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Price Gap Examples - Bitcoin FuturesSharing for educational purposes only. █ Three Types of Gaps There are three general types of gaps: Breakaway Gap Runaway (or Measuring) Gap Exhaustion Gap █ 1 — The Breakaway Gap The breakaway gap usually occurs: At the completion of an important price pattern. At the beginning of a significant market move Examples: After a market completes a major basing pattern, the breaking of resistance often involves a breakaway gap. Breaking major trendlines signaling a reversal of trend may also involve this type of gap Key Characteristics: Heavy volume often accompanies breakaway gaps. They are typically not filled (or only partially filled). In an uptrend, upside gaps act as support areas on subsequent corrections. A close below the gap is a sign of weakness. █ 2 — The Runaway or Measuring Gap The runaway gap forms: Midway through a trend (uptrend or downtrend). Indicates the market is moving effortlessly, usually on moderate volume. Key Characteristics: In an uptrend, it signals strength. In a downtrend, it signals weakness. Acts as support or resistance during subsequent corrections. Why "Measuring" Gap? It often occurs at the halfway point of a trend. By measuring the distance the trend has already traveled, the probable extent of the remaining move can be estimated by doubling the amount already achieved. █ 3 — The Exhaustion Gap The exhaustion gap appears: Near the end of a market move. Key Characteristics: Occurs after objectives have been achieved and other gap types (breakaway and runaway) have been identified. In an uptrend, prices leap forward in a final push but quickly fade. Within a couple of days or a week, prices turn lower. █ Conclusion By understanding the types of gaps and their characteristics, traders can better interpret market signals and anticipate potential trends or reversals. █ Source: Murphy, John J. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications. New York Institute of Finance, 1999. Chapter 4, "Price Gaps," pp. 94-98.
CME:BTC1!Education
by kingthies
1
Catching Dips any Coin with Spiderline !The Spiderline is a concept in cryptocurrency that refers to a specific strategy or indicator used in technical analysis to identify key support and resistance levels on the price charts of crypto assets, particularly Bitcoin. This concept is based on retracement levels or structures calculated from historical market data. Here are the key points to understand the Spiderline: Origin: It is often used by experienced traders to visualize critical zones where the price has historically reacted (bounced or been rejected). These zones are derived from specific lines on the charts based on previous Bitcoin price movements. Usefulness: - Identify support levels: where the price could stop during a decline. - Determine resistance zones: where the price might struggle to move higher. - It also helps plan entry and exit points based on the likelihood of market reactions. Differences from traditional indicators: Unlike tools like moving averages or the Relative Strength Index (RSI), the Spiderline is more specific to Bitcoin's historical behavior and is often used over longer timeframes. Associated strategy: Traders use it to refine their buying or selling decisions, avoid trading against strong trends, and manage their risk effectively. Credit Inspired by #Cryptoface
Education
by paullefebre92
1
ALTSEASON KICKS OFF!The Biggest Altseason Ever Starts Tomorrow: Are You Ready to Capitalize?" The crypto market is entering a pivotal Acceleration Phase, setting the stage for unprecedented growth. With Bitcoin eyeing a bold target of $250,000, altcoins are expected to surge alongside it, creating incredible opportunities for investors. Imagine turning a modest $50 investment today into $10,000 by 2025—this could be your chance to position yourself for massive gains by identifying and focusing on the right projects. How the Crypto Cycle Works Just like traditional markets, the crypto market follows a predictable four-phase cycle: Accumulation Phase Prices stabilize, and savvy investors quietly build their positions. Markup Phase (Uptrend) Demand surges, leading to rapid price increases across the board. Distribution Phase Prices peak as large investors lock in profits, creating volatility. Markdown Phase (Downtrend) Corrections take place, leading to lower prices before the cycle resets. Why Now? The market is transitioning into the acceleration stage of the Markup Phase—a critical period where explosive growth is likely. Altcoins, often overshadowed by Bitcoin, are set to experience dramatic gains as capital flows into the broader crypto market. Position Yourself for Success This is the moment when informed investors can make strategic moves to maximize their returns. By identifying promising altcoins and projects now, you could set yourself up for life-changing gains as the market continues its upward trajectory. Are you ready to seize this opportunity? 🚀
Education
by CRYPTOMOJO_TA
29
Which side would you bet on???The market may be experiencing or expecting a seasonal stock market rally around the holiday season, often called the "Santa Claus rally." The image shows a potential "Island Top" pattern, where the market temporarily breaks above a trading range before reversing back down. This could suggest a pullback or correction is possible after the current rally. The chart doesn't provide a clear directional signal for which side to bet on. It depends on one's market outlook and risk tolerance. A cautious approach may be to wait for confirmation of the market direction before taking a strong position. An aggressive approach would be the Option Strangle strategy..! But which contracts? write your suggestion in the comments! *A strangle option strategy involves buying both a call option and a put option on the same underlying asset, with the same expiration date but different strike prices. The goal is to profit from a large move in the underlying asset price, regardless of the direction. The key points are: - Buy a call option and a put option on the same asset - Same expiration date, different strike prices - Profit from a significant price move in either direction The strategy allows the trader to profit from volatility without needing to correctly predict the direction of the price move. The risk is the premium paid for both options.
