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Momentum Trading Strategies Across AssetsMomentum trading is a strategy that seeks to capitalize on the continuation of existing trends in asset prices. By identifying and following assets exhibiting strong recent performance—either upward or downward—traders aim to profit from the persistence of these price movements. **Key Components of Momentum Trading:** 1. **Trend Identification:** The foundation of momentum trading lies in recognizing assets with significant recent price movements. This involves analyzing historical price data to detect upward or downward trends. 2. **Diversification:** Implementing momentum strategies across various asset classes—such as equities, commodities, currencies, and bonds—can enhance risk-adjusted returns. Diversification helps mitigate the impact of adverse movements in any single market segment. 3. **Risk Management:** Effective risk management is crucial in momentum trading. Techniques such as setting stop-loss orders, position sizing, and continuous monitoring of market conditions are employed to protect against significant losses. 4. **Backtesting:** Before deploying a momentum strategy, backtesting it against historical data is essential. This process helps assess the strategy's potential performance and identify possible weaknesses. 5. **Continuous Refinement:** Financial markets are dynamic, necessitating ongoing evaluation and adjustment of trading strategies. Regularly refining a momentum strategy ensures its continued effectiveness amid changing market conditions. **Tools and Indicators:** - **Relative Strength Index (RSI):** This momentum oscillator measures the speed and change of price movements, aiding traders in identifying overbought or oversold conditions. - **Moving Averages:** Utilizing short-term and long-term moving averages helps in smoothing out price data, making it easier to spot trends and potential reversal points. **Common Pitfalls to Avoid:** - **Overtrading:** Excessive trading can lead to increased transaction costs and potential losses. It's vital to adhere to a well-defined strategy and avoid impulsive decisions. - **Ignoring Market Conditions:** Momentum strategies may underperform during sideways or choppy markets. Recognizing the broader market environment is essential to adjust strategies accordingly. By understanding and implementing these components, traders can develop robust momentum trading strategies tailored to various asset classes, thereby enhancing their potential for consistent returns. Source: digitalninjasystems.wordpress.com
CME:LBR1!Education
by j7892
The Two-Faced Market: The Truth Behind Trend Reversals!🎭 The Two-Faced Market: The Truth Behind Trend Reversals! 📊🚀 📢 Ever entered a trade thinking you caught the perfect trend , only to get stopped out as the market reversed? You're not alone. The market has a way of fooling traders—but if you understand its “two-faced” nature, you can stay one step ahead. 🔥 Why Trends Reverse (and How to Catch It Early!) Most traders believe trends reverse due to "news" or "randomness." But in reality, the market gives signals long before the turn happens. Here’s what to watch for: 🔹 Momentum Divergence: The price makes a new high, but indicators like RSI/MACD don’t. 🔹 Volume Anomaly: The trend continues, but volume dries up—a sign of weakness. 🔹 Failed Breakouts: Price breaks a key level, only to fall back inside—trapping traders. 🔹 Candlestick Clues: Reversal patterns like engulfing candles or wicks rejecting key levels appear. 🚀 Mastering these signals can put you ahead of 90% of traders. 📊 Real Example: XAU/ USD Trend Reversal in Action 🔎 Breakdown of the setup: ✅ Step 1: Identify a trend (through market structure, trendline or moving average). ✅ Step 2: Look for failed breakouts against the trend ✅ Step 3: Look for trend-following setups 🎯 The Market’s Game: Recognizing The Shift Trends don’t die suddenly—they fade before reversing. The best traders spot the early signs and position before the crowd. 💡 Have you spotted these reversal signs before? Drop a comment with your experience! 👇🔥 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by TheSignalyst
