Get started

Chart Patterns

Fibonacci Retracements - Gauging a Dip in Price Part 2 In a previous post on February 19th, we highlighted 2 ways to gauge the extent of a dip in the price of a particular instrument, after a phase of upside strength. This post outlined concepts related to relatively limited and shallow corrections in price, such as those where prices are moving back down to old highs, or a 10-day moving average. You can find this report on our timeline, so please take a look. The next challenge comes when the price of a particular instrument sees a more extended up or downside move, then the question becomes, is there anything that might aid us to gauge this type of price activity? Technical analysts and traders will often use Fibonacci retracements as a tool to identify possible levels of support and resistance in financial markets. However, due to their calculation, these are commonly used when a more extended price move materialises. The good news is that these are available on the Pepperstone charting system and can be utilised within any timeframe that you may wish to analyse. Using Fibonacci Retracements: Whether you are looking at a move to the up or downside, Fibonacci retracements can be helpful to identify support levels that may halt a price sell-off of a particular instrument within an on-going uptrend, or resistance levels that may cap any recovery within an on-going downtrend. However, if these support or resistance levels are broken on a closing basis, they can also be useful in providing insight into whether there is an increased potential for a more sustained move in the direction of that break. From a trading standpoint, Fibonacci retracements can provide valuable insights into market behaviour and can assist traders to make more informed decisions. The support and resistance levels they identify may be used to determine potential entry and exit points for trades, as well as areas to set stop-loss and take-profit orders for existing positions. What to Know About Fibonacci Retracements: Leonardo Fibonacci was a 12th century mathematician who developed the Fibonacci number sequence. Certain ratios are derived from the sequence, including 0.618, which is also known as the Golden mean. This is an important ratio that occurs throughout art, the natural world and even the human body. Within financial markets, we use 3 set percentage retracements obtained from ratios within the Fibonacci sequence, to measure the potential extent of price declines or rallies. We use the 38.2%, the 50% (which isn’t a true Fibonacci retracement, but has become accepted by traders, as it highlights half the original move), and the 61.8%. While there are other percentages available on all charting systems, these are the main one’s technical analysts focus on when looking at potential retracement calculations. Downside Move: Significant High to Significant Low In a downside move, we run the Fibonacci retracement from a significant price high to a significant price low. These are levels that stand out to you as being important extremes on the chart of the instrument you are focused on; within whatever timeframe you are analysing. The Pepperstone charting system will then automatically calculate the 3 set percentages and provide you with 3 potential resistance areas that may cap any upside recovery in price. (See chart above). Upside Move: Significant Low to Significant High Within an upside move, we run the Fibonacci retracement analysis from a significant price low to a significant price high. Here the Pepperstone system will automatically calculate 3 potential support areas that may halt any downside correction in price. (See chart above). Using Retracement Levels to Trade: While there is no guarantee that Fibonacci retracements will identify support or resistance levels that work every time, they can offer traders levels that are worthwhile monitoring. This can be useful if an instrument is trading within a confirmed uptrend, and we are looking to use a dip in the price as an opportunity to buy at a lower level. Or, if an instrument is trading within a downtrend, and we are looking to use any recovery in price as an opportunity to sell at a higher level. Traders may also use Fibonacci retracements to place stop losses just above the identified resistance level or below the support. This is because, if for example a 38.2% Fibonacci retracement level is broken on a closing basis, it can highlight the potential of a more sustained move in the direction of the break, which could potentially be to the 50% retracement, and if this is in turn breached, on to the 61.8% level, as seen in the chart above. In the example above, if the decline in price continued and the 61.8% support was broken on a closing basis, the Fibonacci rule suggests a more sustained phase of price weakness maybe seen towards the significant low used within the original calculation (100% retracement). If such activity is seen within an on-going downtrend in price, the opposite is true. A sustained rally that closes above the 61.8% potential resistance, could lead to a more sustained phase of price strength towards the significant high originally identified after a downside move in price (100% retracement). In Conclusion: Whatever timeframe you utilise on your charts; the Fibonacci retracement can be a useful tool in highlighting support or resistance levels during a correction or recovery phase in price. Initiating trading decisions as a retracement level is neared, can sometimes offer opportunities to establish a position before the original move is resumed. However, equally, it also allows stop losses to be placed relatively close to an entry point, as confirmed breaks of a retracement level can suggest a price moves may continue further. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Education
by Pepperstone
Soybean Futures Surge: ZS, ZL, and ZM Align for a Bullish MoveI. Introduction Soybean futures are showing a potentially strong upcoming bullish momentum, with ZS (Soybean Futures), ZL (Soybean Oil Futures), and ZM (Soybean Meal Futures) aligning in favor of an upward move. The recent introduction of Micro Ag Futures by CME Group has further enhanced trading opportunities by allowing traders to manage risk more effectively while engaging with longer-term setups such as weekly timeframes. Currently, all three soybean-related markets are displaying bullish candlestick patterns, accompanied by strengthening demand indicators. With RSI confirming upward momentum without entering overbought territory, traders are eyeing potential opportunities. Among the three, ZM appears to be the one which will potentially provide the greatest strength, showing resilience in price action and a favorable technical setup for a high reward-to-risk trade.   II. Technical Analysis of Soybean Markets A closer look at the price action in ZS, ZL, and ZM reveals a confluence of bullish factors: o Candlestick Patterns: All three markets have printed bullish weekly candlestick formations, signaling increased buying interest. o RSI Trends: RSI is in an uptrend across all three contracts, reinforcing the bullish outlook. Importantly, none of them are currently in overbought conditions, suggesting further upside potential. o Volume Considerations: Higher volume on up moves and decreasing volume on down-moves adds credibility to the bullish bias. III. Comparative Price Action Analysis While all three soybean-related markets are trending higher, their relative strength varies. By comparing recent weekly price action: o ZM (Soybean Meal Futures) stands out as the one which will potentially become the strongest performer. Last week, ZM closed above its prior weekly open, marking a +1.40% weekly gain. RSI is not only trending higher but is also above its average, a sign of potential continued strength. o ZS and ZL confirm bullishness but lag slightly in relative strength when compared to ZM. This comparative analysis suggests that while all three markets are bullish, ZM presents the most