XAUUSD GOLD: Understanding Trend Shifts for Precision Entries👀👉 In this video, we explore the inner workings of market trends and, more importantly, how smart money manipulates price action to sweep liquidity, allowing them to place their orders and sustain the trend. We also showcase a powerful, free indicator from TradingView’s extensive toolset. Here's what we cover:
📊 Understanding Trends: How trends truly operate in the market.
💰 Smart Money Tactics: How institutional traders manipulate price action to sweep liquidity and execute large orders.
🔑 Key Levels: Identifying crucial accumulation and distribution zones to approach potential trade setups effectively.
🛠 TradingView Indicators: Learn how to access tools that help spot when price is overextended.
🔎 Market Structure: Discover how to locate resting liquidity and anticipate price reactions, understanding the role of liquidity in market movement.
📈 Trade Setups: Using a practical approach, we examine price interactions with liquidity, blending Wyckoff theory and ICT concepts for sharper trade decisions.
Disclaimer: This video is for educational purposes only and is not financial advice. Trading involves significant risks. Be sure to conduct your own research before making any decisions. Trade responsibly.
Trendlineanalysis
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...
Chart Patterns Within Patterns: A Guide to Nested Setups Daily Chart Analysis:
Pattern Overview:
The daily chart shows an Ascending Channel formation, which generally indicates a bullish trend but can also signal a potential reversal if the upper trendline acts as strong resistance.
Within the ascending channel, there are continuation patterns such as smaller bull flags, which suggest bullish momentum continuation.
Key Resistance and Liquidity Zone (LQZ):
The upper trendline of the ascending channel aligns closely with the recent highs around the $2,530 - $2,540 region, creating a significant resistance area.
The 1-Hour Liquidity Zone (LQZ) at $2,486.793 is marked below the current price, indicating potential areas where price might retest before any significant upward or downward move.
Potential Reversal Signal:
The upper boundary of the ascending channel has recently been tested multiple times, and each time, there has been a slight pullback, indicating selling pressure. This could be a precursor to a possible reversal if this level is not broken with conviction.
4-Hour Chart Analysis:
Nesting Patterns:
The 4-hour chart also reveals several nested patterns within the broader ascending channel, including smaller bull flags and a potential double-top pattern forming at the resistance zone.
The price action is consolidating below the resistance line at $2,530.750, creating a possible Double Top scenario, which could indicate a bearish reversal if confirmed by a breakdown below the neckline support.
Impulse and Correction Phases:
The recent impulsive moves upwards have been followed by corrective pullbacks, which have been forming higher lows, reinforcing the bullish bias in the medium term.
However, the proximity to the resistance and the potential double-top formation might signal caution for long positions.
1-Hour and 15-Minute Chart Analysis:
Short-Term Structure:
The 1-hour chart shows a more detailed view of the recent consolidation phase near the key resistance level. There are signs of weakening momentum as prices approach the upper trendline.
The 15-minute chart further shows a tightening range and potential bear flag or a descending channel, which could indicate a short-term bearish continuation if the lower trendline of this smaller pattern breaks.
Critical Levels:
The support level around $2,486.793 (1HR LQZ) is critical for intraday trading. A break below this could lead to a sharper correction towards the lower boundary of the ascending channel on the daily chart.
For bullish continuation, a clear break above the $2,530 - $2,540 resistance with strong volume would be needed to confirm further upside potential.
Trading Strategy and Recommendations:
Bullish Scenario:
Look for a strong breakout above the $2,530 - $2,540 resistance on the daily chart, accompanied by increased volume and a break above the smaller continuation patterns (flags) on the lower timeframes.
Enter on a reduced risk entry after a pullback to the breakout level, with stops placed below the recent consolidation range or the 1-Hour LQZ.
Bearish Scenario:
Watch for a confirmed Double Top breakdown on the 4-hour chart, with a clear break below the neckline support around $2,486.793.
Consider short positions on the break of the neckline or after a retest of the breakdown level, with stops placed above the recent highs or the upper boundary of the descending channel on the 15-minute chart.
