This page presents the simpler and easier to follow strategies that are popular with TradeMaster users. These concepts will help users maximise the potential of TradeMaster, while providing education on basic trading theories such as confluences and trends.
Multi-timeframe strategy #
Traders often use multiple time frames to confirm a trade or position. Using a lower timeframe to achieve greater granularity can be a great approach to more accurately determine a cleaner entry to maximize profits. The image below shows some common price movements on the 4-hour chart:
The red circle highlights a classic reinforced buy signal. This signal initially resulted in a small gain, as a candle represents 4 hours on a 4 hour time frame, so for sharp and fast movements we can often get a signal a little later. Moving to lower time frames can provide a fantastic opportunity for a great, cleaner and earlier entry for maximum profits. We recommend the following general approach: use the 4H timeframe to identify the overall trend and opportunities. This will give you the trend. Then zoom in to 1H timeframe to see the more detailed movement and behavior. Then look for entry on 15M Timeframe. This is of course fully customizable. The point is to have a Trend, a Behavior and an Entry timeframe. In the image below you can see this zoomed in to the 1 hour time frame:
This strong buy signal indicates a large amount of buying pressure and a strong upward trend. In this situation, the use of a lower time frame provides the trader with a cleaner, more accurate entry. It’s important to note that on the 4-hour chart, the price action has formed a higher top and structure break, indicating a possible market reversal, which further increases our confidence that this is a good time to buy.
Trend Rainbow Strategy #
Using the Rainbow in combination with the confirmation signal can be a simple and effective way to trade. In the image below, green and red arrows indicate areas where the price has found support or resistance on the Trend Rainbow. The red arrows indicate areas where the price movement found resistance and the green arrows indicate areas where the price movement found support.
When the price is at resistance (highlighted by red arrows), this suggests that it is time to observe and plan a short position. When the exchange rate is at support (highlighted with green arrows), this suggests that it is a good time to plan and observe a long position.
Amikor azt látjuk, hogy az árfolyam ellenállásba ütközik, ez azt sugallja, hogy jó idő eladni vagy shortolni a piacot. Ez még nyilvánvalóbbá válik, amikor a Rainbow-ról való lepattanást követő eladási jelzést látunk. Ez természetesen fordítva is érvényes. Amikor azt látjuk, hogy az árfolyam támogatást talál, majd vételi jelzést kap, ez egy extra szintű bizalmat ad a kereskedőnek, hogy a vételi/ long pozíció valóban a helyes választás.
Candle Colour Strategy #
TradeMaster’s Candle Colour Strategy is a powerful tool that enhances the traditional candlestick charting by incorporating various market indicators into the color-coding of the candlesticks. This feature provides a more intuitive and visual representation of market conditions, making it easier for traders to identify trends, sentiment, and other key factors at a glance.
Here’s a breakdown of the different color-coding options available:
● Structure: The colors are determined based on the market structure, providing a visual representation of the underlying price patterns.
● Sentiment (Fear & Greed): The colors represent market sentiment, with shades indicating fear (typically associated with selling pressure) and greed (implying buying pressure).
● Momentum: The colors reflect the rate of change in price over time, helping traders identify periods of accelerating or decelerating price movement.
● Trend Sentiment: The colors indicate the overall sentiment or bias of the trend, distinguishing between bullish and bearish market conditions.
● Trend Strength: The colors signify the strength of the current trend, with deeper colors often representing stronger trends.
● Volume: The colors are based on trading volume, highlighting periods of high and low trading activity.
● Volatility: The colors represent the degree of price variation in the market, providing a visual cue for periods of high and low volatility.
● Asset Strength: In forex trading, the colors show the relative strength of one currency against another, helping traders identify the stronger and weaker currencies in a pair.
● Divergence: The colors are determined based on the divergence between price movement and an indicator, signaling potential price reversals.
● Liquidity Grabs: The colors highlight instances where price quickly spikes into areas of ‘resting liquidity’, typically implying potential reversals.
Each of these color-coding options provides a unique perspective on the market and can be particularly useful in quickly identifying specific market conditions. By customizing their charts with these color codes, traders can highlight the factors that are most important to their trading strategy, thereby enhancing their decision-making process. For optimal visibility, it is recommended to disable ‘Borders’ in the Chart Settings.
One-click Presets #
TradeMaster also offers pre-configured trading strategy presets that can be activated with a single click. These presets override the settings listed at the bottom-left corner of the interface, providing a quick and easy way to switch between different trading strategies. Any settings not included in the preset can be further modified to suit your specific trading needs.
Here’s a brief overview of the available presets:
● SMC (Smart Money Concepts): This preset is based on the principles of Smart Money Concepts, which involve tracking the activities of institutional investors or ‘smart money’. It’s designed to help traders identify and follow the money flows in the market, potentially leading to more profitable trading opportunities.
● MA (Moving Average) Trader: This preset is designed for traders who use moving averages as a key part of their trading strategy. It provides a visual representation of various moving average lines and generates signals based on the interactions between these lines and the price.
● Swing Trader: This preset includes unique calculations for indicators that are particularly useful for identifying medium-term price movements. This preset is tailored for swing traders, who aim to capture gains in any financial instrument within an overnight hold to several weeks. It includes settings that help identify potential entry and exit points based on short-term price movements.
● Scalp Trader: This preset includes unique calculations for indicators that are designed to capture very short-term price movements. This preset includes unique calculations for indicators that are designed to capture very short-term price movements. This preset is designed for scalping, a trading strategy that involves making numerous trades within a day to profit from small price movements. It includes settings that help identify short-term price trends and volatility, which are crucial for successful scalping.
● Ranger (Range Trader): This preset is designed for range trading, a strategy that involves trading within the high and low range of a price. It includes settings that help identify potential high probability smart money levels, which are used to determine the true price range.
These presets provide a convenient starting point for different trading strategies. However, they should be used as a guide rather than a definitive trading system. Successful trading involves a combination of using the right tools, having a solid understanding of the market, and implementing a well-thought-out trading plan.