compelling trade setup in terms of technical confirmation and momentum. IV. Trade Setup & Forward-Looking Trade Idea Given the strong technical signals, the trade idea focuses on ZM (Soybean Meal Futures) as the primary candidate. Proposed Trade Plan: Direction: Long (Buy) Entry: Buy above last week’s high at 307.6 Target: UFO resistance at 352.0 Stop Loss: Below entry at approximately 292.8 (for a 3:1 reward-to-risk ratio) Reward-to-Risk Ratio: 3:1 Additionally, with the introduction of Micro Ag Futures, traders can now fine-tune position sizing, making it easier to manage risk effectively on longer-term charts like the weekly timeframe. Given the novelty of such micro contracts, here is a CME resource that could be useful to understand their characteristics such as contracts specs . V. Risk Management & Trade Discipline Executing a trade plan is just one part of the equation—risk management is equally critical, especially when trading larger timeframes like the weekly chart. Here are key considerations for managing risk effectively: 1. Importance of Precise Entry and Exit Levels Entering above last week’s high (307.6) ensures confirmation of bullish momentum before taking a position. The target at 352.0 (UFO resistance) provides a well-defined profit objective, avoiding speculation. A stop-loss at 292.8 is strategically placed to maintain a 3:1 reward-to-risk ratio, ensuring that potential losses remain controlled. 2. The Role of Stop Loss Orders & Hedging A stop-loss prevents excessive drawdowns in case the market moves against the position. Traders can also hedge using Micro Ag Futures to offset exposure while maintaining a bullish bias on the broader trend. 3. Avoiding Undefined Risk Exposure The Micro Ag Futures contracts enable traders to scale into or out of positions without significantly increasing risk. Position sizing should be adjusted based on account risk tolerance, ensuring no single trade overly impacts capital. 4. Adjusting for Market Volatility Monitoring volatility using ATR (Average True Range) or other risk-adjusted indicators helps in adjusting stop-loss placement. If volatility increases, a wider stop may be needed, but it should still align with a strong reward-to-risk structure. Proper risk management ensures that trades are executed with discipline, preventing emotional decision-making and maximizing long-term trading consistency. VI. Conclusion & Disclaimers Soybean futures are showing bullishness, with ZS, ZL, and ZM aligning in favor of further upside. However, among them, ZM (Soybean Meal Futures) potentially exhibits the most reliable momentum, making it the prime candidate for a high-probability trade setup. With bullish candlestick patterns, RSI trends confirming momentum, and volume supporting the move, traders have an opportunity to capitalize on this momentum while managing risk effectively using Micro Ag Futures. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CBOT:ZM1!Education
by traddictiv
2
Don’t Buy a Single Dollar of Crypto Without Knowing These 7 RuleHello and greetings to all the crypto enthusiasts,✌ Spend 3 minutes ⏰ reading this educational material. The main points are summarized in 5 clear lines at the end 📋 This will help you level up your understanding of the market 📊 and Bitcoin 💰. 📊 My Personal Take on Bitcoin’s Current Market Trends: Since the primary focus of this analysis is educational content, I have deliberately kept the chart simple and easy to understand. The goal is to ensure that you quickly grasp the key insights, particularly the projected minimum decline of 8% 📉 and the primary target of $75,000 for Bitcoin. Now, let's dive into the educational section, which builds upon last week's lesson (linked in the tags of this analysis). Many of you have been eagerly waiting for this, as I have received multiple messages about it on Telegram. 7 Key Considerations Before Investing in the Crypto Market: 🔍 1️⃣ Only Invest Money You Can Afford to Lose The most fundamental principle of investing—especially in high-volatility markets like crypto—is to allocate funds that are not essential to your financial well-being. Never invest money that could jeopardize your lifestyle if lost. Adhering to this principle can prevent financial ruin in many cases. 2️⃣ Choose Cryptocurrencies That Meet Essential Criteria Not all digital assets are worth investing in. Before committing to any coin or token, ensure that it satisfies at least the following factors: 📊 Market Capitalization: The asset should have a reasonable and sustainable market cap. 💰 Liquidity: Sufficient trading volume and liquidity are critical for smooth transactions. 👥 Community Strength: A strong, engaged, and active community is a sign of long-term viability. 🔧 Utility & Innovation: The project should offer a clear use case, technological innovation, and a meaningful solution to real-world problems. 🏆 Credibility & Backing: Look for coins supported by well-known figures, reputable teams, or influential institutions. 3️⃣ Always Set Clear Entry and Exit Strategies Whether you are in profit or loss, having a well-defined plan for when to enter and exit the market is crucial. Establishing these targets in advance will help you avoid emotional decision-making, such as falling into FOMO (Fear of Missing Out) or excessive greed. 4️⃣ Diversify Your Portfolio to Minimize Risk A well-balanced investment strategy involves spreading your capital across multiple assets rather than concentrating it all in one place. This diversification should include exposure to different sectors and types of cryptocurrencies to mitigate risk. 5️⃣ Altcoins Alone Won’t Make You Successful While altcoins can offer high returns, they come with increased volatility. A well-structured portfolio should also include Bitcoin and other major market movers to ensure stability and long-term sustainability. 6️⃣ Secure Profits and Reduce Risk Over Time If you are holding assets for the long term, a risk-free approach would be to withdraw your initial investment once you reach a profitable threshold. Reinvesting those profits into more stable assets—such as real estate 🏡, gold 🏆, or traditional markets—can provide a hedge against crypto volatility while allowing your remaining portfolio to continue growing. 7️⃣ Look for Emerging Opportunities, Not Just Former Market Leaders Instead of focusing solely on past high-performing assets that may have peaked, keep an eye on new, innovative projects with strong potential. Identifying the next big opportunity before it gains mainstream attention can be a game-changer for your portfolio. In next week's educational segment, I will explore this last point in greater detail, providing insights on how to effectively spot promising new investments in the ever-evolving crypto landscape. Stay tuned! However , this analysis should be seen as a personal viewpoint, not as financial advice ⚠️. The crypto market carries high risks 📉, so always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅. 🧨 Our team's main opinion is: 🧨 If you're diving into crypto, only invest money you can afford to lose—never risk your financial stability. 💸 Pick coins wisely: strong market cap, real liquidity, a solid community, and real-world use. ✅ Spread your investments, set clear entry/exit plans, and take profits—reinvest in stable assets like gold or real estate. 🔄🏡 Avoid FOMO, don’t chase overhyped coins, and always keep an eye on new opportunities. A balanced portfolio is key! 🚨 Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
22
QUICK LOOK AT A FEW INDICATORS AND INTEREST IN A SERIES?Quick overview testing out the upload from a browser on a ethernet connection computer vs wifi with the desktop downloaded app. Do you find value in this and want to make a regular series? Contact me if so and follow. Esp if your a developer and want to add some videos to your products, free, locked or paid. Im game. Platforms, customization and breaking down analytics is the life. Its what i enjoy and maybe you will too! Thank you All, DrawDownKing CME_MINI:ES1!
