fact, but likely you don't.
Trading is probably one of the few professions where success is directly correlated to being able to admit you're wrong, quickly and very frequently.
Make good losses, from good trades which make sense.
Don't enter random trades on a gut feel, don't exit randomly on a gut feel.
Have an objective reason to make an action in the market.
Only then, can you draw good market information from that loss.
This enables you to make the better decision in the next trade.

 

You accept that anything can happen.

This is why we are not able to correctly predict every single movement in advance.
However there is good news, you don't need to know what will happen next to make money in the market.
Based on certain past events, we are able to predict the next movement with a probability of more than 50% accuracy in the long run.
This is your edge.
All you need to do now, is do that same type of trade enough times for your edge to show up in your PnL.

 

You realize that Market Analysis is often over rated.

Make no mistake, market analysis is important, but the focus is not on "predicting right", it's about "listening to the market right".
Because as with point 2, you accept that anything can happen, so the price does not have to conform to your expectations.
Instead analysis helps tell you where you are in the market, be able to better interpret price and adapt to what it tells you.
It's also beneficial to be able to keep things simple, so that at a quick glance, you're able to identify opportunities.
Then perhaps a closer look to refine your key levels and produce your trading plan.

 

You can take full responsibility for your trading results because you understand...

It's how you adapt to the prevailing market actions that determines how profitable you'll be.
It's not an "accurate prediction" of the market that makes you money.
It's how you traded the market that makes you money.
Your analysis of the market direction could be totally wrong, but if you were able to recognize that you were wrong fast, and then quickly adjust yourself to trade according to what the market is actually doing, you'll be able to make money overall from trading that move.
This is not gut feel trading, you still must have a set of rules to determine when and how you will do trades.

 

You understand that there is a random distribution between the wins and losses for any given set of variables that define an edge.

The market is always right.
There’s no debating with it or arguing with it.
There is only dealing with it.
So losses are going to be part of the numbers of a valid market edge.
I have an article here which describes why you shouldn't be too bothered about losing streaks.
They are beyond your control.

 

To round up this article, let me just suggest a way to get into the Zone quicker, focus on the aspects of trading which you have control over.

Focus on trading your edge.
Take the trades which you should be taking, avoid trades which don’t have your edge.

Focus on managing your risk.
This does not mean just keeping your losses small.
It also means being able to allocate sufficient risk to opportunities.

I hope you’ve found this article useful.

Good trading to you all!

 

The post How Do You Know if You Are Trading In The Zone? appeared first on The Systematic Trader | Trading Courses | Collin Seow.

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