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Bullish Patterns

SWING TUTORIAL - EMAMILTDThe stock had found a Resistance zone @ 602 during Aug 2021 and had started a Lower Low Pattern ever since. Eventually finding its Support Zone @ 360 during Mar 2023 after 1 Year and 7 Months. At this point notice that the Lower Low Pattern in the Price Action, however MACD slightly started showing a Higher Low formation. Hence the Convergence Divergence indicating a good move upward and also the 1st confirmation upward. Finally in July the stock showed its 2nd confirmation once it successfully exited the Lower Low Pattern Trendline with a massive huge green candle. Thus giving us our 1st Entry point at this stage which took the stock as close to the previous Resistance zone @ 602 and a safe exit as High as 31% for the Trade as well. Another cool thing to note here is the Stock also retested the same breakout zone and the MACD as well was making a new Crossover, thus indicating another fresh Entry into the stock. This trade had eventually broken the 4 Year Resistance zone @ 602 with a large volume and taking the stock as High as 67% in returns as of today. What do you think about this Tutorial? Give your comments in the Comments Section below:
NSE:EMAMILTDEducation
by thepranam
ORDER BLOCK trading strategyThe order block trading strategy is based on the concept of smart money, focusing on identifying specific zones where institutional traders previously executed their orders. Once we have successfully identified these zones, we patiently wait for the price to revisit these levels. By using a suitable strategy, we then enter our trades in the anticipated direction. -What is an Order Block in Forex: Order blocks are special zones within the market where significant buy or sell orders from major market participants, like institutional traders, have been previously executed. These order clusters, situated in specific price regions, hold considerable influence over price action, market sentiment, and liquidity. Order blocks serve as a specialized methodology to determine crucial support and resistance levels, derived from the trading behavior of institutional traders. These levels are subsequently employed as strategic points for initiating or concluding trades. -Understanding Order Block in Trading: In Forex or any other market, ict order block represent crucial price levels where we observe significant and aggressive price movements. These levels are characterized by large firms strategically placing their orders, which often results in the market moving forcefully from those points. To influence the market in a specific direction, smart money or hedge funds execute orders worth billions of dollars at particular price levels. However, not all of their orders are immediately filled. As a result, smart money revisits these levels to execute the pending orders, leading to further movement in the desired direction. -ICT Order Blocks Definition: Order blocks can indeed be identified on any time frame, ranging from small time frame like 15m,30 m and m5 to larger time frames like daily or weekly charts. Order blocks can be classified into two main types: Bullish Order Blocks and Bearish Order Blocks. 1. Bullish Order Block: A Bullish Order Block is recognized as the last downward candle before the price experiences a significant and aggressive upward movement. It represents a key level where institutional traders placed substantial buy orders, causing the market to rally strongly from that point. 2. Bearish Order Block: On the other hand, a Bearish Order Block is characterized by the last upward closing candle before the price undergoes a sharp and forceful downward movement. It signifies a critical level where large market participants, such as institutional traders, positioned significant sell orders, resulting in a significant decline in the market. By identifying and analyzing these Bullish and Bearish Blocks, traders can gain insights into a potential reversal or continuation patterns and utilize them as entry or exit points for their trades. Trading order blocks go beyond solely identifying the last up or down closing candle. To effectively trade order blocks, it is essential to consider several contextual factors, including: 1. Liquidity Hunt: Market participants, especially institutional traders, may strategically place their orders to trigger stop losses or create a liquidity imbalance. Understanding liquidity patterns and how they can influence price action is crucial. 2. Daily Bias: Evaluating the overall market sentiment and bias for the day is important. This involves considering factors such as news events, economic releases, and geopolitical developments that may impact the market and influence order-block behavior. 3. Interest Rates and Fundamentals: Fundamental factors, including interest rates, economic indicators, and central bank policies, can significantly influence market conditions. Understanding how these factors interact with order blocks can provide valuable insights for trading decisions. By taking these contextual factors into account, traders can enhance their understanding of order blocks and make more informed trading decisions. To identify order blocks, price action traders typically examine historical price movements on the chart to locate areas where the market has shown strong reactions. -How to identifying order blocks: 1. Look for strong price reactions: Analyze the chart to identify areas where the price has displayed significant and notable reactions, such as sharp reversals, extended consolidations, or breakouts. 2. Mark potential order block levels: Once you identify these areas of strong price reactions, mark them as potential order block levels on your chart. These levels represent key price zones where institutional traders may have executed large orders. 3. Assess support and resistance characteristics: Consider how the price behaves with the marked order block levels. If the price bounces off a specific level multiple times, it indicates a robust level of support or resistance, depending on whether the price approached the level from above or below. 4. Watch for role reversal: When an order block level is breached, its role as support or resistance can reverse. For instance, a broken resistance level may transform into a support level, and vice versa. In such cases, traders often wait for a retest of the broken level before entering trades in the direction of the breakout. By following these steps and considering the principles of support and resistance, traders can effectively identify and utilize order blocks in their trading strategies. However, it’s important to note that order block analysis is just one tool among many in a comprehensive trading approach. -How To Trade Order Blocks: The steps you’ve mentioned provide a general guideline for trading order blocks in forex. Here’s a breakdown of each step: 1. Point of Interest (POI): Start by identifying potential order blocks on higher time frames, such as daily and 4-hour charts. These could be areas of consolidation or strong price reactions. Once you’ve marked these POIs, move to the next step. 2. Optimization: Switch to lower time frames like 1-hour, 15-minute, or 5-minute charts to refine and optimize your POIs. By zooming in on these lower time frames, you can better analyze the price action within the identified areas. 3. Price Observation: Keep an eye on the price action in the higher time frame. Monitor how the price behaves as it approaches your POI. This observation helps you determine the strength of the order block and potential trading opportunities. 4. Rejection Analysis: When the price reaches your POI, switch to the lower time frame to examine how the order block reacts to the price. Look for signs of rejection, like fair value gap 5. Entry on Lower Time Frame: Once you’ve observed a rejection or a significant reaction at the order block on the lower time frame, you can plan your entry. Look for suitable entry signals, such as a breakout, pullback, FVG price Imbalance, and more 6. Stop Loss Placement: To manage risk, it’s important to place a stop loss order. Consider setting your stop loss 1 to 5 pips below the order block ict to allow for potential market noise and fluctuations. This helps protect your trading capital in case the trade doesn’t go as planned. Remember, these steps provide a general framework for trading ict order blocks, but it’s crucial to develop a trading strategy that suits your risk tolerance, trading style, and market conditions. It’s recommended to thoroughly back test and practice your strategy before applying it with real money. Additionally, staying updated with market news and having proper risk management practices are essential for successful trading.
