SwingSwiss Docs

Understanding the Alerts

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The signal alert Format

[WiseStrat Signals] [Asset Name] [Close Price]

Our basic WiseStrat strategy serves as the foundation for generating Long and Short signals.
These signals are the result of ongoing, in-depth research into volume and pattern recognition, which began in 2018 and continues to be updated regularly.
The channel is currently running Beta and does not support the "Re-entry Method" yet.

Trend and Movement

"Trend" is the value of Trend Analyzer (TA) on a higher timeframe while "Movement" is the value of TA on the current chart (4H or Daily).
Traditionally, a TA value of 80 or higher indicates an entry into the overbought zone.
A reading of -80 or lower indicates an oversold entry condition, and a reading between -15 and +15 is considered dangerous.
The TA will rise as the trend is bullish and will fall when the trend is bearish.
When TA crosses below the 0 value, we consider the bullish trend fully exhausted, and when it crosses over the 0 value, we consider the bearish trend fully exhausted.
It is not because TA is above 0 that the trend is necessarily bullish. If TA has been falling for several candles and is heading toward the 0 value, the downtrend has already started!
The best long opportunities are when both Trend and Movement are in the overbought zone. The best short opportunities are when both Trend and Movement are in the oversold zone.

Odd Candle

A bullish odd candle indicates a price increase, while a bearish odd candle suggests a price decrease.
It is essential to use odd candles to ensure that the current candle has not already consumed your opportunity.

Kelly Criterion

The Kelly Criterion is a mathematical formula that helps investors determine the ideal size of their investment in a particular trade.
Investing in the financial markets is always a risky business. While diversification can help reduce risks, uncertainty remains in every trade. This is where the Kelly Criterion comes into play. It helps investors find the optimal amount to invest in a trade, based on the expected returns and the probability of success.
The formula is simple - the percentage of your trading account that you should risk is equal to the probability of winning minus the probability of losing, divided by the odds against winning.
Although our Kelly Criterion is currently in the beta stage and lacks support for crucial elements such as the "2nd Trial Pattern," it remains a valuable tool for optimizing trade sizes.
Moreover, you can utilize the Kelly Criterion to assess the probability of success for a given trade. If the Kelly value is less than 0.30, the trade is deemed to carry a high level of risk.