AMEX:DIAEducation
by Moshkelgosha
Safe Haven Volume-Weighted Cross-Asset Correlation Insights1. Introduction Safe-haven assets, such as Gold, Treasuries, and the Japanese Yen, are vital components in diversified portfolios, especially during periods of market uncertainty. These assets tend to attract capital in times of economic distress, serving as hedges against risk. While traditional price correlation analyses have long been used to assess relationships between assets, they often fail to account for the nuances introduced by trading volume and liquidity. In this article, we delve into volume-weighted returns, a metric that incorporates trading volume into correlation analysis. This approach reveals deeper insights into the interplay between safe-haven assets and broader market dynamics. By examining how volume-weighted correlations evolve across daily, weekly, and monthly timeframes, traders can uncover actionable patterns and refine their strategies. The aim is to provide a fresh perspective on the dynamics of safe-haven assets, bridging the gap between traditional price-based correlations and liquidity-driven metrics to empower traders with more comprehensive insights. 2. The Role of Volume in Correlation Analysis Volume-weighted returns account for the magnitude of trading activity, offering a nuanced view of asset relationships. For safe-haven assets, this is particularly important, as periods of high trading volume often coincide with heightened market stress or major economic events. By integrating volume into return calculations, traders can better understand how liquidity flows shape market trends. 3. Heatmap Analysis: Key Insights The heatmaps of volume-weighted return correlations across daily, weekly, and monthly timeframes provide a wealth of insights into the behavior of safe-haven assets. Key observations include: Gold (GC) and Treasuries (ZN): These assets exhibit stronger correlations over weekly and monthly timeframes. This alignment often reflects shared macroeconomic drivers, such as inflation expectations or central bank policy decisions, which influence safe-haven demand. Daily Weekly Monthly These findings highlight the evolving nature of cross-asset relationships and the role volume plays in amplifying or dampening correlations. By analyzing these trends, traders can gain a clearer understanding of the market forces at play. 4. Case Studies: Safe-Haven Dynamics Gold vs. Treasuries (GC vs. ZN): Gold and Treasuries are often considered classic safe-haven assets, attracting investor capital during periods of inflationary pressure or market turbulence. Volume-weighted return correlations between these two assets tend to strengthen in weekly and monthly timeframes. For example: During inflationary periods, both assets see heightened demand, reflected in higher trading volumes and stronger correlations. Geopolitical uncertainties, such as trade wars or military conflicts, often lead to synchronized movements as investors seek safety. The volume-weighted perspective adds depth, revealing how liquidity flows into these markets align during systemic risk episodes, providing traders with an additional layer of analysis for portfolio hedging. 5. Implications for Traders Portfolio Diversification: Volume-weighted correlations offer a unique way to assess diversification benefits. For example: Weakening correlations between Gold and Treasuries during stable periods may signal opportunities to increase exposure to other uncorrelated assets. Conversely, stronger correlations during market stress highlight the need to diversify beyond safe havens to reduce concentration risk. Risk Management: Tracking volume-weighted correlations helps traders detect shifts in safe-haven demand. For instance: A sudden spike in the volume-weighted correlation between Treasuries and the Japanese Yen may indicate heightened risk aversion, suggesting a need to adjust portfolio exposure. Declining correlations could signal the return of idiosyncratic drivers, providing opportunities to rebalance holdings. Trade Timing: Volume-weighted metrics can enhance timing strategies by confirming market trends: Strengthening correlations between safe-haven assets can validate macroeconomic narratives, such as inflation fears or geopolitical instability, helping traders align their strategies accordingly. Conversely, weakening correlations may signal the onset of new market regimes, offering early indications for tactical repositioning. 