CME_MINI:ES1!Education
by drawdownking
What is Double Top or Double Bottom and how it works?Hello in this educational content we are talking about one of the major reversal pattern in market or maybe even the most important reversal pattern which is exist. Double Top: Like the pattern mentioned on the chart now double Top is made by two reject from resistance but it is complete when the support or neckline of this two top break and then the pattern is complete and we can say this is a valid double Top and market now can get correction and get bearish. here is chart & example take a look at Two kinds of Double Top available in my View: As we can see sometimes price even made fake breakout to the upside or downside of the pattern and in these kinds of situation we can expect more fall if we had Advance Double Top because the liquidity was more at the beginning of second phase rejection. We also have other Strong Reversal patterns like Head & shoulders and ... which you can mention them in comments or we may have another live post for them in next Educational posts. most of You know about Regular Double top or Double Bottom and in this Educational post we mention some data about Advance form of it too and also so many know this form as regular form and consider this fake breakout a sign of good double Top and .... Double Bottom is the same like the Double Top but reverse(This time support can not break two times and price after breaking neckline or resistance start to pump and bear market turn to bullish with Double Bottom). DISCLAIMER: ((Always trade based on your own decision))-----this post is not signal content or analysis and just Try to talk about an important Reversal pattern with Example which happened also on Bitcoin in previous days in my Opinion. <<press like👍 if you enjoy💚
Education
by MMBTtrader
22
Comprehensive Market Analysis Checklist!This checklist is designed to help you perform a thorough analysis of the market to make informed trading decisions. It encompasses a range of technical and fundamental questions that should be considered before entering a trade. Market Overview and Direction 1. What is the overall direction of the market? 2. What are the directions of various market sectors? 3. What are the weekly and monthly charts showing? 4. Are the major, intermediate, and minor trends moving up, down, or sideways? 5. Where are the important support and resistance levels? 6. Where are the important trendlines or channels? 7. Is volume and open interest confirming the price action? Technical Pattern Recognition 8. Where are the 33%, 50%, and 66% retracements? 9. Are there any price gaps, and what type are they? 10. Are there any major reversal patterns visible? 11. Are there any continuation patterns visible? 12. What are the price objectives from those patterns? 13. Which direction are the moving averages pointing? Oscillators and Indicators 14. Are the oscillators overbought or oversold? 15. Are there any divergences apparent on the oscillators? 16. Are contrary opinion numbers showing any extremes? Advanced Technical Analysis 17. What is the Elliott Wave pattern showing? 18. Are there any obvious 3 or 5 wave patterns? 19. What about Fibonacci retracements or projections? 20. Are there any cycle tops or bottoms due? 21. Is the market showing right or left translation? Trend Analysis Tools 22. Which way is the computer trend moving: up, down, or sideways? 23. What are the point and figure charts or candlestick patterns showing? Trade Setup and Risk Management Once you’ve arrived at a bullish or bearish conclusion, ask yourself the following questions: 1. What is the market’s likely trend over the next several months? 2. Am I going to buy or sell this market? 3. How many units will I trade? 4. How much am I prepared to risk if I’m wrong? 5. What is my profit objective? 6. Where will I enter the market? 7. What type of order will I use? 8. Where will I place my protective stop? This comprehensive analysis will help you assess the market conditions from all angles and develop a well-thought-out strategy before making any trading decisions. __________________________________________________________________________________ Reference: Murphy, John J. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance), p. 455.
Education
by SpicyPips
Smart Money: Key Zones for Entry and Market RebalancingHello, friends! Below is my market analysis, where for each key element of the Smart Money concept I use. 1. Premium/Discount zones allow me to quickly identify where capital works most profitably. Using the Fibonacci Correction tool, I find areas that indicate entry opportunities: buying in the discount zone and selling in the premium zone. This helps to form a basic picture of the market balance. 2.OTE helps me find optimal entry points by refining the zones defined by the basic correction. This tool allows me to look at possible entry areas in more detail, making the signals more accurate. 3. When analyzing market movements, I pay attention to FVGs that arise due to a lack of liquidity during impulse movements. Such cavities indicate an imbalance that the market is trying to eliminate, which creates additional opportunities for rebalancing and entering a position. 4.With ImpIMB analysis, I find imbalances where the center candle is significant and its wicks overlap on both sides. This allows me to isolate the zone that signals an aggressive market, giving additional trading clues without revealing all the details. 5.GAP is formed when a cavity appears between the extremes of candles due to a sharp market opening. Using Fibonacci, I outline these areas, because they often become benchmarks for future rebalancing and correction of market dynamics. Best wishes Mvp_fx_hunter
Education
by MVP_FX_Hunter
3
Double Top Trading Pattern: A Classic Reversal SetupHello, Traders! 👋🏻 Have you ever noticed a market attempting to break through the same resistance level twice, only to fail both times? This formation is known as the double top pattern and often signals a potential bearish reversal. But is a double top bullish or bearish across all markets? Let’s dive into the meaning of the double top pattern and how to identify it on your charts! What Is a Double Top? 👀 A double top is a chart formation where the price reaches a high, pulls back, and then rallies again to the same or a very close high but fails to break through. This second failure to surpass the previous peak suggests buyers are losing momentum, paving the way for a potential downtrend. Key Points of the Double Top Chart Pattern: Two Prominent Highs: The peaks are usually at similar price levels. Neckline (Support Level): The interim low between the two peaks forms a support line. Bearish Sentiment: When the price breaks below the neckline, it confirms a potential trend reversal to the downside. Is a Double Top Bullish or Bearish? The double top pattern is bearish because it signals that the uptrend is weakening and sellers are gaining control. After the neckline breaks, it often results in a significant price drop. Key Features of a Bearish Double Top Pattern The Two Peaks Are Nearly Equal in Height. Volume Declines on the Second Peak, Showing Reduced Buying Pressure. A Breakdown Below the Neckline Confirms the Pattern and Triggers the Downtrend. Advantages of a Double Top Pattern Clear Trend Reversal Signal: A double-top chart pattern visually indicates a potential shift from an uptrend to a downtrend. Defined Resistance Level for Risk Management: The two peaks at similar price levels create a strong resistance zone. This allows traders to place Stop-Loss orders effectively and set profit targets with more confidence. Volume Confirmation for Stronger Signals: During a valid double top trading pattern, volume often decreases as the second peak forms and increases when the neckline breaks. This helps confirm the authenticity of the breakout and strengthens trade decisions. Favorable Risk-Reward Ratio: Because the expected price drop is often equal to the pattern's height, the potential reward is typically larger than the initial risk. This can make the double-top pattern an attractive setup for risk-management-focused traders. Disadvantages of a Double Top Pattern Not Always Reliable (False Signals): Like any technical pattern, the double top can fail, leading to false breakouts. Prices may temporarily create two peaks but then continue upward instead of reversing. Subjectivity in Pattern Recognition: Traders may interpret the double top pattern meaning differently based on variations in peak height, neckline positioning, or symmetry. This subjectivity can lead to inconsistent trade execution. Variations Across Different Markets: Not all double top chart formations look the same. Some may have uneven peaks, wider time frames, or irregular structures, making setting precise entry and exit points harder. Limited Profit Potential in Some Cases: While the projected price drop is based on the pattern's height, market conditions may prevent the price from reaching the expected target. Final Thoughts: Why the Double Top Pattern Matters The double top chart pattern is a bearish reversal signal that helps traders identify when an uptrend is losing momentum. So, traders, have you ever caught a double top trading pattern before a major price drop? Your experiences and strategies are valuable to the trading community. Share them in the comments and let's learn from each other!
Education
by WhiteBIT
Avoid Market Maker Traps: Liquidity Sweeps & FVG ExplainedUnderstanding Market Maker's Perspective: Liquidity Sweeps and Fair Value Gaps (FVG) In this educational post, I'll dive into the smart money concepts (SMC) that help traders understand market behavior from a broker or market maker's perspective. This analysis will focus on liquidity sweeps, Fair Value Gaps (FVG), and how market makers use these strategies to manipulate price movements. What is a Liquidity Sweep? A liquidity sweep occurs when the market pushes through a known level of liquidity, such as stop losses or pending orders. This action often creates sharp wicks or sudden moves, typically engineered by smart money to gather liquidity for their positions. Fair Value Gap (FVG) Explained An FVG is a price gap between a consecutive bullish and bearish candle (or vice versa), leaving a void in the market. These gaps often act as magnets for price, as market makers seek to "fill" these gaps, using them as traps for retail traders. The Retail Trader's Perspective Many new traders view the FVG as a signal to enter the market, expecting price to move in their favor immediately. They often set stop losses below recent lows, providing market makers with a clear liquidity target. How Market Makers Exploit Liquidity Market makers often execute a classic trap strategy: Push the price up slightly to create a false sense of security for retail buyers. Execute a sharp move down to trigger stop losses and capture liquidity below key levels. Finally, reverse the price direction sharply to the upside, aligning with their true market intent. Practical Trading Strategy For new traders, understanding this concept can help avoid common traps: Avoid entering trades at the FVG without confirmation. Look for signs of a liquidity sweep, such as long wicks or strong rejections. Enter trades only after seeing a market structure shift (MSS) that confirms the true direction. Conclusion By thinking like a market maker, traders can align their strategies with smart money concepts, improving their chances of success. Always remain patient, seek confirmation, and avoid the traps set by market manipulation. This post aims to educate traders on avoiding common pitfalls and developing a more strategic approach to trading using smart money concepts.
