Minima/Maxima
Predicting Market Tops and Bottoms with Minima/Maxima
Last updated
Predicting Market Tops and Bottoms with Minima/Maxima
Last updated
1. Introduction
Explore the Minima/Maxima AI trading model—one of the advanced AI indicators developed to elevate your trading strategies.
Minima/Maxima helps traders identify potential market highs and lows in real-time, offering timely insights on optimal entry and exit points. Whether you’re new to AI trading or an experienced trader seeking precision tools, the Minima/Maxima model can support more accurate decision-making.
2. Setting Up & Accessing the Minima/Maxima AI Model
Step 1: Accessing the Minima/Maxima AI Model
Connect Your Wallet: To start using Minima/Maxima, first connect your wallet to Xpanse. Once connected, you'll be directed to the trading dashboard. Please note that to cover gas fees, you'll need ETH.
Adding and Removing the Minima/Maxima Indicator: To enable the Minima/Maxima indicator, navigate to the “AI / Indicators” tab, click on “Custom Indicators,” then below 'Minima/Maxima' click on "Add to Chart." To remove the indicator, simply click the small “X” next to the indicator's name located top-left of your main chart.
3. Understanding the Minima/Maxima AI Model
How Minima/Maxima Works
Once activated, Minima/Maxima will begin analyzing the live market data to predict resistance and support levels. You’ll see the following features on your chart:
Local Market Tops (Resistance): When the model identifies a potential market peak, it will mark the resistance level with an orange square, indicating a good point for a possible sell or short position.
Local Market Bottoms (Support): If the model detects a possible market bottom, it will flag the support level with a white circle, providing a signal for potential buying or long positions.
4. Interpreting and Using the Signals
Using Minima/Maxima for Better Trading Decisions
When you see a resistance level appear, it’s an indication that the market may slow down or reverse soon. If you’re holding a long position, you might consider taking profits at this point.
Conversely, when a support level is flagged, the market could be near a reversal, providing a potential entry point for buying or opening a long position.
Tips for Using Minima/Maxima
Combine Signals with Risk Management: Always pair these signals with a sound risk management strategy (like setting stop-losses) to minimize potential losses.
Optimal Market Conditions: Minima/Maxima works best in calm, stable market conditions where trends are easier to detect.
Use with Other Indicators: It’s advisable to use the model alongside other indicators for confirmation, such as volume and price action analysis.
5. Risk Management
Risk Management: Stop-Loss Recommendations
While Minima/Maxima helps identify key trading opportunities, it’s important to manage your risk effectively. We recommend setting a 2% stop-loss on every trade to limit potential losses in case the market moves unexpectedly.
6. Disclaimer
Disclaimer
Trading carries risk, and past performance of any AI models does not guarantee future results. Xpanse is not liable for any losses incurred while using these indicators. Traders are responsible for their own decisions and are encouraged to use risk management strategies at all times.
7. Next Steps
What’s Next?
Now that you’re familiar with the Minima/Maxima model, it’s time to start trading!
For more insights, updates, and to connect with fellow traders, we invite you to join our community on Telegram and Discord. Stay up-to-date with the latest features and share your experiences with others in the Xpanse community!
