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CANDLESTICK PATTERNS CHART SHEETCandlestick patterns need to be one of your trading arsenal's most effective weapons. We can determine the direction of the market using several candlestick patterns. All timeframes exhibit these patterns, but the daily candlestick patterns seem to be the most reliable. Once you recognize these patterns, you may be ready for your next move and use other tools to join the market, including the previously discussed MA approach and flag patterns (see attached charts). This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
14
A BASIC ENTRYThis right here is my favorite type of entry where you can basically see a nice bottom and re-test from the pullback before so in my eyes coming back down to this price too fill in the gaps is a MUST PAY ATTENTION type of trade... too me this is a continuation of price action. NOW! don't just get to your desired price and throw a market order in just because it's there? Wait for some big volume to come through, wait for the next pullback... Getting too the price is one thing... but knowing what to do next is the ball game. I mean if I can get the price too come down far enough that i can set my SL behind a bunch of big 4HR, 1D bottoms and scale down to a lower TF too catch a clean leveraged trade. That's a strategy in itself... To add a focus on discipline, mindset, psychology, family, friends, work! an all-round lifestyle as a SOLDIER! you come to realize that trading is such a very small part of the game. Nail life first... then that simple strategy might just work.
AEducation
by RPMWealth-Capital
Why You Should Never Hold on to Your Positions Beyond a Certain Good day, traders. I'd like to use this opportunity to advise both new and experienced traders alike that holding (hodling) your position is not recommended beyond a certain point. According to percentage calculations, the return required to recover to break-even increases at a considerably faster pace when losses grow in size (due to compound interest). It goes downward after a loss of 10% because a gain of 11% is required to make up for it.When the loss is 20%, it takes a 25% gain to make up the difference and return to break-even. To recoup from a 50% loss, a 100% gain is needed, and to reach the initial investment value after an 80% loss, a 400% gain is needed. Investors who experience a bear market must understand that it will take some time to recover, but compounding returns will aid in the process. Think about a bear market where the value drops by 30% and the stock portfolio is only worth 70% of what it was. The portfolio increases by 10% to reach 77%. The subsequent 10% increases to 84.7%. The portfolio reached its pre-drop value of 102.5 percent after two further years of 10 percent gains. Consequently, a 30 percent decline requires a 42 percent recovery, but a four-year compounding rate of 10 percent returns the account to profitability.I will be doing a second part to this post on the idea of "DOLLAR COST AVERAGING" (DCA). The math behind stock market losses clearly demonstrates the need for investors to take precautions against significant losses, as depicted in the graphic above. Stop-loss orders to sell stocks or cryptocurrencies that are mental or limit-based exist for a reason. If the market is headed towards a bear market, it will start to pay off once a particular loss threshold is reached. Investors occasionally struggle to sell stocks they enjoy at a loss, but if they can repurchase the stock or cryptocurrency at a lesser cost, they will like it. Never stop learning I would also love to know your charts and views in the comment section. Thank you
FX:XAUUSDEducation
by CRYPTOMOJO_TA
2
BIASES THAT EXPLAIN WHY TRADERS LOSE MONEYHello traders, today we will talk about WHY TRADERS LOSE MONEY BIAS WHAT IT MEANS… HOW IT INFLUENCES TRADERS Availability People estimate the likelihood of an event based on how easily it can be recalled. Traders put too much emphasis on their most recent trades and let recent results interfere with their trading decisions. After a loss, traders often get scared or try to get back to break even. Both mental states lead to bad trading quickly. After a win, many traders get over-confident and trade loosely. You must be aware of how you react to recent results and trade with a high level of awareness. Dilution effect Irrelevant data weakens other more relevant data. Using too many tools and trading concepts to analyze price could weaken the importance of the core decision drivers. I wrote about redundant signals and how to combine the right tools here: click here Gambler’s fallacy People believe that probabilities have to even each other out in the short term. Traders misinterpret randomness and believe that after three losing trades, a winning trade is more likely. The probabilities don’t change based on past results. Even after 10 losses in a row, the next trade does not have a higher chance of being a winner. Anchoring Overestimating the importance of the first available piece of information. Upon entering a trade, people set their whole chart and analysis in reference to their entry price and don’t see the whole picture objectively anymore. You must always have a plan BEFORE you enter a trade. Insensitivity to sample size Underestimating the variance for large and small sample sizes. Traders too often make assumptions about the accuracy of their system based on just a few trades, or even change parameters after only a few losers. A decent sample size is 30 – 50 trades. Do not alter anything about your approach before you have reached this number. And make sure that you follow the same rules to get an accurate picture of your trading within the sample size. Contagion heuristic Avoiding contact with objects people see as “contaminated” by previous contact. Traders avoid markets/instruments after having a large loss in that instrument, even when the loss was the fault of the trader. Hindsight We see things that have already occurred as more probable than they were before they took place. Looking back on your trades and fishing for explanations why the trade has failed, even though those signals weren’t obvious at the time. Do not change your indicator or setting after a loss to come up with explanations or excuses. Accept that losses are normal and always follow your plan. Hot-hand fallacy After a successful outcome on a random event, another success is more likely. Traders believe that once they are in a winning streak, things become easier and they can “feel” what the market is going to do next. I wrote about the hot-dand-fallacy in trading before: click here Peak–end rule People judge an event based on how they felt at the peak of the event. Traders look at a losing trade and only see how much they were in profit at the maximum, but don’t look at what went wrong afterwards. Do not change your reference point when in a trade and have a plan for your trade management and when to exit before entering a trade. Simulation heuristic People feel more regret if they miss an event only by a little. Price that missed your target only by a little bit, or a trade where you got stopped out just by a few points can be more painful than other trades. The outcome is out of your control and you cannot influence the price movements. The only thing you can do is manage your trade within your rules. Social proof If unsure what to do, people look for what other people did. Traders too often ask for advice from other traders when they are not sure what to do – even when other traders have a completely different trading strategy. You must take responsibility for your actions and results. And not rely on someone else. Framing People make decisions based on how it is presented; a gain is more valuable than a loss and a sure gain is more valuable than a probabilistic greater gain. Traders close profitable trades too early because they value current profits more than a potentially larger profit in the future. Cutting winners too soon is a huge problem. If this is an issue for you, reducing screen time can be helpful. Do not watch your trades tick by tick. Sunk cost We will invest in something just because we have already invested in it. before Adding to losing trades because you are already invested, even though no objective reason to add exists. You must define your stop loss in advance and then execute it without hesitation when it has been reached. Confirmation Only looking for information that confirms your beliefs, ideas and actions. Blanking out reasons and signals that don’t support your trade and just looking for confirmation. Especially when traders are in a loss, they only look for supportive information. Stay objective! Overconfidence People have a higher confidence than what their level of skill actually suggests. Traders misjudge their level of expertise and skill. Consistently losing traders don’t see that it’s their fault. Analyze your results objectively and get a trading journal to add even more accountability. Selective perception Forgetting those things that caused discomfort. Traders forget easily that their own mistakes and wrong trading decisions caused the majority of their losses. Do not blame the marjets, unfair circumnstances, your broker or any other outside event. You are the one who is responsible for making it work. It’s totally up to you and blaming others won’t help you make progress. Which bias is the one that is causing you the greatest troubles? What are you workin on right now? Let me know in the comments below and I will answer with tips and ideas on how to overcome your struggles. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
NASDAQ:AAPLEducation
by CRYPTOMOJO_TA
4