6. Limitations and Considerations While volume-weighted return analysis offers valuable insights, it is essential to understand its limitations: Influence of Extreme Events: Significant market events, such as unexpected central bank announcements or geopolitical crises, can create anomalies in volume-weighted correlations. These events may temporarily distort the relationships between assets, leading to misleading signals for traders who rely solely on this metric. Short-Term Noise: Volume-weighted correlations over shorter timeframes, such as daily windows, are more susceptible to market noise. Sudden spikes in trading volume driven by speculative activity or high-frequency trading can obscure meaningful trends. Interpretation Challenges: Understanding the drivers behind changes in volume-weighted correlations requires a strong grasp of macroeconomic forces and market structure. Without context, traders risk misinterpreting these dynamics, potentially leading to suboptimal decisions. By recognizing these limitations, traders can use volume-weighted correlations as a complementary tool rather than a standalone solution, combining it with other forms of analysis for more robust decision-making. 7. Conclusion Volume-weighted return analysis provides a fresh lens for understanding the complex dynamics of safe-haven assets. By integrating trading volume into correlation metrics, this approach uncovers liquidity-driven relationships that are often missed in traditional price-based analyses. Key takeaways from this study include: Safe-haven assets such as Gold, Treasuries, and the Japanese Yen exhibit stronger volume-weighted correlations over longer timeframes, driven by shared macroeconomic forces. For traders, the practical applications are clear: volume-weighted correlations can potentially enhance portfolio diversification, refine risk management strategies, and improve market timing. By incorporating this type of methodology into their workflow, market participants can adapt to shifting market conditions with greater precision. 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.
COMEX:GC1!Education
by traddictiv
Candlestick Analyzes - Part OneThe Weakest Candle A Spinning Top/Bottom (a candle with the same sized upper and lower shadow) is the weakest and the most important candle for us. Note that the body size of the candle is not important. We analyze it like this: 1. if it appears in the middle of a trend, we expect the trend to continue, as a medium-sized candle in the direction of the trend. otherwise, most likely we will get into range or reversal. 2. If it appears at a key level, until observing the next candle, we cannot analyze what could happen. If there is at least a medium-sized candle in whatever direction, we expect the price to continue in that direction, otherwise, it's a range! Let's look at the chart: - Candle #1 is in the middle of a trend, but after it, we see a bearish candle. So, it's a range or reversal. - After seeing candle #1, we draw the box for the MC candle. So, candle #2 is shaped at the support of it. We have to wait to see what will come after it. Because the next candle is a bearish one, we expect the bearish movement to continue, and it continues. - Candle #3 shaped after a strong breakout. If trends tend to continue, we expect at least a medium-sized candle in the direction of the trend. Otherwise, it'll be a range or reversal coming.
Education
by forexise
XAUUSD multi timeframe Analysis M1 and w1 are indicating the bearish trend if only the last lower support 2620-2630 area is broken then market will create and M pattern on w1 to proper retest of 0.382 FIB level Which will be 2680. on the other hand H4 & D1 it been more than 2 weeks market is in consolidation from 2630-2660 area. if the market break the 2630 them our eyes will be at 2580 first however same as break of 2660 resistance area first target will be 2680 which I 'm expecting first .
OANDA:XAUUSDEducation
by Forexmaestro121
Mastering Crypto Moves: Proven Strategies for Daily GainsUnlock 15% to 50% Daily Growth with Expert Chart Analysis and Market Insights Follow me for: 🚀 Daily Crypto Predictions: Identify cryptocurrencies poised for 15%-50% moves in a single day. 📊 25 Years of Expertise: Learn from a seasoned trader with decades of experience in market analysis. 💹 Chart Mastery: Discover key patterns like Bollinger Bands, oscillators, and ICO rebound opportunities. 🧠 Real-Time Decisions: Gain insights into live trades, including entry points, profit targets, and risk management. 🤖 Navigating Market Manipulation: Understand how whale bots and market movers influence price ranges. 📈 Multi-Timeframe Analysis: Learn to analyze weekly, daily, and intraday charts for maximum synergy. 🎥 Exclusive Insights: Follow unique predictions on trending cryptocurrencies, including detailed analyses and live demonstrations.
