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The Symmetrical Triangle: Real Success Rates + Breakout.The Symmetrical Triangle: Real Success Rates + Breakout. The symmetrical triangle is an important chart pattern in technical analysis, deserving special attention from professional traders. This formation is characterized by a convergence of prices between two trendlines, one descending and the other ascending, creating a consolidation zone where indecision between buyers and sellers is palpable. Statistical Analysis Empirical data reveals that the success rate of the symmetrical triangle for a trend continuation is approximately 54%. This percentage, although higher than 50%, underlines the importance of a cautious approach and rigorous risk management in using this pattern. Breakout Point The breakout of the symmetrical triangle usually occurs when the price has traveled approximately 75% of the distance to the apex. This point is crucial for traders, as it often represents the moment when volatility increases and a new trend can be established. Risks and False Exits It is essential to note that the symmetrical triangle has a relatively high rate of false exits. Statistics indicate that approximately 13% of cases in a bear market can result in a false exit to the bottom. This phenomenon underlines the need for additional confirmation before entering a position. Strategy of use To effectively exploit the symmetrical triangle, professional traders must: -Identify the formation accurately. -Wait for the breakout near the point of convergence of the trendlines. -Confirm the breakout with other technical indicators or an increase in volume. -Put in place strict risk management to protect against false exits. In conclusion, the symmetrical triangle, although being a valuable tool in the trader's arsenal, requires a methodical approach and a thorough understanding of its characteristics to be used effectively in a trading strategy.
BINANCE:BTCUSDEducation
by Le-Loup-de-Zurich
2
What Is a Falling Knife in Trading? What Is a Falling Knife in Trading? It’s often repeated that traders should ‘never catch a falling knife.’ This phrase highlights the risks of buying into a rapidly declining asset. Understanding what a falling knife is, its causes, and strategies for trading it may help traders navigate these sharp declines more effectively. This article delves into the intricacies of falling knives and offers insights on how to approach them with caution. Understanding the Falling Knife Pattern A falling knife consists of candlesticks that depict a significant rapid drop in an asset’s price, including stocks, commodities, forex pairs, indices, cryptocurrencies*, and more. This situation is often driven by negative news, poor earnings reports, or broader market sell-offs. Identifying a falling knife involves recognising several key characteristics. Firstly, the decline is steep and sudden, typically marked by large red candlesticks on a price chart. The volume often increases as the price falls, indicating panic selling. Technical indicators such as the Relative Strength Index (RSI) might show oversold conditions, suggesting the asset is undervalued in the short term. Common tools used to identify falling knives include: - Moving Averages: When short-term moving averages cross below long-term moving averages, it signals bearish market sentiment. - Bollinger Bands: Prices breaking below the lower band can indicate a falling knife. - Volume Analysis: Spikes in trading volume often accompany these sharp declines, confirming the intensity of the sell-off. In terms of candlesticks, a falling knife typically produces several bearish candles with long bodies and small wicks. They may appear as a large engulfing candle on a higher timeframe. Recognising these patterns is crucial for traders. Misinterpreting a falling knife can lead to significant losses, as attempting to catch a falling knife—buying during the steep decline—without proper analysis can be risky. Instead, many traders wait for signs of stabilisation or reversal before considering an entry point. Causes of Falling Knives A falling knife generally occurs due to several specific catalysts, each capable of triggering a rapid and substantial decline in an asset's price. Understanding these causes, including technical factors, is essential for traders aiming to navigate such volatile situations effectively. Economic Events and News Releases One primary cause of falling knives is significant economic news. For instance, announcements of interest rate hikes by central banks can lead to widespread stock market sell-offs. Similarly, unexpected changes in economic indicators like unemployment rates, inflation, or GDP growth can trigger sharp declines. Traders react swiftly to such news, often leading to panic selling and steep price drops. Earnings Reports and Company-Specific Issues A falling knife stock pattern can be triggered by poor earnings reports or disappointing financial results from a company. When a company misses earnings expectations or issues negative guidance, investors may lose confidence, resulting in a rapidly falling stock. Additionally, company-specific problems such as legal issues, management scandals, or product recalls can lead to rapid price declines as investors reassess the company's prospects. Broader Market Conditions and Trends Broader market trends and conditions play a significant role in causing a falling knife in stocks and other assets. During periods of market volatility or bear markets, negative sentiment can spread quickly, leading to sharp declines in asset prices. For example, during the financial crisis of 2008, widespread fear and uncertainty led to massive sell-offs across various sectors. Similarly, market corrections or crashes can create environments where falling knife patterns are more likely to occur. Geopolitical Events Geopolitical events such as wars, political instability, or trade tensions can cause abrupt market reactions. For instance, escalating trade disputes between major economies can lead to uncertainty and fear, causing investors and traders to exit positions rapidly. Technical Factors Technical analysis also plays a crucial role in falling knife patterns. Key technical factors include: - Breaking Support Levels: When an asset's price falls below critical support levels, it can trigger further selling as traders perceive a lack of price stability. - Overbought/Oversold Conditions: Oscillators like the Relative Strength Index (RSI) showing overbought conditions can precede a falling knife as prices correct sharply. At the same time, the RSI may enter the oversold area during the falling knife pattern. - Bearish Chart Patterns: Patterns such as head and shoulders, double tops, or descending triangles can signal potential sharp declines, leading to falling knife scenarios. Risks Associated with Falling Knife Trading falling knives carries significant risks, primarily due to the rapid nature of the price declines. Understanding these risks is crucial for traders aiming to navigate such volatile situations. Potential for Significant Losses The most apparent risk is the potential for substantial financial losses. When an asset's price plummets, catching the falling knife can result in buying at prices that continue to drop, leading to immediate and severe losses. False Bottoms and Dead Cat Bounces Traders may mistakenly interpret temporary price stabilisations or minor recoveries as the end of the decline, only to face further drops. These false bottoms and dead cat bounces can trap traders in losing positions. Increased Volatility Falling knives are often accompanied by heightened market volatility, making it challenging to analyse short-term price movements. This volatility can result in rapid and unexpected changes in asset prices, complicating risk management. Psychological Challenges The psychological impact of trading falling knives should not be underestimated. The stress and emotional strain of dealing with sharp losses can lead to irrational decision-making, such as holding onto losing positions for too long or making impulsive trades. Technical Analysis Limitations While technical indicators can help identify potential entry points, they are not foolproof. The rapid and severe nature of falling knives can render technical analysis less reliable, as price movements may not follow traditional patterns. Liquidity Issues During sharp declines, liquidity can dry up, leading to wider spreads and slippage. This makes it harder to execute trades at desired prices, potentially exacerbating losses. Examples of Falling Knife Events Now, let’s take a look at a couple of falling knife examples. To start identifying your own falling knives, head over to FXOpen’s free TickTrader platform to explore real-time charts across different asset classes. Onset of the Coronavirus Pandemic and the Nasdaq 100 In early 2020, the onset of the coronavirus pandemic triggered a dramatic fall in global financial markets. The Nasdaq 100, heavily weighted with speculative tech stocks, experienced a sharp decline as investors reacted to the uncertainty and potential economic impact of the pandemic. From mid-February to late March 2020, the Nasdaq 100 dropped by over 30%. This steep decline represented a classic falling knife pattern, characterised by rapid sell-offs and increased market volatility over the course of several weeks. Traders who attempted