ICMARKETS:XAUUSDEducation
by SuvashishFx
Why ATR Stops Work (And When They Don’t)Ask ten traders where to place a stop-loss, and you’ll get ten different answers. Some swear by fixed-point stops, others use percentage-based levels, and then there are those who simply ‘feel’ where the market might turn. But traders looking for a more structured approach often turn to the Average True Range (ATR) —a volatility-based indicator that adapts to market conditions. ATR stops can be a great tool for trade management, but they’re not perfect. Let’s break down when they work—and when they don’t. Why Use ATR for Stop-Loss Placement? ATR measures the average volatility of a market over a set period, usually 14 days. Instead of setting a static stop-loss, traders use a multiple of the ATR to position their exit level. The logic is simple: a more volatile market needs a wider stop, while a quiet market can afford a tighter one. For example, if the ATR on GBP/USD is 50 pips and you’re using a 2x ATR stop, your stop-loss would be 100 pips away from your entry. In contrast, if volatility drops and ATR shrinks to 30 pips, your stop would adjust to 60 pips. This approach helps traders avoid getting stopped out by normal market noise while still maintaining a structured risk framework. EUR/USD Daily Candle Chart Past performance is not a reliable indicator of future results When ATR Stops Work Well Adapting to Market Conditions Markets aren’t static. Volatility expands and contracts, and ATR-based stops naturally adjust to these shifts. This makes them particularly useful in trending conditions, where price swings can widen over time. Avoiding Arbitrary Stop Placement Instead of guessing where a stop ‘feels right,’ ATR provides an objective framework based on real price movement. This helps remove emotional bias from trade management. Reducing the Impact of Spikes and Noise Many traders place stops just below recent lows or above recent highs—prime hunting grounds for liquidity grabs. ATR stops, positioned at a calculated distance, can help avoid these shakeouts. When ATR Stops Can Fail You Low Volatility = Tight Stops = Premature Exits ATR stops rely on recent price action. In quiet markets, ATR contracts, leading to tighter stop placement. This can be problematic when volatility suddenly picks up, as small price swings can take traders out of otherwise good trades. Doesn’t Consider Market Structure ATR is purely mathematical—it doesn’t care about support, resistance, or key technical levels. Traders who use ATR stops in isolation may find themselves stopped out just before price respects a critical level. Choppy Markets Can Whipsaw ATR Stops In sideways, erratic markets, ATR stops can lead to unnecessary exits. If a market is ranging tightly and ATR is small, stops may be placed too close to entry, leading to multiple stop-outs in quick succession. One Rule That Can’t Be Broken: Never Widen Your Stop One of the biggest mistakes traders make—whether using ATR stops or any other method—is moving a stop-loss further away once it’s placed. This usually happens when a trade starts going against them, and instead of accepting the loss, they ‘give it more room to breathe.’ The problem? This completely undermines risk management. A stop-loss should be a pre-determined level that, if hit, signals the trade idea was wrong. Widening it turns a small, manageable loss into a much bigger one—sometimes even wiping out weeks of gains. If a trade isn’t working and your stop is at risk of being hit, accept it, take the loss, and move on. Adjusting stops should only ever mean tightening them to lock in profits—not loosening them to avoid taking a hit. How to Improve ATR-Based Stops ATR stops work best when combined with other trade management techniques: Use ATR in Conjunction with Market Structure Rather than blindly placing a stop at 2x ATR, check if your stop aligns with key support or resistance levels. If ATR suggests a stop that sits just below a major level, consider widening it slightly to avoid getting shaken out. Adjust for Volatility Cycles If ATR is unusually low due to a period of calm, consider using a longer lookback period (e.g., 21-day ATR) to get a broader view of market volatility. Pair ATR with a Trailing Stop Strategy ATR-based trailing stops allow traders to lock in profits as a trend develops while still giving the trade room to breathe. Instead of setting a fixed stop, you can trail a stop at 1.5x ATR below the most recent high in an uptrend. Final Thoughts ATR stops provide a structured, volatility-adjusted approach to risk management, helping traders avoid common pitfalls like placing stops too tight in high-volatility markets or too wide in quiet conditions. But like any tool, they’re not foolproof. Used in isolation, ATR can lead to premature exits or misplaced stops. The best approach? Use ATR as a guideline, not a hard rule. Combine it with market structure, trend analysis, and an understanding of volatility cycles to refine your stop placement. After all, trading is about staying in the game long enough to capitalise on the big moves—without getting chopped up in the noise. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Education
by Capitalcom
TOP 5 TRADING SETUPS THAT MAY BE IN THE ARSENAL OF A SKIN TRADERSuccessful trading is not about “guessing the market”, but about clear strategies and discipline. Today I will show you 5 setups that really work and will help you find the entry point with the best risk management. 1️⃣ Breakout & Retest ✅ How I work: The price breaks through the rhubarb (strong support/support). Then it turns around, tests this rope and jumps. 🔍 What you need to joke about: High volume under breakdown (strong impulse). A clear retest without any deep push back. Candle pattern confirmation (pin bar, clay, etc.). 📈 De vikoristuvati: Cryptocurrency Forex Stock market 🔸 Example: BTC/USD breaks through $50,000, turns around, tests it as support - and goes up. 🛑 Stop loss: after the breakout (with a small margin). 🎯 Goal: 1:2 or 1:3 for risk management. 2️⃣ False Breakout ✅ How I work: The price breaks through the rhubarb, but then quickly turns back. This is a trap for those who “run after the market.” 🔍 What you need to joke about: Great tail of the candle after breakdown (manipulation). The volume falls after the breakdown - shows the weakness of the rukh. Confirming reversal pattern (pin bar, clay). 📈 De vikoristuvati: Crypt Forex NASDAQ, S&P500 🔸 Example: The price of Ethereum breaks through $3,500, but it quickly turns around under this pressure – the witches “took control.” 🛑 Stop loss: beyond the extreme of the fake breakout. 🎯 Purpose: front level of support/support. 3️⃣ Liquidity Grab ✅ How it works: The price breaks through the level sharply, knocking out stops. Then returns to the zone and changes direction. 🔍 What to look for: A strong impulse movement with a sharp pullback. Knocking out stops (candle tails). High volume on the return. 📈 Where to use: Forex Stock markets Cryptocurrency 🔸 Example: Before a big drop, BTC makes a sharp jump above $52,000, collects stops of longs - and then falls to $48,000. 🛑 Stop loss: short, following a manipulation move. 🎯 Target: the nearest liquidity zone. 4️⃣ Trendline Bounce ✅ How it works: Price tests the trendline and bounces. 🔍 What to look for: Minimum 3 touches of the trendline (it should be strong). Bounce with confirmation (candlestick patterns, volume). Previous support or resistance zone. 📈 Where to use: Any market (crypto, forex, stocks). 🔸 Example: NASDAQ tests the rising trendline, bounces - long entry. 🛑 Stop loss: below the trendline. 🎯 Target: nearest resistance level. 5️⃣ Double Top / Double Bottom ✅ How it works: The price forms two identical highs (or lows), after which a reversal occurs. 🔍 What to look for: Symmetrical pattern (two tops/two bottoms). Reversal signal (bearish or bullish candle). High volume during the second touch. 📈 Where to use: Stock market Forex Cryptocurrency 🔸 Example: SP500 makes a double peak at 4700 and falls. 🛑 Stop loss: just above the top/bottom. 🎯 Target: 50% or 100% of the figure. Conclusion: These setups work in any market if applied correctly! The main thing is not just to see the pattern, but to understand what is behind the price movement. Subscribe so you don't miss new discussions!