THERE IS NO PERFECTION IN TRADINGToday, I want to provide with you an essay that will clarify just how far you should push your trading perfectionism. There is no ideal trading technique, to put it succinctly and painfully. Losses will be a part of life. Yes, there are High Frequency Trading (HFT) outfits that have been producing successful days after successful days for the past five years, but let me let you in on a little secret: you are not an HFT outfit. Additionally, these HFTs lose money; it's only that because they execute a million trades every day, their advantages soon disappear. Therefore, give up hoping and begin understanding that you will lose. The ideal trading strategy is one that generates profits over the long term; a strategy that generates profits on each trade would be utopian. Additionally, you won't begin making money until you acknowledge that you will also lose money. I know it's an old story, but this is one of the factors to consider if you aren't yet profitable. You still believe you are superior to the market, and you are still searching for a trading method that guarantees a 100% win rate, deep inside your reptile brain. Curve Fitting Is Asking For Disaster If you still want to develop your trading strategy after it has proven to be profitable, you must proceed with extreme caution. Your winrate and reward:risk ratio will change whenever you alter a parameter in a trading system because it is such a delicate construction. Your variance, average drawdowns, average updraws, and so forth will all increase. A trading system should only undergo subtle, gradual changes based on reliable data. If you keep trying to improve, curve fitting is what you'll finally do. As a result, there will be no room for any future changes in market behaviour because your approach will be too firmly tied to the past. However, markets are alive and continuously changing, as we all know. Every backtest faces the very real challenge of costing a lot of money by designing a system that is too tightly based on historical data. In addition, if you have three years of data, create your system on the first two years then test it on the third year without making any alterations, regardless of the third year's results. This is why you should always utilise an outsample while backtesting. You must eventually decide where you stand as a trader and prepare to lose. You may already be using a winning trading strategy, but are unaware of it since you constantly try to make adjustments to your system in an effort to minimise losses. This will, however, need a change to your current setup and expose it to new risks of loss. You will eventually just have to accept that your trading system will occasionally make bad trades because that is how trading works. Nobody would ever think consider trying to win every hand they play in poker; it is a stupid and insane idea. Most traders ruin good systems by striving to turn them into perfect systems. Accept this as who you are and your trading strategy, with all of its advantages and disadvantages. Accept that losses are a part of it and learn to love it. What more could you ask for when you know that you have a good outlook on life and that the system generates income for you? You already outperform around 95% of everyone who has ever entered this industry. You must aim for excellence rather than perfection. If you cannot fulfill your dream of creating the “Magic Strike Rate Trading System”, what is left? Excellence! It is your job to make sure to follow your system 100%. Not even the slightest deviation is allowed. Make sure you are always trading at the peak of your performance. Strive for excellence and make every trade count! Every trade that you take outside of your trading system is an insult to yourself, to the time and effort you put into trading, and to your self-respect. Excellence really comes down to respecting yourself in the end. Once you come to respect yourself and trust your abilities and your system, it will become easier and easier for you to follow your system. If you go on a losing streak, find out if you completed each trade well, and if so, whether the market conditions changed or something else occurred. When you are on a losing streak, it is crucial to keep going and stick to your plan while also comprehending why you are losing. It's good if there is nothing to be done. This is how a process-oriented approach should be adopted by every professional trader. You can weather the storm if you take pride in your losing streak, preserve your money, and trade expertly every time. Instead of endlessly optimising one setup, focus on mastering another setup or the market. It's really quite simple: If you follow your method perfectly for a time (let's say 50 transactions) and you are still losing money, you can say with a high degree of certainty that the system is the issue. You can then make adjustments, but if you don't use your system in the first place, you won't ever know if it works or not. Demo accounts and backtests are used for just that. And believe me, the more focus you place on strictly adhering to your system, the quicker it will become a winning system that complements your lifestyle and personality, which is crucial. But wow, if all of a sudden you are outperforming a sample of 50 trades. This might be it. You might have a successful strategy. Why make a change now? You are getting paid. Trade the system till you can follow it without thinking every day while doing flawlessly. Go for it if your trading log indicates that there is a LOT of potential in a particular location. Naturally, test the modified system first on a demo. If you are successful, though, and you can't locate any significant leaks, leave it alone. Don't curve fit once more. It's fantastic if you get bored! Monotony is a sign of successful trade. Congratulations, you have mastered your setup. You can now create a different configuration using the same technique to smooth your equity curve and diversify your revenue sources. Your equity curve will appear virtually perfect over time if you master 2-3 setups to locate trades in all market conditions, but there will still be a lot of losers among your winners, of course. Your strike rate, average risk-to-reward ratio, and risk tolerance are all important factors. Be disciplined Be flexible Never stop learning I would also love to know your charts and views in the comment section. Thank you
BITSTAMP:BTCUSDEducation
by CRYPTOMOJO_TA
7
It's a numbers gameI see this more and more, especially in the crypto space. There are some wild stories out there from turning $8k to a billion through to a Pizza for 10,000 Bitcoin. Here are some home truths. Although most of you won't want to hear this. You see, as a professional trader - there is 1 key factor, almost a scale balancing between too much and just enough. Everyone pushes for more returns, we are only human after all. We have had stories of Wall Street Titans and Vegas big wins, but there is some simple logic to this. You might have entered the market after Covid hit the world and wanted an extra income, might have seen a way to make millions from the money the government sent you? The issue is this is no different that rolling a dice in Vegas but without the fun! You possibly saw some influencer selling you the dream - they fail to tell you, they trade on demo accounts and make their income from affiliate links and social media watch time! When you think of investors like Warren Buffet, you have to understand - he didn't watch an influencer video and say to himself "I want to be like that guy" - investing is often a long term thing and not a get rich quick scheme. Here's a few examples to hit home. This is boring, not worth it - so instead you seek higher returns, that opens up the possibility of falling into scams, listening to the wrong crowd and having dreams. To be honest, it's probably more enjoyable spending a day at the races. With a smaller account, you can grow it a little, add to it on the next pay day and of course compound the investments. As you move up the scale. This is probably where most "semi serious" market goers start. It's often a flurry into the market cash in hand. The assumption often the same; you have done well to amass a lumpy investment, your clearly good at the field you have been in to earn your pot. Why wouldn't you be a good trader? After all, these kid influencers are making millions on their demo accounts. Jump to the next level... Your either a captain of industry, you have had your own business or you have a kind daddy. How you got here is not important, staying here is. When you trade with a medium sized account you start to think a little different. Instead of looking for 900x returns, you start thinking about investments that are a little less risky. This is the scales I mentioned earlier. You are now in the space of a good return might be good enough. Too high of a risk, means you are thinking of safe guarding your cash. Here's where the Professionals play the game differently. Trying to make 1-5% is a lot more sustainable than trying to land a 900x return. You have to remember 90% of traders lose 90% of their accounts in 90 days... This can easily be attributed to things like; Buying signals Following influencers Over trading Trading too small a timeframe Trying to find a silver bullet As a professional - you can seek smaller returns, spend less time in front of the charts and let your money work for you, instead of you doing all the chasing! As the amount of capital rises, so does your desire for risk. You might still have the appetite for returns but not at the cost of risk. As a professional trader, you can afford the luxury of trading a bias and scaling into a trade - you will find fund managers who have what's known as secondary investment capital (in essence to add to winning positions). So although this is not going to be what you want to hear, it's what you need to know. There's always chasing the dream, but why not wake up and make it a reality? Enjoy the weekend all! 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.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
23