to buy into the market too early faced significant losses as the market continued to fall before eventually stabilising and recovering later in the year. EUR/USD After Strong US Inflation Data On April 10, 2024, the release of March US inflation data led to a falling knife event in the EUR/USD currency pair. Traders had been closely monitoring the Consumer Price Index (CPI) report, anticipating that a lower-than-forecast reading would prompt the Federal Reserve to lower interest rates later in the year. The forecast was set at 3.4%, with a lower or at-forecast figure expected to weaken the dollar. Instead, the headline CPI YoY reading came in exactly at 3.5%, defying expectations. This unexpected data triggered a rally in the dollar and a sharp sell-off in EUR/USD. The pair plummeted rapidly, and the decline persisted until the end of the trading week, illustrating how sudden economic data releases can lead to sharp and sustained price drops. Strategies for Trading Falling Knives Understanding the catalyst behind a falling knife is crucial for determining whether it’s likely to rebound soon or persist as a trend. Events that cause fundamental repricing, such as poor earnings data, significant or unexpected news/economic releases, or unique risk events like currency intervention or financial crises, often lead to prolonged falling knives. In contrast, temporary sharp corrections might be due to overreactions to already priced-in news or transient market fears. Recognising these catalysts helps traders decide whether to take a position or wait for volatility to subside. Additionally, the timeframe of the falling knife provides valuable context. A falling knife on a 5-minute chart could indicate a sharp intraday decline, potentially recovering before the trading day ends. Conversely, on a 4-hour or daily chart, a sharp decline may suggest a continued downtrend over several days or weeks. Traders can use this information to look for short opportunities on lower timeframes or prepare for longer-term moves. Common Strategies Traders Use The insights gained from analysing market conditions can help traders to decide whether to short the falling knife or stay out of the market and wait for a bottom. Shorting the Falling Knife Traders looking to short a falling knife should exercise caution. Increased volatility during sharp declines can make it difficult to set appropriate stop-loss levels without a sub-par risk/reward ratio. The best entry can potentially be found during a pullback. As some traders think the price is bottoming out, their stop losses being triggered as the price continues to decline can fuel another leg lower. Traders can look for breakouts from bearish chart patterns like rising wedges, bear flags, or bear pennants. Alternatively, waiting for the bullish structure of the pullback (higher highs and higher lows) to break down into a lower low and lower high can indicate the next leg lower is underway. This approach offers traders confirmation that the knife is continuing to fall and an appropriate place to set a stop loss above the pullback’s high. Buying After a Falling Knife For those looking to catch the bottom, confirmation is essential. Using a pair of moving averages, such as 20-period and 50-period EMAs, can help. When the 20-period EMA crosses above the 50-period EMA, and the price closes above both, it suggests the downtrend might be over. However, momentum indicators like RSI and MACD can falsely signal market turns during steep declines, but they may have some value on higher timeframes. Generally speaking, one of the potentially effective strategies for catching a falling knife is to wait for the price to break above the previous lower high of the downtrend. This would demonstrate that the market has been able to break above a point at which it previously found resistance, allowing traders to potentially switch their bias to bullish and seek entry points. The Role of Patience and Discipline in Trading Falling Knives Patience and discipline are paramount when trading falling knives. Impulsive trades driven by the fear of missing out can lead to significant losses. Traders are required to wait for clear signs of trend reversal or continuation before entering a trade. This involves adhering to predefined strategies and not deviating due to emotional reactions to volatile market movements. Likewise, maintaining discipline in setting and following stop-loss levels, adhering to risk management principles, and avoiding premature entries can potentially enhance trading effectiveness. The Bottom Line Navigating falling knives requires careful analysis and disciplined trading strategies. By understanding the causes and employing effective techniques, traders can potentially better manage these volatile situations. To explore these strategies further and enhance your trading skills, consider opening an FXOpen account. With the right tools and knowledge, you can approach falling knives with greater confidence and precision. FAQ What Is a Falling Knife in Trading? A falling knife in trading refers to a rapid and significant decline in an asset's price, often triggered by negative news, poor earnings reports, or broader market sell-offs. This sharp drop can be volatile and difficult to analyse, making it challenging for traders to time their entries and exits. Should You Ever Try to Catch a Falling Knife? Catching a falling knife is highly risky. Therefore, the theory states it’s not recommended for most traders. The rapid decline in price can continue further than anticipated, leading to significant losses. To minimise risk, traders wait for signs of stabilisation or reversal before considering an entry. How to Catch a Falling Knife? Catching a falling knife involves identifying potential reversal points through technical analysis. Traders often wait for confirmation, such as a break above previous resistance levels or a moving average crossover. Patience and strict risk management, including setting tight stop-loss orders, are essential when attempting this strategy. What Is a Falling Knife in Crypto*? In the crypto* market, a falling knife refers to a sudden and steep decline in the price of a cryptocurrency*. This can be triggered by regulatory news, security breaches, or market sentiment shifts. Due to cryptocurrencies*' high volatility, falling knives can be particularly severe and difficult to analyse. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rule. They are not available for trading by Retail clients. 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
7
Panic or Common Sense?This is not a recommendation but rather a possibility based on the following: 1. We may see an upward opening gap at start of the market later. 2. There are circumspect views that there is collusion between Iran, Israel and the USA pertaining to the recent escalation. Non of Iran's Oil or Nuclear installations were targeted. 3. US Election race is neck to neck with Trump has a perceived lead in swing states. 4. Rising bond yields and DXY also bullish 5. Possible formation of Bear Flag Chart pattern, which looks highly logical because of severe overbought conditions. Please remember this coming week has a plethora of news culminating with the NFP news! I will be looking to sell at the upper Fib level and with buy stop above the ATH. Please leave your comments if you have any ideas! Happy and safe trading!
OANDA:XAUUSDEducation
by ccpudaism
Prop Trading - All you need to know !!A proprietary trading firm, often abbreviated as "prop firm," is a financial institution that trades stocks, currencies, options, or other financial instruments with its own capital rather than on behalf of clients. Proprietary trading firms offer several advantages for traders who join their ranks: 1. Access to Capital: One of the most significant advantages of working with a prop firm is access to substantial capital. Prop firms typically provide traders with significant buying power, allowing them to take larger positions in the market than they could with their own funds. This access to capital enables traders to potentially earn higher profits and diversify their trading strategies. 2. Professional Support and Guidance: Many prop firms offer traders access to experienced mentors, coaches, and support staff who can provide guidance, feedback, and assistance. This professional support can be invaluable for traders looking to improve their skills, refine their trading strategies, and navigate volatile market conditions. 3. Risk Management Tools: Prop firms typically have sophisticated risk management systems and tools in place to help traders monitor and manage their exposure to market risks. These systems may include real-time risk analytics, position monitoring, and risk controls that help traders mitigate potential losses and preserve capital. 4. Profit Sharing: Some prop firms operate on a profit-sharing model, where traders receive a share of the profits generated from their trading activities. This arrangement aligns the interests of traders with those of the firm, incentivizing traders to perform well and contribute to the overall success of the firm. Overall, prop firms provide traders with access to capital, technology, support, and learning resources that can help them succeed in the competitive world of trading. By leveraging these advantages, traders can enhance their trading performance, grow their portfolios, and achieve their financial goals.