Editors' picks
Education
by Golden_Star1994
21
BUT WHICH DIRECTION IS THE TREND HEADED?It's not a simple question and REALLY matters ALL of the time, so, finding a simple answer is a neat tool to have in the snuff-toolbox.. Here's the quickest, easiest down-n-dirry method for getting closer to an answer. If you look at the ranging areas of the chart. The in-between, sideways, messy, wish-it-didn't-exist areas and draw a rough shape tracing the progression, then you'll likely notice either a "U" shape or an "n" shape (not everywhere, but at least one prominent one per section/timescale). You'll know if when you see it. Keep practicing and don't force it. The U Shape can be reliably trusted to identify a Bullish trend, whilst the n Shape does the same when there's blood about. Sound silly, right.. But it works. And now you know..
Education
by Rebelmedia
Understanding the "Dead Cat Bounce" in TradingIn the dynamic world of trading, one peculiar phenomenon that often catches investors' attention is the "Dead Cat Bounce." This term, as bizarre as it sounds, is a crucial concept in technical analysis and market psychology. It refers to a temporary recovery in the price of a declining stock, followed by a continuation of the downtrend. This article delves into the nuances of the Dead Cat Bounce, helping traders recognize and navigate this pattern effectively. What is a Dead Cat Bounce? Originating from the saying, "even a dead cat will bounce if it falls from a great height," this metaphor is used to describe a brief and false recovery in a bear market. Essentially, it's a short-lived rally in the price of a stock or an index following a substantial decline, misleading some into believing that the downtrend has reversed. Characteristics of a Dead Cat Bounce Precipitating Sharp Decline: Typically, a Dead Cat Bounce occurs after a significant and rapid drop in price. Temporary Rebound: The stock or index experiences a brief period of recovery, which may be mistaken for a trend reversal. Resumption of Downtrend: The initial downtrend resumes, often eroding the gains made during the bounce. Identifying a Dead Cat Bounce The key challenge for traders is differentiating between a true market recovery and a Dead Cat Bounce. Here are some indicators: Volume Analysis: A genuine recovery often accompanies increasing trade volumes, whereas a Dead Cat Bounce may occur on lower volumes. Duration: Dead Cat Bounces are usually short-lived, lasting from a few days to a couple of weeks. Technical Indicators: Tools like moving averages, RSI (Relative Strength Index), and Fibonacci retracements can aid in identifying these patterns. Trading Strategies for Dead Cat Bounces Short Selling: Traders might short sell a stock during a Dead Cat Bounce, anticipating the resumption of the downtrend. Stop-Loss Orders: Setting strict stop-loss orders can mitigate risks if the bounce turns out to be a genuine reversal. Patient Observation: Sometimes, the best strategy is to wait and observe the price action for clearer trend confirmation. Case Studies and Examples Analyzing past instances of Dead Cat Bounces can be educational. For instance, examining the 2008 financial crisis or the dot-com bubble burst reveals classic examples of this phenomenon. Conclusion The Dead Cat Bounce is a fascinating aspect of market behavior, representing the constant battle between optimism and reality in trading. Understanding this concept is not just about recognizing a pattern but also about grasping the underlying market psychology. As always, traders should approach these scenarios with caution, equipped with sound research and a well-thought-out strategy.
BITSTAMP:BTCUSDEducation
by GreenCryptoTrades
Mastering Market StructureBullish Market Structure: Bullish Vibes! It's all about making Higher Highs and Higher Lows. When you spot this pattern, you're riding the wave of optimism in the market, and it's your chance to seize the moment and soar with the bulls. Consolidation Market Structure: Consolidation Market Structure is all about lateral movement, where the market forms Equal Highs and Equal Lows. It's a phase of uncertainty, with neither bulls nor bears holding a clear advantage. Traders often await a breakout to determine the next market direction. Bearish Market Structure: Bearish Market Structure: Get ready for Lower Highs and Lower Lows. Sellers are in control, creating a solid downtrend. Traders look for short entry opportunities on retracements.