HOW TO MANAGE YOUR LIFE AND TRADINGHello traders, today we will talk about how to manage your life and trading Hey! When we all started, we encountered some trading challenges. These issues typically arise in the first year of trading. By year's end, the majority of traders had lost all of their money and had given up forever. In essence, this was brought on by excessive trading and a lack of knowledge. Trading requires certain skills and techniques, much like many other professions, which you can learn and use to achieve success. But if you're just starting off, you probably don't even know where to begin. PROBLEMS: Constantly worried about deals. This point greatly depresses you and diverts your attention away from other vital matters. - Personality and emotional losses When you start losing money too much, it might be difficult to recover, and attempting to do so will just result in further losses. - Confusion of mindset Like every sadness we experience in life, this one clouds our ability to think clearly. Rushing into new professions Overtrading is a mistake that many traders and investors make, and often results in significant losses. - Investing all of your money in assets. Write me a comment if you've ever tried trading with all of your money! Due to this issue, trading has turned into gambling and new traders are losing too much money. Solution: Schedule your trades. Concentrate on upcoming trades, plan your entries, take profits, and halt losses. It should be planned, and if something doesn't work, you need to fix it and try again, just like in any other firm. - Make modest deals Start with little trades when trading; don't hurry things if you won't be wealthy until the end of the year. But first, master trading, and make sure you've gained knowledge from both losses and triumphs. - Emphasis on manageable risk Yes, only 10% of traders make money each month; the other traders struggle somewhere in the middle. Before starting any new trades, attempt to understand your risks to ensure that you will be among the 10% winners. - Implement trading system You must experiment with many techniques and tactics before you can determine which trading criteria work best for you. Your trading system should fit your personality. You will be fine and closing months in substantial profits once your trading method is set up, though. - While trading, take pauses. When there is nothing to do on the market, take a deep breath and relax. Make sure you have time for other things. Try to arrange your trading time. The market is here to stay: This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
It is necessary to check the created time frameHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ** Analysis of the BTC chart publishes new ideas once a week. ** However, we publish new ideas when volatility occurs or when we show signs of diverging from our expectations. ** Excluding the above situation, BTC analysis is listed as a daily update. ------------------------------------- (BTCUSD chart) (BTCUSDT chart) (BTCUSDT.P chart) (BTC1! chart) (BTM1! Chart) (BTCKRW chart) The flow of the charts listed above is the same or similar. However, the difference is the location of the M-Signal indicator on the 1M and 1W charts. Part of it is that the M-Signal indicator on the 1M, 1W chart made a regular arrangement (1W > 1M). I think that these forward and reverse alignments mean that the trend has begun to change. Therefore, if it moves sideways or swings strongly up and down in the current price range, it is expected to gradually form a straight line on all charts. Therefore, it may temporarily drop to around 23K (BTCKRW: around 29639000). All we can do in this decline is decide when to buy. The reason is that funds are continuously flowing into the coin market. The next big volatility is expected around June 9-13. When referring to the explanation of the analyzed chart, you should pay close attention to which time frame the analyst is explaining. If you look at the analyzed chart without checking it, you should be careful because it may be recognized as a completely different text from the flow you think. So, in my article, I have displayed 1M, 1W, 1D, and 1h charts, and the corresponding analysis is displayed. For example, if you look at the analysis written on the 30m chart and mistake it for an analysis of more than 1 day and loose your response, it means that you are likely to lose money. Therefore, analysis written on a time frame chart of 1D chart or lower requires a quick response, so you should keep looking at the chart. Therefore, you must check the time frame in which the analysis was written, as you may mistake the article analyzed with the time frame chart below the 1D chart for the overall flow of the chart. -------------------------------------------------- ------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
Education
by readCrypto
1
The other side of the tradeTrading has this stigma attached to it, everyone thinks they can come and make their millions. The reality is, 90% of new traders lose 90% of their funds in 90 days. I've talked for years about the negative side of trading (trust me, I've done this over 20 years) Trading is often perceived as a wonderful, fabulous lifestyle. Cars, yachts, jets and women! Probably fueled by films like the Wolf of Wall Street. But not many people like admitting to the other side of the traders lifestyle. Of course, it's nowhere near as glamorous - it sure as hell won't get social media likes or follows. But it's there and it's real! There are a couple of main points that I want to touch on, especially for you newer traders coming to find your fortunes. 1) Trading can be boring! Yes, boring as shait. If you are used to having a 9-5, you do not realise the effects (good and bad) on having human interaction throughout the day. You might have a partner you live with, the family. But what about when they go to work or school? You are left with your own thoughts. Yes, this can be dangerous!!! The issues can include lack of motivation, uncertainty in what to do, overthinking. On your bad days, you have nobody to comfort you and on your good days, you have nobody to share the excitement with! Joining communities can be a good fix here, providing you find a good one. This doesn't have to effect your trading, your strategy or anything else - but interaction could save you from the loneliness. The solitary nature of trading can sometimes lead to feelings of isolation and loneliness. Without the support and camaraderie of others in a similar field, it can be challenging to share experiences, discuss strategies, or seek advice. Additionally, the pressure and stress of making high-stakes financial decisions can further contribute to a sense of isolation. 2) STRESS - Stress is a huge factor for a trader. Stress could also stem from the loneliness, stress when dealing with finance is an area where a lot of people suffer, traders and non traders alike. The issue is for traders, stress is often self inflicted. Most new traders come to the market with a view of it's easy, fast paced, exciting and therefore have the perception of making it big. If it was this easy, people wouldn't spend 7 years becoming doctors or lawyers. Instead they would follow the money! Come on, who wouldn't - Yachts n all. It's this popular belief that usually drives traders into the stressful state which becomes the norm until they give up! To counter the loneliness and try to make it big, traders (probably you) I know I did! look at indicators, try to take on as much info as possible! Which takes you down this path. Indicators. there must be a holy grail, a silver bullet? 100% winning strategy? People waste so much time on retail indicators thinking they will be the one to find the edge. You would be better off having a trip to Vegas and playing the first slot machine you spot! The next issue is - too much data or the attempt to obtain too much of it! I remember when my setup matched this below (if not more screens) This is like trying to read 9 books at the same time whilst writing essays in 6 different languages. All of these factors will 100% add to your stress. You might have anxiety when executing a trade, or feel the burden of stress whilst in a trade. Scared to see the numbers go red and too eager when they go green?! Yup been there, done that. So has every trader out there. Stop feeling like this. Creation of a strategy... All you need to help combat these types of stresses, is find an edge. The edge could be very simple - from reading books, stepping away from the charts, viewing higher time frames, moving away from social media influencers. All the way through to mastering one instrument. When you see indicators like the image above, what happens if two are in one direction and the rest in another? You start to argue with yourself, you miss good trades and you end up taking bad ones. This leads to stress and then you realise, yup your lonely! What a cycle to be trapped in! Now how about you flip the thinking here? Less charts to stare at, less indicators to confuse, more time to read, exercise or simply go play golf. Your edge does not need to be technical, fancy or shown on 48 screens. I talked about this in the Tradingview live show the other evening. Here's the link: www.tradingview.com Sometimes less is more and this can combat the stress and golf is always a winner for loneliness. 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.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
26