OANDA:XAUUSDEducation
by Snick3rSD
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
How to avoid being emotional in trading?Avoiding emotional trading is a key skill in successful investing and trading, as it helps minimize impulsive decisions that can lead to losses. Here are some strategies and insights to help maintain a disciplined approach to trading and avoid being swayed by emotions like fear, greed, or overconfidence: 🔸 Create and Stick to a Trading Plan ▪️Set Clear Goals: Define your profit goals, risk tolerance, and entry/exit points in advance. ▪️Follow Predefined Rules: A trading plan provides structure, guiding you to make logical decisions rather than impulsive ones. ▪️Limit Exposure: Decide on position sizes beforehand to avoid overcommitting and feeling compelled to make irrational moves if markets turn volatile. 🔸 Use Stop-Loss and Take-Profit Orders ▪️Automate Exit Points: Setting up stop-loss and take-profit orders allows you to exit trades at predefined points, limiting the need to make quick, emotion-driven decisions during market fluctuations. ▪️Reduce Monitoring: Knowing your trades will automatically exit at specific points reduces the need for constant checking, which can often lead to stress and emotional reactivity. 🔸 Practice Patience and Avoid Overtrading ▪️Avoid Excessive Monitoring: Watching the market closely can lead to impulsive reactions to small fluctuations. Stick to reviewing your trades periodically rather than minute-by-minute. ▪️Limit Trade Frequency: Overtrading, driven by the need to “make back” losses or maximize gains, often leads to poorly thought-out decisions. Trade only when your trading plan calls for it. 🔸 Develop a Balanced Mindset ▪️Stay Neutral to Wins and Losses: Emotional attachment to individual trades can make it harder to accept losses and lead to revenge trading, where you try to make up losses through risky moves. ▪️Accept Losses as Part of the Process: Even the best traders face losses. Accepting this and moving on helps maintain perspective and discipline, which are essential for long-term success. 🔸 Utilize Data and Analysis Over Intuition ▪️Focus on Objective Indicators: Base decisions on data, such as price charts, moving averages, and technical indicators, rather than “gut feelings.” ▪️Avoid Confirmation Bias: Seeking only information that supports your existing beliefs can lead to one-sided and often poor decisions. Stay open to all relevant information. 🔸 Take Breaks and Manage Stress ▪️Step Away After a Major Loss or Win: Strong emotional responses often follow big losses or gains. Taking a break gives you time to reset your mindset before your next trade. ▪️Practice Relaxation Techniques: Techniques like deep breathing, meditation, or even short exercises can reduce stress and improve focus, reducing emotional reactions. 🔸 Build Self-Awareness ▪️Reflect on Your Emotions: Keeping a trading journal can help you understand emotional triggers and patterns in your decision-making. ▪️Work with a Trading Coach or Join a Community: Having accountability, whether through a mentor or a trading group, can help you stay grounded and receive objective feedback on your trading behavior. 🔸 Set Realistic Expectations ▪️Don’t Chase Unrealistic Returns: Expecting massive returns can lead to risky, emotion-fueled decisions. Focus on sustainable, gradual growth. ▪️Acknowledge Market Unpredictability: Markets are often unpredictable, and not every trade will go as planned. Accepting this helps lower emotional stakes with each trade. 🔸 Consider Using Algorithmic or Automated Trading ▪️Remove Emotion from Execution: Algorithmic trading allows traders to set parameters and let algorithms execute trades, effectively reducing emotional interference. ▪️Define Rules for Entry and Exit: Predefined rules, when followed strictly by algorithms, allow for a structured and emotion-free approach to trading. Adopting these practices helps build discipline, patience, and resilience, which are essential for minimizing the negative impact of emotional trading on your overall financial success.
Education
by ProjectSyndicate
25
AI Algo Trading Intro/OverviewAI ALGO TRADING INTRO/OVERVIEW 🔹AI algorithmic trading, often referred to as AI algo trading, is a sophisticated approach to financial trading that uses artificial intelligence (AI) algorithms to make trading decisions. It combines finance, statistics, and computer science to analyze vast amounts of data and execute trades in real-time, often at speeds impossible for human traders. Here's a closer look at how it works, its benefits, and the key components: 1. How AI Algo Trading Works AI algo trading employs machine learning, deep learning, and other advanced data analysis techniques to create models that can predict stock prices or detect trading patterns. These AI models are designed to identify patterns or anomalies in historical and real-time data, which helps them make predictions about price movements. The algorithms can process huge datasets from multiple sources, including stock prices, news, sentiment data from social media, and even macroeconomic indicators. Typical steps involved in AI algo trading include: 🔹Data Collection: Gathering historical price data, technical indicators, financial reports, and alternative data (e.g., news, social media sentiment). Model Training: Training machine learning models on historical data to predict asset price movements or specific trading signals. 🔹Backtesting: Testing the model on historical data to see how it would have performed in the past, adjusting for any biases or errors. 🔹Execution: Implementing the model in live markets to execute trades automatically when certain conditions are met. 2. Key Components of AI Algo Trading Several key components work together in AI-driven trading systems, including: 🔹Data Management: Collecting, cleaning, and storing large volumes of financial and alternative data. 🔹Feature Engineering: Selecting or creating specific data features that improve the model's accuracy, such as moving averages, volatility measures, or sentiment scores. 🔹Machine Learning Models: Models like neural networks, decision trees, or support vector machines (SVMs) are common in AI trading. More advanced models use deep learning and reinforcement learning. 🔹Risk Management: Ensuring trades meet certain risk parameters to prevent excessive losses. Many AI algorithms have built-in risk management measures, like stop-loss limits or position size restrictions. 🔹Execution Algorithms: After generating trade signals, execution algorithms place trades in the market. These can include smart order routing and algorithms for optimizing trade timing. 3. Advantages of AI Algo Trading 🔹Speed and Efficiency: AI algorithms can execute trades within milliseconds, reacting instantly to market movements. 🔹Data-Driven Decisions: AI algo trading relies on empirical data rather than emotions, leading to potentially more consistent decision-making. 🔹Pattern Recognition: Advanced AI models can identify complex patterns in large datasets, uncovering trading opportunities that may be invisible to human traders. 🔹24/7 Operation: AI systems can monitor markets continuously, which is especially valuable in global markets that operate around the clock. 🔹Customization: AI-driven strategies can be tailored to specific asset classes, trading goals, and risk tolerances. 4. Popular AI Techniques in Trading AI algo trading employs several popular techniques: 🔹Supervised Learning: This includes models like regression, classification, and neural networks, often used to predict price changes or determine trading signals. 🔹Unsupervised Learning: Clustering and anomaly detection models help identify unusual trading patterns or group similar assets. 🔹Reinforcement Learning: This is where AI learns to optimize strategies through trial and error, which can be particularly useful for adaptive, evolving trading strategies. 🔹Sentiment Analysis: AI can analyze text data (e.g., news articles, tweets) to gauge market sentiment, adding a qualitative dimension to trading models. 5. Risks and Challenges While AI algo trading offers numerous advantages, it also comes with certain risks: 🔹Model Overfitting: Overfitting to historical data can result in poor performance in live markets if the model is too specific to past conditions. Market Volatility: AI algorithms may struggle to adapt to sudden market changes, like unexpected geopolitical events or economic crises. 🔹Technical Failures: Infrastructure and connectivity issues can disrupt AI trading systems, leading to missed opportunities or unwanted positions. 🔹Regulatory Concerns: Regulatory bodies often scrutinize algorithmic trading for issues like market manipulation, requiring firms to ensure their algorithms are compliant. 6. Future of AI Algo Trading 🔹The future of AI algo trading looks promising, with ongoing advancements in AI and access to even more diverse data sources. Innovations in quantum computing, natural language processing (NLP) for deeper sentiment analysis, and reinforcement learning for adaptive strategies are likely to further enhance AI-driven trading. 🔹As AI trading models continue to evolve, they may also become more accessible to individual investors and retail traders, allowing a broader range of market participants to benefit from data-driven trading strategies. However, regulatory agencies may also implement stricter controls to manage the risks associated with autonomous AI trading.
