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Mastering Fibonacci Retracement :Navigating Bitcoin's VolatilityMastering Fibonacci Retracement :Navigating Bitcoin's Volatility Navigating the volatile landscape of Bitcoin trading can be a daunting task for both novice and experienced traders alike. However, equipped with the right tools, traders can identify potential support and resistance levels, make informed decisions, and capitalize on market movements. One such tool that has stood the test of time is the Fibonacci retracement tool, a staple in the arsenal of many traders due to its uncanny ability to forecast potential price reversals with remarkable accuracy. Understanding Fibonacci Retracement Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. The concept draws from the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (0, 1, 1, 2, 3, 5, 8, 13, 21, and so on). In trading, these numbers are translated into percentage levels that traders use to identify potential reversal points on price charts. Key Levels to Watch The most commonly used Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These percentages represent potential support and resistance levels where the price of an asset like Bitcoin could experience a reversal or consolidation. The 61.8% level, often referred to as the "golden ratio," is particularly noteworthy for its reliability in predicting price movements. Applying Fibonacci to Bitcoin Trading When applying Fibonacci retracement levels to Bitcoin's price action, traders often look for significant highs and lows to place their retracement lines. From there, the tool provides a visual representation of potential areas where the price may stall or reverse. For instance, during a downtrend, a retracement to a higher Fibonacci level like 61.8% could indicate a potential area of resistance where traders might consider taking profits or entering short positions. The Significance of the 78.6% Level Recent discussions among traders have highlighted the 78.6% retracement level as a crucial point for Bitcoin, suggesting that reaching this level often precedes significant corrections. This phenomenon underscores the importance of Fibonacci levels in anticipating market movements, allowing traders to adjust their strategies accordingly. Real-world Application Consider Bitcoin's historic rally and subsequent corrections. Traders have observed that significant pullbacks often align with key Fibonacci levels. For example, during a bullish phase, if Bitcoin's price retraces to the 61.8% or 78.6% levels before bouncing back, this could be seen as a strong signal for trend continuation. Conclusion The Fibonacci retracement tool is more than just a mathematical curiosity; it's a reflection of human psychology and market sentiment. By identifying levels where price action may change direction, traders can make more informed decisions, manage risk more effectively, and potentially increase their chances of success in the market. As with any trading tool, it's important to use Fibonacci retracements in conjunction with other indicators and analysis methods to validate potential trading signals. Remember, no tool can predict market movements with absolute certainty, but by understanding the tendencies and patterns, traders can navigate the Bitcoin market with greater confidence. BINANCE:BTCUSDT BITSTAMP:BTCUSD BINANCE:BTCUSDT.P Don't forget to check our latest publications
BITSTAMP:BTCUSDEducation
by FikratTrades
6
The Triangle Of The Year => BTC 🏆Hello TradingView Family / Fellow Traders, 🏹 After a 50% surge from 25,000 to 38,000 , BTC has entered a consolidation phase within the confines of a symmetrical triangle, as highlighted in orange. This development holds significant importance as it aligns closely with a yearly resistance zone between 38,000 and 40,000. The resolution of this pattern will likely dictate market sentiment for the remainder of the year. 📈 Should the triangle break to the upside, confirmed by a daily candle closing above 38,000, we anticipate a bullish continuation targeting the resistance range up to 40,000. 📉 Conversely, a downward break of the triangle, confirmed by a daily candle closing below 35,600, would signify bearish momentum, potentially leading to a substantial correction towards the 30,000 - 32,000 support and demand zone. For now, we wait! ⏱ Which scenario do you think is more likely to happen? and why? 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Richard Nasr
by TheSignalyst
26
Advanced Analysic for GBPJPY: SELL and BUYMy analysis of the GBPJPY forex pair is as follows: 1. Market Structure: I have identified the primary wave structure, marked in red on the chart. The corrective wave structure, labeled 0A-BC and marked in blue, is also evident. By employing additional techniques, I anticipate that the correction will conclude at the designated point C. 2. Price Action Momentum Channel: On the chart, I've identified a bearish momentum channel. I anticipate that the price will reach the lower boundary of this channel, and this could present an opportunity for buyers to enter the market. 3. Fibonacci Analysis: I've identified significant price reaction zones using Fibonacci analysis. In conjunction with other analytical methods, I predict that the price will react notably at two critical levels, particularly in the presence of substantial economic news. 4. Indicator, volume histogram & RSI analysic. Thank you for considering this analysis.