GOLD vs CRYPTOAre you an investor looking to make the best of your money? If so, you may be wondering if gold or cryptocurrency is the right investment for you. In this article, we will take a look at both gold and cryptocurrency and compare their pros and cons for investing. We will begin by defining and characterizing each asset, followed by examining the reasons to invest in them. Finally, we will provide a comparison of the pros and cons of investing in gold versus cryptocurrency, helping readers make an informed decision on which asset to invest in. So let’s get started! Definition and Characteristics of GOLD Gold is a precious metal with a yellow hue that is used for jewelry and coins. Its chemical element is Au (Aurum), and has an atomic number of 79. Gold is a soft metal, with a melting point of 1064.43 degrees Celsius, making it relatively easy to work with when crafting into jewelry or coins. It also has the distinct advantage of being chemically inert, meaning it resists corrosion and tarnishing over time, which allows it to retain its original beauty even after years of use. The price of gold can be influenced by many factors, such as supply and demand in the market, as well as geopolitical events. For example, when there are wars or political unrest in certain regions of the world, investors tend to flock to gold as a safe haven asset which drives up the price due to high demand. Conversely, when markets are stable and economies are doing well, investors may prefer other assets such as stocks or bonds since they provide higher returns than gold does during these times. Furthermore, changes in technology can influence the price of gold; if there is an advancement that makes extracting gold easier or more efficient then this may result in lower prices for consumers due to increased supply. In conclusion, gold has stood the test of time as one of the most valuable commodities on earth thanks to its characteristics such as its yellow hue, softness and resistance against corrosion and tarnishing. Additionally, its price can be influenced by various factors such as supply and demand in the market or geopolitical events. Investors should take all these factors into consideration before deciding whether or not to invest in gold. Reasons to Invest in GOLD Gold has been a reliable source of currency and value for centuries, making it a desirable option for those interested in diversifying their portfolios and protecting their wealth. With its intrinsically high liquidity, gold is also an excellent safe-haven asset that can provide stability in times of economic or political unrest. Additionally, gold often does well during periods of high inflation, providing investors with the means to safeguard themselves from financial losses in volatile markets. Moreover, gold offers diversification benefits due to its low correlation with other assets such as stocks and bonds. This allows investors to spread out their risk across different types of investments while still maintaining strong returns on investments. The convenience to buy and sell gold quickly makes it an attractive asset for those seeking rapid access to cash without having to divest from other holdings first. Furthermore, gold's accessibility makes it suitable for all kinds of investors regardless of budget size or experience level. There are many ways one can invest in gold including physical bullion coins, ETFs (exchange traded funds), or even owning stock in companies involved with mining or processing precious metals such as gold and silver. All these factors make investing in gold a viable choice for anyone looking for long-term portfolio growth and protection against market volatility. Definition and Characteristics of CRYPTO Cryptocurrency is a digital or virtual currency that is secured by cryptography, making it nearly impossible to counterfeit or double-spend. It uses decentralized control, with no central authority or government controlling it. Cryptocurrency transactions are secure and anonymous, making them attractive to investors who value privacy. The most popular cryptocurrency is Bitcoin, created in 2009. Other cryptocurrencies use blockchain technology and are often referred to as altcoins. Blockchain technology provides a secure and transparent way of storing transaction records which cannot be modified or tampered with. Transactions are also processed quickly and securely due to the distributed ledger system used by many cryptocurrencies. Cryptocurrencies have several unique characteristics that make them an attractive choice for investors. They are highly liquid assets as they can be bought, sold, and exchanged for other currencies at any time of day. They also have low transaction costs compared to traditional payment methods such as credit cards and bank transfers. Additionally, since cryptocurrencies are not tied to any country’s economic conditions or policies, they provide greater stability than fiat currencies can offer in times of economic unrest or political turmoil. However, there are some drawbacks associated with investing in cryptocurrencies that should be taken into account before investing in them. Cryptocurrencies are highly volatile assets due to their speculative nature; prices can rise and fall sharply at any time without warning as traders attempt to profit from short-term price movements rather than long-term trends. Additionally, cryptocurrency exchanges do not offer the same level of consumer protection as traditional financial institutions; if you invest in a cryptocurrency exchange you should ensure it has sufficient security measures in place before entrusting it with your money. Finally, because of their pseudonymous nature – meaning users’ identities remain anonymous – cryptocurrencies can be used for illegal activities such as money laundering which could put off potential investors from entering the market altogether. Reasons to Invest in CRYPTO Cryptocurrency has become an increasingly sought-after investment option due to its unique properties. Decentralization of the network allows users complete control over their funds and transactions, making it more secure than traditional methods. Low transaction costs and fast processing times give cryptocurrencies an edge in terms of efficiency compared with other payments systems. By investing in crypto, investors can diversify their portfolios and reduce the risk of market volatility associated with physical commodities like gold or silver. Moreover, depending on timing and individual decisions, cryptocurrency can offer high returns; many digital coins have seen huge gains due to their limited availability and strong demand. Finally, there is potential for impressive capital appreciation in cryptocurrency due to its global acceptance and capacity for growth. Open markets around the world make price movements accessible at any given time - allowing savvy traders to capture profits from various markets if managed correctly. As a relatively new form of investment asset, those who choose to invest early are presented with greater opportunity for growth compared to other options available. In summary, investing in cryptocurrency provides investors with a range of advantages that could lead to long-term portfolio growth or protection against inflationary risks. As such, it is important that all prospective investors conduct thorough research before committing funds into this asset class as there are both risks and rewards involved in this type of investment. Comparative Pros and Cons of Investing in GOLD vs CRYPTO Weighing up the pros and cons of investing in gold or cryptocurrency is a key factor to consider when it comes to making an informed decision on which asset type would best suit one's individual needs. Gold has traditionally been seen as a reliable source of currency and value, offering stability during times of economic or political unrest. Additionally, gold provides diversification benefits due to its low correlation with other assets while also having high liquidity and accessibility for all types of investors. Conversely, crypto investments have become increasingly popular due to their unique properties such as decentralization of the network, low transaction costs, fast processing times, and potential for high returns. Investing in cryptocurrency can help diversify portfolios and reduce risk associated with market volatility; furthermore, crypto is not affected by inflationary pressures like gold is. However, it's important to be aware that both gold and cryptocurrency have their own set of drawbacks that should be factored into any investment decision. For example, gold prices are more volatile than cryptocurrencies but also more stable over long periods of time; additionally, gold has higher liquidity than crypto meaning it’s easier to liquidate investments quickly if needed. Ultimately investors should conduct thorough research into both asset types before deciding which will best meet their own personal goals when investing money. By being aware of the advantages and disadvantages outlined here they will be able to make an educated choice when selecting either gold or cryptocurrency as part of their portfolio. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
6
The Laws of cryopto markets.Law #1 All markets are inherently Fractal. Markets have many patterns. Fractals are similar in different instruments, different timeframes, and even in different time periods. Whether you look at a monthly chart or a 1-minute chart, the same principles and patterns work everywhere. If you remove the ticker or symbol of an asset and the time frame from the chart, you will hardly be able to determine the chart of which instrument you are analyzing. All markets move according to the "Russian Matryoshka" principle: balances within balances, ranges within ranges, transitions from one pattern to another. Law #2. At a certain point in time, markets are either in balance or moving in a trend. Markets can only be in one of these two states. So what is balance, or as I sometimes call it, range? Financial Markets have long been designed to create a "bargain." In a balance sheet, buyers and sellers determine some kind of value for a commodity or trading instrument. It is in the balance that buyers and sellers come to a common denominator or agree on the valuation of the commodity they are trading. In a trend, on the contrary, both buyers and sellers disagree on the price and move away from the previously agreed value of the commodity. The reason for this can be anything: supply and demand, news background, some rumors, fundamental changes or whatever. Something has caused the price to get out of a certain balance. The value of the goods has changed, and if it has risen, it means that the buyers have become much more aggressive than the sellers, or vice versa. More aggressive means that buyers, for whatever reason, are willing to pay more than sellers offer. These "transactions" and aggressive transitions move the world markets until both buyers and sellers agree on the value