OANDA:XAUUSDEducation
by MVP_FX_Hunter
2
Exhaustion Today, we will break down candle exhaustion and how to use it for high-probability trade entries. We will analyze a bearish engulfing pattern, the role of trendline breaks, and how we combined this with the ORB strategy at the US open to secure a strong entry for the 2905 target. What is Candle Exhaustion? Candle exhaustion occurs when price action slows down after a strong move, showing signs that buyers or sellers are losing strength. This is often seen through smaller-bodied candles, wicks rejecting key levels, or a sharp engulfing candle reversing prior movement. Candle exhaustion smaller body's larger wicks. A bearish engulfing candle formed, engulfing three previous candles, signaling that sellers have aggressively stepped in. This confirmed a shift in momentum, suggesting that buyers were losing control. Key Takeaway: A multi-candle engulfing increases the strength of the reversal signal. The 15-minute trendline was broken, adding further confluence for a shift in market structure Early entry model Price came and tapped the supply zone, rejecting and closing under trend. This was the 2nd confirmation of sells. This 2nd engulfing was the 3rd confirmation sellers have taken control. The US session opened at 2:30 PM, a key time for volatility. We then applied the Opening Range Breakout (ORB) strategy to refine our 2nd entry. With price under the 50 moving average The breakout confirmed momentum towards our 2905 target, aligning with our pre-trade analysis. Conclusion By recognizing candle exhaustion, engulfing patterns, and trendline breaks, we stacked confluences for a high-probability sell trade. The ORB strategy allowed us to refine our 2nd execution at the perfect time. Lesson: Trading is about patience, waiting for confirmations, and executing with confidence.
OANDA:XAUUSDEducation
by samstoobad
US30 Trading Strategy That’s Been Proven to WorkThis strategy is backtested over trades and works best during the New York session (9:30 AM - 12 PM EST). Here’s how it works: Step 1: Identify Key Levels These are the support & resistance areas where institutions place big orders. Look for previous highs, lows, Step 2: Wait for a Liquidity Grab Banks love to trick retail traders by creating fake breakouts. We wait for price to break a key level, trap traders, then reverse. Step 3: Enter on Confirmation Once we see a liquidity grab, we wait for a strong rejection candle (pin bar, engulfing, etc.). Entry is placed at the close of the confirmation candle. Step 4: Set Stop Loss & Take Profit Stop loss: Just beyond the liquidity grab. Take profit: At least 2x the stop loss distance for a 1:2 risk-reward ratio.
OANDA:US30USDEducation
by FrankFx14
I Am Sorry! Here Is a LessonI usually put out a single trade every day prior to markets opening. I do it because it is a fun way for me to share my trading knowledge with others for free. It is also a great way of journaling my thoughts. But I should have been better for all of my followers. The truth is markets have been kicking my ass since late December. In a normal bull market, my trading strategy is to shoot first and react fast. I enter trades on price action after the Keltner channel is hit and pullback occurs. This can be on first entries, second entries, inside bars or even a complex pullback. Once in a trade I reduce risk quickly or exit a bad trade swiftly. Hence, "shoot first and react fast". Markets were changing and I saw it, a repeatable pattern. I wanted to write an article before the market changed up but, never got the chance. More and more stocks were entering complex pullbacks. I believe I mentioned it in passing in some videos but never explicitly logged it anywhere. When we are seeing a lot of complex pullbacks in the broader markets it means that something is changing, pullbacks are going deeper. What was once strong is now weakening and that was happening before our eyes. I will link the complex pullback video and articles to this article for your viewing pleasure. Today, I just went through all of my losing trades for last month and all of them had one thing in common. Not waiting for the right entry. The cycle low entry. In a pure bull market getting in on price action alone is completely sufficient but, with so much uncertainty everywhere, now more than ever we need to be selective. In steps the stochastics indicator... The apology is a simple reminder to me that markets are tough, and real money is on the line. While I am providing the best information I can with the information I have at the time, it may not always be correct. That is why I don't offer signals and instead opt for trading ideas. Funny thing is, I think a lot more of my one good trade ideas beat out my other personal trades. Regardless, I hope you take this article and learn something from it. I know I have. The last thing I will leave you all with is this MA chart with annotation that is currently playing out. These will be the types of trades that I look for until further notice. Good Luck and Good Trading. ~ JoeRodTrades
NYSE:MAEducation
by JoeRodTrades
Options Blueprint Series [Intermediate]: Optimal Options StrikesI. Introduction Options on futures offer traders a flexible way to participate in market movements while managing risk effectively. The Japanese Yen Futures (6J) market provides deep liquidity, making it a preferred instrument for options traders. In this article, we will explore how to optimize Bull Call Spreads in Yen Futures (6J) by understanding price equivalency and strike selection. One of the most critical aspects of trading options on futures is recognizing that continuous futures charts and contract-specific charts display different prices. This discrepancy must be accounted for when setting up trade entries and exits. Additionally, strike price selection significantly impacts the reward-to-risk ratio, breakeven price, and probability of profitability. By identifying key support and resistance levels (UFO), we will define trade setups that likely align with market structure, targeting precise entry and exit points. We will also compare different Bull Call Spread variations to understand how adjusting the strike selection impacts risk and potential reward. II. Understanding the Japanese Yen Futures Contract Before diving into the options strategy, it is essential to understand the specifications of the CME-traded Japanese Yen Futures (6J) contract: Contract Size: Each futures contract represents 12,500,000 Japanese Yen Tick Size: 0.0000005 USD per JPY (equivalent to $6.25 per tick) Trading Hours: Nearly 24-hour trading cycle with short maintenance breaks Margin Requirements: Currently $2,900 (varies through time). For this article, we focus on December 2025 Yen Futures (6JZ2025). Since the market price displayed on continuous charts (6J1!) differs from contract-specific charts, we need to establish price equivalencies to align our trade analysis. III. Price Equivalency Between Continuous and Contract-Specific Futures Futures traders commonly use continuous charts (such as 6J1!) for analysis, but when trading options, it is crucial to reference the specific futures contract month (such as 6JZ2025). Due to roll adjustments and term structure variations, prices differ between these two charts. In this setup, we identify key UFO-based support and resistance levels and adjust for contract-specific price equivalency: Support Level Equivalency: 0.0066325 (6J1!) = 0.0068220 (6JZ2025) Resistance Level Equivalency: 0.0069875 (6J1!) = 0.0072250 (6JZ2025) These adjusted price levels ensure that the trade is structured accurately within the December 2025 contract, aligning option strikes with meaningful technical levels. IV. The Bull Call Spread Strategy on Yen Futures A Bull Call Spread is a vertical options spread strategy used to express a bullish outlook while reducing cost and limiting risk. This strategy involves: Buying a lower-strike call (gaining upside exposure) Selling a higher-strike call (reducing cost in exchange for capping maximum profit) This setup provides a defined risk-reward structure and is particularly useful when targeting predefined resistance levels. Given that we identified 0.0068220 as support and 0.0072250 as resistance, we will structure multiple Bull Call Spreads to compare strike selection impact. Now that the trade structure is established, let’s explore how different strike selections affect risk, reward, and breakeven prices. V. Strike Selection and Its Impact on Risk-Reward Ratios Selecting the appropriate strike prices is crucial when structuring a Bull Call Spread, as it directly affects the breakeven price, maximum risk, and maximum reward. To illustrate this, we compare three different Bull Call Spread variations using December 2025 Yen Futures (6JZ2025). 