Test of saved trendines on tradinviews replay hello
here i tried to test my strategy of trendlines.
as you will see it is reliable and useful to save and update your drawn line on your chart, because it guides you to know in advance the breath of your market.
it is like if you draw a path that it will be run by the market. like if you have a cristal ball showin you where and how our market decide.
be patient for my long video but trust me it deserve be watched.
good luck
Analysis
Lesson 2 II What is The Levreage ?Leverage is a tool provided to you by the forex company or your trading company, and this tool inflates your capital so that you can deal in the forex market
In other words, if the leverage is 1:10, then every $1 in your account equals $10 in buying value in the forex market.
And if the leverage is 1:500, that means that every $1 in your account equals $500 purchasing power in the forex market.
Therefore, you can start in the forex market with a small capital, starting from $50, with a leverage of 1:500, which gives you purchasing power as if your capital is equal to $25,000.
The most important words you need to know in fundamentalsHello everyone 😃
Before we start to discuss, I would be glad if your share your opinion on this post and hit the like button if you enjoyed it !
What Is Fundamental Analysis?
Fundamental analysis (FA) is a method of measuring a security's intrinsic value by examining related economic and financial factors.
Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management.
The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.
This method of stock analysis is considered to be in contrast to technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume.
Now you know what is fundamental analysis, But before you start to learn more about it, Its better to know the important words that authors use in their articles !
📚 On this Article you'll learn about 25 of them and we'll continue to post the other in next educational posts; It's easier for you to read and remember !
1. Assets: Capital that is frozen as in property, real estate or possession.
2. Bearish: The falling trend of assets and shares in markets.
3. Bonds: Governmental bonds that ensure a fixed rate of interest in often long
term investment.
4. Boycott: To protest by refusing to purchase from someone, or otherwise do
business with them. In international trade, a boycott most often takes the form of
refusal to import a country's goods.
5. Bribe: A payment made to a person, often a government official such as a
customs officer, to induce them to treat the payer favorably.
6. Broker's fee: The fee for a transaction charged by an intermediary in a
market, such as a bank in a foreign-exchange transaction.
7. Bubble economy: Term for an economy in which the presence of one or
more bubbles in its asset markets is a dominant feature of its performance.
8. Bubble: A rise in the price of an asset based not on the current or prospective
income that it provides but solely on expectations by market participants that the
price will rise in the future. When those expectations cease, the bubble bursts and
the price falls rapidly.
9. Budget deficit: The negative of the budget surplus; thus the excess of
expenditure over income.
10. Budget surplus: Refers in general to an excess of income over expenditure,
but usually refers specifically to the government budget, where it is the excess of
tax revenue over expenditure (including transfer and interest payments).
11. Bullish: A rising trend in the significant increase of funds and shares in the
stock market.
12. Capital: the large amount of money or investment.
13. Capital loss: The loss in value that the owner of an asset experiences when
the price of the asset falls, including when the currency in which the asset is
denominated depreciates. It contrasts with capital gain.
14. Cartel: An agreement among, or an organization of, suppliers of a product. A
group of firms that seeks to raise the price of a good by restricting its supply. The
term is usually used for international groups, especially involving state-owned firms
and/or governments.
15. Cash dividend: Cash distribution of earnings to stockholders, usually on a
quarterly basis.
16. Commodity: Could refer to any good, but in a trade context a commodity is
usually a raw material or primary product that enters into international trade, such
as metals (tin, manganese) or basic agricultural products (coffee, cocoa).
17. Compensation: whoever violates agreement rules must compensate other
countries by lowering tariffs or making other concessions, or be subject to
retaliation.
18. (CSR) Corporate social responsibility: The responsibilities that corporations
have to workers and their families, to consumers, to investors, and to the natural
environment.
19. Corporation: Form of business organization that is created as a distinct legal
person composed of one or more actual individuals or legal entities. Primary
advantages of a corporation include limited liability, ease of ownership, transfer,
and perpetual succession. A business form legally separate from its owners. Its
distinguishing features include limited liability, easy transfer of ownership,
unlimited life, and an ability to raise large sums of capital.