3
Donchian Channel Strategy like The Turtles TradersThe Turtle Traders strategy is a legendary trend-following system developed by Richard Dennis and William Eckhardt in the 1980s to prove that trading could be taught systematically to novices. Dennis, a successful commodities trader, bet Eckhardt that he could train a group of beginners—nicknamed "Turtles"—to trade profitably using strict rules. The experiment worked, with the Turtles reportedly earning over $100 million collectively. Here’s a detailed breakdown of their strategy, focusing on the core components as documented in public sources like Curtis Faith’s Way of the Turtle and other accounts from the era. Core Philosophy Trend Following: The Turtles aimed to capture large price trends in any direction (up or down) across diverse markets—commodities, currencies, bonds, and later stocks. Systematic Rules: Every decision—entry, exit, position size—was predefined. No discretion allowed. Volatility-Based: Risk and position sizing adjusted to each market’s volatility, not fixed dollar amounts. Long-Term Focus: They targeted multi-month trends, ignoring short-term noise. Two Trading Systems The Turtles used two complementary breakout systems—System 1 (shorter-term) and System 2 (longer-term). They’d trade both simultaneously across a portfolio of markets. System 1: Shorter-Term Breakout Entry: Buy when the price breaks above the 20-day high (highest high of the past 20 days). Sell short when the price breaks below the 20-day low. Skip the trade if the prior breakout (within 20 days) was profitable—avoid whipsaws after a winning move. Initial Stop Loss: Exit longs if the price drops 2N below entry (N = 20-day Average True Range, a volatility measure). Exit shorts if the price rises 2N above entry. Example: Entry at $100, N = $2, stop at $96 for a long. Trailing Stop: Exit longs if the price breaks below the 10-day low. Exit shorts if the price breaks above the 10-day high. Time Frame: Aimed for trends lasting weeks to a couple of months. System 2: Longer-Term Breakout Entry: Buy when the price breaks above the 55-day high. Sell short when the price breaks below the 55-day low. No skip rule—take every breakout, even after a winner. Initial Stop Loss: Same as System 1: 2N below entry for longs, 2N above for shorts. Trailing Stop: Exit longs if the price breaks below the 20-day low. Exit shorts if the price breaks above the 20-day high. Time Frame: Targeted trends lasting several months (e.g., 6-12 months). Position Sizing Volatility (N): N, or “noise,” was the 20-day Average True Range (ATR)—the average daily price movement. It normalized risk across markets. Unit Size: Risk 1% of account equity per trade, adjusted by N. Formula: Units = (1% of Account) / (N × Dollar Value per Point). Example: $1M account, 1% = $10,000. Corn N = 0.5 cents, $50 per point. Units = $10,000 / (0.5 × $50) = 400 contracts. Scaling In: Add positions as the trend confirms: Long: Add 1 unit every ½N above entry (e.g., entry $100, N = $2, add at $101, $102, etc.). Short: Add every ½N below entry. Max 4 units per breakout, 12 units total per market across systems. Risk Management Portfolio Limits: Max 4 units in a single market (e.g., corn). Max 10 units in closely correlated markets (e.g., grains). Max 12 units in one direction (long or short) across all markets. Stop Loss: The 2N stop capped risk per unit. If N widened after entry, the stop stayed fixed unless manually adjusted (rare). Drawdown Rule: If account dropped 10%, cut position sizes by 20% until recovery. Markets Traded Commodities: Corn, soybeans, wheat, coffee, cocoa, sugar, cotton, crude oil, heating oil, unleaded gas. Currencies: Swiss franc, Deutschmark, British pound, yen. Bonds: U.S. Treasury bonds, 90-day T-bills. Metals: Gold, silver, copper. Diversification across 20-30 markets ensured uncorrelated trends.