1. 0.00680/0.00720 Bull Call Spread Breakeven: 0.006930 Maximum Risk: -0.00013 Maximum Reward: +0.00027 2. 0.00680/0.00750 Bull Call Spread Breakeven: 0.0069789 Maximum Risk: -0.00018 Maximum Reward: +0.00052 3. 0.00680/0.00700 Bull Call Spread Breakeven: 0.006879 Maximum Risk: -0.00008 Maximum Reward: +0.00012 Observing these variations, key insights emerge. The 0.00680/0.00750 spread offers the highest potential reward but comes with the highest breakeven and greater risk. Meanwhile, the 0.00680/0.00700 spread minimizes risk but provides a lower profit potential. Strike selection, therefore, becomes a balance between profitability potential and probability of success. A wider spread (such as 0.00680/0.00750) has a higher reward-to-risk ratio, but it requires the price to move further before generating profits. Conversely, a narrower spread (like 0.00680/0.00700) has a lower breakeven price, increasing the probability of profitability but limiting potential upside. VI. Trade Plan for a Bull Call Spread Based on the analysis of strike selection, a balanced trade plan can be structured using the 0.00680/0.00720 Bull Call Spread, which offers a favorable reward-to-risk ratio while maintaining a reasonable breakeven price. Market Bias: Bullish, expecting a move toward resistance Selected Strikes: Long 0.00680 call, short 0.00720 call Breakeven Price: 0.006930 Target Exit Price: 0.0072250 Maximum Risk: -0.00013 Maximum Reward: +0.00027 Reward-to-Risk Ratio: 2.08:1 This setup capitalizes on the previously identified UFO support to define the entry point, while the UFO resistance provides a target for exit. The breakeven price remains at a reasonable level, ensuring a greater probability of the spread moving into profitability. VII. Risk Management Considerations While the Bull Call Spread limits risk compared to outright long calls, proper risk management is still necessary. Traders should consider the following: Using Stop-Loss Orders: If price breaks below the UFO support level at 0.0068220, traders may exit the position early to avoid excessive losses. Hedging with Puts: If volatility spikes or market sentiment shifts, a put option or put spread can serve as a hedge against adverse movements. Position Sizing: Adjusting contract size ensures that total exposure remains within acceptable risk limits based on account size. Time Decay Considerations: Since time decay negatively impacts long call options, traders should monitor the spread's profitability as expiration approaches and adjust positions accordingly. By implementing these risk management techniques, traders can optimize their Bull Call Spread strategy while mitigating unnecessary exposure. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME:6JZ2025Education
by traddictiv
2
How to Create a Meme Coin and Earn Thousands Easily!Hello and greetings to all the crypto enthusiasts,✌ Spend 4 minutes ⏰ reading this educational material. The main points are summarized in 6 clear lines at the end 📋 This will help you level up your understanding of the market 📊 and Bitcoin💰. 📊 My Personal Take on Bitcoin’s Current Market Trends: Recent news has caused significant volatility in Bitcoin’s price, triggering strong bullish candlesticks. 📈 The surge in buying volume is evident, with large green candles marking substantial purchases. If Bitcoin breaks the key daily resistance level (which I’ve identified on the chart), the rally is likely to continue toward the $101,000 target, reflecting at least a 9% increase. Additionally, I have applied Fibonacci retracement levels to determine support zones, making the price action easier to interpret on the chart. Now, with that analysis covered, let’s dive into today’s main topic. 🎯 🚀 Step-by-Step Breakdown: How Scammers Manufacture Hype and Profit from a Fake Meme Coin Step 1️⃣: Creating the Meme Coin Scammers start by visiting pum p.fun, a platform that allows users to generate tokens effortlessly. With just a few clicks, they create their own meme coin and assign it a catchy, marketable name—something like Crazy Bull 🐂 to grab attention. Step 2️⃣: Hiding Ownership of the Tokens To avoid suspicion, they distribute their token supply across multiple wallets, making it appear decentralized. However, in reality, they retain over 90% of the tokens, ensuring they have full control over price movements. 🎭 Step 3️⃣: Simulating Market Activity Since a token with zero trading activity won’t attract investors, they manufacture an illusion of demand. Using at least 50 fake wallets, they begin buying and selling their own token, creating artificial trading volume. 📊 This makes it look like an active and potentially lucrative investment. Step 4️⃣: Leveraging Influencer Marketing At this stage, they approach social media influencers on platforms like X (formerly Twitter), Telegram, and YouTube. With as little as $1,000, they can get influencers to shill (promote) the token to their audience, portraying it as the next “100x gem.” 💎🔥 Each genuine purchase is a win for the scammers because it raises the token price while they still hold a majority of the supply. Their goal is to reach a market cap of $100,000, at which point they still own at least 70% of the tokens. 💰 Step 5️⃣: Scaling Up the Scam With an initial round of profits secured, the scammers reinvest their earnings into larger marketing campaigns. This time, they spend around $7,000 to secure bigger influencer promotions, pushing the narrative that the token is still in its “early stages” and has potential for massive future gains. 📢🚀 They make bold claims, promising 100x or even 1000x returns, preying on FOMO (fear of missing out) to attract even more retail investors. 🧠💸 Step 6️⃣: The Cash-Out (Exit Scam)💥 As more investors FOMO into the project, the scammers wait for the final surge in demand before executing their exit strategy. Once the token reaches a target valuation of around $70,000, they dump their holdings, crashing the price and leaving late buyers with worthless tokens. 🛑📉 Step 7️⃣: The Psychological Manipulation 🌀 Here’s where the real mind game begins. By now, the crypto community identifies a wallet that turned $50 into $70,000. Traders become obsessed with tracking this wallet’s next move, believing its owner is a “crypto genius” rather than a scammer. People start asking: “What will this wallet invest in next?”—not realizing that the scammer is about to repeat the cycle with an even bigger, more polished scam. 🎭💰 Step 8️⃣: The Launch of the Next Scam 🎬 With more money and a stronger reputation, the scammers now launch a new meme coin—perhaps this time called Crazy Bear 🐻—but with even more initial liquidity and a larger marketing budget. They repeat the process on a grander scale, manipulating more victims into thinking they’ve discovered the next hidden gem. 💎🔄 ⚠️ How to Protect Yourself from Meme Coin Scams The crypto world is full of high-risk, high-reward opportunities, but understanding how these pump-and-dump schemes operate is crucial for avoiding them. Stay vigilant 🧐, do your research (DYOR), and never invest based on hype alone. In my next educational post, I’ll provide practical strategies to help you spot and avoid these traps before they drain your hard-earned money. Stay informed, stay safe. 🚨🔒 However , this analysis should be seen as a personal viewpoint, not as financial advice ⚠️. The crypto market carries high risks 📉, so always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅. 🧨 Our team's main opinion is: 🧨 Scammers create meme coins on pu mp.fun, giving them catchy names like Crazy Bull 🐂. They split tokens across multiple wallets to hide control, then fake trading volume using 50+ wallets to make it look active. Next, they pay influencers ($1,000+) to hype it up, attracting real buyers. Once the market cap hits $100K, they dump their tokens, crashing the price. People track their wallet, thinking it's a genius move, so they repeat the scam with a new token (Crazy Bear 🐻). Stay sharp, don’t fall for the hype! 🚨 Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
38
CHOCH vs BOS !!WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