Long
by KC_Trader77
6
The most important advice for tradersThe most important advice for traders.. how to deal with market expectations? The recent downturn in the market has investors wondering: Is this the beginning of a bear market or just a correction? But what investors really need to understand is that markets are inherently volatile Taking a long-term perspective and focusing on the things we can control is key to investing success When it comes to the market's ups and downs, investors make up their own stories about what might happen next. A small decline of 5%, such as the recent decline from early August to just a few days, can be seen in two different lights: a bear market resurgence or a short-term systematic correction. The thing is, each of us is crafting our own story, and it's a story we tell ourselves about how we think the markets might turn out. And in the midst of all this, we are bombarded with the opinions of experts, journalists, commentators, economists and traders, which can complicate matters and sometimes distract us from the basic truth: markets are inherently uncertain. Think about it: for every investor or trader who correctly predicts short-term moves, there are 99 more who get it wrong. And this pattern continues to repeat. The only entity that is always right is the market itself, so here's what we should do instead: Focus on the things we can control Look, and you'll find a good graph showing what we can actually manage. These are the factors that we must take into consideration. Thank you for considering perspective and If this post was useful to you , don't forget to subscribe and like ❤️ Regards Araz Majeed
OANDA:XAUUSDEducation
by Arazmajeed
1
Advanced Microsoft Channel (Daily)Here is a strong channel (number of touches and correlations) of Microsoft. Look to sell the highs (pink box) and buy the lows (green box). I think it makes sense to buy with reduced risk as this is a bearish channel and the flow of money is to the downside. That means that longs will fail more often. It's already at a sell zone, so it just needs a bearish candlestick pattern for me to enter shorts. Keep in mind that the lower than expected CPI numbers is suggesting to some people that the fed will increase rates at a slower pace. This lead to the huge gap up and strong bullish bar. Will that momentum continue and we see a channel breakout? For now, I'll stick with the technicals and be more short bias than long bias. All the best... Cheers.
NASDAQ:MSFTShort
by kosai19
2
False breakout of a resistance level (GBP-JPY, Daily)Here is a pattern that I've studied in some detail... It's a false breakout of a proven resistance level (in this case a very strong one). Note the little to no travel above the bar, along with a return beneath the level. That signals that the bulls have no interest in higher prices. Stops can be placed anywhere reasonable above (at some corrective Fibonacci level or a set number of pips for the pair) and targets are at least 2:1. This is a good probability setup in the long run. If you find this useful, please leave a thumbs up. All the best.... Kosai
Short
by kosai19
2
T-Mobile Channel (Daily)Here's a channel that has been telling the technical story of T-Mobile. At the tops it has been consistently selling-off and at the bottoms, it gets bought up. Personally, I look to sell the pink zone or slight above and buy the green zone. If it breaks out of green however, I would liquidate all longs and go short. Currently, it is pulling back from channel highs and looks to at least fill the gap. Please check my channel tutorials for more info on how to use them/draw them. Cheers.