NASDAQ:IBKREducation
by j7892
VSA Rays: Mastering the Art of Predicting Future Price MovementsThe cryptocurrency PUFFER/USDT.P has captured our attention today as it flirts with a critical moment of decision. Currently trading at $0.5659, the price reflects a staggering 44% deviation below its all-time high of $1.0122, achieved just 50 days ago. Yet, it has also soared over 138% from its absolute low, a testament to its volatility and potential for rapid moves​. With a Relative Strength Index (RSI) hovering near a neutral 50, and buy volume patterns increasingly dominant over the past 24 hours, the market appears to be in a state of consolidation​​. The Moving Average 50 (MA50) at $0.5752 suggests minor overhead resistance, while psychological resistance levels are forming near $0.5961, possibly triggering the next rally​. Fundamentally, macroeconomic whispers of liquidity adjustments and renewed interest in altcoin markets are setting the stage for a bold shift. The big question remains: Is this your chance to ride the wave up, or will the bears claw back dominance at this critical threshold? For both traders and investors, the stakes couldn't be higher. The coming days will determine whether PUFFER/USDT.P’s momentum builds into a breakout or fades into retracement. Are you ready for the ride? The clock is ticking, and this could be your chance to capitalize on a decisive market move. Stay tuned for our detailed analysis on key levels and patterns shaping this opportunity. PUFFER/USDT.P Roadmap: Decoding the Patterns for Success Understanding the flow of market movements is crucial for both traders and investors. Here’s a detailed roadmap of the key patterns recently observed in PUFFER/USDT.P, using historical data to confirm their validity and align with anticipated price directions. January 25, 2025 – VSA Manipulation Buy Pattern 4th Direction: Buy Trigger Point: Low of the last 3 bars ($0.5514) Outcome: The market closed slightly higher at $0.5564, hinting at a bullish impulse. This aligns with the main direction, as the next pattern confirmed upward movement to a high of $0.5777. This is a textbook pattern execution, showing strong buyer momentum. January 26, 2025 – Increased Buy Volumes Direction: Buy Trigger Point: Open price ($0.5628) Outcome: This pattern delivered as expected, with a close above the open at $0.5768. The immediate next high of $0.5777 supports this buy direction, emphasizing consistent buyer dominance. January 25, 2025 – Increased Sell Volumes (Skipped) Direction: Sell Trigger Point: High of the last 3 bars ($0.6345) Outcome: Contrary to the sell direction, subsequent price action leaned bullish. This pattern did not trigger effectively, and its impact is minimal in the broader roadmap. January 24, 2025 – VSA Buy Pattern Extra 1st Direction: Buy Trigger Point: Not applicable Outcome: The market moved consistently higher, with the high extending to $0.6112 shortly after. This pattern highlighted the continuation of a buying trend, supported by increasing volume and a steady climb. January 22, 2025 – Sell Volumes Take Over (Skipped) Direction: Sell Trigger Point: Low of the last 3 bars ($0.5873) Outcome: While sell volumes showed a momentary dip to $0.5873, the market rebounded quickly, invalidating the sell direction and confirming a persistent bullish bias. January 23, 2025 – Buy Volumes Take Over Direction: Buy Trigger Point: Open price ($0.6024) Outcome: The price continued upward to $0.6094, marking this as a clean execution of a bullish pattern. Traders who spotted this transition capitalized on the trend. Key Takeaways from the Roadmap Bullish patterns like VSA Buy Pattern 4th and Buy Volumes Take Over consistently outperformed, confirming strong market optimism. Sell patterns were largely invalidated, indicating underlying buyer control over the asset during the observed period. Trigger points proved reliable markers for entry, with clear follow-through seen in consecutive highs. This roadmap demonstrates how understanding pattern execution and aligning with validated directions can significantly enhance trading success. Watch for future VSA Buy Patterns—they've consistently marked golden opportunities for upward momentum. Stay sharp, and ride the trend! Technical & Price Action Analysis: Key Levels to Watch When it comes to trading, knowing your levels is half the battle. Below are the critical support and resistance zones for PUFFER/USDT.P, straight from the charts. If these levels fail to hold, you can expect them to flip and act as resistance in the future. Mark these on your radar—miss them at your own risk! Support Levels 0.5201 – Your first line of defense; a break below could open the door to further downside. 0.2934 – A deeper support level that traders should keep an eye on if the price dives lower. Resistance Levels 0.5961 – The immediate overhead barrier. Bulls need to clear this for any meaningful push higher. 0.6934 – A higher resistance zone that could attract sell-side interest. 0.7277 – A strong ceiling to watch, marking the upper range of current price action. 