What is Confluence ?✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification !!Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD
Supply and Demand Zones Trading in Forex: A Detailed OverviewSupply and demand zones are a core concept in price action trading, helping you spot areas of strong buying or selling interest. Mastering these zones can help you predict reversals, breakouts, and continuations with high accuracy. Let’s dive in! 🚀 🧠 What are Supply and Demand Zones? 📉 Supply Zone (Bearish): An area of high selling pressure where price tends to drop. It forms when sellers overwhelm buyers. 📈 Demand Zone (Bullish): An area of high buying pressure where price tends to rise. It forms when buyers overpower sellers. These zones act like magnets for price — when price returns to these levels, you often see strong reactions. 🗂️ Characteristics of Strong Zones ✅ Sharp Price Movement: Strong supply and demand zones create fast and aggressive price moves away from the area. 💥 ✅ Multiple Rejections: The more times a zone holds and rejects price, the stronger it is. 🛑 ✅ Freshness: The first retest of a fresh zone often yields the strongest reaction. 🆕 ✅ Volume Spike: Higher volumes show genuine interest from large players. 📊 🎯 How to Identify Supply and Demand Zones 1️⃣ Find Strong Moves: Look for big bullish or bearish candles after a consolidation or small pullback. 2️⃣ Mark the Base: Draw a rectangle from the start of the strong move to the end of the consolidation. 3️⃣ Adjust for Wick/Body: Include the entire wick for aggressive zones or just the body for conservative zones. 📈 Bullish Supply and Demand Zone Strategies 1️⃣ Demand Zone Bounce (Buy Setup) 🛑 Identify: A clear demand zone with a strong bullish move away. 📉 Wait: For price to return to the zone. 🕯️ Confirm: With a bullish candlestick pattern (like Hammer, Engulfing). 🎯 Enter: A buy order at the zone’s edge. 🛡️ Stop Loss: Below the zone’s low. 🏁 Target: Nearest supply zone or strong resistance. 💡 Example: Price rallies from 1.2000, pulls back to the same zone, then forms a bullish engulfing — you buy. 2️⃣ Demand Zone Breakout (Continuation Setup) 🛑 Identify: A demand zone forming a higher low in an uptrend. 💥 Breakout: Wait for price to break the supply zone above. 📉 Retest: When price retests the broken supply (now demand), enter long. 💡 Example: Price breaks 1.2500 resistance, retests it, and bounces higher — you enter. 📉 Bearish Supply and Demand Zone Strategies 3️⃣ Supply Zone Rejection (Sell Setup) 🛑 Identify: A clear supply zone with a strong bearish move away. 📈 Wait: For price to return to the zone. 🕯️ Confirm: With a bearish candlestick pattern (like Shooting Star, Engulfing). 🔻 Enter: A sell order at the zone’s edge. 🛡️ Stop Loss: Above the zone’s high. 🏁 Target: Nearest demand zone or strong support. 💡 Example: Price spikes up to 1.3000, then drops sharply — on a retest, you short. 4️⃣ Supply Zone Breakout (Continuation Setup) 🛑 Identify: A supply zone forming a lower high in a downtrend. 💥 Breakout: Wait for price to break the demand zone below. 📈 Retest: When price retests the broken demand (now supply), enter short. 💡 Example: Price breaks 1.1800 support, retests it, and drops further — you enter short. 🛠️ Tools to Enhance Supply and Demand Trading 🧰 Support & Resistance Levels – Combine zones with horizontal levels for added confluence. 📐 Fibonacci Retracements – Zones aligning with Fibo levels are extra strong. 📉 Trendlines – A zone break + trendline retest makes a powerful entry signal. 📊 Volume Analysis – High volume confirms genuine buying or selling pressure. ⏳ Timeframes & Zone Strength ⏱️ Higher Timeframes (4H, Daily, Weekly): Stronger & more reliable zones. Great for swing trading. ⏱️ Lower Timeframes (5M, 15M, 1H): More frequent but weaker zones. Ideal for day trading or scalping. ⚠️ Common Mistakes to Avoid ❌ Forcing trades: Not every zone gives a valid signal — be patient. ❌ Ignoring context: Always follow the trend unless there’s clear reversal evidence. ❌ Skipping confirmation: Wait for candlestick patterns and rejections. ❌ Poor risk management: Always set a stop loss and manage position size.
Education
by ProjectSyndicate
27
How Can You Use a Spinning Top Candlestick Pattern in Trading?How Can You Use a Spinning Top Candlestick Pattern in Trading? The spinning top candle is a key tool in technical analysis, highlighting moments of market indecision. This article explores what spinning tops represent, how they differ from similar patterns, and how traders can interpret them to refine their strategies across various market conditions. What Does a Spinning Top Candlestick Mean? A spinning top is a candlestick pattern frequently used in technical analysis. It consists of one candle with a small body and long upper and lower shadows of approximately equal length. The candle’s body symbolises the discrepancy between the opening and closing prices during a specified time period, while the shadows indicate that volatility was high and neither bulls nor bears could take control of the market. This pattern signifies market indecision, where neither buyers nor sellers have gained dominance. It suggests a state of equilibrium between supply and demand, with the price oscillating within a narrow range. The spinning top may indicate continued sideways movement, particularly if it appears within an established range. However, if it forms after a bullish or bearish trend, it could signal a potential price reversal. Traders always look for additional signals from confirming patterns or indicators to determine the possible market direction. It’s important to note that the spinning top candle is neutral and can be either bullish or bearish depending on its context within the price chart. The colour of the candle is not important. Spinning Top vs Doji Doji and spinning top candlesticks can be confused as they have similar characteristics. However, the latter has a small body and upper and lower shadows of approximately equal lengths. It indicates market indecision, suggesting a balance between buyers and sellers without a clear dominant force. Traders interpret it as a potential reversal signal, reflecting a possible change in the prevailing trend. The doji candlestick, on the other hand, has a small body, where the opening and closing prices are very close or equal, resulting in a cross-like shape. If it’s a long-legged doji, it may also have long upper and lower shadows. A doji candle also represents market indecision but with a focus on the relationship between the opening and closing prices. Doji patterns indicate that buyers and sellers are in equilibrium, and a potential trend reversal or continuation may occur. How Do Traders Use the Spinning Top Pattern? Traders often incorporate the spinning top candle pattern into their analysis as a way to interpret moments of market indecision. Whether the pattern appears during a trend or at key turning points, its context plays a significant role in shaping trading decisions. In the Middle of a Trend When a spinning top forms in the middle of an ongoing trend, traders often view it as a signal of potential market hesitation. This indecision can indicate a pause in momentum, suggesting either a continuation of the trend or the possibility of a reversal. Entry In such cases, traders typically wait for confirmation of the next price move. A break above the high of the spinning top may signal the trend will continue upward, while a break below the low could suggest the trend may move down. Observing how subsequent candles interact with the spinning top can help a trader gauge the market’s intentions. Take Profit Profit targets might be aligned with key price levels visible on the chart, such as recent highs or lows. For traders expecting trend continuation, these targets might extend further, while those anticipating a reversal might aim for closer levels. Stop Loss Stop-loss orders might be set in accordance with the risk-reward ratio. This placement helps account for the pattern's characteristic volatility while potentially protecting against unexpected movements. At the Top or Bottom of a Trend When a spinning top forms at a significant peak or trough, it often draws attention as a potential reversal signal. This appearance may reflect market uncertainty after a prolonged uptrend or downtrend. Entry Confirmation from subsequent price action is critical. Traders typically observe if the price breaks above the