20. Decline: The falling of stocks or prices in the market.
21. Breakout: The breakout of a virus or the breakout of a war.
📚 There's a difference between this breakout with the breakout we call in chart analyzing !
22. Minutes: The report from a meeting. (minutes from Fed’s meeting will be
released)
23. Consolidate: The prices are reaching a plateau and becoming more stable.
(the prices are consolidating)
24. Stimulus measure: The government is giving the banks a stimulus measure
to be bailed out for the financial crisis.
25. Retreat: The management is retreating from their initial position to deduct
the salary of the workers. (it's an example of retreat)
📍 We'll continue this series of educational posts in next days, STAY TUNED and don't forget to follow this idea, So you'll be notified after I post the new one...
Hope you enjoyed the content I created, You can support us with your likes and comments 😉🙋🏼♂️
Have a good day!
@Helical_Trades
Trends in Technical Analysis 📈📈✨What are the trends in technical analysis and what is its application in digital currencies such as Bitcoin and other cryptocurrencies? In the second part of the tutorial, we will look at the trends.
The concept of trends is definitely one of the principles of technical analysis. All the tools that we will teach in the following are created from patterns, oscillators, support and resistance levels, indicators, and with the aim of helping to measure the price trend. Even if you have been in the market for a short time, you must have heard the words, "Trend is your friend", "Always trade in the direction of the trend", "Never fight the trend". These are common phrases that you often hear in the market. So we need to take the time to define the process and know its types.
Bitcoin price chart consists of uptrends, downtrends and neutrals
John Murphy describes the trend in her valuable book, Technical Analysis of Financial Markets:
The market never moves in a straight line. Market changes are characterized by a series of zigzag movements. We call these market zigzag movements. The result of the motion of these waves is TREND.
✨Classification of trends in technical analysis
▪️ Uptrend
The uptrend is defined as a series of ascending waves. Charles Dow defines an uptrend as follows: "When a price is higher on an uptrend than the previous uptrend, or when the price is on a downtrend above the previous uptrend, we have an uptrend." In other words, the uptrend is a pattern of upward fluctuations.
An uptrend indicates a greater power of demand or purchase over supply or sales, referred to as the "BULLISH market".
The uptrend in technical analysis is the result of several uptrends
▪️downward trend
The downtrend is formed as a series of downward waves. Charles Dow described the downtrend as exactly the opposite of what was said about the uptrend. This means that whenever the price is lower in a bearish wave than the previous bearish wave or the price is lower in a bullish wave than in the previous bullish wave, we have a bearish trend.
A downtrend indicates a greater supply or demand power over demand or a buy, a "bearish market".
The downtrend in technical analysis is the result of several downtrends
▪️ Range trend
The Range trend consists of a wave or waves of ascending and descending that have a direct direction. In other words, if the price can not go above the peak of the uptrend or the price can not go below the bottom of the downtrend, we have a Range trend.
A Range trend indicates a relative balance between buyer and seller power or market supply and demand. "Range market" refers to this trend.
The Range trend in technical analysis is the result of several neutral waves
✨So far, we have defined the concept of trends in financial markets. We may be trending in the market but we need another tool to confirm our diagnosis, trading volume is the tool we need. According to Dow, trading volume is a secondary but important factor in confirming warnings derived from price analysis.
In general, keep in mind that trading volume should be in line with the direction of the main trend.
In the uptrend; Each ascending wave is accompanied by an increase in volume and each descending wave is accompanied by a decrease in volume.
Trading volume should confirm an uptrend
In a downward trend; Each descending wave is accompanied by an increase in volume and each ascending wave is accompanied by a decrease in volume.
If you have any questions, comment for me🔥🔥
Ultimate Short Term Investment Methodology Hello, everyone!
As I can see, you like my series of articles about different coin’s trading plans. Today I’m glad to introduce the short methodology about how to choose the coins for short term investment. On the term “short term investing” I mean the trade with the duration from 1 to 5 months with the potential profit 3 to 6X from current price. Let’s go.