0.8881 – A psychological level that’s likely to be a battleground for bulls and bears alike. Powerful Resistance Levels 1.0122 – The absolute high. Breaking and holding above this level would signal a major trend reversal. What Happens If These Levels Fail? If support levels crumble under selling pressure, they’ll likely become resistance as sellers defend their positions. The same goes for resistance—if bulls break through, it flips to support, creating a solid base for further upward momentum. Keep these levels in mind to navigate the chop and make informed decisions in this dynamic market. This is your roadmap to the action—stay sharp, and let the levels guide your trades! Trading Strategies Using Rays: From Concept to Actionable Scenarios The Rays from the Beginning of Movement concept provides a systematic approach to predicting price reactions based on Fibonacci-based geometrical rays. These rays, combined with dynamic factors like moving averages, offer traders a reliable method to identify high-probability trade setups. Below, we outline the framework and suggest two scenarios—optimistic and pessimistic—to align with potential market conditions. Concept of Rays in Action Fibonacci Rays and Their Purpose: Each ray defines key dynamic levels derived from the beginning of the price movement. They help map the probable path of the price and identify zones for potential reversals or continuations. Dynamic Factors: Moving averages (e.g., MA50, MA100, MA200) act as secondary confirmation tools. When price interacts with a ray and aligns with a moving average, the probability of a valid move increases. Actionable Levels: Traders focus on interactions between rays, moving averages, and VSA patterns on the chart. After a confirmed interaction, the price typically moves from one ray to the next, presenting opportunities for profitable trades. Optimistic Scenario: A Breakout with Momentum Initial Interaction Zone: $0.5752 (MA50) First Target: $0.5862 (MA100, next ray level) Second Target: $0.6272 (MA200, upper ray boundary) Third Target: $0.6468 (Extended ray, potential continuation) Commentary: In this scenario, the price demonstrates bullish momentum after interacting with the MA50 and first Fibonacci ray. Buyers take control, driving the price to subsequent ray levels. Pessimistic Scenario: A Controlled Decline Initial Interaction Zone: $0.5752 (MA50) First Target: $0.5201 (Key support level) Second Target: $0.2934 (Lower ray boundary) Third Target: $0.2375 (Absolute low) Commentary: Here, the price fails to sustain above the MA50, leading to a downward interaction with Fibonacci rays. Sellers dominate, targeting progressively lower levels. Potential Trade Setups Based on Ray Interactions Bullish Entry: After price confirms an upward bounce from $0.5752, enter long, aiming for $0.5862 (first target). Place a stop-loss below $0.5730 to manage risk. Bearish Entry: If the price rejects $0.5752, consider a short position targeting $0.5201 with a stop-loss above $0.5770. Breakout Trade: Watch for a breakout above $0.5862 with strong volume. Enter long with targets at $0.6272 and $0.6468. Range Trade: If the price oscillates between $0.5752 and $0.5862, use the range to buy near support and sell near resistance. Final Notes The combination of Fibonacci rays and moving averages creates a robust system for identifying dynamic trade zones. Remember, trades should only be entered after clear interaction and validation from the rays and dynamic factors. Whether the market trends bullish or bearish, these scenarios provide a clear framework for traders to follow and adapt as conditions unfold. Your Turn to Join the Conversation Hey traders and investors! Let’s make this space interactive. If you’ve got questions about the analysis, specific levels, or just want to dive deeper into the strategy—drop them right in the comments. I’ll be happy to answer and discuss with you. If you found this analysis helpful, don’t forget to hit Boost and save the idea to revisit later. Watching how price reacts to these levels is the best way to learn and grow as a trader. Remember, understanding entry and exit points is key to consistent success. For those interested, my proprietary indicator automatically maps out all the rays and levels you see here. It’s available privately, so if you’re curious about using it, feel free to send me a message directly. Have a specific asset in mind? I’m open to providing analysis! Some ideas I’ll post here for everyone to benefit from, and for others, we can discuss more personalized setups. Whether it’s public or private, we can figure out the best approach together. Lastly, don’t forget to follow me here on TradingView. This is where I post all my insights and updates, and I’d love to have you as part of my trading community. Let’s keep learning and growing together—one chart at a time. 🚀
Education
by brandlabelden
The Cycles of Cryptocurrencies: Patience is Key!Hey, let's share with beginners, ok =)? The cryptocurrency market is widely known for its volatility, and understanding the cycles of highs and lows is essential for those looking to invest wisely. These cycles are a natural part of the financial ecosystem and often follow patterns similar to those of other speculative markets. During moments of high prices, known as “bull runs,” enthusiasm takes over. Headlines boast astronomical gains, investors pour in en masse, and there’s a general feeling that "this time is different." Many beginners end up buying at the peak, driven by the fear of missing out (FOMO). On the other hand, moments of low prices, or “bear markets,” bring uncertainty and pessimism. Prices plummet, and the same investors who bought during the hype start selling, often out of desperation or lack of understanding of the cycles. It's important to remember that markets have historically recovered, rewarding those who remain calm and patient. The lesson here is clear: don’t act on impulse. Experienced investors see downturns as opportunities to buy assets at lower prices, while beginners end up selling at a loss—losses that could have been avoided with a long-term strategy. If you're just starting in the cryptocurrency world, remember: patience is key. Avoid acting emotionally, always educate yourself about the market, and understand that opportunities aren’t lost—they simply change hands. Plan your investments, set clear goals, and above all, don’t panic. Share! =)
BITSTAMP:BTCUSDEducation
by hardmangames77