Risk Management:
Given the proximity to a key resistance level and the potential for a reversal, it is crucial to manage risk carefully. Use tight stops and consider reducing position size until a clear directional move is confirmed.
Trade the TREND with 4 Trend Indicators4 Trend Indicators you can use to identify the current MACRO Trend.
It's always important to know where your market is currently trading. Is it bullish, bearish, or range trading? If you have established the trend, you can trade with the trend instead of against it. Trading against the trend ( for example shorting during a bullish cycle ) adds unnecessary risk to an already risky trade (leverage).
1) Bollinger Bands
2) Logarithmic View
3) Super Trend
4) Moving Averages + RSI
Let me know how YOU determine the macro trend!
_________________________
BINANCE:DOGEUSDT MEXC:ETHUSDT KRAKEN:BTCUSD COINBASE:SOLUSD
Art of Trading - Trendlines 101First of all, I would like express my gratitude to all the followers and the support I have recently received from the community!
This one is for everyone who has recently started with TradingView or are existing users but are very new to the art of trading.
Today we'll be looking at "Trendlines" with a certain example that might leverage the importance of these lines.
Before we get started, I want to mention a couple of qualities that are very essential for trading,
-Patience
-Resilience
lack thereof which, the markets would definitely and repeatedly teach you!
So, what is a trendline? Any two closes connected by a straight line can be called a trendline. Usually used in higher TF's (timeframes)but can also be used on smaller TFs.
What is it's purpose? Once a certain trend has been established in a given TF and such line has been drawn, these can be used to identify supports or resistance where a probable bounce and continuation of the trend could occur.
If the market is trending upwards, a line connecting the lows of two candles, usually the first breakout candle and the lowest pullback candle, can be established as a support trendline (see illustration).
The same applies for a market that is trending downwards which will give us a resistance trendline.
Trendlines in my opinion will always be respected by a market, and also act as, for the lack of a better word, magnets, pulling the asset towards it. So when an asset is hovering around a support trendline, chances are that the asset is pulled towards it. If the trend is strong enough the asset bounces, it not it breaks through. Once broken through support becomes resistance and vice versa.
There will be of course instances when the asset breaks through a trendline but still closes above the trendline, faking participants out of the market, usually referred to as shaking out weak hands. But that's a topic for a different time.
Now that you are aware what Trendlines are, what can you infer from the illustration above? Leave a comment!
If you like this sort of posts, hit boost, so I can prepare more such content. I'm also only human, and still learning, and if you think the information I provide is erroneous, please let me so I can correct and learn together with you! Learning never stops! See you in the next one, peace!
______________________________________________________________________________________
Please use my referral link if you are looking to start a subscription! I would definitely recommend it as it provides the best tools to enable you become the best version of the trader that you deserve to be!
www.tradingview.com
Also if you want me to analyse any asset, feel free to leave it in the comments or dm, I'll make sure to share my opinion on it!
A Trading Plan Is Important For Success - Here Is MineIn this video we take a look at a trend continuation trading strategy. I explain my approach to trading how I identify a trend and what I look for for high probability trade opportunities. As always the information is for educational purposes only and not to be construed as financial advice.
UPl | Wyckoff Events & Phases Explained Wyckoff developed a price action market theory which is still a leading principle in today's trading practice.
The Wyckoff method states that the price cycle of a traded instrument consists of 4 stages – Accumulation, Markup, Distribution, and MarkDown.
👉TEXTBOOK EXAMPLE Accumulation Schematic: Wyckoff Events and Phases👈
Price Action Analysis
And this is the accumulation stage -
1) PS— Preliminary Support, where substantial buying begins to provide pronounced support after a continued down-move.
- Volume increases and price spread widens, signaling that the down-move may be approaching its end.
2) SC—Selling Climax, the point at which widening spread and selling pressure usually in high point and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom.
- Often price will close well off the low in an SC, reflecting the buying by these large interests.