of the commodity again. Then the "flat"/balance starts again, then the trend, and then the stop and balance again. It is very important to understand that getting out of a Grand Balance creates a big trend. Understanding this can bring you either big profits or big losses if you start trading against such a trend. Trends and balances move in the dynamics of the markets and the matryoshka structure. This is what creates the context of the market. Law #3. Price moves in a series of impulses and corrections. It never flies up in a rocket (except for dumps on crypto or low-liquid assets), and it never rocks down (dumps on crypto). The move starts with a directional move and then stops at a point called a swing high on an upward momentum. After that, the price begins to move in the opposite direction. This is called a correction or "balancing" if price corrects against the trend. Often price also corrects over time or horizontally when the momentum "cools down," creating a horizontal balance or rerun, but not giving any correction to keep traders out of the trap Even if sometimes it seems that on a large timeframe price is moving in a straight line upward, when you approach the 15-minute timeframe, you can see that price is going impulses and corrections. Law #4. Price takes all information into account effectively, but not perfectly. This "law" is one of the most controversial in trading, and the least understood. As a rule, market participants cannot find a common denominator in explanation of this rule. On the one hand there are supporters of the hypothesis of the market rationality, according to which the price instantly includes all information, news and rumors. They say that the price instantly reflects everything that is happening in the world from details to global fundamental changes. But if it were true, then it would be impossible to be a profitable trader in the market. From my experience I am willing to argue with this, and there are so many traders who are making huge money in the market contrary to the rationality of the markets. In reality, markets are actually rational, price does include all information very quickly, but market participants are quite far from being rational. Very often the emotional characteristics of market participants cause the price to move too high or too low in the trend direction contrary to the real price of a particular asset. Greed and fear (FOMO-fear of missing out) can often be to blame. Of course, sooner or later the price of the asset will come back to its real value, but the fact is that markets are not entirely rational. That is sometimes the best opportunity to raise good money in a trade against the "crowd."
BITSTAMP:BTCUSDEducation
by Artem_Dishel
7
Wealth Unleashed: Wedge Pattern Power - Hidden Gem Revealed!Introduction : Are you looking to skyrocket your trading profits? Look no further! Today, we will uncover the hidden gem of trading patterns: the Wedge Pattern. This powerful tool has the potential to transform your trading strategy and help you achieve financial success. Let's dive into the world of wedge patterns and explore how you can capitalize on their power. What are Wedge Patterns? Wedge patterns are popular among traders due to their high probability of forecasting trend reversals. These patterns appear when the price of an asset consolidates between converging support and resistance lines. There are two primary types of wedge patterns: the rising wedge and the falling wedge. Rising Wedge: In an upward trend, the rising wedge is considered a bearish pattern. It forms when the price consolidates between an upward-sloping support line and an upward-sloping resistance line that are converging. As the price approaches the apex of the wedge, the upward momentum weakens, signaling a potential trend reversal to the downside. Falling Wedge: Contrary to the rising wedge, the falling wedge is a bullish pattern. It appears in a downward trend when the price consolidates between a downward-sloping support line and a downward-sloping resistance line that are converging. As the price nears the apex of the wedge, the downward momentum loses strength, indicating a possible trend reversal to the upside. Trading Strategies: To capitalize on the power of wedge patterns, follow these steps: ✅Identify the pattern: Observe the chart for converging support and resistance lines to spot a rising or falling wedge pattern. ✅Confirmation: Wait for a breakout from the wedge pattern, either above the resistance line (for falling wedges) or below the support line (for rising wedges). ✅Entry point: Open a long position after a breakout above the resistance line in a falling wedge, or a short position after a breakout below the support line in a rising wedge. ✅Stop-loss and take-profit: Set your stop-loss order below the breakout level (for falling wedges) or above the breakout level (for rising wedges). Establish your take-profit target at a level that aligns with your risk-reward ratio and trading plan. Conclusion: The wedge pattern is a hidden gem that can potentially boost your trading profits when used correctly. By mastering the art of identifying and trading wedge patterns, you can strengthen your technical analysis skills and increase your chances of success in the market. Remember, no single tool guarantees success, so always use additional technical indicators and maintain a disciplined approach to risk management. Happy trading!
Education
by Yaroslav_Krasko
Let's all jump inWhen you first start trading, everything seems like a good idea! You want to take every trade, use every indicator, watch every video and stream! Be like every influencer! You get this feeling that you found something new, that you are the chosen one. Unfortunately, it's for this same reason - 90% of new retail traders lose 90% of their money in the first 90 days... Here are some key pointers to keep you safe! 1) Risk Management; learning to manage risk is key. If you want to gamble away your savings, Vegas is a lot more fun than the markets. Trust me, I speak from experience in both! 2) Create a plan that suits the type of lifestyle you have, if your working full time then scalping every couple of minutes is not doing you any favours. Take the long road. If you have time but don't want to stare at screens all day, then don't go scalping either. Not saying, don't do scalping or it's no good. Just emphasising, to pick your own style. 3) Don't follow influencers! I cover this topic a lot, people often ask me about Plan B or some other random guy. The issue is, these guys don't trade, they shill affiliate links and film 4 Youtube videos a day! They make their money by having followers and views. Just look at this below; This was the message from the top! Where would you be now? Leveraged long positions? This aspect has become, possibly one of the biggest factors for how people lose in the crypto space. You get sold a dream by following demo traders! Take our friend Carl, I called him out after seeing his demo trading on a video. The guy is practically calling every top a pump and go long from here... 4) Follow the big players; not the whales, the institutions. When you know where their bias is, you have a lot more probability getting the direction correct. 5) Search for key levels; regardless of a technique - this could be supply and demand levels, Fib pullbacks, Wyckoff Schematics or Elliott Waves. Don't trust only one, and please, please, please! Don't get lazy and just follow something you seen in a video. Do your own due diligence. For example; I see 2 Elliott Wave scenarios here for Bitcoin. This is the first option. The second has a 4 where the 2 is of a move one degree lower. I've covered this in my streams. It's knowing the logic behind the market sentiment that will help you figure out the general direction, this is why knowing the bigger players in the space is useful. As you can see from my post here - each call is on @tradingview 6) Do your own research to create your own plan, that should fit around your lifestyle or at least your current circumstance. 7) Repeat step 1 through 6. These moves are choreographed, like you wouldn't believe. Don't believe me? On the way up to the 65k all time high at the time; you could see the re-accumulation take place. As we neared the extension levels, you could see the distribution sequence start. I covered this with a lesson on Wyckoff at the time. These levels were already mapped out, months in advance of the actual move. From there and up to the current all time high. Why would it move like that? why would it stop where it did? These are the questions you need to ask, if you want to take trading seriously. You won't qualify as a doctor or a lawyer after watching a handful of videos. You won't make it as a trader either if that's your expectation. Finally, Here's some logic for you - are we likely to reach $100k Bitcoin on this move up? Monthly stochastic level would say otherwise... 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.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
5