Education
by BlackWatch01
Advanced Bull Flag ConceptsHave you ever wondered why price action sometimes forms a bull flag pattern? Have you ever wondered if there is a way to predict whether a bull flag will break out before it actually does so? In this post, I will try to address these questions by presenting a couple of theories about the nature of bull flags. Bull Flag Theories (1) The flag structure of a bull flag tends to form along Fibonacci levels, with the ideal flag proportion being an approximated golden ratio to the flagpole; and (2) Fibonacci and regression analyses can provide useful insight into whether price will successfully break out of its bull flag pattern, sometimes long before price even attempts to do so. I will try my best to clearly explain both theories in detail below. Note: Although this analysis is also generally true for bull pennants, bear flags, and bear pennants, to keep things simple I will focus solely on bull flags. Additionally, this analysis is generally true across timeframes. Part I - The Basics of a Bull Flag First, let's begin with the basics. As shown in the image below, bull flags form when an asset is in a strong uptrend. The uptrend forms the flagpole of the bull flag structure. The flag structure forms when price consolidates, usually in a falling trend. This consolidation phase is often characterized by price oscillators rotating back down while the price retraces only a small part of its prior upward move. From a market psychology perspective, bull flags often form when most market participants who bought the asset continue to hold it expecting the uptrend to resume, while only a minority of market participants sell (or short the asset) as its price corrects downward. The bull flag pattern is a continuation pattern because it reflects the market's general expectation that price will eventually resume its upward move. Once the price definitively breaks above the upper channel of the flag (often with strong momentum and high volume), the bull flag pattern is validated. Upon breakout, the expected move up is equal to the vertical height of the flagpole. Part II - The flag structure of a bull flag tends to form along Fibonacci levels, with the ideal flag proportion being an approximated golden ratio to the flagpole Here's where things begin to get interesting. Below is the golden ratio. Two quantities, a and b (where a > b ), form the golden ratio if their ratio is the same as the ratio of their sum to the larger of the two quantities. (See the equation below) The equation above shows the Greek letter phi which denotes the golden ratio. Phi is equivalent to a/b when such ratio is also equivalent to (a + b)/a. Although bull flags can take various forms, it is my hypothesis, based on chart analysis and research, that the most perfectly structured bull flags (ones that also have the highest probability of successful breakouts) occur when the flag forms a golden ratio to the flagpole. Mathematically, this means that the vertical height of the flagpole is equivalent to (a + b) and the vertical height (i.e. the width) of the flag is equivalent to b. This is also to say that price retraces down to the 0.382 Fibonacci level as measured by applying Fibonacci retracement levels along the flagpole (or to the 0.618 point on the vertical height of the flagpole if one measures from the bottom to top). I realize that this can be quite confusing, so let’s walk through some visualizations. Let's first visualize this hypothesis using the golden rectangle. Below is an image of the golden rectangle. A golden rectangle is composed of a square (with sides equal to a) and a smaller golden rectangle (with width equal to b and length equal to a). Now let's rotate the golden rectangle to better visualize the hypothesized flag pattern. The bull flag is hypothetically an approximation of the golden rectangle, whereby the width of the flag is in a golden ratio approximation to the length of the flagpole. In the illustration below, there are multiple bull flags contained within a Fibonacci spiral. The spiral is made up of golden rectangles, with each larger golden rectangle containing a smaller golden rectangle inside it. The smaller golden rectangle is the flag structure, and the length of the larger golden rectangle is the flagpole. One can think of the Fibonacci spiral and the golden rectangles as a series of bull flags that build on top of each other in a repeating pattern. In this diagram, price is represented by the increasing length of the sides of each golden rectangle. In other words, the price on a chart can be seen as spiraling higher after each bull flag breakout. Of course, not all bull flags form a structure that approximates the golden ratio, but it is my belief that in forming a bull flag, price action is aspiring to achieve as close of a golden ratio approximation as it can. I believe that the bull flags that best approximate the golden ratio structure also present the highest probability for a successful break out. To learn more about Fibonacci spirals, including the golden spiral that Fibonacci spirals approximate, you can check out this Wikipedia article: en.wikipedia.org Part III - Fibonacci and regression analyses can provide useful insight into whether price will successfully break out of its bull flag pattern, sometimes long before price even attempts to do so. To see how Fibonacci levels and regression analysis can give insight into whether a bull flag will break out or break down before it does so, let's consider an example. Let’s consider the massive bull flag that the iShares Russell 2000 ETF (IWM) formed in 2021. In 2021, the monthly chart of IWM formed what appeared to be a bull flag, as shown below. Now let's see why Fibonacci analysis and regression analysis were warning that this bull flag was not likely to break out successfully. First, IWM's price did not retrace to a Fibonacci level before attempting a breakout (when using the pole as the Fibonacci retracement reference point). In the chart below, we see that price tried to break out, without even so much as retracing down to the highest Fibonacci retracement level: $196.71. By not undergoing Fibonacci retracement, price did not give its oscillators the opportunity to rotate back down fully. Instead, price remained overextended at the time it attempted to break out. Now let's look at regression analysis. Below is a log-linear regression channel that contains IWM's entire price history. As noted in my prior posts, a regression channel simply indicates how far above or below the mean (or average) price an asset's current price is trading. In the regression channel above, the red line is the mean price, the upper channel line is 2 standard deviations above the mean, and the lower channel line is 2 standard deviations below the mean. A successful breakout of the bull flag would have taken IWM's price way above its regression channel, to a level that is too many standard deviations above its mean price for us not to question the probability of the breakout’s success. Achieving the full measured move up would have been extremely unlikely, assuming that the regression channel is valid and that price tends to revert back to its mean over time. What was more likely than a breakout was a breakdown, and a reversion back to the mean, which is what ended up happening with IWM. Another interesting note about IWM’s bull flag is that it presented a false breakout in November 2021. This false breakout was presenting multiple warnings signs including being a UTAD test of a Wyckoff Distribution. As shown below, however, another important clue that the November 2021 breakout would likely fail was that the breakout was not confirmed when comparing IWM to the money supply (M2SL). See the chart below. One can interpret this chart to mean that in late 2021, IWM’s price was rising because the central bank was increasing the money supply, but not due to improving strength of the underlying companies that comprise the ETF. Using the money supply as a ratio to an asset elucidates the true inherent strength of the asset's value. To understand more about why the money supply can be used in this manner, you can check out my post below. Part IV - Additional Comments I have a few additional comments. I usually use Fibonacci levels on a log-scale chart to identify Fibonacci spirals because Fibonacci spirals are logarithmic spirals. However, when using Fibonacci levels based on log scale, the ratios, percentages and numbers, can seem quite confusing because they are logarithmically adjusted. If you choose to replicate my process, please be mindful of this. While using log-scale charts is critical for higher timeframes (e.g. the monthly chart or higher), I have not identified much benefit to using it on shorter timeframes. In a prior post, I noted that Plug Power (PLUG) is currently forming one of the best-looking log-scale, golden ratio bull flags I have ever seen. If my above hypotheses are true, I would expect to see PLUG move dramatically higher in the years to come. For more information about PLUG, you can read my post linked below. (This is not a solicitation to buy PLUG. Please do your own research and carefully consider all risks.) At the risk of making this post too long and too dense, I just want to briefly note that it is also my hypothesis, based on observation and research, that the golden ratio is where many S-curve dilemmas are solved. If you don't know what an S-curve dilemma is and you'd like to read about this you can see my post below about Jumping S-Curves . In short, an S-curve dilemma is another way of conceptualizing the question of whether a bull flag will break out or break down. I hope that someone finds value in this post. I spent a lot of time studying, researching, analyzing, and cogitating the mathematical nature of price action to reach many of the conclusions here. Thank you for your valuable time in reading my post.