First of all you need to know that for short term investing you do not need to believe in project idea, just a big hype should be anticipated.
1 PRODUCT
The product is not the key point of my methodology. The best product is the blockchain because it is fundamental project, which can develop quickly in the future. Hype projects such as DeFi and NFTs are also allowed for our purpose. You should just avoid the scams and memecoins.
Good examples: DOT, NEO, FLM, ATOM, ADA
Bad examples: DOGE, SHIB, SAFEMOON, PRIZM
2 TEAM
For our aim this is the least important point. You can just check if the famous and successful people are creators of this project. It is an additional mark for the coin.
3 SOCIAL MEDIA
Check if the Twitter account is active or not, activity is high before the pump. The famous investor and other persons as the subscribers also is a good sign. Good and bad example see on the pic below.
How To Use Financial Ratios To Make Better DecisionsFinancial Ratios help you evaluate a company. Most financial ratios will show you how much money you're paying for a specific piece of the business. Let us give a few examples:
Price-to-Sales Ratio = Market Cap / Sales
The Price-To-Sales ratio or PS ratio tells you how expensive a company is relative to its total sales. The formula is calculated in two different ways: divide the company's market capitalization by its revenue or divide the current stock price by revenue-per-share. Because this ratio is being calculated with live price information, you can also watch it in real-time on the chart as we've shown in this example above.
If a company has a market cap of $10 billion and revenue of $1 billion, well that, that implies a PS ratio of 10. You're paying $10 for every $1 in sales. You can do ratios like this for all aspects of the company. For example, PE ratio or Price-To-Earnings ratio measures the Market Cap / Earnings. This tells you how much you're paying for every dollar of earnings.
Keep in mind that Financial Ratios are not perfect. They are also not a buy or sell recommendation. Instead they are shortcuts, ways to quickly evaluate a company, compare its underlying fundamentals, and study that company relative to other companies. You also must remember that financial metrics can change quickly with a single earnings report. A company's future expectations are also just as important. A company like Apple might have a high PE ratio, but if they're building and growing revenue into the future, their PE ratio could come down over time.
Remember, Financial Ratios and Financial metrics in general paint a picture of the underlying business and its earnings potential. Here are some other resources to get you started:
1. Read more about Financials on TradingView in our Help Center.
2. You can also code your own strategy or indicator using this financial information .
3. We've also created a library in our Help Center so you can learn more about every Financial metric.
Here are some other financial ratios that you may find interesting and how they're calculated:
PE Ratio = Market Cap / Earnings
PB Ratio = Market Cap / Book
PEG Ratio = PE / Earnings Growth
Quick Ratio = (Cash + Cash Equivalents + Current Receivables + Short Term Investments) / Current Liabilities
Dividend Yield = Dividends Per Share / Price
EV Multiple = Enterprise Value / EBITDA
To access all of the Financial Ratios available to you, click the Financials button at the top of your chart. From here, you can select many different Financial metrics and study markets at a deeper level.
More importantly, you can combine the study of Technical and Fundamental analysis at the same time. Meaning you can evaluate the fundamental side of the business including its earnings and valuation while ALSO studying price action and planning a trade.
Please feel free to share your feedback and comments below! Thank you for reading.
XAU/USD - CHART ANALYSIS - NFP ! The gold market still has a path to $2,000 in the second half of the year as the precious metal is undervalued in a world awash with liquidity, according to the latest research from Bloomberg Intelligence (BI).
In a report published Wednesday, Mike McGlone, senior commodity strategist at BI, said that within the metals complex, gold appears to have the most potential when compared to other assets like copper and aluminum.
"Copper and aluminum are reaching upper range price caps, but we see gold as a discounted bull market with improving fundamental underpinnings," he said in the report. "The copper-to-gold ratio has reached the highest level in about seven years and a rare disparity vs. declining U.S. Treasury bond yields, which we expect will be resolved by a resumption of the precious metal outperforming the industrial.