Trend Based Fib Extension (PRO HACK) SUPPORT & RESISTANCE is one of the most important key elements in trading. Without knowing the key Support & Resistance levels, you will never have a true understanding of where the market could go to or reverse from. One very important factor worth knowing is the markets overall, trend Support & Resistance levels. While there are a lot of different methods in finding these levels, like pivot points, previous day high and low, or monthly or yearly and so on. One of the most promising, tried and tested ways is to use a Fibonacci Tool. Now YES, there are MANY Fibonacci Tools to choose from and use but if you need to know the fib levels for a trend, use the TREND BASED FIB EXTENSION. Along with using the TREND BASED FIB EXTENSION, you need to know the correct time frame to actually plot this tool on. There is no right or wrong time frame nor is there no right or wrong way in plotting this tool, BUT we need to know and understand the overall picture of the market as a whole and if you are thinking about the market as a whole, we need to use the correct time frame to show us that. So we turn to the 12M TIME FRAME! The 12M Time Frame is what's going to show us the OVERALL TREND of the asset we are looking at, from the start right to current time. Now keep in mind that this can work on EVERY SINGLE ASSET. We use the 12M time frame because we need to plot the trend base fib extension to show us our MAJOR FIBONACCI SUPPORT AND RESISTANCE LEVELS. These levels are for the OVERALL TREND OF THE GIVEN ASSET. By plotting it this way we actually have an idea as to where the market is going LONG TERM. So head over to whichever asset you are tracking, choose the 12M time frame and make your chart large enough to fit the screen. In order to plot this tool, you need to know your highs and lows because this tool is used from your lowest point to the first swing high and down to your next swing low, once those 3 are connected the tool will automatically plot your levels. One easy way to find your swing highs and lows is to use a ZIGZAG with a length of either 1 or 2. That setting will give you the most accurate points. In the drawing tool box you can you the TREND BASED FIB EXTENSION tool, once you select it and you know where your 3 points are then you plot it accordingly, you will start from your Lowest, to your Swing High and then down to your Swing Low. To get accurate plots, use the data window and get the exact low and high prices and enter the accordingly into the fib tool settings (coordinates tab). Adjust your settings with your style preferences, the fib levels that you want to see on your chart, and once done, lock the tool in place and BOOM, YOU NOW HAVE YOUR MAJOR ALL TIME SUPPORT AND RESISTANCE LEVELS PLOTTED ON YOUR CHART. Now you have a full understanding on the market overall trend by knowing where the major support and resistance levels are. You can go back to your lower time frame in which you trade from and now you will have a much clearer understanding as to where the market might stop or reverse from, according to the bigger picture. With that in place, you can use other methods of confluence to get entries, set stops, find direction, you can even go down to lower time frames to use a Fibonacci retracement tool or the trend based fib extension to get sniper entries and set targets. The key takeaway from this is for you to know the overall direction of the market you are trading and to know where potential areas of support and resistances are which leads to the major reversals in the market. I do hope this publication helps you in some way or another, even if it helped just 1 person out of many, I will be glad. HAPPY TRADING :) ==if you have any questions then please drop a comment, thanks==
OANDA:NAS100USDEducation
by avziofficial
Trend lines - how to build them and how to use them?Before we dive into the world of trend lines, I recommend familiarizing yourself with the support and resistance zone Here we go: Trend lines are one of the most universal tools for trading in any market, used in intraday, swing and position trading strategies. Properly drawn on charts, they help to predict the direction of price movement and identify trend reversals. In addition, trend lines help you to accurately determine the optimal entry and exit points, as well as set a stop loss. It is recommended not to rely on trend lines alone, but to integrate them with other methods of technical analysis, expanding your trading arsenal. Often many traders draw too many lines, it is uninformative and useless How to place trend lines on a chart? An uptrend is a combination of at least two pullbacks Similar in a downtrend: Instructions for markings: Find at least two points on the chart Connect them with a line But, let's remember the Axiom: 1. Randomness 2. Coincidence. 3. Regularity Until a trendline is pushed back a third time - it is considered unconfirmed... Once the third bounce has occurred, the line can be considered valid, but does not guarantee that it will necessarily bounce the fourth time! Like all patterns in the market, trend patterns can be drawn on any timeframe, also - they are more effective on older ones (as well as all others) How to use trend lines in your trading? Frequent trades from a trend line are rebound or breakout trades Example: Trendline confirmed (bounced three times) - on the fourth approach we can pay attention - what happens next? Price will either bounce from our trendline again or there will be a breakout Next example: How can we determine whether there will be a breakout or a bounce? As I said before, you need to take into account the context: indicators, price action, nearby levels and so on (it all depends on your psychology) How do trend lines fit together? Support and resistance levels are areas on a chart that indicate potential pressure (on a side) The same principle applies to trend lines. The