Editors' picks
AMEX:IWMEducation
by SpyMasterTrades
53
📊 Popular Trading Terms CheatsheetThese are some of the most common terms you will hear around social media and often see them mentioned around trading related content. The best advice is to trade what you see in your chart, not the psychological noise of others 📌 FOMO Fear of missing out is a common psychological event, especially when it comes to trading. You see prices go up and you feel guilty that you didnt enter on a trade and you missed that sweet 10-20% profit. The worst thing to do is be careless and enter a trade while the move has already happened. Trading is about patience and having a plan to execute. If you missed the move, you wait for the next one. 📌 FUD Fear, uncertainty and doubt, usually spread by people that have zero idea of what they are doing. Very common observation around trading communities where they grab a headline and make it as if the world is going to end and everything is going to zero. Classic example is the whale alerts where they see big numbers of USDT moving from wallet to wallet, saying "dumb is coming sell everything". It never comes. Trade the charts not what clueless people have to say about it. 📌 HODL Hold on for dear life, basically doubling down that you made a good trade and you should stick with it even if you know for a fact your entry was invalidated. If your plan is to day-trade and not "invest" into an asset, you should consider not hodling on losing trades. Depending how volatile that market you chose to trade is, you could hold into trades that can potentially wipe your whole account while copping with the fact that "it will get back to break even". Risk management is key, if you holding a losing trade which you invested more than 1-3% of your portfolio into it, you're already doing it wrong. 📌 MOONING Price is actively increasing, the paradise of only up never down. A classic observation of moonboys and how they think price has only one direction. It doesn’t. This psychological state can be referred to as Euphoria and Greed. There is nothing going one direction so make sure you're a guard of your own mind and not let people like that influence what you actually see in the charts. 📌 WHALE Wealthy investors who have enough shares of an asset to manipulate it. Basically people that bought early and cant wait for the next hype to dump their bags on new investors. Very common on the crypto world where people that bought before the hype happened, sell when the liquidity allows for it. 📌 ATH All time high, basically the price of that asset has reached the highest it has ever been. It can have a powerful psychological impact on market participants because it makes them optimistic and over confident. If you're buying an asset that just made an ATH you add liquidity to the early investors of that asset. 📌 SHILL Best observation of this are people promoting sh*tcoins around social media just so they can run their pump and dump schemes on their followers. When you see a "crypto" account run "airdrops" and "we will tell you the next x10000 pump coin in 10 mins" they aren't trading and you're already participating on their schemes by giving them engagements to promote what they are doing. Stay away from anything related to that, it doesn't exist. BULLISH The classic investors that always gonna double down that for example Bitcoin will go to 300k this year and long every dump of the market. It's never good to be doubling down on which direction the market will go then constantly long all day over a certain period of time if you're actively day trading. 📌 BEARISH The opposite of bullish. They will tell you they will go long on Bitcoin once it gets back to 1k. Doubling down that the whole market will crash to that extend and shorting every pump. Trade the markets and what you see, having a bias such as this will likely get you rekt before you manage to see any major move to confirm your years long bearish take. ‌ 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
📈Navigating the Uptrend📍 Understanding an Uptrend An upward trend provides investors with an opportunity to profit from rising asset prices. Selling an asset once it has failed to create a higher peak and trough is one of the most effective ways to avoid large losses that can result from a change in trend. Some technical traders utilize trendlines to identify an uptrend and spot possible trend reversals. The trendline is drawn along the rising swing lows, helping to show where future swing lows may form. Moving averages are also utilized by some technical traders to analyze uptrends. When the price is above the moving average the trend is considered up. Conversely, when the price drops below the moving average it means the price is now trading below the average price over a given period and may therefore no longer be in an uptrend. While these tools may be helpful in visually seeing the uptrend, ultimately the price should be making higher swing highs and higher swing lows to confirm that an uptrend is present. When an asset fails to produce higher swing highs and lows, it means that a downtrend could be underway, the asset is ranging, or the price action is choppy and the trend direction is hard to determine. In such cases, uptrend traders may opt to step aside until an uptrend is clearly visible. 📍 Key Takeaways 🔹 Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors. 🔹 A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market. 🔹 Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
7