Education
by ProjectSyndicate
15
Understanding The Basics Of AI/Inference Engine ConstructionRecently, there has been a lot of discussion related to my SPY Cycle Patterns and how they work. In short, without disclosing proprietary code/quants, I built an inference engine based on Fibonacci, GANN, and Tesla theories. Part of this inference engine is to identify the highest probable outcome related to the patterns. This is not rocket-science. This is the same process your brain does when determining when and what to trade. The only difference is I'm doing a bunch of proprietary calculations/quants related to data and price theory in the background, then the inference engine determines the best, most likely outcome. Take a few minutes to watch this video and try to understand the difference between static and dynamic modeling. Again, my objective is to help as many traders as possible. My Plan Your Trade videos are my opinions based on my skills, knowledge, and proprietary modeling systems/tools. None of my tools are 100% accurate all the time - nothing is. But, I do believe the quality of information and instructional information I provide is invaluable to most traders. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
NASDAQ:QQQEducation
by BradMatheny
2
BIG POST! | How To Beat SP500? S&P 500 Performance: +35% since 2022. My Selected Portfolio Performance: +62%, with an 82% hit rate. Top Performing Stocks: NVDA (+735%), ANET (+343%), META (+209%), and more. Technical Analysis Tools Used: Price action, trendlines, Fibonacci levels, round numbers, and more. It’s been nearly three years since I posted my analysis of S&P 500 stocks on February 23, 2022. Back then, I reviewed all 500 stocks, applied some quick technical analysis, and identified 75 stocks that stood out for me. Importantly, I relied solely on technical analysis to make my picks. Fast forward to today, and the results speak for themselves. Most of these selections have significantly outperformed the broader market, proving the power and importance of technical analysis. While many investors rely solely on fundamentals, technical analysis brings a dynamic edge that’s often underestimated. By focusing on price action and market behavior, technical analysis allows us to spot opportunities that others might miss, especially it gives a massive psychological edge while the markets are making corrections. The market doesn't care what you know, the market cares what you do! Here’s what I used for my analysis: It's kind of pure price action - previous yearly highs, trendlines, a 50% retracement from the top, round numbers, Fibonacci levels, equal waves, and channel projections. For breakout trades, determined strong and waited for confirmation before pulling the trigger. The Results While the S&P 500 has gained around 35% over this period , my selected stocks from the same list have made +62%! Out of the 75 stocks I picked, 67 have hit my target zones and 54 are currently in the green. That’s an 82% hit rate, and for me, that’s a good number! Now, for those who favor fundamental analysis, don’t get me wrong, it has its place. But remember, fundamentals tell you what to buy, while technicals tell you when to buy - to be a perfect investor, you need them both. You could hold a fundamentally strong stock for years, waiting for it to catch up to its "true value," while a technical analyst might ride multiple trends and capture far superior returns during that same time. Also, the opposite can happen – you may see a great technical setup, but if the fundamental factors are against it, you could end up with your money stuck in a bad trade. To put these ideas in perspective, starting with a simulated portfolio of $76,000, where each stock had an equal investment of around $1,000–$1,100, the portfolio is now worth around $124,000. The results are based on buying at marked zones and holding until today. I calculated entries from the middle of the target zone, as it’s a more realistic and optimal approach compared to aiming for perfect lows (which, frankly, feels a bit scammy) to get much(!) higher returns. This method reflects real-world trading. Before we dive in, here are the current Top 5 stocks from My Picks: NVDA: +735% ANET: +343% TT: +227% META: +209% LEN: +164% These numbers demonstrate the effectiveness of a solid technical strategy. Many say it's tough to beat the market with individual stock picks, but these results show it’s not just possible, it’s absolutely achievable with the right tools and approach. Now, let's dive into the charts! 1. Apple (AAPL) - a load-it-up type of setup has worked out nicely. Used previously worked resistance levels. If the stocks performing well and the market cap is big enough then these levels can help you to get on board. Current profit 65% Before: After: --------------------------- 2. Adobe (ADBE) - came down sharply, but the price reached the optimal area and reversed. Current profi 38%. Before: After: --------------------------- 3. Advanced Micro Devices (AMD) - round number, strong resistance level becomes support and the climb can continue. Current profit 101% Before: After: --------------------------- 4. Amazon (AMZN) - came down from high prices to the marked levels and those who were patient enough got rewarded nicely. Current profit 66% Before: After: --------------------------- 5. Arista Networks (ANET) - retest of the round nr. worked perfectly, as a momentum price level, after the strong breakout. Current profit 343% Before: After: --------------------------- 6. Aptiv PLC (APTV): Came down quite sharply and it will take some time to start growing from here, if at all. The setup was quite solid but probably fundamentals got weaker after the all-time high. Current loss -24% Before: After: --------------------------- 7. American Express (AXP) - firstly the round nr. 200 worked as a strong resistance level. Another example is to avoid buying if the stock price approaches bigger round numbers the first time. Came to a previous resistance level and rejection from there… Current profit 104% Before: After: --------------------------- 8. Bio-Rad Laboratories (BIO) - in general I like the price action, kind of smoothly to the optimal zone. It might take some time to start growing from here but also fundamentals need to look over. Current loss 6% Before: After: --------------------------- 9. BlackRock (BLK) - kind of flawless. All criteria are in place and worked perfectly. Current profit 81% Before: After: --------------------------- 10. Ball Corporation (BALL) - a perfect example of why you should wait for a breakout to get a confirmed move. No trade. Before: After: --------------------------- 11) Berkshire Hathaway (BRK.B) - Buy the dip. Again, as Apple, a big and well-known company - all you need to do is to determine the round numbers, and small previous resistances that act as support levels, and you should be good. Current avg. profit from two purchases 64% Before: After: --------------------------- 12) Cardinal Health (CAH) - the retest isn't as deep as wanted but still a confirmed breakout and rally afterward. Still, the bias was correct! Before: After:https://www.tradingview.com/x/83OmlWuv/ --------------------------- 13) Ceridian HCM Holding (DAY) - found support from the shown area but not much momentum. Current profit 20% Before: After: --------------------------- 14) Charter Communications (CHTR) - technically speaking it is a quite good price action but kind of slow momentum from the shown area. Probably came too sharply and did not have enough previous yearly highs to support the fall. Current loss -10% Before: After: --------------------------- 15) Comcast Corp. (CMCSA) - got liquidity from new lows, pumped up quickly, and is currently fairly solid. Current profit 10% Before: After: --------------------------- 16) Cummins (CMI) - got rejected from 2028 and 2019 clear highs, fairly hot stock, and off it goes. Current profit 80% Before: After: --------------------------- 17) Salesforce.com (CRM) - perfect. 50% drop, strong horizontal area, and mid-round nr did the work. Current profit 83% Before: After: --------------------------- 18) Cisco Systems (CSCO) - worked and slow grind upwards can continue. Current profit 30% Before: After: --------------------------- 19) Caesars Entertainment (CZR) - not in good shape imo. It has taken too much time and the majority of that is sideways movement. Again, came too sharply to the optimal entry area. Current loss -16% Before: After: --------------------------- 20) Devon Energy (DVN) - inside the area and actually active atm. Still, now I’m seeing a bit deeper correction than shown. Before: After: --------------------------- 21) Electric Arts (EA) - 6 years of failed attempts to get a monthly close above $150 have ended here. It got it and we are ready to ride with it to the higher levels. Current profit: kind of BE Before: After: --------------------------- 22) eBay (EBAY) - it took some time but again, worked nicely. Before: After: --------------------------- 23) Enphase Energy (ENPH) - got a breakout, got a retest, and did a ~76% rally after that! If you still hold it, as I do statistics, then… Current loss -59% Before: After: --------------------------- 24) Expeditors International of Washington (EXPD) - kind of worked but didn't reach. No trade. Before: After: --------------------------- 25) Meta Platforms (META) - the bottom rejection from the round number $100 is like a goddamn textbook :D At that time 160 and 200 were also a good area to