only difference is that trend lines are sloped rather than horizontal. How to properly label/draw trend lines? Which trend lines are important and which ones should be ignored? Focus only on the major pivot points Connect at least two major pivot points. Adjust the slope of the line to get the most amount of price touching the line, whether it is the shadows of candles or their bodies. Important clarification - trend lines represent a support zone, not specific levels. How can you use trend lines? The trend is our friend. Where the trend goes, so goes we. Trading against the trend is foolish. If you do decide to do it, it must be justified! Trend lines are the direction of the current market. Also the trend line itself can be divided into two positions: If the trend becomes flatter, it means that the market is moving into a state of consolidation If the trend is becoming steeper, it means that the trend is getting stronger (or perhaps it is reaching its climax and is approaching its final stage). Trend Lines Entry Point: Like all other patterns in technical analysis or price action - trend lines can help you find a more favorable entry point in terms of risk-to-reward ratio How to use a trend line to identify a market reversal? Chances are you have encountered this before. There is a trend line breakout, you are already expecting a trend reversal, but the market continues its original movement Like all indicators/patterns - not a panacea. Each strategy has its own risks, just when we add other osnovnopologologayuschih signs to one strategy, the chance of risking a loss - decreases! Technique for determining a trend reversal: Wait for a trend breakout Wait for a lower low/maximum to form. If the price breaks the previous minimum/maximum, most likely the trend will go in the direction of the breakdown...
BINANCE:BTCUSDEducation
by truepersonal
13
SMART MONEY CONCEPT EXPLAINEDThe Smart Money Concept (SMC) involves understanding the behavior and strategies of institutional investors to inform trading decisions. Within SMC, there are several key components and strategies, including concepts like CHoCH (Change of Character), BOS (Break of Structure), FVG (Fair Value Gap), and others. Here's an in-depth explanation of these concepts: 1. Change of Character (CHoCH) Definition CHoCH refers to a significant shift in market sentiment or trend. It's a point where the market changes direction, indicating a potential reversal. Identification Higher Highs to Lower Lows (or vice versa): In an uptrend, CHoCH occurs when the market stops making higher highs and starts making lower lows, signaling a possible downtrend. Volume and Momentum Shifts: Increased volume or momentum in the opposite direction can also indicate a change of character. Application Entry/Exit Points: CHoCH helps traders identify potential entry and exit points by signaling when a trend might be reversing. 2. Break of Structure (BOS) Definition BOS occurs when the price breaks a significant support or resistance level, indicating a continuation or reversal of the trend. Identification Support/Resistance Levels: When price breaks these levels with strong momentum, it signals a BOS. Swing Highs and Lows: A break above a previous swing high or below a previous swing low is considered a BOS. Application Trend Confirmation: BOS helps confirm the direction of the trend, allowing traders to align their trades with the prevailing market direction. 3. Fair Value Gap (FVG) Definition FVG represents a price gap left in the market where there was a rapid price movement, often due to high volatility or significant market orders. Identification Price Gaps: FVGs are visible as gaps on the price chart where little to no trading occurred. Imbalance Zones: These are zones where the buying and selling are not balanced, leading to rapid price movement. Application Retracement Points: FVGs often act as magnets for price, as the market tends to revisit these gaps to fill them, providing potential retracement or entry points for traders. 4. Other Major Parts of the Smart Money Concept Liquidity Pools Definition: Areas in the market where a large number of orders are clustered, typically around key support and resistance levels. Application: Institutions often target these areas to trigger stop-loss orders, creating liquidity for their trades. Order Blocks Definition: Consolidation areas where institutions place large buy or sell orders, creating a base for future price movement. Identification: These are visible as zones of consolidation on the chart. Application: Order blocks can act as strong support or resistance levels, providing potential entry or exit points. Institutional Candles Definition: Large candlesticks that represent significant institutional activity. Identification: These candles are usually much larger than the surrounding ones and often occur at key levels. Application: They signal strong buying or selling interest from institutions, indicating potential future price direction. Stop Hunts Definition: The practice where institutions push the price to trigger stop-loss orders placed by retail traders to create liquidity. Identification: Sudden, sharp price movements towards obvious stop-loss levels. Application: Recognizing stop hunts can prevent premature exits and provide entry points at better prices. Market Cycles Accumulation Phase: Period where smart money is building positions, often characterized by sideways price movement with low volatility. Mark-Up Phase: After accumulation, the price starts to move upward rapidly as institutions push the market in their favor. Distribution Phase: Institutions begin to offload their positions, leading to sideways movement with high volatility. Mark-Down Phase: Following distribution, the price moves downward rapidly as institutions sell off their positions.