Stochastic RSI in detail and how to use it.The Stoch RSI (Stochastic Relative Strength Index) is a technical analysis indicator used to identify overbought or oversold conditions in financial markets. It is a combination of two popular indicators: the Stochastic Oscillator and the Relative Strength Index (RSI). The Stoch RSI applies the Stochastic Oscillator formula to the RSI values, aiming to provide a more sensitive and faster signal for potential trend reversal. The Stoch RSI is calculated as follows: Choose the time period for which you want to calculate the Stoch RSI. The most common period is 14 . Calculate the RSI: (Detailed post on this in the link below) Determine the highest and lowest RSI values: Identify the highest and lowest RSI values over the same time period (e.g., 14 days). Calculate the Stoch RSI: Use the following formula to calculate the Stoch RSI: Stoch RSI = (Current RSI - Lowest RSI) / (Highest RSI - Lowest RSI) The resulting Stoch RSI value will range from 0 to 1 (or 0% to 100%). A value above 0.8 (or 80%) typically indicates an overbought condition, suggesting a potential price correction or reversal, while a value below 0.2 (or 20%) indicates an oversold condition, which may represent a buying opportunity. What does Stoch RSI tell us ? Stoch RSI is a measure of how fast the RSI is changing. As an analogy. Imagine you are driving your car and have foot on the accelerator which will cause increase in the speed of your cat at every moment, now the rate at which your car's speed increases is acceleration. The bigger the more powerful engine your car has the more acceleration you get and the faster you get to the top speed of your car. So, in this analogy speed of your car at any instant is RSI , acceleration is Stoch RSI and top speed of your car is overbought condition of an asset. RSI measures who is relatively more aggressive among buyers and sellers at a given instant. Stoch RSI measures how aggressive the buyers or sellers are at a given instant. So just like in a fight if someone is too aggressive, they are going to spend themselves too quickly and even though they want to fight more they won't be able to until they ease up and relax a bit, this is similar to Stoch RSI of an asset getting to overbought condition and then asset either retraces or takes a pause as buyers are exhausted and need to regain strength by taking profits which turns them into sellers and the asset starts moving in opposite direction. Why is 80 considered overbought? The number 80 is chosen based on empirical evidence, suggesting that when the Stoch RSI reaches these extreme values, there is a higher probability of a price reversal or correction. When the Stoch RSI is above 80, it indicates that the asset's price has risen significantly over a short period and could be overextended. In this situation, the asset may be overvalued, and traders may consider selling or taking profits as the price could reverse or correct. How to use Stoch RSI to enter a trade? How to enter a Long Trade: ======================= Step 1. Always use Stoch RSI along with RSI to make a decision: Step 2. Use it on mid to high term time frame (4h and higher). Step 3. Make sure both RSI and Stoch RSI are in oversold zone. Step 4. Make sure the asset is resting on a key support level and holding it. Step 5. Fearlessly enter the trade. How to enter a Short Trade: ======================= Step 1. Always use Stoch RSI along with RSI to make a decision: Step 2. Use it on mid to high term time frame (4h and higher). Step 3. Make sure both RSI and Stoch RSI are in overbought zone. Step 4. Make sure the asset is rejected from a key resistance level and is not able to breach it. Step 5. Fearlessly enter the trade. What happens if Support or Resistance is broken in Step 3 above: ======================================================= That's where divergences come into play. What is a divergence? =================== Divergence is a technical analysis concept that occurs when the price of an asset and RSI/Stoch RSI indicator move in opposite directions, indicating a potential trend reversal. There are two types of divergences: bullish divergence and bearish divergence. Bullish divergence occurs when the price of an asset makes a new low while the RSI/Stoch RSI indicator makes a higher low. Remember from explanation provided in sections above, this suggests that even though the price is going lower there are more buying activities than selling and the assets are becoming stronger, and a potential trend reversal may be imminent. Bearish divergence, on the other hand, occurs when the price of an asset makes a new high while the RSI/Stoch RSI indicator makes a lower high. I have highlighted bullish divergence in chart with purple line. Shown in Red line is bullish Divergence in Stoch RSI, when RSI is not fully oversold, this can happen when a new support is being formed on the chart due to changes in fundamentals of the underlying asset or some news events. Bullish and Bearish Divergences are even more powerful signals for taking trades, but we must make sure price is holding a support or rejecting from a resistance before taking the trades, otherwise divergences can easily disappear. Why do traders fail to effectively use RSI? The primary reason is lack of experience in trading. Which leads to impatient behavior. Not knowing how to mark key support/resistance levels. No risk management skills. (Taking too much risk) Lack of trust in self when taking trades, (Keep stopping losses too tight which knocks them out of the trades). I have shown several instances where RSI generated long signals and all of them were successful, the only reason a trader would not be able to use RSI effectively is because of the above reasons.