NASDAQ:TMUS
by kosai19
2
Advanced Tesla Channel (Daily)This is a channel for others to copy onto their charts and use as they see fit. If you want to understand how I drew it and the highlights, then look at the tutorial for channels on my page as I've drawn it the same way. As for how to use the channel. You look to buy at the green zones and sell at the red zones when the right candlestick pattern appears. The gray zones are just extra levels that you can initiate positions if you also see the right candlesticks form at the level and see net buying/selling (depending on the direction it is testing the level and the candlesticks seen). I prefer to not just buy or sell at the levels but wait for the candlesticks to confirm that others are buying/selling at the level. It increases the odds dramatically in your favor to wait patiently. You have to also have knowledge of candlesticks, the more the better. Hope this helps. Cheers. Kosai
NASDAQ:TSLA
by kosai19
HOW-TO : analyze the market with script051 indicatorsYou can find the indicators with the link below Indicators If you are in a 50% loss in the current bearish market, you probably did not choose the right point to enter or you got involved in the wrong hope that the price will return soon. So what should we do to avoid such losses? You should be familiar with market cycles 2 cycles that you are probably familiar with: psychology of a market cycle wyckoff price cycle The problem with the above cycles is that We cannot easily recognize the phases of the cycle But look at the cycle below This cycle is exactly like the Wykoff cycle, only the names have been changed. "Hidden truth" is named because the real price of a share is only in this phase, and if someone wants to invest, it is better to enter in this price phase, but often everyone loses a large percentage of their capital at this phase, and if the price stay in this phase for a long time, they will probably leave position with a large loss. "Obvious truth" : In this phase, the direction of the price is easily recognized by traders and investors. The price is most likely moving upwards rapidly and the greed is also increasing. "Hidden lie" : It is the worst point to enter the market. This is a place where big players leave the market, but it seems to you that the price is going to grow, that's why this name was chosen! "Obvious lie" : This phase is also easily recognizable, but the greed that has formed during the 2 phases does not allow you to leave the market. The market trend has clearly changed, but you are trading against the direction of the market. For example, the market is now in the "Hidden truth" phase and good point for investment. The point that I need to mention is that -ONE LOOK is designed for the crypto market, but due to the general correlation of the markets, you can get good results for other markets as well. You don't need to identify the phases, the -ONE LOOK will do it for you. -ONE LOOK tells you where you are in the cycle at any moment with the help of 10 different indicators. If you enter the market at the right point with the help of -ONE LOOK , I promise you that 50% of your problems will be solved. Also, this indicator has features such as: 1.Heatmap 2.Screener You can use it according to your needs. Let's go to the next step ! Well, you were able to recognize the phases of the cycle and entered at the right point. But the fact is that cycles are formed in long periods of time (I know the fractal structure market :|) maybe you need to find the trend in "15m" chart. " -hero" and " -master cycle" will help you here. Look at the chart below These indicators are not magic, you can find the trend with moving average or market structure. With the difference that these indicators remove fakeout for you that might make you think the trend has changed We talked about cycles and trends. Another thing that I can boldly say that everyone uses is the key areas of the market. If you want to enter a trading position, you are usually looking for how the price reacts to the key areas. we also get help from these areas for exit and stop points, so obviously it is necessary to be able to find them correctly. Look at the chart below to see how we found the important price areas using indicators and how the price reacted and how we enter the trading position. With the help of volume profile and high and low points of daily weekly candles and channel bands, we can find suitable signals. But one of the key points of the market is the round numbers. Fortunately, we can find these points with the help of the " -auto round level" indicator But how can we find the signal and test them properly? First, let's see how to find good market entry with the -master cycle indicator : You already learned to find the trend with the master cycle. You can enter the position in 3 situations: 1.When the flow element changes state. 2.When the score element moves against the flow direction. 3.When the spot element appears You can also find good signals using -Hero 4 parameters are determined for the -hero indicator, by changing them you can get different signals (definitely, the accuracy and efficiency of each signal is different from each other) And the last indicator allows you to see at a glance what signal -Hero indicator has send for each symbol and at what time. You can find the indicators with the link below Indicators
BITSTAMP:BTCUSDEducation
by script051
3