Education
by realmillionairefx
The Mechanics Of Trading - Part XII - 6-4-24 FlagsPart XII I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
AMEX:SPYEducation
by BradMatheny
The Mechanics Of Trading - Part X - EOD 2 Min ES RecapPart X - End Of Day 2 Min ES Recap I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
CME_MINI:ES1!Education
by BradMatheny
The Mechanics Of Trading - Part IX - ES Breakdown To SupportPart IX I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
CME_MINI:ES1!Education
by BradMatheny
The Mechanics Of Trading - Part VIII - Learning PatiencePart VIII I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
CME_MINI:ES1!Education
by BradMatheny
The Mechanics Of Trading - Part VI - 2 Min ES ChartPart VI I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
CME_MINI:ES1!Education
by BradMatheny
The Mechanics Of Trading - Part VPart V - Deploying Success/Failure Techniques I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
AMEX:SPYEducation
by BradMatheny
The Mechanics Of Trading - Part IVPart IV - Decision Making (A vs B) I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
TVC:DJIEducation
by BradMatheny
The Mechanics Of Trading - Part IIIPart III I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
AMEX:SPYEducation
by BradMatheny
The Mechanics Of Trading - Part IIPart I I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
AMEX:SPYEducation
by BradMatheny
The Mechanics Of Trading - Part IPart I I started this video because a friend asked me for help determining trends on multi-interval (time frames) and asked how I look at trading across multiple intervals. Asking how to best setup/use price trends to capture the best trade setups. Essentially, it comes down to three key components... A. Initial reversal/impulse waves should be traded lightly (if at all). They are the "potential price reversal setups" that are usually the most dangerous for traders (and often fairly short in length). B. Looking for the second wave to form provides traders with the opportunity to catch the bigger Wave-3. This wave forms after the impulse (Wave-1) and a corrective wave (Wave-2), which must stay below any previous ultimate high or above any previous ultimate low. C. Wave-3, and Wave-5 if applicable, are where traders can flex their muscles related to trade size using the techniques I present to try to capture the MEAT (Sweet Spot) of any trend. Remember, after Wave-3, you must prepare for the potential end of a trend setup where volatility is likely to increase and risks become a bit more elevated. I go over multiple techniques in this video. Fibonacci techniques and Fibonacci Price Theory Anchor Bars (breakaway bars) Using Fibonacci Retracements to identify key support/resistance levels for trending Stochastics RSI Wave formations (ZigZag) and Others This video is designed as an instructional video to help you incorporate usable techniques into your own trading style. Hope you enjoy.
AMEX:SPYEducation
by BradMatheny
SPY Fibonacci Price Theory And BreakOut BarsThis instructional video teaches you the basics of Fibonacci Price Theory in conjunction with Breakout Bars and how price is the ultimate indicator. Throughout this video, I try to provide instruction on key elements related to the Fibonacci Price Theory (Unique & Standout Highs/Lows). Additionally, I've also included Breakout Bars and Fibonacci Price Retracement concepts. What I really hope you learn from this video is to see price as the true ultimate indicator for your trading decisions. Using technical analysis techniques is fine, but use price as the key element when trying to confirm or reject your trading ideas. I hope this helps you understand that price, action, and reaction through trends, peaks, and troughs are the most important components of the chart. Everything else is peripheral.
AMEX:SPYEducation
by BradMatheny
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