SP:SPXEducation
by zakoraio
The Story Behind Bulls and BearsHello @TradingView family , this is @Vestinda, and let's have some fun and enjoy the markets together. Vestinda is driven to offer our knowledge in developing winning strategies and make traders tasks easier. This is The Story About Bulls and Bears. Bulls can lift things up, Bears can eat you for lunch. Who Are The "Bulls" And The "Bears" In The Market The terms "bulls" and "bears" are included in the trader's slang as the main categories of players in the market. Understanding the technique of the game will help you to understand the intricacies of how the market works. "Bulls" are buying investors. Like their totem, they lift the enemy up on the horns. "Bulls" buy, wait for the rising rate and sell at a higher price. They dream of a prosperous economy: the lower the unemployment rate, the higher the GDP, the faster markets grow. Warren Buffett - the most famous representative of the bulls . The Bears play on the opposite side. They earn on the depreciation, in a fading economy. Their ideal world is high unemployment, low GDP and large-scale crises. It all starts long before the collapse of the market: the “bears” buy on credit and immediately resell, artificially creating a drop in prices. After the price becomes cheaper, they are purchased again, but at a lower price, and the debt is repaid. The difference between the first and second purchases is the profit of the bears. 💲 How Bulls Make Money On The Market 💲 "Bulls" buy, when they are sure that the market will go up. Examples of situations where this is possible: 🟣 the shareholder enterprise has published a financial report, and the figures exceeded forecasts; 🟣 the new reform allows to pay less taxes, thereby increasing profits; 🟣 the company has introduced a new product, which, according to analysts, will be in great demand; 🟣 the level of well-being, salary and solvency of the population are growing, which has a beneficial effect on the company's profit. Bullish trades take time – you have to wait to make money. "Bears" are distinguished by shorter trades and the prospect of quick earnings. A red flag for the bulls is an increase in prices by 20% from the lows and the presence of strong prerequisites for further growth. The most favorable moment comes when there are more buyers than sellers on the market. 📍 There Are 4 Key Phases Of A Bull Market:📍 1️⃣ "bearish" trends are gradually fading; 2️⃣ the backdrop of negative news has ended, but there is no confidence in future growth yet, the market is moving sideways, the growth of prices alternates with a fall; 3️⃣ the economy is going up, volatility is decreasing, investors are optimistic; 4️⃣ the peak of growth, traders make easy profits. The market trends are cyclical, a bull market becomes overbought over time and inevitably turns into a bear market. The move up can be uneven, with periods of pullbacks and corrections, that provide an opportunity to profit on counter-trend trades. As a rule, prices didn't rise as quickly and unpredictably as they fall. Therefore, transactions in the "bullish" market are characterized by a longer period, the so-called "long positions". Both own and borrowed money, shares and other assets, which are returned after closing, act as collateral. Long positions are considered more stable, predictable and calm. Therefore the majority of market participants are "bulls" (or consider themselves so). In an uptrend, it's easy to choose an investment because almost everything goes up. However, the "bulls" need to be careful and remember, that there is no eternal growth, the market can be oversaturated at any moment, turning in the opposite direction. It is important for conservative traders to exit the game on time. 💲 How Bears Make Money On The Market 💲 The bears enter the arena during a downturn in the economy and prices. Their tactic is to sell at the beginning of a downtrend and then buy at the end of a downtrend. If they guess the high and low points of the bear market, they will receive the maximum margin. Examples of situations, that will play into the hands of this category of traders: 🟣 there were large-scale economic crises, force majeure situations, natural disasters, epidemics, wars; 🟣 the shareholder enterprise found itself in the center of a scandal or changed its general director; 🟣 sales of the new product failed. A "bear" market comes into its own, when prices fall by 20% from the maximum. There are 4 main stages of the trend: 1️⃣ the bull market is oversaturated and goes into overbought phase; 2️⃣ against the backdrop of negative sentiment, prices fall sharply, and trading activity decreases, panic arises on the market; 3️⃣ prices fell quite strongly, but continue to gradually decline, at this time “bears” enter the market en masse; 4️⃣ seduced by cheaper prices, conservative investors become more active, due to which the market gradually turns in the opposite direction. Thus, the "bear" market is gradually replaced by a "bullish" one. Can a Bull become a Bear? In fact, these divisions are rather arbitrary, they were created by exchange slang. Officially, in the market, you do not need to indicate yourself in which category you belong, so no need to be a bull or a bear all your life. Traders' strategies are good because they can be adapted or completely changed to specific conditions on the exchange. It's not always possible to sell shares at the maximum or buy at the minimum price, so you have to adjust to the average attitude. Therefore, a “bull” can become a “bear”, just like a “bear” can become a “bull”. Conclusion: What are Bulls and Bears in Trading? Bulls and Bears are two sides of the stock market. Bulls are traders who believe that the stock prices will go up, while bears are traders who think that the stock prices will go down. In trading, these two forces are constantly at work, and understanding their roles can help you make better decisions when it comes to investing. Bulls and Bears play an important role in trading as they provide insight on the direction of a particular security or market trend. By understanding their roles in trading, investors can more accurately predict future price movements and make more profitable trades. Dear friends, this is our first post. 😊 If you liked it, press <> 👍, share it on your social networks, groups - it will allow more people get interesting information, and we'll be able to delight you with new posts even more!♥️
INDEX:BTCUSDEducation
by Vestinda
4
How to understand the falling wedge and rising wedgeHello dear traders, Here are some educational chart patterns you must know in 2022 and 2025. I hope you find this information educational and informative. We are new here so we ask you to support our views with your likes and comments, Feel free to ask any questions in the comments, and we'll try to answer them all, folks. What Is a Wedge? A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are rising or falling at differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts. Understanding the Wedge Pattern:- A wedge pattern can signal either bullish or bearish price reversals. In either case, this pattern holds three common characteristics: first, the converging trend lines; second, a pattern of declining volume as the price progresses through the pattern; third, a breakout from one of the trend lines. The two forms of the wedge pattern are a rising wedge (which signals a bearish reversal) and a falling wedge (which signals a bullish reversal). Falling Wedge pattern:- When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may breakout above the upper trend line. When the price breaks the upper trend line, the security is expected to reverse and trend higher. Traders identifying bullish reversal signals would want to look for trades that benefit from the security’s rise in price. Rising Wedge pattern:- This usually occurs when the security's price has been rising over time, but it can also occur in the midst of a downtrend. Trend lines