3) AR—Automatic Rally, which occurs because intense selling pressure has greatly decline.
- A wave of buying easily pushes prices up.
- The high of this rally will help define the upper boundary of an accumulation.
4) ST—Secondary Test, in which price revisits the area of the SC to test the supply/demand.
- If a bottom is to be confirmed, volume and price spread should be decline as the market approaches support in the area of the SC.
- It is common to have multiple STs after an SC.
5) SOS—Sign Of Strength, a price advance on increasing spread and relatively higher volume.
6) LPS—Last Point Of Support, the low point of a reaction or pullback after an SOS.
7) BU/LPS- Backing up to an LPS means a pullback to support that was formerly resistant, on diminished spread and volume.
All the phases of accumulation stage-
Phase A:
Phase A marks the stopping of the prior downtrend.
-- Up to this point, supply has been dominant.
-- The approaching cutback of supply is evidenced in preliminary support (PS) and a selling climax (SC).
-- A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume, generally stopping at or above the same price level as the SC.
-- If the ST goes lower than that of the SC, one can anticipate either new lows or prolonged consolidation.
-- Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above.
Phase B:
-- Phase B serves the function of “building a cause” for a new uptrend
-- In Phase B, institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup.
--There are usually multiple STs during Phase B'
-- Institutional buying and selling impart the characteristic up-and-down price action of the trading range.
--Early on in Phase B, the price swings tend to be wide and accompanied by high volume.
Phase C:
-- It is in Phase C that the stock price goes through a final test of the remaining supply.
-- this marks the beginning of a new uptrend, trapping the late sellers (bears).
-- It indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position.
-- The appearance of an SOS shortly after a spring or shakeout validates the analysis.
Phase D:
--During Phase D, the price will move at least to the top
--LPSs in this phase are generally excellent places to initiate or add to profitable long positions.
Phase E:
--large operators can occur at any point in Phase E.
--These are sometimes called “stepping stones” on the way to even higher price targets.
--------------------------------------------------
Regards,
Revive Traders
------------------------------------------------
Guys check out the related POST as well, it went FANTASTIC !
🙏FOLLOW for more !
👍LIKE if U find it useful !
✍COMMENT your views & feedback !
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:
User Using different timeframes for analysisDrawing trendlines and channels is a fundamental aspect of technical analysis when trading GBP/USD or any other financial instrument. Here's how traders can effectively draw trendlines and channels on GBP/USD charts:
**Drawing Trendlines:**
1. **Identify Trend Direction:** Before drawing trendlines, determine the direction of the trend on the GBP/USD chart. Trends can be upward (bullish), downward (bearish), or sideways (range-bound).
2. **Connect Swing Lows or Highs:** For an upward trend, draw an ascending trendline by connecting successive swing lows (the lowest points in price between upward movements). For a downward trend, draw a descending trendline by connecting successive swing highs (the highest points in price between downward movements).
3. **Use Multiple Points:** Aim to draw trendlines that touch as many price points as possible without violating the overall trend direction. The more points the trendline touches, the stronger it is considered.
4. **Validate the Trendline:** Once drawn, validate the trendline by observing how price reacts to it. In an upward trend, price should bounce off the trendline and continue higher. In a downward trend, price should respect the trendline as resistance.
**Drawing Channels:**
1. **Identify Trend Direction:** Similar to drawing trendlines, determine the direction of the trend on the GBP/USD chart.
2. **Draw Parallel Lines:** After drawing the main trendline, extend it in both directions. Then, draw a parallel line that connects the highs (for a downward trendline) or lows (for an upward trendline) that are not connected by the main trendline.
3. **Adjust the Channel:** Ensure that both lines of the channel contain significant price movements within them. Adjust the channel if necessary to encompass as many price swings as possible.
4. **Interpretation:** In an upward channel, traders may look for buying opportunities near the lower trendline and take profit near the upper trendline. In a downward channel, selling opportunities near the upper trendline and taking profit near the lower trendline may be considered.