Looking at aluminum, McGlone said that tightening supply and demand fundamentals are helping to push prices to $3,000 per tonne; however, similar to copper's run to $10,000, he added that aluminum’s rally appears to be unstable. He said that the industrial metal complex faces some challenging near-term hurdles.
"Supply elasticity is proving strong for copper, indicating headwinds for the industrial-metal sector, but ESG, electrification and decarbonization trends should maintain the group's upper hand vs. most other commodities, with the exception of precious metals," he said. "Among the most supply-constrained commodities, gold and silver have the relative advantage heading toward the end of 2021 of having experienced sharp corrections within more enduring bull markets, as we see it."
While there is plenty of bullish sentiment surging through precious metals markets, gold prices continue to struggle to find consistent momentum. The precious metal is holding support above $1,800 an ounce, but it has been unable to push above $1,820 an ounce. December gold futures last traded at $1,810.80 an ounce, down 0.29% on the day.
History of ForexHistory of Forex
We have come a long way from the previously practiced barter system to the modern-day system of trading currency. Following is a brief summary of the evolution of currency and how it gave rise to Forex Trading.
Here are the main stages that are illustrated on the chart:
1️⃣The Ancient system of Trading - Trading with Gold
As early as 6th century BC , the first gold coins were produced, and they acted as a currency because they had critical characteristics like portability, durability, divisibility, uniformity, limited supply and acceptability.
2️⃣Bank Notes Originated - Deposited Gold in banks in exchange for banknotes
3️⃣Role of Geography - Various banks of different regions printed different currencies
Gold Standard - Currency pegged to gold
In the 1800s countries adopted the gold standard. The gold standard guaranteed that the government would redeem any amount of paper money for its value in gold . This worked fine until World War I where European countries had to suspend the gold standard to print more money to pay for the war.
4️⃣Bretton Woods System - Currency pegged to USD
The first major transformation of the foreign exchange market, the Bretton Woods System, occurred toward the end of World War II.
The Bretton Woods Accord was established to create a stable environment by which global economies could restore themselves. It attempted this by creating an adjustable pegged foreign exchange market. An adjustable pegged exchange rate is an exchange rate policy whereby a currency is fixed to another currency. In this case, foreign countries would 'fix' their exchange rate to the US Dollar .
5️⃣Birth of Floating Currency - Currency that is not pegged to any assets or other currencies is known as a 'floating currency'.
And what will be next?
Very hard to say but blockchain technologies will make the system change again.
The importance of the STOPLOSS protective orderThe importance of the STOPLOSS protective order
Our protective stops are vital to managing our risk, and just a single position you open without a stop can lead to the suicide of your trading account.
The uniqueness of stop orders lies in the fact that they, being pending orders, await their execution at a predetermined price. When stop orders are triggered, their important function is that they add momentum to the market and at the same time use the liquidity present in the market.
1)
Many have probably heard such information as: "When entering a trade, place a protective stop just below the high / low of the price." The reason is that this level has been identified as an important support level .
What else is posted in the support area? Limit orders of traders to buy, who have identified the support area and are waiting for the time to open a position when retesting the level.
Is there a large number of stops under each level? It depends on the size of the timeframe and how quickly the price leaves the given zone at the time of purchase.
2)
When the price gets to this level, traders are still interested in long positions, but this time the price does not bounce off that level as one would expect. It does not break it, does not make lower lows, but displays lower highs.
If you were interested in going long right now, what would you do? The average trader who bounces off the support level would enter a long position with a stop just below the support level . If you had a limit order that hadn't been filled yet, I would have postponed the order.
Candlesticks / Bars displays lower highs; The price does not rise as fast as one might expect; You know that just below the support area there are a lot of stop orders.
3)
What happens next? The price moves downward under pressure and breaks the stops of traders who have long positions, and, as we remember, when buy stops are triggered, these are market sell orders, and they force the price to move further down.
And traders, who are waiting for the opening of short positions, open them because the price breaks the support level , but then the market takes them out, “eats” them, because the price goes higher.