drawn above and below a price chart pattern can converge to help a trader or analyst anticipate breakout reversals. While the price can break out of either trend line, the wedge pattern has a tendency to break out from the trend line in the opposite direction. Therefore, the ascending wedge pattern indicates a higher probability of further downside in the price after the breakdown of the lower trend line. Traders can enter bearish trades on the basis of a charted security after a breakout, either by selling the security short or by using derivatives such as futures or options. These trades will seek to profit from the possibility of a fall in prices. Trading Profits for the Wedge Pattern:- As a general rule, price pattern strategies for trading systems rarely produce returns that outperform buy-and-hold strategies over time, but some patterns nevertheless appear to be useful in predicting general price trends. Huh. Some studies suggest that a wedge pattern will break out toward reversal (a bullish breakout for falling wedges and a bearish breakout for rising wedges) more than two-thirds of the time, with a falling wedge being followed by a rising wedge. Is a more reliable indicator than the wedge. , Because wedge patterns converge in a smaller price channel, the distance between the price at the entry of the trade and the price for the stop loss is relatively smaller than at the beginning of the pattern. This means that the stop loss can be placed closer to the time the trade is initiated, and if the trade is successful, can result in a return greater than the amount of risk initially placed on the trade. Wedge a Continuation or a Reversal Pattern:- The wedge pattern signals a reversal. The reversal is either bearish or bullish, depending on where the trend line meets, what the trading volume is, and whether the wedge is falling or rising. Trade with care. If you like our content, please feel free to support our page with a like, comment Hit the like button if you like it and share your charts in the comments section. Thank you
COINBASE:BTCUSDEducation
by CryptoSanders9563
13
The Doube Bottom Pattern - Bullish PatternThe **Double Bottom** is a price action pattern that is indicative of a trend change once activated. Price needs to establish a bearish expansion towards the lows before reversing with an impulse. The impulse then needs to get sold into; this will create a retest of the previous low that must hold. Price action will establish a “W” structure which become a sign of demand that leads to a bullish expansion. Key Characteristics of the **Double Bottom** - Price Action must first establish a bearish expansion - The retest of the previous low most hold - A ‘W’ like formation will confirm demand at the lows
Education
by AzizKhanZamani
1
ANALYSIS OF THE BULLISH MOVEMENTHello everyone! Today I want to discuss with you the bullish movement or bullish momentum. The topic is interesting, and most importantly profitable! Beginning of observations To begin with, we need an uptrend. If you open long positions when there is an uptrend in the market, you will make a profit more often. The best entry point will be a reversal, after correction. This is the moment we are waiting for. The beginning of the correction will be marked by the renewal of the lows and the scrapping of the upward trend. An imbalance appears on the chart, usually in the area of the level breakout.. Reversal+position opening The beginning of an upward movement begins to emerge when the price cannot update the minimum and begins to form each new minimum above the previous one. In addition, the structure breaks down and an imbalance appears in the area of breaking the level up. Long positions can be opened at these points. If you did not have time to open a position or want to wait for a conservative opportunity to enter, you can open a long position when the price returns to the previously broken level and tests it again. Goals Previous highs may be the targets. This price movement pattern is observed on all timeframes every day. With the correct use of this method, if you have trained well and learned how to correctly identify these points, you will be able to earn. Train, study and earn . Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
🟦 William O'Neil Rule – WALL OF BLUE**Publishing again because it got taken down by Mods** While this has pulled back recently - it reminds me of a lesson from the great trader William O'Neil and his lesson for the "WALL OF BLUE" 🟦 Not many know this rule, so hope you like it! Wall of blue rule states that when you have 4+ weeks of blue volume bars (blue volume bars = volume when the week close up, hence up weeks), then this is a buy signal of itself. In the case of $SMCI we also have above average volume - which is additional strength and confirmation. This is a signal that the stock is under heavy accumulation from institutions and hence why it made +83% advancement. Now it is pulling back and it is extended from any base - so I would not touch it here, but it is a good example to illustrate the rule
NASDAQ:SMCIEducation
by TintinTrading
2
Simple Strategy with Good R&R (Works bullish or bearish) 1. identify the trend ; whether up (bullish) or down (bearish) . 2. Identify an impulse move to the up or down side. 3. Watch for a correction from the impulse, then wait for a retest and or bounce of the 800-day ema. 4. Wait for a bullish order block (OB) that closes above the 800-day ema. Then enter on the retest of the 800-day ema and go long or short accordingly. 5. stop loss below the corrections lowest low and take profit at the impulses highest high. This works on all types of assets from AMEX:SPY to FX:EURUSD to BINANCE:BTCUSDT and even CME_MINI:ES1! .
Education
by greg7077
1
Drawing Volume Based Trendlines Support and ResistanceFor this to work you're going to need your bull bear power void oscillator. I have mine set on its default settings but you can also set it up with the following. Click the image below for that indicator for free The Setup the length is 50 the moving average is 20 the macd settings are 12 / 26 / 9 With this I have a 50 period EMA on my chart. Drawing Support and Resistance Levels Based on Volume When drawing support and resistance levels you should always do them on a 1 hour time frame or higher. You can do them on a 30 minute time frame but some of them will be less relevant. Since most people and most institutions do them a 1 hour time frame and hire you might as well be doing the same. Support and resistance levels are found in the non-tradable areas of the oscillator. in other words it's the area of the oscillator where it has a black background. As an example if you have a pink volume bar coming down first followed by a red volume bar afterwards this would mean resistance. But both of these bars must clear the void If you have a light green bar first outside with the tradable area followed by a dark green bar this means support and both bars must be outside the void. As an example if you have more than one light colored bar in the tradable area followed by a darker colored bar volume then you draw your support or resistance level at the 1st alternating color bars. Find out where your current price level is and then draw about 2 or 3 support and resistance levels above current price and two or three below current price. You don't really want more than that. Drawing Trendlines Based on Volume To draw trend lines you need to have a background that goes from one color to Black and then to the alternate color for example green to Black to red or red to Black to Green. if you get the same color twice then what you have is a continuation of your trend. In a trend that goes from green to Black to Red you're looking for the highest volume in the non-tradable area and then drawing of line from there to the very first tradable volume in the red area. Once you do this you can't move to a smaller time frame and use that trend line as a Target when moving to it or an exit point.