MASTER THE MARKET WITH CONFIDENCE & DISCIPLINEIf you asked me to distill trading down to its simplest form, I would say that it is a pattern recognition numbers game. We use market analysis to identify the patterns, define the risk, and determine when to take profits. The trade either works or it doesn't. In any case, we go on to die next trade. It's that simple, but it's certainly not easy. In fact, trading is probably the hardest thing you'll ever attempt to be successful at. That's not because it requires intellect; quite the contrary! But because the more you think you know, the less successful you'll be. Trading is hard because you have to operate in a state of not having to know, even though your analysis may turn out at times to be "perfectly" correct. To operate in a state of not having to know, you have to properly manage your expectations. To properly manage your expectations, you must realign your mental environment so that you believe without a shadow of a doubt in the five fundamental truths. Today, I am going to give you a trading exercise that will integrate these truths about the market at a functional level in your mental environment. In the process, I'll take you through the three stages of development of a trader. The first stage is the mechanical stage. In this stage, you: 1. Build the self-trust necessary to operate in an unlimited environment. 2. Learn to flawlessly execute a trading system. 3. Train your mind to think in probabilities (the five fundamental truths). 4. Create a strong, unshakeable belief in your consistency as a trader Once you have completed this first stage, you can then advance to the subjective stage of trading. In this stage, you use anything you have ever learned about the nature of market movement to do whatever it is you want to do. There's a lot of freedom in this stage, so you will have to learn how to monitor your susceptibility to make the kind of trading errors that are the result of any unresolved self-valuation issues I referred to in the last chapter. The third stage is the intuitive stage. Trading intuitively is the most advanced stage of development. It is the trading equivalent of earning a black belt in the martial arts. The difference is that you can't try to be intuitive, because intuition is spontaneous. It doesn't come from what we know at a rational level. The rational part of our mind seems to be inherently mistrustful of information received from a source that it doesn't understand. Sensing that something is about to happen is a form of knowing that is very different from anything we know rationally. I've worked with many traders who frequently had a very strong intuitive sense of what was going to happen next, only to be confronted with the rational part of themselves that consistently, argued for another course of action. Of course, if they had followed their intuition, they would have experienced a very satisfying outcome. Instead, what they ended up with was usually very unsatisfactory, especially when compared with what they otherwise perceived as possible. The only way I know of that you can try to be intuitive is to work at setting up a state of mind most conducive to receiving and acting on your intuitive impulses. The mechanical stage of trading is specifically designed to build the kind of trading skills (trust,confidence, and thinking in probabilities) that will virtually compel you to create consistent results. I define consistent results as a steadily rising equity curve with only minor draw downs that are the natural consequence of edges that didn't work. Other than finding a pattern that puts the odds of a winning trade in your favor, achieving a steadily rising equity curve is a function of systematically eliminating any susceptibility you may have to making the kind of fear, euphoric or self-valuation based trading errors I have described throughout this book. Eliminating the errors and expanding your sense of self-valuation will require the acquisition of skills that are all psychological in nature. The skills are psychological because each one, in its purest form, is simply a belief. Remember that the beliefs we operate out of will determine our state of mind and shape our experiences in ways that constantly reinforce what we already believe to be true. How truthful a belief is (relative to the environmental conditions) can be determined by how well it serves us; that is, the degree to which it helps us satisfy our objectives. If producing consistent results is your primary objective as a trader, then creating a belief (a conscious, energized concept that resists change and demands expression) that "I am a consistently successful trader" will act as a primaiy source of energy that will manage your perceptions, interpretations, expectations, and actions in ways that satisfy the belief and, consequently, the objective. Creating a dominant belief that "I am a consistently successful trader" requires adherence to several principles of consistent success. Some of these principles will undoubtedly be in direct conflict with some of the beliefs you've already acquired about trading. If this is the case, then what you have is a classic example of beliefs that are in direct conflict with desire. The energy dynamic here is no different from what it was for the boy who wanted to be like the other children who were not afraid to play with dogs. He desired to express himself in a way that he found, at least initially, virtually impossible. To satisfy his desire, he had to step into an active process of transformation. His technique was simple: He tried as hard as he could to stay focused on what he was trying to accomplish and, little by little, he de-activated the conflicting belief and strengthened the belief that was consistent with his desire. At some point, if that is your desire, then you will have to step into the process of transforming yourself into a consistent winner. When it comes to personal transformation, the most important ingredients are your willingness to change, the clarity of your intent, and the strength of your desire. Ultimately, for this process to work, you must choose consistency over eveiy other reason or justification you have for trading. If all of these ingredients are sufficiently present, then regardless of the internal obstacles you find yourself up against, what you desire will eventually prevail. The first step in the process of creating consistency is to start noticing what you're thinking, saying, and doing. Why? Because everything we think, say, or do as a trader contributes to and, therefore, reinforces some belief in our mental system. Because the process of becoming consistent is psychological in nature, it shouldn't come as a surprise that you'll have to start paying attention to your various psychological processes. The idea is eventually to learn to become an objective observer of your own thoughts, words, and deeds. Your first line of defense against committing a trading error is to catch yourself thinking about it. Of course, the last line of defense is to catch yourself in the act. If you don't commit yourself to becoming an observer to these processes, your realizations will always come after the experience, usually when you are in a state of deep regret and frustration.Observing yourself objectively implies doing it without judging about yourself. This might not be so easy for some of you to do considering the harsh, judgmental treatment you may have received from other people throughout your life. As a result, one quickly learns to associate any mistake with emotional pain. No one likes to be in a state of emotional pain, so we typically avoid acknowledging what we have learned to define as a mistake for as long as possible. Not confronting mistakes in our everyday lives usually doesn't have the same disastrous consequences it can have if we avoid confronting our mistakes as traders. For example, when I am working with floor traders, the analogy I use to illustrate how precarious a situation they are in is to ask them to imagine themselves walking across a bridge over the Grand Canyon. The width of the bridge is directly related to the number of contracts they trade. So, for example, for a one-contract trader the bridge is very wide, say 20 feet. A bridge 20 feet wide allows you a great deal of tolerance for error, so you don't have to be inordinately careful or focused on each step you take. Still, if you do happen to stumble and trip over the edge, the drop to the canyon floor is one mile. I don't know how many people would walk across a narrow bridge with no guardrails, where the ground is a mile down, but my guess is relatively few. Similarly, few people will take the kinds of risks associated with trading on the floor of the futures exchanges. Certainly a one-contract floor trader can do a great deal of damage to himself, not unlike falling off a mile-high bridge. But a one-contract trader also can give himself a wide tolerance for errors, miscalculations, or unusually violent market moves where he could find himself on the wrong side. 1. all our beliefs are in absolute harmony with our desires, and 2. all our beliefs are structured in such a way that they are completely consistent with what works from the environment's perspective. Obviously, if our beliefs are not consistent with what works from the environments perspective, the potential for making a mistake is high, if not inevitable. We won't be able to perceive the appropriate set of steps to our objective. Worse, we won't be able to perceive that what we want may not be available, or available in the quantity we desire or at the time when we want it. On the other hand, mistakes that are the result of beliefs that are in conflict with our objectives aren't always apparent or obvious. We know they will act as opposing forces, expressing their versions of the truth on our consciousness, and they can do that in many ways. The most difficult to detect is a distracting thought that causes a momentary lapse in focus or concentration. On the surface this may not sound significant. But, as in the analogy of the bridge over the canyon, when there's a lot at stake, even a slightly diminished capacity to stay focused can result in an error of disastrous proportions. This principle applies whether it's trading, sporting events, or computer programming. When our intent is clear and undiminished by any opposing energy, then our capacity to stay focused is greater, and the more likely it is that we will accomplish our objective. You have to be able to monitor yourself to some degree, and that will be difficult to do if you have the potential to experience emotional pain if and when you find yourself in the process of making an error. If this potential exists, you have two choices: 1. You can work on acquiring a new set of positively charged beliefs about what it means to make a mistake, along with de-activating any negatively charged beliefs that would argue otherwise or cause you to think less of yourself for making a mistake. 2. If you find this first choice undesirable, you can compensate for the potential to make errors by the way you set up your trading regime.