enter. Here are several examples of the sharp falls/drops/declines - watch out for that, everything should come fairly smoothly. Still, it ended up nicely and we have a massive winner here... Current profit 209% Before: After: --------------------------- 26) FedEx (FDX) - I love the outcome of this. Very solid price action and multiple criteria worked as they should. Perfect. Current profit 60% Before: After: --------------------------- 27) First Republic Bank (FRC) - firstly got a solid 30 to 35% gain from the shown area but...we cannot fight with the fundamentals. Current loss 99% Before: After: --------------------------- 28) General Motors (GM) - finally found some liquidity between strong areas and we are moving up. Current profit 47% Before: After: --------------------------- 29) Alphabet (GOOG) - load it up 3.0, a good and strong company, and use every previous historical resistance level to jump in. Current avg. profit after three different price level purchases 63% Before: After: --------------------------- 30) Genuine Parts (GPC) - coming and it looks solid. Before: After: --------------------------- 31) Goldman Sachs (GS) - really close one. Current profit 86% Before: After: --------------------------- 32) Hormel Foods (HRL) - quite bad performance here. Two trades, two losses. The current loss combined these two together is 35% Before: After: --------------------------- 33) Intel (INTC) - at first perfect area from where it found liquidity, peaked at 65%. Still, I make statistics if you still holding it then… Current loss -21% Before: After: --------------------------- 34) Ingersoll Rand (IR) - beautiful! Current profit 144% Before: After: --------------------------- 35) Intuitive Surgical (ISRG) - the trendline, 50% drop, strong horizontal area. Ready, set, go! Current profit 157% Before: After: --------------------------- 36) Johnson Controls International (JCI) - second rest of the area and then it started to move finally.. Current profit 55% Before: After: --------------------------- 37) Johnson & Johnson (JNJ) - Buy the dip and we had only one dip :) Current profit 13% Before: After: --------------------------- 38) CarMax (KMX) - the area is strong but not enough momentum in it so I take it as a weakness. Current profit kind of BE Before: After: --------------------------- 39) Kroger Company (KR) - without that peak it is like walking on my lines Current profit 15% Before: After: --------------------------- 40) Lennar Corp. (LEN) - strong resistance level becomes strong support. Beautiful! Current profit 164% Before: After: --------------------------- 41) LKQ Corp. (LKQ) - just reached and it should be solid. Probably takes some time, not the strongest setup but still valid I would say. Before: After: --------------------------- 42) Southwest Airlines (LUV) - no breakout = no trade! Don’t cheat! Your money can be stuck forever but in the meantime, other stocks are flying as you also see in this post. If there is a solid resistance, wait for the breakout and possibly retest afterward! Currently only lower lows and lower highs. Before: After: --------------------------- 43) Las Vegas Sands (LVS) - channel inside a channel projection ;) TA its own goodness! Current profit 70% Before: After: --------------------------- 44) Microchip Technology Incorporated (MCHP) - worked! Current profit 37% Before: After: --------------------------- 45) Altria Group (MO) - got a bit deeper retest, liquidity from lower areas, and probably a second try.. Currently kind of BE Before: After: --------------------------- 46) Moderna (MRNA) - "seasonal stocks", again too sharp and we are at a loss… Current loss -37% Before: After: --------------------------- 47) Morgan Stanley (MS) - the first stop has worked, and got some nice movements. Current profit 62% Before: After: --------------------------- 48) Microsoft (MSFT) - Load it up 4.0, buy the dip has worked again with well-known stock. Three purchases and avg. return from these are amazing 70% Before: After: --------------------------- 49) Match Group (MTCH) - it happens.. Current loss -53% Before: After: --------------------------- 50) Netflix (NFLX) - almost the same as Meta. Came quite sharply but the recovery has been also quick. Another proof is that technical analysis should give you a psychological advantage to buy these big stocks on deep corrections. Current profit 153% Before: After: --------------------------- 51) NRG Energy (NRG) - Perfect weekly close, perfect retest… Current profit 90% Before: After: --------------------------- 52) NVIDIA (NVDA) lol - let this speak for itself! Current profit 735% Before: After: --------------------------- 53) NXP Semiconductors (NXPI) - usually the sweet spot stays in the middle of the box, and also as I look over these ideas quite a few have started to climb from the first half of the box. Touched the previous highs. Current profit 74% Before: After: --------------------------- 54) Pfizer (PFE) - actually quite ugly, TA is not the strongest. Probably results-oriented but yeah.. Current loss -25% Before: After: --------------------------- 55) PerkinElmer - “after” is EUR chart but you get the point. Current profit 25% Before: After: --------------------------- 56) Pentair (PNR) - worked correctly, 50% drop combined with the horizontal area, easily recognizable, and the results speak for themselves. Current profit 124% Before: After: --------------------------- 57) Public Storage (PSA) - again, previous yearly highs and the trendline did the job. Current profit 36% Before: After: --------------------------- 58) PayPal (PYPL) - the area just lowers the speed of dropping, but slowly has started to recover. Current loss -14% Before: After: --------------------------- 59) Qorvo (QRVO) - slow, no momentum. Current profit 10% Before: After: --------------------------- 60) Rockwell Automation (ROK) - previous yearly high again, plus some confluence factors. Current profit 32% Before: After: --------------------------- 61) Rollins (ROL) - after posting it didn’t come to retest the shown area. Being late for a couple of weeks. Worked but cannot count it in, the only thing I can count is that my bias was correct ;) Before: After: --------------------------- 62) Snap-On Incorporated (SNA) - same story! Before: After: --------------------------- 63) Seagate Technology (STX) - firstly it came there! Look how far it was, the technical levels are like magnets, the price needs to find some liquidity for further growth and these areas can offer it. I like this a lot, almost all the criteria are in place there. Current profit 73% Before: After: --------------------------- 64) Skyworks Solutions (SWKS) - one of the textbook examples of how trendline, 50% drop, round nr. and strong horizontal price zone should match. Still a bit slow and it will decrease the changes a bit. Kind of BE Before: After: --------------------------- 65) TE Connectivity (TEL) - came down, and got a rejection. “Simple” as that. Current profit 37% Before: After: --------------------------- 66) Thermo Fisher Scientific (TMO) - mister Ranging Market. Current profit 19% Before: After: --------------------------- 67) Trimble (TRMB) - finally has started to move a bit. Got liquidity from previous highs again and.. Current profit 45% Before: After: --------------------------- 68) Tesla (TSLA) - made a split. Have been successfully recommended many times after that here and there but two years ago we traded in these price levels and.. Current profit 19% Before: After: --------------------------- 69) Train Technologies (TT) - dipped the box and off it goes! Epic! Current profit 227% Before: After: --------------------------- 70) Take-Two Interactive Software (TTWO) - I like this analysis a lot. Worked as a clockwork. Current profit 60% Before: After: --------------------------- 71) United Rentals (URI) - WHYY you didn’t reach there :D Cannot count it. Before: After: --------------------------- 72) Waters Corp. (WAT) - came to the box as it should be slow and steady. As the plane came to the runway. Current profit 41% Before: After: --------------------------- 73) Exxon Mobil Corp. (XOM) - another escaped winner. Didn’t come down to retest my retest area so, missed it. Before: After: --------------------------- 74) Xylem (XYL) - perfect trendline, good previous highs, 50% drop from the peak and.. Current profit 76% Before: After: --------------------------- 75) Autodesk (ADSK) - took a bit of time to start climbing but everything looks perfect. Nice trendline, 50% drop from ATH, previous yearly highs - quite clean! Current profit 66% Before: After: The strategies above show how useful price action, key levels, and psychology can be for investing. By spotting breakouts, and pullbacks, or focusing on round numbers and past highs, technical analysis helps give traders an edge in understanding the market. Regards, Vaido
NASDAQ:NVDAEducation
by VaidoVeek
"Trading Confluences Explained: Daily Highs, Engulfing Patterns,I break down the key confluences used by professional traders to make high-probability trades. Learn how to leverage Daily Highs/Lows, spot Pin Bars, recognize Engulfing Patterns, and understand Break of Structure to enhance your trading strategy. I'll also dive into Demand Zones, Fibonacci Retracements, and Trendline Analysis to show how these powerful tools can align for stronger trade entries. Plus, I cover an essential aspect of the market – Stop Loss Hunts – and how to avoid being caught by them, while setting up your stop losses intelligently.