5. **Validation:** Confirm the validity of the channel by observing how price interacts with the trendlines. Price should generally respect the boundaries of the channel, bouncing off the upper trendline in a downward channel and the lower trendline in an upward channel.
By mastering the skill of drawing trendlines and channels on GBP/USD charts, traders can effectively identify trend directions, potential reversal points, and trading opportunities in the market.
Mastering Trend Analysis in Crypto Trading: Tutorial !Unveiling the Art of Trend Analysis in Bitcoin Trading
Welcome to a comprehensive guide that will empower you with the skills to master trend analysis in Bitcoin trading. In this extensive tutorial, we'll explore every nuance of identifying trendlines, understanding structural points, and navigating the complexities of different market scenarios. Illustrated with practical examples and annotated charts, you'll gain insights into distinguishing between ranging markets and trending channels, and how significant breakouts and confirmations signal trend changes.
Deciphering Trendlines and Structural Points
1.1 Defining Trendlines:
Delve into the essence of trendlines and their crucial role in technical analysis.
Understand the significance of structural points: higher lows, higher highs, lower highs, and lower lows.
1.2 Identifying Trends in Bitcoin:
Analyze Bitcoin price charts to identify structural points that signify the emergence of upward or downward trends.
Explore examples of higher highs and higher lows in bullish trends and lower highs and lower lows in bearish trends.
Ranging Markets - When Trading Takes a Pause
2.1 Recognizing Ranging Conditions:
Differentiate between trending and ranging markets, highlighting the characteristics of sideways price action.
Emphasize the challenges and importance of patience during range-bound periods.
2.2 Analyzing Range-Bound Bitcoin:
Illustrate Bitcoin charts during ranging conditions, showcasing the absence of defined higher highs or lower lows.
Discuss strategies for navigating range-bound markets and waiting for clear trend signals.
Section 3: Trading Channels - Dynamic Play of Bulls and Bears
3.1 Understanding Channel Dynamics:
Introduce channels as a distinct form of trending, encompassing upward (ascending) and downward (descending) trends.
Explore how channels create dynamic opportunities for traders.
3.2 Decoding Channel Breakouts:
Explore Bitcoin charts in ascending and descending channels, emphasizing the significance of breakout points.
Discuss how trend changes are confirmed only after a sustained breakout and closure beyond a trendline.
Section 4: Putting Knowledge into Action - Real-Life Examples
4.1 Example 1: Trading Higher Highs in a Bullish Trend:
Dive into a specific Bitcoin chart showcasing a clear upward trend with higher highs and higher lows.
Discuss potential trading strategies aligned with the bullish trend structure.
4.2 Example 2: Navigating Lower Lows in a Bearish Downtrend:
Analyze a bearish trend scenario with lower highs and lower lows, emphasizing risk management strategies.
Discuss the psychological aspects of trading during downtrends.
4.3 Example 3: Channel Trading and Spotting Breakouts:
Examine a Bitcoin chart illustrating a channel, showcasing the dynamics of trading within the channel.
Discuss breakout scenarios and how to discern a genuine trend reversal.
Conclusion: Mastering the Art and Science of Bitcoin Trend Analysis
As you conclude this comprehensive journey through Bitcoin trend analysis, remember that expertise in this domain is a continual process. Regularly reassess your technical skills, stay attuned to market dynamics, and apply these principles with flexibility. Whether you're navigating ranging markets or identifying breakout points within channels, understanding trendlines is your compass in the vast landscape of cryptocurrency trading.
💡 Building a Solid Foundation | 📈 Trendlines Unveiled | 🔄 Navigating Ranges | 🚀 Channel Breakouts Decoded
💬 Join the conversation: Share your experiences in trend analysis, ask questions, and connect with a community dedicated to honing their Bitcoin trading skills. 🌐✨
Trend Trading Strategy - Trend Continuation Master the Market Rhythm: Trend Continuation Strategy with Fibonacci Precision
Ready to ride the market waves with confidence? This video unlocks the secrets of a powerful trend continuation strategy, designed to capture momentum and maximize gains.