4) Those traders who were initially set for long positions and who were thrown out of the market by broken stops help push the price up. Now the graph looks like this:
New stops are placed below the new level, in front of us is Groundhog Day. And everything that has just been played will be played over and over again ... only at different price levels.
STOPLOSS is a way to limit losses when managing an open trading position or portfolio of positions. In fact, a stop loss is an order to close a position in the event of an unfavorable price movement.
The trader sets a stop loss to limit his own losses and trade within his own money management rules.
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TradingView Hotkeys That I Use The MostHi,
Just wanted to point out some TradingView hotkeys that I use the most:
* ALT + H = Horizontal line - a great way to quickly mark the round numbers on your chart or tight support/resistance areas.
* ALT + V = Vertical line
* ALT + T = Trendline
* ALT + I = Invert the chart - probably the most interesting hotkey. Do you have some trouble taking "SELL" ideas? You are more kinda "BUY-guy" or vice-versa. In TradingView you can turn your chart upside down and see does it look good if you would want to buy it. Sometimes, it is quite a big help.
* ALT + S = Take a screenshot of your chart
* ALT + F = Fibonacci
* ALT + W = Put the chart to the watchlist - seeing something interesting you can add it quickly to your watchlist.
* ALT + A = Set the alert
* SHIFT + CLICK = Measure tool
Regards,
Vaido
Understanding Market StructureLets start
1) Consolidation
The market enters this phase after a strong movement. Sellers control buyers, which further leads to a downward trend
2) Down trend
Bearish phase - lower lows and lower highs. This is where traders want to go short on breakouts or from levels
3) Distribution
Occurs after a prolonged fall in prices, when buyers gain control of prices, resulting in higher prices
4) Up trend
The bull phase is where you want to be long. See to buy short breakout moves after long rallies have exhausted themselves. Attempts to rally are considered guilty until proven innocent
-------------------
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What is impulse and how to make money on it?What is momentum and how to make money on it?
Momentum is a sharp paranormal price movement in one direction or another, unusual for average daily fluctuations of an asset
How to build zones from which impulse movement is most likely to occur?
1) The price is pushed back from the previously built level
2) There is an impulse movement in the other direction
3) Correction to the level, from which the price pushed a little
4) consolidation, consolidation below the level, from which there will be an impulse movement
How it works?
1) the level above which the price consolidates and repels
2) Rollback from the price level at the moment
3) Impulse that breaks the level
4) We need to extend the level to understand where the key point will be
5) Fixing the price below the level
6) In anticipation of an impulse movement, at the very beginning of the movement, after fixing, we open an order
*** Works in the same way in long
What do you need to do, what to earn on this?
1) If you use impulses not all in a row, but the very first one after a trend reversal, then we have a chance to pick up all the movements, it all depends on your benchmarks, where you exit the market, according to your strategies.
2) Not every impulse level is the first, we estimate the situation from strong levels, from which the price can reverse
3) We focus on the opening of the session, the chance that the market will reverse at the end of the working day and give you less profit if it is at the beginning.
It is important to understand:
Price moves from level to level
The price does not always fix directly below / above the level
You can work both on the younger (m5, m15, m30, h1, ch4) and on the higher timeframes (d1, b1, m1 )
The older the timeframe, the stronger the level from which an impulse can follow
During an impulse, funds are injected, a large player enters the market or a major player exits the market, stops-losses are collected, i.e. removal of market participants.
Our goal is to follow a major player who leads the price and get profit from it
How to create a trading strategy?HOW TO CREATE A TRADING STRATEGY?
WHAT IS A TRADING STRATEGY?
Trading rules that systematize it, bring clarity, orderliness and predictability of the result. You can take a ready-made strategy and adapt it for yourself. And you can create your own
The main idea of the strategy, its rationale
The idea should be rational, based on market patterns that you understand. For example, trading with a trend or pullbacks. On technical or fundamental analysis , with or without indicators
A good trading strategy is not complicated, but simple. A large number of rules makes the strategy inconvenient and understandable for the trader himself.