Education
by AfaqKhan111
Stacey Burke ID Setup taken on WTI, and Silver reversal shortIn this video, I walk you through my entire thought process during today's trading session. You'll learn how I selected the pairs and executed three key trades: - Silver Reversal Short - WTI inside day , first red day, short Inside days are a key best trade setup of Stacey Burke. Don't miss out on these valuable insights and tips! For details on the Stacey Burke style trading approach see his site and playbook: https://stacey-burke-trading.thinkifi...
OANDA:XAUUSDEducation
by TC888
Working To Unlock The 3-6-9 Secrets Of The MarketRecently, there have been a lot of questions related to my SPY Cycle Patterns and how they work. I've often stated that these patterns are based on Gann, Tesla, and Fibonacci's price theory. However, underlying all that is a core component related to the 3-6-9 (secrets of the universe) theory. This video tries to introduce you to the concepts of the 3-6-9 theory and how it overlays with Gann, Tesla, Fibonacci, Japanese Candlesticks, and more. My focus for the past 24+ months has been to unlock this theory's secrets and develop a practical use component (code) that attempts to provide very clear future trading/price predictions. Spend some time watching this video. See what you think and open your mind to the concept that price moves through construction and destruction phases (likely based on the 3-6-9 concepts). At the end of this video, I share some practical knowledge/examples showing why I believe the 3-6-9 theory is critical to unlocking the true secrets of market price action. I may never be able to unlock all of it, but I'm dedicated to trying to unlock as much as I can within my lifetime. This drives me to build code solutions and attempt to improve my skills. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #es #nq #gold
AMEX:SPYEducation
by BradMatheny
7
4 of the Best Day Trading Strategies4 of the Best Day Trading Strategies Day trading is one of the most challenging approaches as it requires traders to make decisions quickly. Therefore, many traders like using established trading strategies. Explore the intricacies of day trading strategies in this article. For those keen on hands-on experience, consider using FXOpen's free TickTrader platform to follow along and enhance your trading insights. 1. Bollinger Bands & RSI Strategy Bollinger Bands and the Relative Strength Index (RSI) are potent tools that, when combined, can offer one of the best strategies for day trading, capitalising on both volatility and momentum. Entry/Exit Criteria Entries Buy Entry: - Price touches or exceeds the lower Bollinger Band. - RSI dips below 30 (indicating oversold conditions). Sell Entry: - Price touches or exceeds the upper Bollinger Band. - RSI rises above 70 (indicating overbought conditions). Stop Losses Buy Trades: - Slightly below the low point where the price touched the lower Bollinger Band. Sell Trades: - Slightly above the high point where the price touched the upper Bollinger Band. Take Profits Buy Trades: - Price touches the middle Bollinger Band line or - RSI rises towards 50-60, indicating diminishing bearish momentum. Sell Trades: - Price touches the middle Bollinger Band line or - RSI drops towards 40-50, showing fading bullish momentum. How/Why the Strategy Works Bollinger Bands measure an asset's volatility. The outer bands expand during high volatility and contract during low volatility. The asset prices tend to revert to the mean, so a touch or breach of an outer band often indicates a short-term price extreme. On the other hand, the RSI measures the magnitude and persistence of price movements. Values below 30 or above 70 denote oversold or overbought conditions, respectively. By combining these tools, traders get a two-fold verification system. The Bollinger Bands hint at price extremes through volatility, while the RSI confirms it through momentum. This dual filter helps in improving the strategy's reliability, capturing reversals with a higher degree of accuracy. 2. Moving Average Crossover with MACD Confirmation Combining the simplicity of Moving Averages (MA) with the insights from the Moving Average Convergence Divergence (MACD), this is one of the day trading strategies. When the two MAs crossover, it indicates a potential change in trend. The MACD serves as a filter to ensure the trend has momentum and is not a false signal. It’s a good idea to set the MACD’s fast and slow lengths to the same as your Fast and Slow MAs. Entry/Exit Criteria Entries Bullish Entry: - Fast MA (e.g., 20-period, blue in chart) crosses above the Slow MA (e.g., 50-period, red in chart). - MACD line moves above the signal line. Bearish Entry: - Fast MA crosses below the Slow MA. - MACD line moves below the signal line. Stop Losses Stop Loss for Bullish Entry: - Slightly below the Slow MA at the point where the Fast MA crossed above the Slow MA. Stop Loss for Bearish Entry: - Slightly above the Slow MA at the point where the Fast MA crossed below the Slow MA. Take Profits Bullish Trades: - Fast MA crosses below the Slow MA or - MACD line descends below the signal line. Bearish Trades: - Fast MA crosses above the Slow MA or - MACD line ascends above the signal line. Why/How the Strategy Works Moving Average crossovers indicate trend shifts. If the fast MA surpasses the slow MA, it implies rising momentum; if it drops below, it indicates a potential decline. However, these signals can be misleading. The MACD, reflecting the relationship between two MAs, validates momentum. A MACD line crossing its signal line confirms the MA's direction. 3. Fibonacci Retracement with Stochastic Oscillator Marrying the predictive power of Fibonacci retracements with the momentum sensitivity of the Stochastic oscillator, this strategy aims to identify potential reversals within major trends. Fibonacci retracements are horizontal lines that indicate potential support and resistance levels, while the Stochastic oscillator measures the speed and change of price movements. Entry/Exit Criteria Entries Bullish Reversal: - Price retraces to a significant Fibonacci level (commonly 38.2%, 50%, or 61.8%). - The Stochastic oscillator goes below 20 (oversold territory) and then crosses back above, indicating gaining bullish momentum. Bearish Reversal: - Price retraces to a major Fibonacci level. - The Stochastic oscillator exceeds 80 (overbought territory) and then crosses back below, signalling growing bearish momentum. Stop Losses Stop Loss for Bullish Reversal: - Slightly below the Fibonacci level where the entry was made. Stop Loss for Bearish Reversal: - Slightly above the Fibonacci level where the entry occurred. Take Profits Exit for Bullish Trades: - Price reaches the next Fibonacci resistance level or - The Stochastic oscillator surpasses 80. Exit for Bearish Trades: - Price hits the next Fibonacci support level or - The Stochastic oscillator drops below 20. Why/How the Strategy Works Fibonacci retracement levels are grounded in the belief that markets often retrace a predictable portion of a move. When prices pull back to these levels, they often find support or resistance, creating potential trading opportunities. However, solely relying on Fibonacci can lead to false signals. To mitigate this, the Stochastic oscillator is employed. By determining if an asset is overbought or oversold relative to its recent price action, the oscillator adds a layer of momentum-based confirmation. 