Education
by moonypto
5 IMPOTANT TYPES OF ELLIOTT WAVE PATTERNS!Zigzag patterns are sharp declines in a bull rally or advances in a bear rally that substantially correct the price level of the previous Impulse patterns. Zigzags may also be formed in a combination which is known as the double or triple zigzag, where two or three zigzags are connected by another corrective wave between them.‘ 4. Flat: The flat is another three-wave correction in which the sub-waves are formed in a 3-3-5 structure which is labelled as an A-B-C structure. In the flat structure, both Waves A and B are corrective and Wave C is motive having 5 sub-waves. This pattern is known as the flat as it moves sideways. Generally, within an impulse wave, the fourth wave has a flat whereas the second wave rarely does. On the technical charts, most flats usually don’t look clear as there are variations on this structure. A flat may have wave B terminate beyond the beginning of the A wave and the C wave may terminate beyond the start of the B wave. This type of flat is known as the expanded flat. The expanded flat is more common in markets as compared to the normal flats as discussed above. 5. Triangle: The triangle is a pattern consisting of five sub-waves in the form of a 3-3-3-3-3 structure, that is labelled as A-B-C-D-E. This corrective pattern shows a balance of forces and it travels sideways. The triangle can either be expanding, in which each of the following sub-waves gets bigger or contracting, that is in the form of a wedge. The triangles can also be categorized as symmetrical, descending or ascending, based on whether they are pointing sideways, up with a flat top or down with a flat bottom. The sub-waves can be formed in complex combinations. It may theoretically look easy to spot a triangle, but it may take a little practice to identify them in the market. Bottomline: As we have discussed above Elliott wave theory is open to interpretations in different ways by different traders, so are their patterns. Thus, traders should ensure that when they identify the patterns. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
6
How to determine a breakout level ?A breakout occurs when the price of an asset moves above or below a significant level of support or resistance. For traders, identifying a breakout can be a profitable opportunity to enter or exit a trade. Here are some steps to help you identify a breakout: Identify the key support or resistance level - This is usually a level where the price has previously bounced off several times. Look for a strong momentum in the direction of the breakout - This can be indicated by a sudden increase in volume, or a significant move in the price. Wait for the breakout confirmation - This is when the price moves decisively above or below the support or resistance level. Confirm the breakout with other technical indicators - Use other technical indicators, such as moving averages or trend lines, to confirm the breakout and determine the strength of the trend. Place your trade - Once you have confirmed the breakout, you can enter a long or short position, depending on the direction of the breakout. Remember that not all breakouts are successful, and it's important to use proper risk management techniques, such as setting stop-loss orders, to limit your losses in case the trade goes against you.
Education
by CScalp_EN
Tradingview Volume toolsI've been using Tradingview for just over 8 years now. When I initially started using it I was transitioning from using Footprint tools. I would use techniques that in essence allowed you to see inside a candle. Coupled with techniques such as "DOM" Depth of Market and Cumulative Delta. After a while you get to see some of this stuff without the need of indicators. Tradingview have steadily added various tools to the platform and with a little help from being able to code your own tools it's made it an interesting space to play. So here's a quick overview on the abilities, encase you have yet to explore. This is not a lesson on volume as such, just educating you as to what the possibilities can be. Most would have seen or at least know about the volume on the X axis. This simply gives an idea of the happening of that particular candle, of course things can alter or yield different results based on settings and time frames. we've taken the time to incorporate this simple volume in one of our own indicators. Which is coupled with a Stochastic and a few other bits. It can also be used standalone for spotting divergence for example. You can see how the volume up and price up yet in the third price move up, volume has lowered. There are also various styles of showing this volume data - one such tool is Weiss waves. These are great in conjunction with techniques such as Elliott Waves and Wyckoff. I've shown this over the last two years here on TradingView and both of these techniques have been very useful on Bitcoin during this time. I mentioned CVD the cumulative Volume Delta, here you can see this under the Weiss Wave indicator. Like I said, have a play around with these on your own charts. You will spot some interesting things once you get to know them. Try various instruments as well as timeframes. More recently I posted a video on using Chat GPT to build a pinescript indicator. Here's the link to that post. Well, I've taken that a few steps further. What started as an idea in terms of using Footprint, X axis volume and then what's called periodic volume profile. I personally like to turn the bars/candles off when I got this on. Here's another view - this is the session volume profile and periodic volume combined without the candles being visible. This new indicator extracts various pieces of data and paints key levels based on my old trading style. As you can see today, this is showing like a magnet where the key levels in Bitcoin are likely to be. There's a bit more to it than that but in essence, its what I am showing here. To finish with you have two other tools here on Tradingview - one which is fixed range volume, just as it says on the tin. You can see volume inside a range you determine. I have used a low and a high here to find the PoC - Point of Control. Then finally, you have visible range; this I tend to use less personally, but I know many people like it. This allows you to view the volume profile based on what you have visible on the chart. As you can imagine, as you zoom in n out, it can change. Like I said, this is not a lesson on each tool - it's an intro to, for you to spend the time to play around with these tools. Feel free to ask questions below. Enjoy the rest of the week! 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.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
18
Managing Psychological Resistance in Bitcoin TradingBitcoin has been gaining popularity in recent years as a digital currency, and its price has been subject to fluctuations. As traders look for ways to profit from Bitcoin, understanding psychological resistance becomes an important factor in trading decisions. What is Psychological Resistance? Psychological resistance is a level at which traders become hesitant to buy an asset, such as Bitcoin, due to a perceived high price. This level is not based on any technical analysis or fundamental data but is a result of human behavior and emotions. For example, if the price of Bitcoin reaches HKEX:50 ,000, some traders may hesitate to buy it as they perceive the price to be high, which creates a psychological resistance level. How can Psychological Resistance Affect the Price of Bitcoin? When the price of Bitcoin reaches a psychological resistance level, traders tend to take profits or sell their positions, causing the price to drop. This can result in a short-term correction in the price of Bitcoin. However, if the price is able to break through the psychological resistance level, it can result in a significant price increase. This is because traders who were previously hesitant to buy may now jump in, driving the price up. Strategies for Trading Psychological Resistance: 1. Use Fibonacci Retracement: Fibonacci retracement levels can be used to identify psychological resistance levels. Traders can use the retracement levels to enter or exit their positions. Fibonacci retracement is a popular technical analysis tool used to identify potential levels of support and resistance. The tool uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the price continues in the original direction. 2. Use Moving Averages: Moving averages can be used to identify trends and potential resistance levels. Traders can use the moving averages to identify potential entry or exit points. Moving averages are a popular technical analysis tool used to identify the trend of an asset's price. Traders can use the moving average to identify potential entry or exit points. 3. Use Bollinger Bands: Bollinger Bands can be used to identify potential support and resistance levels. Traders can use the bands to identify potential entry or exit points. Bollinger Bands are a popular technical analysis tool that uses a moving average and two standard deviations to identify potential levels of support and resistance. Traders can use the bands to identify potential entry or exit points. 4. Use Relative Strength Index (RSI): The RSI can be used to identify potential overbought or oversold conditions. Traders can use the RSI to identify potential entry or exit points. The Relative Strength Index is a momentum oscillator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. Traders can use the RSI to identify potential entry or exit points. 5. Use Volume: High volume at a psychological resistance level can indicate that traders are hesitant to buy at that price, which can result in a price correction. Traders can use volume to identify potential entry or exit points. Volume is a measure of the number of shares or contracts traded in a specific asset. High volume at a psychological resistance level can indicate that traders are hesitant to buy at that price, which can result in a price correction. Traders can use volume to identify potential entry or exit points. Psychological resistance is an important concept that traders need to understand when trading Bitcoin. By using technical indicators such as Fibonacci retracement, moving averages, Bollinger Bands, RSI, and volume, traders can identify potential entry or exit points at psychological resistance levels. However, traders should also be aware that psychological resistance is not an exact science, and the price of Bitcoin can be influenced by a variety of other factors such as market news, economic events, and investor sentiment. Therefore, it is important for traders to use a combination of technical analysis and fundamental analysis to make informed trading decisions. In addition, traders should also be aware of potential psychological support levels, which are levels where traders may become more confident in buying an asset due to a perceived low price. These levels can also affect the price of Bitcoin and should be considered in trading decisions. Overall, psychological resistance is an important concept that traders need to understand when trading Bitcoin. By using technical indicators and analyzing market sentiment, traders can identify potential entry or exit points at psychological resistance levels. However, it is important to remember that no trading strategy is foolproof and traders should always practice risk management and conduct thorough analysis before making any trades.