Happy New Month. AUDUSD SUMMARY & PREDICTIONGood morning I hope you all are having a wonderful life as it Is our birthright. I want to let us know that for the past 730 Hours AUDUSD has moved................. Zero PIPS. Yes, we are right back where we started and I'm really optimistic about what's in store for us this month. Last month began with sellers dominating and I wonder If we'll get that this coming week. Will the seller win or has there been a shift in the market? Please take your time to think about this. We are not in a hurry to trade, we may not be the most active but we are the most profitable. Make this your mantra, Thanks. Do we know what channels are? If you don't please send me a message and I'll explain. I believe that in moments of indecision the market takes a side movement. It could be an upwards channel or a downwards channel or a simple range moving to the side. Like, the whole of last month was just a move to the side, lol. If you look at the chart you will see WHITE horizontal lines, indicating support and resistance ZONES. If you take another look you will see that the price moved above a downwards trend line Indicating THE POSSIBILITY of a change in trend. WE WERE SELLING, NOW WE SHOULD BE BUYING. Message me If you have any misunderstandings. Let's go the Economics : AUD has had a positive RBA Interest Rate Decision, Positive Trade Balance, Negative Employment Change, Positive GDP just two days ago, and a Positive Trade balance as of yesterday. USD has a positive Jobs Data, A negative ADP Nonfarm Employment Change (Apr), positive PMI"s, an Increase in the Interest rate, Negative Jobless claims, positive Nonfarm Payrolls (Apr), mixed CPI news, and a negative Jobless claim that turned the market in favor of AUD mid last month. All these happened and guess what. There was no significant move in the market. We want to capture a big move and we think it's happening soon. If you check out my previous posts, I have THREE before this. You'll have a clearer understanding of what's coming next. Our Forecast We are still bullish on aud usd We don't expect the big move to happen Immediately but It'll happen soon. Every swing low should be an Indication to BUY if you are SCALPING/DAY TRADING, not the other way around. Once there is a change in market sentiment we will know AND Obey. Our Method this coming week will be to buy 15min fractals till the next fractal. If you don't understand what fractals are, send me a message, and I'll explain. You can as well like this post and follow this page and I'll keep you updated with AUDUSD Setups this coming week. Have a lovely weekend. CHEERS.
by iamspirit_io
Advanced Channel (SeaWorld, Daily)This isn't a direct trade, however the channel highs and lows can be traded by analyzing the candlestick patterns from those levels and trading accordingly. This is more for learning about how to draw channels. The dark channel lines are the main reversal level. The dashed line is the minor level of the channel. The green area is the buy zone. And the pink area is the sell zone. You can see how accurate this particular channel has been in containing prices. You look to sell at the channel highs and buy at the channel lows. Hope this helps someone.
SShort
by kosai19
Bitcoin Elliot Wave UpdateWe continue to progress in the impulsive price action to the downside which in the larger degree wave cycle is playing out the WXY to the downside from the ATH level. We can clearly see from X wave top at ~$48,000 that we began an impulsive structure to the downside which has evolved to many wave cycles of varying degrees as shown on chart; we are now heading into the latter stages of this 5 wave impulse to the downside, of which we currently lie in the MINOR Wave 5 Cycle. The Wave 5 Cycle appear to have more downside to go with further sub waves developing; we appear to be in the 3rd wave of the Minor Wave 5 cycle which has not yet completed with further sub waves developing with an appearance of another leg down towards ~$37600 price level which is strong support in confluence with the outer warning line of the pitchfork. With a strong area of support from ~$37200 - ~$37600 it is a likely 3rd wave destination of the Minor Wave Cycle 5, there is possibility of a move slightly below the orderblock for the 5th wave of this final wave; where often a failure/fake out wave can occur where exhaustion of sellers means price quickly rebounds above orderblock and closes strong; where we can assume some upside relief will occur although in corrective fashion. This could be interpreted as a form of stop hunting which often occurs in this space before a trend change. Please like and follow for more Advanced Elliot Wave Applications
BITFINEX:BTCUSDShort
by NICKVASS10
4
ULTIMATE MACD GUIDE - ENTRY'S AND EXITS 📚The Moving Average Convergence Divergence Oscillator , otherwise known as MACD, is one of the most powerful and dynamic indicators, if you can learn to use it properly. It is easily one of my personal favorite indicators, and one that I currently use when scalping and day trading. Now before we get into how the MACD works on a technical level, let’s first go over how the MACD helps us fundamentally. We can break it’s benefits down into 4 categories - in which it allows us to measure and predict the following: The strength of a pattern The momentum of a movement The direction of a movement The duration of a movement Let’s breakdown each of those -The Strength Of A Pattern- Have you ever seen price approach the outer limits of a wedge, channel, or support / resistance and wondered, cluelessly whether or not it would actually break through or end up rejecting? The MACD allows us to predict the pressure behind a certain sentiment, and therefore predict the odds of that pattern completing successfully. (possible example) -The Momentum Of A Movement- When trading, especially day trading, it is important to have almost impeccable timing for entries and exits. The MACD allows us to see and predict current and future momentum. This is powerful, as it allows us to enter a long before the rest of the market has gone long (essentially entering a long before the market pumps.) This increases our profit/loss ratio - therefore decreasing risk and allowing for more sturdy stop losses. -The Direction Of A Movement- This one is quite obvious when looking at the MACD, but without the indicator, it can sometimes be quite difficult to even see which way the market is trending (periods of high consolidation for instance) By utilizing the MACD on multiple time frames, we can have a glimpse of where the market is headed, even if it is unknown on the smaller time frames. (the opposite is also true, when the higher time frames are in periods of high consolidation, we can take a look at the lower time frames to get an idea of where it is heading) -The Duration Of A Movement- As mentioned previously, it is extremely important as a day trader to have very accurate entries and exits. Ironically, one of the most difficult things for a novice trader to predict is an accurate exit. if you exit too early, you miss out on valuable profits and further decrease your profit to loss ratio. Yet, if you exit too late, you also lose valuable profits and decrease your P&L ratio. How do you find that sweet spot, to maximize your profits? The MACD allows us to use past history to predict the duration of the current trend, and exit when it is most necessary. -How To Apply The MACD And Gain Its Benefits- Now that we have gone over exactly what the MACD offers, it is time to learn how to use it. the MACD consists of 4 components: The signal line (slow line) The “MACD” line (fast line) The baseline The histogram (a visual, often color coded representation of both lines interacting) These four components interact with each other in a very dynamic way, and allows for very versatile, wave-like movement (one of the only of its kind.) This is incredibly useful, as the market itself works in a very similar wave-like pattern of thrusts and rest, thrusts and rest and so on. there aren’t many other indicators (if any) that display the markets ebb and flow quite like the MACD. Let's break down what each aspect does. -The Signal Line- The signal line or ‘slow line’ is calculated based on the 26-period ema. This is the standard numerical value for the MACD, but can typically be adjusted in it’s settings to your preference. The signal line is the basis for whether a trend is overbought/ oversold and whether the momentum is bullish/ bearish. -The MACD Line (fast line)- The MACD line is calculated based on the 12-period ema. When the MACD line crosses above the signal line, this is considered the very beginning of a bullish movement. Why is this the case? Well, if the average price of the past 12 candles is moving higher than the average price of the past 26 candles, we can assume that in the short term, the momentum is bullish. The opposite is also true. when the MACD line is below the signal line, this is the very beginning of a bearish movement. -The Baseline- The baseline is considered the very center of the MACD indicator. It is the line where the red and green bars of the histogram meet and where the scale on the right hand side reads zero. The purpose of the baseline is to further indicate the distance between the signal and MACD line. the higher above the baseline the MACD and signal line go, the further the distance is between the two (meaning the 12-period ema is much higher than the 26-period ema.) This is useful in showing how overbought or oversold the equity is in that particular time frame. The opposite is also true. the lower below the baseline these lines move, the further apart they are. However, in this case, the 12-ema is much lower than the 26-period ema. This indicates that the price may be oversold. -The Histogram- The histogram is the bread and butter of this entire indicator. As you become more familiar, the signal and MACD line will be very helpful in seeing the nuances of a movement and the market as a whole. As a beginner though, the histogram is your best friend. it takes all of the information mentioned previously, and compacts neatly into a color coded, numerical value system. Each bar of the histogram corresponds to the above candle. This is useful as it allows us to predict future histogram bars, and where the MACD may be headed in the future. Whenever the MACD line crosses above the signal, the histogram turns green. whenever the MACD line crosses below the signal, the histogram turns red. As the MACD approaches the signal line, the histogram weakens, and the bars grow smaller and smaller - closer and closer to the baseline. However, as the MACD line separates from the signal, the histogram bars grow larger and larger, further from the baseline. -The Culmination- All of this information can be combined, to assess the MACD on multiple time frames and make an educated decision on market direction. A trading plan using the MACD could look something like this (using SPY): -Before the market opens, check hourly MACD. wait until the hourly looks oversold, and the histogram appears to have peaked. (once the newest histogram bar is shorter than the previous, this marks the peak) -Once peaked, this indicates that momentum for the next several hours should return to the baseline (spy is oversold) -Now, you could go to lower time frames such as the 5 and 15 minute, keeping in mind that the hourly is oversold, so buying pressure should be at its heaviest now. -Use the MACD on the lower time frames to judge the smaller thrust and rest periods, buy at the rests and sell at the thrusts. Don't even get me started on how I view a chart as a collection of emotions, and how I believe the MACD displays these emotions better than any other indicator can (we'll save that for a separate post.) The MACD and its strategies/ nuances could be talked about for hours, but I hope this helped. I'll likely be doing another post, outlining more concrete examples of how to use it, so stay tuned!