Education
by CoffeeshopCrypto
10
SPX bullish FVG example with pendings4H+FVG entry (pending order) Entry at the high, middle, and low with risk on each set 0.25% for the high, 0.50% at the middle and 1.0% at the low. Initial stop loss below the candle that created the FVG or below the last swing low. In this case I used the FVG candle low. If the high failed to be taken out, close partials, make sure stop is in profit or BE, and look for the middle and low entry execution as long as news doesn't impacts price action. High taken out with an impulse candle. Low made within a bullish point of interest in the form of a fair value gap.
BLACKBULL:SPX500Education
by Cory4rex
1
HOW-TO: Adjust Default Parameters in MLC for Intraday TradingThe default parameters in Master/Last Candle (MLC) indicator are used for the standard timeframe 1D. Due to the difference in nature between bars of intraday timeframes and bars of day-and-above timeframes, some settings could be changed as below to make the indicator tailored to your case. • Increase default Max Volume Drop % from 25 to 30. We have seen a case in timeframe 30m that requires deeper volume drop than 25% to catch the big move. If you also find a big move that is not captured by MLC, try to adjust this measure as we do. If it is not your case, ignore this item and keeping the old default value as 25. Before After • Other parameters: Percentile % , Min Price Breakout % . Before After increasing Percentile % of Cx candles from 50 to 60 After increasing Min Price Breakout % from 20 to 25
Education
by SupersafeTrader
Rising/Falling Wedge Ascending Wedge in an uptrend-bearish 1. This pattern occurs when the slope of price candles’ highs and lows join at a point forming an inclinin wedge. 2. The slope of both lines is up with the lower line being steeper than the higher one. 3. Place an order to breakdown and out of the wedge. The drop out of the wedge can be very dramatic. Descending Wedge in a downtrend -bullish 1. This formation occurs when the slope of the price candle high and lows join at a point forming a declining wedge. 2. The slope of both lines is down with the upper line being steeper than the lower one. 3. To trade this pattem, place an order on a break up and out of the wedge.
BINANCE:ETCUSD.PEducation
by yaser_rahmati
1
50 Day Moving Average Strategy TRADE ENTRY 1. To enter a 50-day moving average trade, you should wait for a breakout. 2. Whenever the price breaks the 50-day SMA, you should open a trade in the direction of the breakout. 3. In most cases, the price action will continue in the direction of the breakout. STOP LOSS 1. If the price breaks the 50 SMA upwards, we need to go long, placing a stop below a bottom prior to the breakout. The opposite is true for bearish trades. 2. If the price breaks the 50 SMA downwards, we need to short the stock placing a stop below the bottom prior to the breakout. PROFIT TARGETS 1. Hold your trades until the price action breaks your 50-day moving average in the direction opposite to your trade. 2. If you are long, you close the trade when the price breaks the 50-day SMA downwards. 3. If you are short, you close the trade when the price breaks the 50-day SMA upwards. CONCLUSION 1. Stock price above the 50-day moving average is usually considered bullish. 2. Stock price below the 50-day moving average is usually considered bearish. 3. If the price meets the 50 day SMA as support and bounces upwards, consider a long entry. 4. Stock price meets the 50-day SMA as resistance and bounces downwards, consider a short entry. 5. If the price breaks the 50-day SMA downwards, you should switch your opinion to bearish. 6. If the price breaks the 50-day SMA upward, you should switch your opinion to bullish.
BINANCE:ETHUSD.PEducation
by yaser_rahmati
1
EURUSD.... SEE WHY MANY PEOPLE LOST THIS TRADE... AVOID ITHello Traders, So today I am doing a trade recap on a trade I lost due to lack of detail. Note, in trading, after knowing how trading works, every thing comes down to the level of attention/detail you give to your chart. Detail, detail, detail... never forget. I have labelled the chart accordingly so your understanding can be seamless. But if you still need clarity let me know. I use my weekend to analyse why my trade won or lost. And this is an approach to trading that people should undertake. This should come after journaling your trade. The thing is, you will make mistakes, you will not see everything (detail) but continue. Reduce the number of pairs you trade, reduce the indicators, reduce the trendlines and every other thing... Your chart should be clear and easy on the eyes. I only look at 10 markets (the 7 majors and AUDNZD, CADCHF & EURGBP). I add the 3 crosses only because I want to have alternative for all the currencies excluding JPY. I don't use indicators (not saying it is bad but reduce it), I don't use trendline (because price is moves horizontally - unpopular opinion). When you have just a few pairs, you are able to understand the moves better and you can free your brain from analysing so many pairs. Just imagine using indicators, lines upon lines, and the market changes form... now you need to start all over again your analysis on all your multiple markets, looking at so many things. Trust me, you are bound to miss the obvious details not to talk of the hidden ones and its a lot of work. I am sure you must have experienced it. I am still very bullish on EURUSD and right now, I am not looking for an entry, I am waiting for a break of the 4H high then I will look for an entry which I will share on my page. If you would like to see it, all you need to do is click on follow. I will also link my previous analysis on EURUSD, AUDNZD, USDJPY Stay tuned for more. BR. David
Education
by jabariofafrica
4