Binance Strategies

What is a trading strategy? A trading strategy is simply a plan you follow when executing trades. There’s no single correct approach to trading, so each strategy will largely dep...

Do you think you have great ideas about the market but don’t know how to put them to the test without risking your funds? Learning how to backtest trade ideas is the bread and butter of a good systematic trader. The underlying premise of backtesting is that what worked in the past may work in the future. But how do you go about doing this yourself? And how should you evaluate the results? Let’s go through a simple backtesting process.

There’s a wide range of technical analysis (TA) tools and indicators that traders may use to try and predict future price action. These may include complete market analysis frameworks, such as the Wyckoff Method, Elliott Wave Theory, or the Dow Theory. They can also be indicators, such as Moving Averages, the Relative Strength Index (RSI), Stochastic RSI, Bollinger Bands, Ichimoku Clouds, Parabolic SAR, or the MACD. The Fibonacci retracement tool is a popular indicator used by thousands of traders in the stock markets, forex, and cryptocurrency markets. Fascinatingly, it’s based on the Fibonacci sequence discovered more than 700 years ago. This article will go through what the Fibonacci retracement tool is and how you can use it to find important levels on a chart.

What is Elliott Wave? The Elliott Wave refers to a theory (or principle) that investors and traders may adopt in technical analysis. The principle is based on the idea that finan...

What are trend lines? In financial markets, trend lines are diagonal lines drawn on charts. They connect specific data points, making it easier for chartists and traders to visua...

What are the Bollinger Bands? The Bollinger Bands (BB) were created in the early 1980s by financial analyst and trader John Bollinger. They are broadly used as an instrument for ...

The Ichimoku Cloud is a method for technical analysis that combines multiple indicators in a single chart. It is used on candlestick charts as a trading tool that provides insights into potential support and resistance price zones. It is also used as a forecasting tool, and many traders employ it when trying to determine future trends direction and market momentum. The Ichimoku Cloud was conceptualized in the late 1930s by a Japanese journalist named Goichi Hosada. However, his innovative trading strategy was only published in 1969, after decades of studies and technical improvements. Hosada called it Ichimoku Kinko Hyo, which translates from Japanese as “equilibrium chart at a glance.”

What is the Wyckoff Method? The Wyckoff Method was developed by Richard Wyckoff in the early 1930s. It consists of a series of principles and strategies initially designed for tr...

The Moving Average Convergence Divergence (MACD) is an oscillator-type indicator that is widely used by traders for technical analysis (TA). MACD is a trend-following tool that utilizes moving averages to determine the momentum of a stock, cryptocurrency, or another tradeable asset. Developed by Gerald Appel in the late 1970s, the Moving Average Convergence Divergence indicator tracks pricing events that have already occurred and, thus, falls into the category of lagging indicators (which provide signals based on past price action or data). The MACD may be useful for measuring market momentum and possible price trends and is utilized by many traders to spot potential entry and exit points. Before diving into the mechanisms of MACD, it is important to understand the concept of moving averages. A moving average (MA) is simply a line that represents the average value of previous data during a predefined period. In the context of financial markets, moving averages are among the most popular indicators for technical analysis (TA) and they can be divided into two different types: simple moving averages (SMAs) and exponential moving averages (EMAs). While the SMAs weight all data inputs equally, EMAs assign more importance to the most recent data values (newer price points).

What is Stochastic RSI? Stochastic RSI, or simply StochRSI, is a technical analysis indicator used to determine whether an asset is overbought or oversold, as well as to identify ...