4. VWAP and Moving Average Confluence The Volume Weighted Average Price (VWAP) is a trading benchmark used by traders to determine the average price an asset has traded throughout the day based on both volume and price. When combined with a simple moving average (SMA), traders can pinpoint high-probability trade entries based on confluence and deviations. It’s one of the preferred day trading stock strategies. Entry/Exit Criteria Entries Bullish Entry: - Price is above both the VWAP (blue in chart) and the chosen SMA (e.g., 20-period, red in chart). - A pullback occurs, where the price tests the SMA without closing below it. Bearish Entry: - The Price is below both the VWAP and the chosen SMA. - A pullback occurs, where the price tests the SMA without closing above it. Stop Losses Stop Loss for Bullish Entry: - Slightly below the entry point. Stop Loss for Bearish Entry: -Just above the entry point. Take Profits Exit for Bullish Trades: - Price crosses below the VWAP or SMA. - A predetermined risk-reward ratio is reached. Exit for Bearish Trades: - Price crosses above the VWAP or SMA. - A predetermined risk-reward ratio is achieved. Why/How the Strategy Works The VWAP adjusts the day's price action for volume, indicating an average price. If the price is above the VWAP, it's seen as bullish, and the opposite for bearish. Paired with the SMA, it reinforces trend identification. When both align and serve as support/resistance, they signal market sentiment. By waiting for the price to respect both the VWAP and SMA during pullbacks, traders can achieve a higher probability of successful trade outcomes. The Bottom Line Whether trading forex, commodities, or stocks, these day trading strategies can help you find your feet and get started in the markets. Still, you should remember that they don’t guarantee 100% success. Markets are dynamic, therefore, each strategy should be used as a model that transforms depending on market conditions and your trading approach. Once you’ve got some experience under your belt, consider opening an FXOpen account. When you do, you’ll gain access to a broad range of markets to put your skills to the test, while benefiting from lightning-fast execution and competitive trading costs. Good luck! 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
6
Mastering Range Trading for Higher ProfitsRange trading is a strategy focused on capturing price movements within a defined range, marked by consistent oscillation between two levels—support and resistance. In this approach, support is the level where buyers prevent further declines, while resistance is the level where sellers cap price increases. Range traders aim to profit from buying at support and selling at resistance, capitalizing on predictable price swings. While range trading is effective during periods of sideways movement, it has its limitations, particularly when the market becomes volatile or when a trend emerges. By integrating range trading with trend-following and breakout strategies, traders can better adapt to changing market conditions. This blended approach allows traders to capture profits in both consolidating and trending markets, maximizing trading opportunities. Understanding Range Trading Range trading focuses on identifying a price range where an asset consistently fluctuates between established support and resistance levels. Traders use this predictable pattern to generate profits by entering long positions at support and selling at resistance. Technical indicators, such as oscillators and volume analysis, help confirm entry and exit points within the range. The primary goal is to capitalize on repetitive price movements, with no expectation of a breakout or major trend shift. Example of Range pattern in S&P500 Key Advantages of Range Trading -Consistent Trading Opportunities: Ideal for non-trending markets, offering regular chances to profit from predictable price movements. -Lower Risk: Relies on established support and resistance levels, minimizing the risk of sudden price swings. -Simplicity: Easy to understand and implement, making it suitable for traders of all levels. Limitations of Range Trading -Vulnerability to Breakouts: Prone to significant losses if a breakout occurs and the price moves beyond the defined range. -Smaller Profit Margins: Focuses on short-term price moves, resulting in lower profits compared to trend-following strategies. -Market Dependency: Effective only in non-trending conditions; becomes less reliable during strong trends. Combining Range Trading with Trend-Following Trend-following strategies focus on riding sustained price movements in one direction. By entering positions in the direction of the trend, traders aim to capture larger gains as the trend progresses. The integration of range trading and trend-following can create a more adaptive trading plan, allowing traders to capitalize on both sideways and trending markets. Example Range Trading on EUR/USD Following the trend - SMA 50 How to Blend Range Trading and Trend-Following -Transition Points: During consolidation phases, range trading can be used to capture smaller price movements. When a breakout occurs, traders can shift to trend-following to capture larger price swings. Indicators for Blending Strategies: Use the Relative Strength Index (RSI) to identify overbought and oversold conditions within a range. Practical Implementation: For example, when a currency pair is range-bound, traders can buy at support and sell at resistance using range trading. If a breakout follows, they can switch to a trend-following strategy by placing trades in the direction of the breakout. Integrating Breakout Trading with Range Trading Breakout trading aims to capture significant price movements when the market breaks beyond support or resistance levels. When combined with range trading, it can maximize trading opportunities, especially during high volatility periods. Breakout example Range Trading EUR/USD How to Integrate Breakout Trading with Range Trading Spotting Breakout Setups: Use range analysis to identify potential breakout points, as repeated tests of support or resistance often signal an impending breakout. Managing Risk: Set Stop Loss orders just below/above the breakout level to protect against false breakouts. Use position sizing to manage risk according to your risk tolerance. Maximizing Profits: Use trailing stops to lock in profits as the market continues to move in the breakout direction. Key Technical Indicators for Blending Strategies Moving Averages (MA): Identify trends and confirm breakouts. -Relative Strength Index (RSI): Help identify momentum and reversals, suitable for both range trading and trend-following. Example of RSI Use on Range Trading Choosing the Right Trading Platform To effectively blend range trading, trend-following, and breakout strategies, it’s essential to use the right trading platform. TradingView: Known for its intuitive interface and wide range of indicators, ideal for technical analysis. Backtesting Tools: Use backtesting features ( from Tradingview ) to evaluate the performance of your integrated strategy against historical data. In Conclusion combining range trading with trend-following and breakout strategies can significantly enhance your trading performance. This comprehensive approach allows you to capitalize on consolidation phases, trend shifts, and breakout opportunities. By adapting to different market environments, traders can achieve more consistent and profitable results. ✅ Please share your thoughts about this article in the comments section below and HIT LIKE if you appreciate my post. 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Education
by FOREXN1
1
TOP DOWN ANALYSIS OF US DOLLAR - Watch n´Learn Hi everyone! So If you were to look back at my previous education video on the DXY you would have seen that we have continued to go higher. And right we are in the third zone without a pullback. What does it mean? Well for me, it means its definitely time for a serious pullback, where I would make back all my sell losses. This a little bit too manipulatory for me, and it does not make much sense, but gotta keep going and make that living. Thanks for watching!