Timing of trading
What timeframes do you want to trade on?
How much time are you willing to devote to trading?
What time will you trade?
Selection of trading instruments
Pick those tools. which you understand well
The strategy can be both universal (for many tools), and sharpened for specific toolsChoice of tools for analysis
1) When the main idea of the strategy emerged and it became clear how, when and what to trade, you need to decide on the tools of market analysis
2) If the strategy is indicator, then select indicators (from 2 to 5)
3) If the strategy is not indicator, then select patterns, figures of graphical analysis
4) If the strategy is based on fundamental analysis , then it is necessary to decide on which news to trade.
Trade entry rules
Under what conditions will you enter the market based on what signals?
When will you not open a trade?
What orders will you use market or pending?
Exit rules
Stop Loss and Take Profit
Under what conditions do you close a position?
How will you set stop loss and take profit?
Risk Management
Write down the risk per order, risk per day / week / month
(in percent or in currency)
Determine the maximum allowed number of losing trades
per day / week / month
Calculate the volume of a trading position (lot)
When there is a strategy, what's next?
Check the effectiveness of your strategy on the strategy tester or on a demo account
Maintain trade statistics to identify weaknesses of the strategy and remove them
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How to trade breakout Breakout patternsWhat is a level breakout? A large number of orders are located behind the level. Either this is a limit entry order
if the price overcomes the level, or it is a protective order - it is triggered if the price goes out of our way and
overcomes the protective zone in the form of a level
-------------------
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Gold: How to Combine Technical & Fundamental To Get Best ResultsWhat Does Market Really Follow?
We all know that market is normally run by based on Technical Analysis, Fundamental Analysis, and Trading Sentiment. If you want to get a high result on your trade, you must combine these 3 analyses.
As USD and Gold both are safe-haven currencies and reserve currencies as well. USD and Gold have a negative co-relation. If the USD rise, Gold will drop. If the USD drops Gold will rise.
Which Fundamental Factors Are Responsible for Golds Move?
1. US Economical Reports
2. World Wide Economic Conditions
3. Man-made or Natural Disaster (For the moment Covid Situations)
4. Political or Economic Crisis
5. Central Bank's Rate Decision and some other reasons.
What to Do Firstly?
You must have a look at US economic reports. US job Market Report, CPI, Manufacturing Reports, and FED economic Overview. If most of the fundamental reports are positive from the USA, that means fundamentally USD is in a good position, which means Gold has a chance to drop.
especially CPI / Inflation reports are important for hiking bank rates. So, if you see recent most of the high-impact reports are positive, that means gold has more chance that it will drop and FED is going to deliver the hawkish statement. FED's hawkish statement will give an extra benefit to USD what is negative for Gold.
What to Do Secondly
Now see your technical chart. A trading view has many awesome tools to draw your Technical Charts. Personally, I do follow pure price action. Based on your chart analysis, find an entry rate, exit rates, and where the stop loss and profit should be put. You can use any kind of technical tools, indicators of what is suitable for you.
What To Do Thirdly?
To get the trading sentiment, Option expiry and Cot reports will help you a lot. Especially cot reports are free, so check last cot reports. Day Traders usually follow non-Commercial contract positions. if you are a day trader checks a non-commercial contract. if most of the contracts are in a short mode, that means banks, hedge funds, and other financial authorities are selling more.
commercial contracts are also very important. because they are big guns and big companies. you should also check their position. Non-Reputable contracts are not really important.
How Will I Combine Technical and Fundamental Analysis and implement to my trade?
This is the final part. If you see most of the US economic reports are positive in recent months, especially job market reports, manufacturing reports, and Inflation reports. In this case, most of the time FED delivers a hawkish statement. So, you think for Buying USD and Sell Gold.
If you see US Economic reports are not supportive, then think about selling USD and buying Gold.
This is the first part. I will write details about it in my second part. till then keep reading.
If you think this article helped you then, like, comment, and share with your trader's community.