COINBASE:BTCUSDEducation
by SJ_CAP
6
AMD bullish if it reaches 87Hi Traders! AMD are investors patiently waiting for ER Q2, there is a good chance of a runup before or after earnings. AMD has managed to end the downward trend that started in feb 2021, and are now in an uptrend. From half May until the beginning of July AMD has had a beautiful run and has had a good correction like it should have, and closed just below the new trend line on the 16th of July. Fundamentally AMD has very bullish case in our opinion. Fundamentally very bullish because: - AMD has proven that they are able to handle the chip shortage very well . - Revenue and profit is expected to reach a new high. - Xilinx, acquisition, the deal is now in a final stage. With AMD acquiring Xilinx they are diversifying their portfolio and it allows AMD to enter new markets like the 5G cellular market. Technically: - Trend line is still intact even though it closed below, it has not broken in our opinion, as a retest is very likely. - 200MA support Technically the stock looks okay, not convincing enough to jump in yet, but if price manages to reach 87USD, we expect the bullish trend to continue- That + a positive earnings report can make the stock chase ATH again. If the price goes below 85USD we consider the trend line broken and makes this thesis invalid. Entry: 87USD SL: 85USD T1: 95USD (Re-evaluate after ER and new technical info) Disclaimer: This is not financial advice but made for education purposes only!
NASDAQ:AMDLong
by vf_investment
Wyckoff basics explainedGoing back to the 18th of March where we called the Buyers Climax top for Bitcoin's "Wyckoff" Distribution phase. We have had a lot of questions regarding the technique. It's a very difficult one to put into only one post - but to understand Wyckoff methodology you need to first APPRECIATE what Wyckoff is about. History Richard Demille Wyckoff (November 2, 1873 – March 7, 1934) was an American stock market investor, and the founder and onetime editor of the Magazine of Wall Street. Wyckoff implemented his methods of technical analysis of the financial markets (the study of charts showing movements of stock-prices and other data). He grew his wealth such that he eventually owned nine and a half acres and a mansion next door to the Hamptons estate of General Motors president Alfred Sloan in Great Neck, New York. As Wyckoff became wealthier, he also became altruistic about the public's Wall Street experience. He turned his attention and passion to education, teaching, and in publishing exposes such as “Bucket Shops and How to Avoid Them”, which were run in New York's The Saturday Evening Post starting in 1922. Jump forward - too much detail for one post to cover. Wyckoff's research claimed many common characteristics among the greatest winning stocks and market campaigners of the time. He believed he had analyzed and determined where risk and reward were optimal for trading. He emphasized the placement of stop-losses at all times, the importance of controlling the risk of any particular trade. Wyckoff also has techniques he believed offered advantages when markets were rising or falling (bullish and bearish). The Wyckoff technique may provide some insight as to how and why professional interests buy and sell securities, while evolving and scaling their market campaigns with concepts such as the "Composite Operator". Wyckoff offered a detailed analysis of the "trading range", a posited ideal price bracket for buying or selling a stock. One tool that Wyckoff provides is the concept of the composite operator. Simply, Wyckoff felt that an experienced judge of the market should regard larger market trends as the expression of a single mind. He felt that it was an important psychological and tactical advantage to stay in harmony with this omnipotent player. Wyckoff believed investors would be better prepared to grow their portfolios and net worth by following in his footsteps. The LOGIC Applying this concept in a chart you can identify market phases and cycles - here's the snapshot from a daily BTC move. This relates to one of 4 (master patterns)this particular known as distribution schematic 1. **For the others you can see in the PDF linked below;** Phases - Simplified In this distribution schematic example (literally from Wednesday's BTC exit of