Here's what you'll discover:
* Identifying the Trend: Learn to spot bullish (higher highs, higher lows) and bearish (lower highs, lower lows) trends like a seasoned pro.
* Support & Resistance: Leverage key price levels where the market reverses, creating exploitable entry points.
* Timeframe Harmony: Start from the bigger picture and zoom in, pinpointing the ideal entry zone on lower timeframes.
* Fibonacci: Harness the power of the 61.8% retracement to identify high-probability trade zones within the trend's ebb and flow.
Managing Positions with Parallel ChannelVideo tutorial:
• How to identify downtrend and uptrend line
• How to draw parallel channel correctly
• Confirming a change in trend (using trendline itself)
• Managing positions with parallel lines
- Profits
- Risks
- Knowing its volatility
Micro Natural Gas Futures & Its Minimum Fluctuation
0.001 per MMBtu = $1.00
Code: MNG
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Drawing Trendlines: A Practical GuideMastering technical analysis is essential for any trader. One powerful tool that every trader use is the trendline . Let's delve into the intricacies of trendlines, their role in predicting market sentiment, and how traders can utilize them to make informed decisions.
Understanding Trendlines
Defining Trends:
Trendlines serve as invaluable tools to identify and define trends in an asset's price. Whether it's an uptrend or downtrend , these lines act as visual aids on candlestick charts, providing insights into market direction and serving as support or resistance.
Trendline Analysis:
The peaks and troughs of trendlines signify essential support and resistance levels. Support , situated below the current market price, indicates a potential halt in a downtrend, with buying interest overcoming selling pressure. Conversely, resistance , above the market price, suggests a potential reversal in an uptrend.
Steps for Drawing Trendlines:
1. Open a trading chart and access the 'draw tools' tab.
2. Add trendlines to your charts, considering support, resistance, and trend direction.
3. Study price charts to identify trends and determine entry and exit points.
4. Execute trades using stop-loss and take-profit orders to manage risk effectively.
Trendline Channels
Introducing Channels:
Channels are formed when an asset's price moves consistently between two parallel trendlines. These upper and lower trendlines, connecting swing highs and lows, provide a more nuanced view than single trendlines, showcasing both support and resistance levels.
Rules for Trendlines and Channels:
- Declines approaching an uptrend line or rises approaching a downtrend line can present opportunities to initiate positions.
- Penetration of an uptrend line , especially on a closing basis, signals a sell, while penetration of a downtrend line signals a buy.
Trendline Breakout Strategy
Identifying Breakouts:
Breakouts within a trend are crucial events. A breakout above or below a trendline suggests a potential change in trend direction. Traders keen on spotting breakouts can capitalize on new trends by initiating buy or sell positions.
Trendline Breakout Example:
A downtrend , highlighted by a trendline, comes to an end with a break in the trendline. Traders who spot this breakout can anticipate a short-term spike, providing opportunities for profitable trades.
Mastering trendlines is a skill that can significantly enhance a trader's ability to read and navigate financial markets. Whether you're a forex trader or delving into crypto markets, understanding trendlines and their applications is a crucial step toward achieving success in the dynamic realm of trading. Remember, while trendlines are potent, combining them with comprehensive market analysis ensures a well-rounded approach to trading.
aFew Trendline basics ♧"A overview in the definition and importance of using trendlines , consolidation and breakouts in trading"
-Understand the basics of drawing trendlines, identifying consolidation and support and resistance levels. Get familiar with connecting highs and lows and forming a trendline or reconize consolidation.
-Run with the runners by understanding market momentum.
Identify runners and follow their trend and use other tools for identifying presure on the runners (such as RSI4) and manage the risk while trading in profit.
-Trading the reversal of the breakout as a cycle and understand the breakout and its significant counter value. Identify the breakout and entry points. Recognize the signs of a reversal and exit the position to trade the reversal to the breakout.
In this lecture, i hope to cover the basics of drawing trendlines, how to identify runners and trade with them, and how to trade the reversal of the breakout as a cycle.