Learning the TradingView Platform: Exploring the Top Panel Pt.2In this video we will explore:
Indicators and Strategies
Fundamental metrics for stocks
Indicator Templates
If you would like to learn more about these items, check out the great material we have in the help center and on our blog. 📚 🤔 📚
Indicators
www.tradingview.com
Fundamentals
www.tradingview.com
www.tradingview.com
Indicator Templates
www.tradingview.com
Did you learn about anything new that you may use from now on?
Let us know in the comments below 👇 👇
Improve your Technical Analysis using Fundamental Analysis!In this video I decided to show you how to use Fundamental Analysis along with Technical Analysis in order to improve your understanding about the market.
Although it is not common, as most people seem to like Tradingview for its price charts/indicators, you can use this platform for fundamental analysis as well . In this video I explain the importance of looking at the fundamentals through a chart.
I hope you'll like the video! In this case, remember to support this idea, and follow me for more content like this.
Have a good week.
Fundamental Indicators used in this video:
- Price to Earnings;
- Net Margin (%);
- Return on Invested Capital (ROIC).
Correlation of price movementTHESE ARE TWO THEORIES. THE FIRST IS ACCORIDNG TO WYCKOFF, THE SECONS IS THE DOW THEORY
1) Accumulation begins with the price stopping and the formation of support, followed by the end of sales, the opposite level is gradually formed - resistance
and the price goes into a sideways movement. It has a name - Accumulative flat or consolidation. Dow says that it is impossible to trade in flat, this is not a place to trade
2) Consolidation ends when there is an update of the tops and someone from the sides - buyers or sellers, starts winning in the market, but it is quite difficult
to break through from the first time and often a large player deceives the players in this way by making a false breakout.
3) Wyckoff's theory mentions retests of the support level, a sequential movement that follows a stop. Assessment of the state of the lower limit of accumulation,
after which the market reverses and moves in the opposite direction to the previous movement. The accumulation is exited and the trend is reversed.
TREND
In essence, a trend is the direction of the predominant movement of indicators. Usually considered in the framework of technical analysis, where the direction
of price movement is implied. Charles Dow noted that in an uptrend, the subsequent peak on the chart should be higher than the previous ones, in a downtrend,
subsequent downturns on the chart should be lower than the previous ones. There are upward, downward and sideways trends. A trend line is often drawn on the chart,
which connects two or more price troughs in an uptrend, and connects two or more price peaks in a downtrend.
What is impulse and how to make money on it?What is momentum and how to make money on it?
Momentum is a sharp paranormal price movement in one direction or another, unusual for average daily fluctuations of an asset
How to build zones from which impulse movement is most likely to occur?
1) The price is pushed back from the previously built level
2) There is an impulse movement in the other direction
3) Correction to the level, from which the price pushed a little
4) consolidation, consolidation below the level, from which there will be an impulse movement
How it works?
1) the level above which the price consolidates and repels
2) Rollback from the price level at the moment
3) Impulse that breaks the level
4) We need to extend the level to understand where the key point will be
5) Fixing the price below the level
6) In anticipation of an impulse movement, at the very beginning of the movement, after fixing, we open an order
*** Works in the same way in long
What do you need to do, what to earn on this?
1) If you use impulses not all in a row, but the very first one after a trend reversal, then we have a chance to pick up all the movements, it all depends on your benchmarks, where you exit the market, according to your strategies.
2) Not every impulse level is the first, we estimate the situation from strong levels, from which the price can reverse
3) We focus on the opening of the session, the chance that the market will reverse at the end of the working day and give you less profit if it is at the beginning.
It is important to understand:
Price moves from level to level
The price does not always fix directly below / above the level
You can work both on the younger (m5, m15, m30, h1, ch4) and on the higher timeframes (d1, b1, m1)
The older the timeframe, the stronger the level from which an impulse can follow
During an impulse, funds are injected, a large player enters the market or a major player exits the market, stops-losses are collected, i.e. removal of market participants.