BITSTAMP:BTCUSDEducation
by Julien_Eche
BTCUSD : Technical Indicators and Step-by-Step StrategyHere's a step-by-step strategy for using the 15-minute BTCUSD chart: Step 1: Set up your chart with the chosen indicators 1. Add the 50-period (blue) and 200-period (red) Exponential Moving Averages (EMA) to the Bitcoin price chart. 2. Add Bollinger Bands with a 20-period moving average (green) and 2 standard deviations. 3. Add a volume chart below the price chart. 4. Add the 14-period Relative Strength Index (RSI) in a separate panel below the volume chart. 5. Add the Moving Average Convergence Divergence (MACD) with periods of 12, 26, and 9 in another separate panel. Step 2: Analyze the trend and identify support and resistance levels 1. Suppose the Bitcoin price is above the 50 and 200 EMA, indicating an overall uptrend. If it's below both, it signals a downtrend. 2. For example, if the price bounces off the 50 EMA multiple times, this level acts as a support in an uptrend. In a downtrend, it acts as resistance. Step 3: Use Bollinger Bands to identify buying and selling opportunities 1. On February 10th, 12:45 PM, the Bitcoin price touches the lower Bollinger Band and then moves upwards, representing a potential buying opportunity. Similarly, on February 11th, 4:15 PM, the price touches the upper Bollinger Band and then reverses, signaling a selling opportunity. Step 4: Analyze volume 1. On February 10th, 1:00 PM, a significant increase in volume corresponds to a strong upward price movement, suggesting bullish activity. Step 5: Analyze momentum and trend indicators 1. On February 11th, 9:30 AM to 10:45 AM, the Bitcoin price makes higher lows while the RSI shows lower lows, indicating a bullish divergence, suggesting a potential trend reversal. 2. On February 11th, 11:30 AM, the MACD line (blue) crosses above the signal line (orange), indicating a potential shift to an uptrend. Step 6: Synthesize the information and make a decision 1. Using the previous examples, a possible trading strategy could be to buy when the price touches the lower Bollinger Band and the RSI shows bullish divergence during an overall uptrend, and sell when the price touches the upper Bollinger Band during an uptrend. 2. Entry points: February 10th, 12:45 PM (buy) and February 11th, 4:15 PM (sell). Set stop-loss and take-profit levels based on your risk tolerance and trading plan. Please note that these examples are for illustrative purposes and past performance does not guarantee future results. It is essential to adapt your analysis and trading strategy to changing market conditions and develop a comprehensive understanding of these indicators to make informed decisions.
Education
by Julien_Eche
2
Crypto Analysis: A Comprehensive Technical & Fundamental GuideHere is a detailed step-by-step guide on how to use the technical and fundamental indicators to analyze cryptocurrencies: Step 1: Choose a reliable trading or charting platform Select a trading or charting platform that allows you to access and utilize the technical and fundamental indicators mentioned. I personally use and recommend TradingView for its reliability and ease of use in cryptocurrency analysis. Step 2: Set up your chart Configure your chart with your chosen cryptocurrency's price data, typically using the daily timeframe for a broader perspective. You can adjust the timeframe according to your preferred trading style (short-term, medium-term, or long-term). Step 3: Apply technical indicators Add the following technical indicators to your chart: a. Exponential Moving Averages (EMA): Use three EMAs with different periods (e.g., 20, 50, and 100 days) to identify short, medium, and long-term trends. Look for crossovers between the EMAs as potential buy or sell signals. b. MACD (Moving Average Convergence Divergence): Apply the MACD indicator with standard settings (12, 26, 9). Look for crossovers between the MACD line and the signal line as potential buy or sell signals. Additionally, watch for bullish or bearish divergence between the MACD and price. c. RSI (Relative Strength Index): Apply the RSI indicator with a 14-day period. Monitor the RSI levels for overbought (>70) or oversold (<30) conditions, which could signal potential price reversals. Step 4: Analyze the cryptocurrency market fundamentals Evaluate the following fundamental factors: a. Adoption: Research the current rate of cryptocurrency adoption, including new users, institutional interest, and use cases. Increasing adoption typically indicates a positive long-term outlook. b. Regulation: Stay informed about the latest regulatory developments and legal frameworks that could impact your chosen cryptocurrency's value and market perception. c. Utility: Assess the cryptocurrency's current utility, such as its use as a store of value, a medium of exchange, or as a hedge against traditional financial markets. Step 5: Analyze the cryptocurrency network Examine key network metrics, such as: a. Hash rate: A higher hash rate indicates a strong and secure network. Monitor the hash rate for consistent growth or sudden drops, which could impact the cryptocurrency's price. b. Mining difficulty: Observe the mining difficulty as an indicator of network security and miner participation. Higher mining difficulty generally implies a more secure network. c. Transactions: Track the number of daily transactions on the cryptocurrency network, as increased transaction activity may correlate with higher demand and network utility. Step 6: Synthesize your analysis Combine your technical and fundamental analyses to create a comprehensive understanding of your chosen cryptocurrency's current market conditions. Look for confluence between the technical indicators and the fundamental factors to identify potential trading opportunities or long-term investment decisions. Step 7: Continuously monitor and adjust Regularly update your analysis to stay informed about changes in the market or network conditions. Adapt your trading or investment strategy accordingly. Keep in mind that this is just one example of a method that combines technical and fundamental indicators. The effectiveness of this method will depend on various factors, including market conditions, your trading or investment strategy, and your ability to interpret and act on the provided information. Always exercise due diligence and research before making any trading or investment decisions.
Education
by Julien_Eche