COINBASE:SUKUUSDEducation
by Hollywood260AB
18
HOW TO INCREASE YOUR OVERALL WIN RATE BY 10%+ Hi again everyone As promised, once a week I'll be bringing simple yet comprehensive guides to improve your over all trading! Here's your next MAGNIFICENT gift! I wasn't gonna do this topic but based on what I have been seeing among a bunch of traders.....this is DEFINITELY NEEDED . As always i really appreciate the support and upvote if you like the weekly posts so far and want more! Let's get right into it! 1. Understand that above all else, market structure (MS) always always always reigns supreme. Not fundamentals. Not news. Not "financial instutions" (that one cracks me up), but MARKET STRUCTURE. All of the other things mentioned above play their ROLES in market structure, but they do not MAKE market structure. P.S. Of course major red folders like FOMC, NFP, CPI, etc etc will affect it, but that does not change the facts of #1. Zoom out to gain overall perspective and bias direction, Zoom in to get the details needed within that bias to start finding confluence and begin creating that entry situation to come. 2. DO NOT, and i do repeat, DO NOT get in the habit of changing your bias mid day or multiple times a day/week, UNLESS the market calls for it. (mainly through major points in structure being broken, but there are various ways to determine this with indicators amongst other things like candlestick structure and trendlines, fibs, and other tools.) I see so many traders lose on a day they would CAKED on had they just stuck to their bias. Trusting in your bias is not only needed, but it is a super power and shows your conviction in your strategy. 3. Stop listening to randoms not just here, but on any platform, and develop YOUR OWN EDGE in the market based on your understanding..... OR..... find a extremely talented and trustworthy mentor to guide you. Regardless, good luck on your own if your ego does not allow you to learn. I trade far better than the vast majority of people and I remain in contact with my mentor so no excuses . 4. Master candlestick analysis. You know how I catch big moves in the market???? Well, its certainly not by ignoring candlestick analysis. Candlesticks will always tell you where breakouts will occur on lower timeframes, and they'll always tell you how wide the range of the market is as well as show you with the wicks which side is getting weaker, but on the higher timeframe. reread that ^. Literally gave you guys my sauce to interpreting candlesticks on top of posting this for you guys. 5. Control your emotions, king, 6. Trail your stop loss after 25-30 pips gained, everytime. especially in the beginning, since the winners won't come as often, you need to capitalize on winning trades. Any trade that ends in NET positive profit is a winner. point, blank, period. Even if it hits your trailing stop loss, study it! Even if it hits your take profit, study it! Feedback leads to growth.... always. 7. Backtest, backtest, backtest. Make the $15 USD investment and study your edge. study study study notate and improve! innovate and grow!!!! Backtesting is where you test what you know, look your L's and W's in the face and make that committment to see more W's than L's. HONESTLY, this should increase your win rate by 20% if you're already coming in with some experience. For the newer guys, you're welcome. your trading skill is about to skyrocket, if YOU decide to put that work in. I promise that god wants you to win, if you do!!! GOODLUCK Gs
Education
by PipSniperJ
47
Higher time frame frameworks and set upIn this video, we explore a high-level analysis of monthly and weekly trading frameworks, showcasing how TSA—Time, Space, Algorithms, and Tradings—leverages Confluence to identify asymmetrical opportunities in the market. While this isn’t the full strategy, it introduces key elements that empower traders to achieve precision and clarity. We dive into the power of Confluence as a core component, integrating insights from markets like the VIX to enhance feasibility and comparison. Starting from the monthly and weekly frameworks, we refine our approach to a 1-hour and 4-hour perspective, identifying high-probability setups. From there, we scale down to 15-minute and 5-minute charts, applying the same Confluence-based principles to manage trades effectively. This video is designed to bring the trading community together—FED traders, ICT traders, and those who combine fundamentals with technical analysis. Let’s collaborate to uncover powerful Confluences that sharpen our edge in the markets. This is just the beginning—join us as we build a thriving community of traders!
Education
by TSA_TimeSpaceAlgorithm