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The Power of PRICE ACTIONHello traders and future traders!! I know there is a point in the trading journey where you have so much information that it gets confusing, and you try to apply everything that you have read, but price action strategies shows us how simple are the markets and how easily we can interpret one without using tons of indicators, but just the price movement. Here are the 3 main advantages when it comes to price action trading and the reasons why this type of analysis is so powerful in many trading strategies. If you see any other advantages, but also disadvantages, leave a comment and let's discuss!
OANDA:XAUUSDEducation
by m_maia14
JICPT| How low can S&P go after the bloody week! Hello everyone. S&P tumbled with other indices last Friday. Frankly speaking, it was really ugly on the daily chart as it closed below the long-term MA for the first time since late Feb of last year. How further down it might go? On the monthly chart, it's still in the bullish uptrend. The firm demand zone from my view is around 4050-4200 . That's another 8-9% drop from the current level. On the day chart, the six consecutive bearish candles may scare a lot of investors. From the recent high created on Jan. 4th, S&P fell by almost 9%. However, I'm a bit optimistic on the recovery in the next few days. Look at the angle it fell, it's free fall . The rising US 10y yield and possible 3-4 times of rate hike in 2022 is gradually pricing in. The free fall is breakout, which is likely to be followed by downtrend channel or sideways range. I will pay attention to the demand zone on the monthly. I'm expecting price will react to the zone and bounce back. if not, price is likely to drop by another 20%, probably seeking support around 3300 What do you think? Give me a like if you're with me.
CME_MINI:ES1!
by JICPT
EUR/USD PRICE ACTION ANALYSIS - D1There is an ongoing M1 force on the way down, from 1.2250 (1st Jan 2021) to 1.1000. During this time, M1 force meets a W1 force on the way up, that started on 16th Aug 2021 from 1.1700 and is on its way till 1.1970 (ongoing). During this time, W1 meets a D1 force that started on 3rd Sep 2021 from 1.1875 and reached 1.1700 on 22 Sep 2021. Now that the D1 force is completed, W1 force is the only force on at the moment. So market is going to go up from 1.1700 till 1.1970 with W1 candles closing up from now on. You can think on swinging this position to secure a 4RR profit. Orselse, find intraday opportunities once they happen. I will provide you short term momentums on H1/H4 or H2/H8 once I see something interesting. Stay tuned...
Long
by Trade4gammapo
EUR/AUD - Price Action Analysis - D1 To interpret this situation, you need to get the concept of price action. Market is made of forces, sometimes that are directional, without any forces coming against. Also there are forces that oppose each other at some point in time. In this example, there is a D1 trendline plotted, which carries a D1 energy (D1 Trendline). While D1 force is on the way up, it meets a W1 force (yellow rectangle) that is an ABA (Acceleration - Base - Acceleration), thanks to the candle structure on the way down (blue rectangle). So we have a D1 force on the way up against a W1 force on the way down. W1 force down will win over the D1 force up. D1 players (bulls) have set their Stop Losses ( 1.5730) at 2ATR below the level where they enter (1.5950), which is a support to the market (market structure level in green). As a result, because this move on the way down is caused by D1 players who are panicking, you will experience only downward (red) D1 candles from now till the green support level.
Short
by Trade4gammapo
EUR/AUD - Prediction of price movementPrice hit the upward trendline and is fading around 1.6035. The energy on the way up is over. Price is now bearish all the way to 1.5730. The trendline game is a D1 game. The market has reached its end point. W1 players are going to force the D1 players to get stopped out by pushing down against D1 bulls. This is the current downward rally to be expected. Each D1 candle from 1.6072 till 1.5730 are going to close down (red). I would suggest you try to find a way to get in the bearish swing on H4 or H1. This tutorial is for direction purpose only. As a D1 player, placing an entry @ 1.6030 with a 1 ATR SL, I would be expecting to achieve 6RR (6$ profit for 1$ loss).
Short
by Trade4gammapo
Adam's BTC - Cost Basis Decision MatrixAdam's BTC cost-basis illustrates the respective average cost basis between three different groups - miners, swing traders and short term or novice trades - each group having different investment horizons, average tenure in the market, costs basis and break even points. Similarly to my prior conversation regarding BTC and it's cost basis, we see a similar but exaggerated state of affairs, specifically; 1) miners have grossly lower costs basis due to average cost of entry. The bottom line represents only 40% of the market with the BTC market costs basis lying around $7,800. Price volatility has little impact on early adopters and miners due to such large unrealised gains acting as a cushion, 2) average swing traders lie above the middle line. Breakeven is experienced as price approaches this line, with breakeven trading ensuring. The middle line, which represents the average cost basis of swing traders, is really a breakeven point for up to 10% of the marker on average. This point runs under support zone that marker structure enthusiasts would have identified. In contrast to DOGE, a dilution factor does not act as head wind - so whereas DOGE breaks the average swing traders break even point, currently on BTC this line is holding! The reason for the difference is quite simple - dilution factor! 3) Novice traders caught at the top are at net loss with dilution factor effects noted above applying. This means, volume of new long must be large enough not only to lift average breakeven, but noting the difference of these same type of traders in DOGE coin! Three lines - decision matrix is now simple. No more FUD or FOMO! Clear demarcation points to clarify decision making.