By the end of the lecture, you should have a solid understanding of how to use trendlines to your advantage in your trading strategy.
" Trendlines are lines drawn on a chart that connect two or more price points, used to identify trends and potential trading opportunities. Knowing these basics of drawing trendlines, identifying runners, and trading the reversal of the breakout can be a powerful tool when traders look to identify trends and determine entrys & exits points and potential trading opportunities."
There are three types of trendlines: uptrend, downtrend, and horizontal (or sideways) trendlines.
- Uptrend lines connect 2 a 3 higher bulls (uprising bars),
- Downtrend lines connect 2 or 3 lower bears (downsetting bars)
- High & Lows trendlines connect high with hights and Low with lows
- Horizontal trendlines occur when the price remains relatively flat.
• Drawing the trendline and understand the basic is by identifying at least two points on a chart and draw a line that connects them. The line should be drawn along the slope of the trend, either up or down.
• Highs and lows trendlines are realized by connecting highs with highs and lows with lows. You should draw a line that runs along the top of the highs. When connecting lows, you should draw a line that runs along the bottom of the lows.
• Support levels are price points where demand for an asset (EURUSD) is strong enough to prevent the price from falling further, while Resistance levels are price points where supply is strong enough to prevent the price from rising further.
Run with the runners and understand the market momentum.
Market momentum is the strength of the current trend in a market and the momentum can be positive (upward trend) or negative (downward trend).
Runners are assets with strong positive or negative momentum trends. Traders can identify runners by looking for assets with strong upward price movement, high trading volume, and positive news or market hype.
Tools for identifying runners are the use of technical analysis tools such as moving averages, relative strength index (RSI4), and trendlines.
Managing risk while trading with runners is the way traders gain profit. Stop-loss orders should be set and avoid trading with too much leverage is necesary to manage risk while trading with runners.
Trade the reversal of the breakout as cylce. Understand the breakout and its significance when they occure as an asset's price moves beyond a key support or resistance level, indicating a potential trend reversal and identify potential breakouts and entry points by the use of trendlines and technical analysis indicators to take entrys and exits.
Recognizing the signs of a reversal as they occur when an asset's price movement changes direction, signaling a change in trend. Signs of a reversal may include a change in momentum, a break in a trendline, or negative news or market sentiment. Exit the trend for trading the reversal of the breakout should be accomlplished throught soul desire, set profit targets and or the use of a trailing stop-loss orders to manage the risk or take profit while trading the reversal of a breakout.
"Support and Resistance & Consolidation"
A consolidation occurs when the price of an asset moves within a range, between a defined level of support and resistance. Consolidations can provide traders with opportunities to identify potential breakouts and to trade with runners as they move the price towards the breakout level.
Support levels are price points where demand for an asset is strong enough to prevent the price from falling further, while Resistance levels are price points where supply is strong enough to prevent the price from rising further.
"Trendlines can be drawn to connect the highs and lows of the price movement during the consolidation period.
These will form the upper and lower boundaries of the consolidation range."
"Technical analysis tools such as Bollinger Bands, RSI, and Moving Averages can be used to confirm the consolidation and identify potential breakout levels."
During consolidations, runners can be identified by looking for assets with a consistent pattern of higher lows or higher highs.
Traders can buy when the price is moving towards the resistance level and sell when the price is moving towards the support level. You should set stop-loss orders and avoid trading with too much leverage to manage risk while trading in consodilations ranges.
Potential breakout levels can be identified by looking for price movements that break through the upper or lower boundaries of the consolidation range.
Traders can enter a long or short position once the price breaks out of the consolidation range.
Stop-loss orders can be placed below the support level for a long position or
above the resistance level for a short position.
Managing risk while trading the breakout is through a set profit targets and or use of trailing stop-loss orders to manage risk when trading the breakout as breakouts are reasons why traders intent to spot and run with runners , without jumping the gun.