the range) you will be able to identify a Buyers Climax (BC) from here, the assumption is that the composite man (strong hand operators) are taking profits - Money flow leaving, this causes an Automatic Reaction (AR). Now many retail traders will assume, this is another pullback (failing to identify the BC) if their on a very small time frame (and many retail traders are operating on lower time frames) then the assumption would be "buy the dip" and for a little while they are correct, we often see this (ST) move up but, this usually fails to go higher than the (BC). Composite man is in control This game is what many retail traders refer to as "Market Manipulation" - whilst the reality is, there is an identifiable pattern. Human beings are greedy, fearful and outright stupid at times. This allows for the perfect schematic to play itself out as the composite man accumulated or in the Bitcoin move Distribute. Here's an example from an older post I did walking through the psychology on a chart. You will see how price action in inextricably linked with the moves caused by the players "you & me" in the market. Later phases of this structure The general idea is for the composite man to accumulate or distribute to obtain a better position for himself, taking the market one way and the other. Often at times, retail will do the last couple of steps among themselves. Although the strong hands are often hedging positions, it is not always required to have their participation as the phases move on inside the structure. As we see a Sign Of Weakness (SOW) - the retail traders would have now seen a lower high and a lower low (logic) However from the (SOW) we move almost impulsively to the Upthrust (UT) the "bulltrap" to many newer traders. At this stage of the post, you might be starting to see inside how the manipulation works? Next phase Range bound - in true Wyckoff terms this region inside the schematic is known as phase B. We chop up and down and eventually create a new higher high. Again in Bitcoin's case we see the ATH. Known as the (UTAD) to Wyckoffian's - Up Thrust After Distribution. This is the climax and from here we see the price breaking down until we anticipate the exit of the range. On @TradingView We have also developed a pretty cool indicator to use one buy and one sell for Wyckoff schematics in particular. You can see how it fits inside the schematic. The logic can easily be assessed and broken down into small parts, step by step. And therefore, if it's something we can program. It is something you can learn. Here is the free link to the other Wyckoff Schematics - drive.google.com Hope you enjoyed this short intro to Wyckoff - see the previous video posts for live Wyckoff overlay examples. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Editors' picks
FX:XAUUSDEducation
by Mayfair_Ventures
290
Bitcoin ATH soon?Bitcoin 4h look: We can see on the 4H that a symmetrical triangle has formed, this is an un-biased pattern, although we are in a clear uptrend, and these kinds of patterns usually come as continuation patterns, the green boxes, and red boxes mark, support, and resistance areas. Regardless of this being a continuation pattern, we must pay attention to the other indications that we are seeing, we can clearly see that the sell volume is significantly higher to the buy volume. This could mean that we could have a liquidation event heading us to the lower green box support area, before being able to move upwards. We do have an un-confirmed bearish divergence on the RSI, well see how it plays out. My bias is bullish, and IMHO we should be seeing a new ATH soon. Bitcoin 1H: In the 1-hour timeframe, we can see that we have created equal lows (Purple horizontal trendline), and the liquidity was swept out of the market in the last dump, this is good, although we see a clear imbalance area (price inefficiency area). This is a very technical term, but short story long. This is a place where the price was not able to cover short positions, this because the price moved too quickly. This creates areas were the price in not in balance, and we usually fill these areas. Having this in mind I am looking out for a quick wick down into the imbalance, which lines up with the equal lows, before moving further upwards. What are your thoughts?
INDEX:BTCUSDLong
by Legutz