BITSTAMP:BTCUSD
by Adam-Cox
Adam's DOGE Coin - Cost Basis Decision MatrixAdam's DOGE Coin cost-basis illustrates the respective average cost basis between three different groups - miners, swing traders and short term or novice trades - each group having different investment horizons, average tenure in the market, costs basis and break even points. Similarly to my prior conversation regarding BTC and it's cost basis, we see a similar but exaggerated state of affairs, specifically; 1) miners have grossly lower costs basis due to average cost of entry. The bottom line represents only 40% of the market. 2) average swing traders lie above the middle line. Breakeven is experienced as price approaches this line, with breakeven trading ensuring. Herein lies the problem with DOGE. With the high dilution factor, it is just a matter time that average price will be drawn down towards the overall average experienced in the market as new trading volume cannot overcome the dilution factor experienced daily. The core issue now, is whether the middle line is being respective, or it will be broken and form resistance for lower prices! 3) Novice traders caught at the top are at net loss with dilution factor effects noted above applying. This means, volume of new long must be large enough not only to lift average breakeven, but also be sufficiently large enough to overcome on-going dilution. Net Shorts experience unrealized gains - 'spike' risk offset by dilution factor! Three lines - decision matrix is now simple. No more FUD or FOMO!
BITTREX:DOGEUSD
by Adam-Cox
Do you fell stressed with trading? 😒🙎‍♂️😰I want to start the morning by not posting a usual trade idea setup. But to talk more about the methods I now use for my trading and how they have alleviated negative feelings which can occur with trading. A while ago I opted to switch to an systematic objective based approach for my trading. This was down to numerous factors which you will find on the drawings in this idea. Since adopting a objective based approach with set rules coupled with rigours back tested strategies. All of the subjective traits you see on the left of the idea drawing have disappeared. And all of the objective based traits seen on the right idea of the drawing have now become the norm in my trading life. When laid out in the drawing of this idea it's hard to think why you wouldn't adopt these behaviours to your trading. I hope this gives you all food for thought as we start we the trading day. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Editors' picks
UEducation
by pow_removetheguesswork
22
Proof of Human Trading on BTCUSDT (Not Just ALGORITHMS)In this update I will share a fantastic opportunity to understand human trading behaviour. First I will share the four levels of resistance that I am looking at. The levels can be used for the coming weeks to understand key price levels of BTC. However, for actual price projections, don't plan too far ahead. Even though we are in a clean rising wedge, I drew only candles until 3, 4 days out. There is soo much news recently that impacts the price of BTC, that TA becomes less sustainable for price predictions. Now, onto the levels: Resistance Level 1: 6650 Resistance Level 2: 8150 Resistance Level 3: 9200 Resistance Level 4: 10500 Look at how BEAUTIFUL these numbers are. They are all incredibly round numbers, which match perfectly to the levels of support and resistance. Computer scripts don't come up with these round numbers, humans do. You can see human trading behaviour at work here, along with human psychology. This is exactly where humans would put their limit orders, or where they will put price alarms. -- So, How Do I Beat Other Human Traders? -- Think carefully about where you put your limit orders. If the resistance is at 9200, don't put your limit order at 9201 right above a huge resistance. Be smart, and put it at 9199 or even a little bit lower. This reduces your profits only slightly, while greatly increasing the odds that your limit price will be hit. This also works for buy orders, never put those on round price levels. Instead, look for non-round numbers slightly disadvantageous to the profit, but very positive for your hitrate. If you learned something today, give me a thumbs up! - Trading Guru -------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only! About the links below: 20% Discount on Binance: Did you know that Binance introduced a new system where you can get 20% discount on your fees? Find the step-by-step guide on how to add it to your account on the website of 100eyes Forex & Crypto Scanner: Nobody can keep track of all the pairs on all timeframes. This scanner works on Telegram and sends an automated message including a chart every time something happens to a coin. E.g. it can automatically detect areas of support and resistance, RSI Divergences, Fib Retracements, and more.
Long
by Trading-Guru
15
BTC - Bitcoin human psychological behaviour, is this the moment?I usually only post pattern + indicator trade ideas, but sometimes the most simple thinking leads to great ideas. So... is it really the start for the bulls? Perhaps. But who are we to know that? Today we got a manipulated pump to 8k because of a simple game, that whales have been playing since forever. There is a reason history repeats itself in a very similar way, for example bubble charts. In a bubble chart human emotions including ENTHUSIASM, HYPE and GREED are the kickstarters for epic growth. But with every rise there is always a downfall which trigger other human emotions: DENIAL and FEAR. The pink twirly line I drew indicate small bullish moments that happened from February untill now. Each time a bullish momentum happens, we get hyped up thinking there is a slim chance we go in a full bull market. This happened around 5 times in the past 2 months and after each time we get dissapointed because of bearish continuation. So... here we are today, people thinking; "THIS TIME IT COULD BE REAL, RIGHT??", "WE WERE RIGHT, THE LAST BOTTOM WAS 6k", "BULL SEASON STARTED", "LOOK AT THIS INSANE PUMP PEOPLE ARE BUYING". So I don't think I need to explain what would happen if this time AGAIN after 5 times it doesn't happen. People will get dissapointed, some just give up and sell, shorts that got liquidate before the pump and that turned to longs after the pump will end up losing AGAIN. The whales are manipulating your psychological behaviour over and over, because average human behaviour does not change. Which give them power to control the market HOW and WHEN they like it, they are not in a hurry. If there is free money to grab, they will grab it because, they know how to play the human ACTION and REACTION game. Just my simple thoughts, but hey! Who am I to be correct? I am not a whale. (This is not financial advice, this is a volatile market where anything can happen)
BITFINEX:BTCUSD
by FUDDER
8