"Recap the lecture by knowing the basics of drawing trendlines, identifying runners, and trading the reversal of the breakout."
The basics of identifying consolidations, trading with runners during,
the 3 trends, consolidations and trading the breakout
..all may provide traders with opportunities to identify potential profitable Forex trades and trade with runners as they move the price more than often.
"Traders use it as a powerful tool to identify trends and potential trendline breakout trading opportunities!"
• HappyForexTradingJournal
J
TRENDLINE TRADING | Advanced trading lesson Hello traders 👋
Today im sharing my trading strategy with trendlines. It's my first education post, so maybe a lot of mistakes. Please don't take it the wrong way, thank you.
Let's talk about lesson
What are Trend lines?
Trend lines are diagonal lines that are drawn on charts in the financial markets trading. Trend lines are used to highlight , visualize , and make price action easier to analyze on different instruments and assets in the financial market.
How to trade And Use Trend Lines + basic supports.
1. Wait for touch ⌛
When drawing a trendline, the first thing price is check the three times or more. If the price is not checked three times or less, can't draw trendline.
2. Draw ✏️
To draw a trend line, you must choose a time frame. I'm use always bigger than 1 hour timeframe . This is because you want to find the price action for a longer period and not just some light movement.
3. The Basics of Support and Resistance + key levels ✔️
When trading with trend lines, the concept is applied in order to maximise the chances of winning trades.
4. Looking for entry + risk management 💰
Always wait for confirm example; trend line break + price making lower low + pullback + add indicators
🤲 If you like my strategy, Please like and comments. 🤲
Thank you!
HOW TO USE TRENDLINE FOR ENTRYIn this video i showed you how to use Trendline for entry in the easiest and simple way.
What do you think about this?
I would like to hear your view, drop your comment.
Bitcoin Short Term Analysis with Curved Trend Line!Today i will be showing you how to use Curved Trend Line indicator.
This indicator contains 21 period ema which is red line and 20 period sma which is yellow line.
This 2 averages together work like a trendline. So if the prices are below both lines we are in a downtrend and vice a versa.
If price is in the green are which between the 2 lines, that means price is in a area of indecision.
Just like regular trendline, this curved trendline shows us resistance and support areas.
Let me show you with an example.
There is an uptrend that formed in the late January.
Price tested that trend line 1 month later and price went 45k area quickly.
Last week we tested that trendline again and held.
Price can go to the 45k area again.
It can retest trendline before going up.
Or it can go up without testing it again.
This also correspond with my Curved Trend Line indicator!
We are trying to break above Trend Indicator at 40k!
Right now we are testing CTL to go higher. If we can manage to stay above price action will be to the upside of 45k.
Also, for a month CTL act as a resistance.
Everytime price test the CTL and try to breakout above it got rejected.
This is an indicator that works as an support - resistance of a price!
You can also use this CTL to validate your formations, SL-TP points!
Use this CTL with daily or higher timeframes for more accurate decisions!
If you want to try that %100 free indicator just message me!
Important Daily Support
38k
35k
Important Daily Resistance
40k
41k
45k
How to Draw Legitimate TrendlinesHey Guys!
Just wanted to post a quick lesson on "How to Draw Legitimate Trendlines".
In this lesson, I explain the 3 rules that must be applied for a trendline to be legitimate.
1.) Trendline's attachment points must be on the wicks of a candle. Not the body of a candles.
2.) There must be at least 3 contact points on a trendline for it to become legitimate.
3.) There must be no break outs or surpasses of the trendline.
Moreover, I demonstrate these with examples.
That's it! I hope this helped!
Have a great day!
Ken
How to trade levels? How to play price? How I made 30x in 2 yrs!In this video:
I draw out a hypothetical initial investment.
I should how you can multiply your net profit by trading out and back in along the way to your final projected target.
This video is all about trading levels, a strategy I have developed from years of experience that has helped my to multiply my crypto profits exponentially.
I have 30x'ed my initial cash reserves over the period of 2 years.
I think you can too. I am going to show you how I did this.