Our goal is to follow a major player who leads the price and get profit from it
What is impulse and how to make money on it?What is impulse and how to make money on it?
Momentum is a sharp paranormal price movement in one direction or another, unusual for average daily fluctuations of an asset
How to build zones from which impulse movement is most likely to occur?
1) The price is pushed back from the previously built level
2) There is an impulse movement in the other direction
3) Correction to the level, from which the price pushed a little
4) consolidation, consolidation below the level, from which there will be an impulse movement
How it works?
1) the level above which the price consolidates and repels
2) Rollback from the price level at the moment
3) Impulse that breaks the level
4) We need to extend the level to understand where the key point will be
5) Fixing the price below the level
6) In anticipation of an impulse movement, at the very beginning of the movement, after fixing, we open an order
*** Works in the same way in long
What do you need to do, what to earn on this?
1) If you use impulses not all in a row, but the very first one after a trend reversal, then we have a chance to pick up all the movements, it all depends on your benchmarks, where you exit the market, according to your strategies.
2) Not every impulse level is the first, we estimate the situation from strong levels, from which the price can reverse
3) We focus on the opening of the session, the chance that the market will reverse at the end of the working day and give you less profit if it is at the beginning.
It is important to understand:
Price moves from level to level
The price does not always fix directly below / above the level
You can work both on the younger (m5, m15, m30, h1, ch4) and on the higher timeframes (d1, b1, m1)
The older the timeframe, the stronger the level from which an impulse can follow
During an impulse, funds are injected, a large player enters the market or a major player exits the market, stops-losses are collected, i.e. removal of market participants.
Our goal is to follow a major player who leads the price and get profit from it
How to trade based on a Multi-Timeframe Analysis?Good morning, traders! Today we will do an explanatory post on how a Multi-Timeframe Analysis (Weekly-Daily-4H) can be used to take a trade. The benefit of this is that we will be trading taking into account the short, medium, and long-term behavior of the price, which gives us a higher success rate. Many times, we take a trade focusing only on one timeframe, and we are missing relevant information of higher temporalities, such as areas that we are not seeing.
Let's see how it would look in practice:
🔸The first thing is to start with the chart with the higher temporality, in this case, the Weekly:
- We see here that the price is in a range and bouncing in the support zone where a strong bullish momentum was previously generated. This gives us a first bullish hint.
🔸Then, in the Daily chart (published), we see that the price bounces off the previously marked zone and breaks the downtrend channel. This is the second bullish sign.
- In addition, in this chart, we proceed to mark the potential targets of the movement.
🔸Finally, in the 4H chart is where we will look for our entry into the market:
- After the break of the bearish channel, the price begins a corrective process at the edge of the trend line. When the breakout of this structure happens, the optimal thing is to place an income above the last lower high of the structure to avoid potential fakeouts.
What is a Cup and Handle Pattern? GBP/USD Real ExampleGood morning, traders! Today we will make an educational post about a specific behavior in the market in certain circumstances, and we wanted to take advantage of the situation in GBP/USD that is currently happening.
The pattern we are talking about is the CUP AND HANDLE PATTERN . This pattern is widely used in stocks or indices since they are trend instruments by their essence, and it serves to catch a potential rise in price after a correction. The premise for this pattern to be valid is that the asset is in a CLEAR trend, either bullish or bearish, and has initiated a corrective process.
A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u," and the handle has a slight downward drift.
There are three key things to consider when forming these patterns:
🔸Length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal (this case). Avoid cups with sharp "V" bottoms.
🔸Depth: Ideally, the cup should not be overly deep. Avoid overly deep handles, as handles should form in the top half of the cup pattern.
🔸Volume: Volume should decrease as prices decline and remain lower than average in the bowl base; it should then increase when the stock begins to make its move higher, back up to test the previous high.
🔸In addition, it is also an important factor that the handle is a clear corrective pattern and has some point of support or support. In this situation, we see that in the daily chart, the price is touching the uptrend line, and also in the published chart, we see how it is also testing the broken zone of the range. The current reversal point is solid.