candle (bullish spinning top) or below the candle (bearish spinning top) to determine the likelihood of a reversal. Take Profit Targets could be set at major support or resistance zones. A trader expecting a reversal may look for levels reached during the previous trend. Stop Loss Stops could be placed in accordance with the risk-reward ratio, allowing for the volatility often present at trend-turning points while potentially mitigating losses. Remember, trading decisions should not solely rely on this formation. It's crucial to consider additional technical indicators, market trends, and risk management principles when executing trades. Live Example In the EURUSD chart above, the red spinning top candle appears at the bottom of a downtrend. A trader went long on the closing of the bullish candle that followed the spinning top. A take-profit target was placed at the closest resistance level, and a stop-loss was placed below the low of the spinning top candlestick. There is another bearish spinning top candlestick pattern on the right. It formed in a solid downtrend; therefore, a trader could use it as a signal of a trend continuation and open a sell position after the next candle closed below the lower shadow of the spinning top candle. A Spinning Top Candle: Benefits and Drawbacks The spinning top candlestick pattern offers valuable insights into market indecision, but like any tool in technical analysis, it has its strengths and limitations. Understanding these might help traders use it more effectively. Benefits - Identifies Market Indecision: Highlights moments where neither buyers nor sellers dominate, providing a clue about potential price reversals or continuations. - Versatile Across Trends and Markets: Can signal price consolidation, continuation, or reversal depending on its context. It’s also possible to use the spinning top across stocks, currencies, and commodities. - Quick Visual Insight: The distinctive shape makes it easy to spot on charts without extensive analysis. Drawbacks - Requires Confirmation: On its own, the pattern lacks particular signals, needing additional indicators or price action for confirmation. - Context-Dependent: Its reliability depends heavily on where it forms in the trend, making it less useful in isolation. - Prone to False Signals: Market noise can produce spinning tops that do not lead to meaningful movements, increasing the risk of misinterpretation. Takeaway The spinning top candlestick reflects market indecision and suggests a potential reversal or consolidation. Traders use this pattern as a tool to identify areas of uncertainty in the market. Therefore, it's important to consider the spinning top pattern within the broader context and get confirmation from other analysis tools. If you want to test your spinning top candlestick trading strategy or apply it to a live chart, open an FXOpen account and start trading with tight spreads from 0.0 pips and low commissions from $1.50. Good luck! FAQ What Is a Black Spinning Top? A black (red) spinning top is a variation of the spinning top candlestick pattern with a small body and equal-length shadows. This is different from the white (green) spinning top, as its body indicates a lower closing price. Traders analyse its context, technical factors, and confirmation from other indicators to interpret its significance. What Is a Spinning Top Candlestick? A spinning top candle meaning refers to a pattern characterised by a small body and long upper and lower shadows of roughly equal length. It reflects market indecision, where neither buyers nor sellers hold a clear advantage, and is often used in technical analysis to assess potential trend reversals or consolidations. Is the Spinning Top Bullish or Bearish? The spinning top candlestick pattern is neutral by nature. Its significance depends on the context within the price chart. When it appears at the end of an uptrend, it may signal a bearish sentiment, while at the end of a downtrend, it can indicate a potential bullish reversal. What Does a Spinning Top Candle Indicate? This pattern indicates a period of indecision and balance between buying and selling pressure. Depending on its position within a trend, it can signal consolidation, continuation, or a reversal in price direction. What Is the Spinning Top Rule? There is no fixed "rule" for spinning top trading. Traders typically look for confirmation from subsequent price movements or other technical indicators to decide on a course of action. Is Spinning Top a Doji? Although similar, spinning tops and doji candles differ. A spinning top has a small body with visible discrepancies between opening and closing prices, whereas a doji’s body is almost non-existent. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
Become a Semi-God in Crypto & knows Market Maker StrategiesHello and greetings to all the crypto enthusiasts,✌ Spend 2 minutes ⏰ reading this educational material. The main points are summarized in 4 clear lines at the end 📋 This will help you level up your understanding of the market 📊 and Bitcoin💰. Personal Insight & Technical Analysis of Bitcoin: At the current price level, as the market approaches the resistance zone I’ve marked on the chart 📉, I observe that the price action is likely designed to trigger stop-losses and force out sellers 🚫. After this shakeout, I expect the downtrend to resume, with my target set at 78,000. How to View the Cryptocurrency Market Like an Expert or Market Maker: The first step is to create a sense of excitement in the market by driving the price upward 📈, fostering the illusion that retail investors will see their investments grow exponentially 💰. This generates a strong influx of capital from inexperienced traders. Continue this upward movement, allowing the market to attract a larger number of participants 👥, further pushing the price higher. Once the market has drawn in sufficient participants, induce small pullbacks 🔄 to force weaker hands out of their positions. During this phase, you gradually exit your own positions, ensuring that you don’t get caught in the pullback ⚠️. Simultaneously, utilize the influence of the media 📰 to reassure the public, reinforcing the idea that price fluctuations are natural in all financial markets, and these corrections are essential for fueling future growth. After all, a consistent, straight-line upward trend would be more concerning ❗. Following this minor correction, slightly raise the price again ⬆️, just enough to convince investors that the uptrend is resuming. This will act as confirmation for the public and encourage further capital inflow 💸, amplifying the bullish sentiment. At this point, orchestrate a more significant market decline 📉, but continue to keep hope alive among the masses 🌟. Stand on the sidelines and watch as panic spreads throughout the market 😱. As fear sets in, many investors will sell their positions at a loss, overwhelmed by FOMO (Fear of Missing Out) 😔. This provides a perfect opportunity for you to buy back those assets at a lower price 💡. After accumulating positions at a discounted price 🛒, once again push the market upward with renewed strength 💪. This cycle can be repeated multiple times 🔄, extracting value from unsuspecting retail traders and driving the price higher each time. By repeating this process, you establish yourself as a dominant force in the market 🔥—an expert operator who understands the psychology of traders and how to leverage human emotions for profit 🧠. This approach is not unique to the cryptocurrency market; it is a pattern observed across various financial markets 🌍. Each phase of this cycle is intricately tied to human psychology, particularly the emotions of greed 💵, fear 😨, and the irrational behaviors they trigger. However , this analysis should be seen as a personal viewpoint, not as financial advice ⚠️. The crypto market carries high risks 📉, so always conduct your own research before making investment decisions. That being said, please take note of the disclaimer section at the bottom of each post for further details 📜✅. 🧨 Our team's main opinion is: 🧨 Push prices up to create excitement 📈, attracting retail investors 💰. Shake out weak hands with small pullbacks 🔄, then use media 📰 to keep them calm. Let the market crash, then buy at a lower price 💡 before repeating the cycle 🔄. Mastering market psychology 🧠 is the key to dominating crypto and beyond 🌍. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
17