TVC:DXYEducation
by ChameleonInvestments
Swing vs. Scalping: Who Really Wins?In the world of trading, data from industry sources often paints a picture that can be misleading for individual traders. Brokers and trading platforms promote high success rates, particularly for more frequent traders like scalpers, but the reality is often far more complex. In this post, we'll break down some of the numbers presented by industry sources and contrast them with independent research to give you a clearer perspective. Industry-Sourced Success Rates According to various industry sources, here’s what the reported success rates look like: Scalper (Under 5-minute operator): Success Rate: 50-70% Reasoning: High trade frequency. Small price movements. Greater liquidity. Short-term trend strategies. Swing Trader: Success Rate: 30-50% Reasoning: Lower trade frequency. Larger price movements. Greater exposure to risk. Medium to long-term trend strategies. At first glance, it seems like scalping offers a better chance of success. More frequent trades, combined with the liquidity of short-term moves, are presented as reasons why scalpers may be more successful. But should you trust these numbers at face value? Conflicts of Interest in Industry Data These industry-reported numbers may not be as reliable as they seem. Several potential conflicts of interest come into play when brokers and trading platforms promote certain types of trading: Platform Promotion: Platforms often highlight strategies that lead to more frequent trades, as these generate higher commissions for brokers. Attracting Active Traders: Scalpers tend to make more trades, and brokers benefit from the higher transaction volume. Risk Policies: Some platforms may structure their risk management tools and incentives to favor short-term trading. What Independent Sources Say When we look at independent, non-conflicted sources, a different picture starts to emerge. Independent academic studies suggest that swing traders may actually perform better than scalpers, for several reasons: Lower Trade Frequency: Swing traders typically make fewer trades, which reduces the impact of commission fees and spreads on their returns. Focus on Trends and Fundamentals: Swing traders often use technical analysis and fundamental factors to capture larger price moves, improving their potential for larger gains. Better Risk Management: With more time between trades, swing traders tend to employ more disciplined risk management practices. Less Stress and Fatigue: Scalping requires constant focus, which can lead to poor decision-making due to stress or fatigue. Independent Studies: Swing Traders vs. Scalpers Let’s take a look at some independent studies that tell a different story from the industry narrative: University of California Study (2019): Found that swing traders had an average annual return of 12.6%, compared to 6.8% for scalpers. Journal of Trading Report (2018): Showed a success rate of 55.6% for swing traders, compared to 41.4% for scalpers. QuantConnect Report (2020): Strategies based on swing trading delivered an average annual return of 15.6%, outperforming scalping strategies. These studies highlight how swing trading can offer better risk-reward profiles compared to the fast-paced, high-stress world of scalping. Key Takeaways for Individual Traders The key lesson here is not to fall for marketing hype or industry reports that may push you towards a specific style of trading, especially one that benefits the platforms you trade on. Here’s what you should keep in mind: Be Critical: Always question the sources of information. Industry success rates might be skewed by conflicts of interest. Independent Research: Seek out independent studies, academic journals, and unbiased platforms to get a clearer picture. Understand Your Goals: Both swing trading and scalping come with risks. Choose a trading style that fits your goals, risk tolerance, and lifestyle. Focus on Long-Term Growth: While scalping may seem exciting, swing trading tends to offer better long-term results by focusing on fewer, higher-quality trades with disciplined risk management. Recommended Resources for Objective Information Academic Journals: Journal of Trading, Journal of Financial Markets. University Studies: Seek out financial studies from universities like Stanford or Berkeley. Independent Platforms: QuantConnect, Backtrader. Specialized Blogs: TradingView, Investopedia. In conclusion, while the industry may promote fast-paced trading with promises of high success rates, the reality for individual traders is often quite different. Take the time to educate yourself and base your decisions on unbiased, independent information to improve your chances of success. P.S. Stay tuned for my next post, where I'll dive deeper into the topic, going beyond the potential use of misleading advertising. I'll demonstrate, using statistical methods—specifically, a covariance analysis—why larger time frames, like those used in swing trading, are mathematically more favorable for individual traders. Don't miss it! Disclaimer: This post is for informational purposes only and does not constitute financial advice. Trading is risky, and you should always conduct thorough research or consult a financial professional before making any investment decisions.
NASDAQ:NVDAEducation
by CF_444
SWING TUTORIAL - MFSLIn this tutorial, we analyze the stock NSE:MFSL (MAX FINANCIAL SERV LTD) identifying a lucrative swing trading opportunity following its all-time high in July 2021. The stock declined by nearly 50%, forming a Lower Low Price Action Pattern, but subsequently reversed its trend. At the same time, we can also observe the MACD Level making a contradictory Pattern of Higher Highs. This Higher High Pattern of the MACD signaled the start of a Bullish Momentum, thereby also signaling a good Buying Opportunity. The trading strategy yielded approximately 80% returns in 71 weeks. Technical analysis concepts used included price action analysis, MACD, momentum reversal, trend analysis and chart patterns. The MACD crossover served as the Entry Point, with the stock rising to its Swing High Levels of 1148 and serving as our Exit too. As of wiring this tutorial, we can also notice how the stock is making a breakout and retest of the Swing High levels and trying to continue its momentum further upward trying to make a new All Time High. KEY OBSERVATIONS: 1. Momentum Reversal: The stock's price action shifted from a bearish to a bullish trend, indicating a potential reversal. 2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure. 3. MACD Crossover: The successful crossover in May 2023 confirmed the bullish trend, creating an entry opportunity. TRADING STRATEGY AND RESULTS: 1. Entry Point: MACD crossover in May 2023. 2. Exit Point: Swing High Levels - 1148. 3. Return: Approximately 80%. 4. Trade Duration: 71 weeks. NOTE: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing Price Action, MACD movements, and Reversal patterns, traders can pinpoint potential entry and exit points. Would you like to explore more technical analysis concepts or case studies? Share your feedback and suggestions in the comments section below.
NSE:MFSLEducation
by thepranam
Stock Selection: How to Tip the Tailwinds in Your Favour Stock selection is a game of fine margins but understanding a few key factors can tilt the probability of success in your favour. By focusing on these crucial elements, you can ensure that when it comes to buying stocks, you’re sailing with the prevailing tailwinds rather than fighting against them. 1. Don’t Fight the Market Ever heard the saying, “a rising tide lifts all ships”? This holds true in the stock market. Favourable market conditions can make an average investor look like Warren Buffett. When the market is stable, it allows other factors to shine, while a risk-averse environment can dampen even the best stock’s performance. Don’t overthink this concept—use simple moving averages, such as the 50-day and 200-day, when analysing the index. Pair this with basic structure analysis to assess overall market conditions. Ask yourself: What is the long-term trend in the index? What is the current momentum? What does the price structure look like? The better the market conditions, the more aggressive you can be in your stock selection, as the broad tailwinds are stronger. Example: FTSE 100 The FTSE 100 index has been navigating a choppy sideways range since May, but there are still signs of optimism beneath the surface. While we’re not in a full-blown bull market, the 50-day moving average (50MA) remains comfortably above the 200-day moving average (200MA), and both are sloping upwards—indicating a long-term uptrend. Prices are currently hovering near the 50MA, suggesting the market’s tailwinds remain mildly favorable, even amidst some volatility. FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results 2. Earnings Catalysts: The Power of Post-Earnings Drift Positive earnings surprises can work wonders for any stock. They often create price gaps that signal strong short-term momentum. Moreover, positive earnings surprises can take time to be fully ‘priced in’ because large institutional investors typically stagger their investments over time. This phenomenon, known as post-earnings announcement drift, can lead to continued price appreciation following an earnings beat. Look for stocks that have recent positive fundamental catalysts in their price history. This focus can give you a clearer path toward potential gains. Example: Barclays (BARC) In February, Barclays revealed a strategic plan that reignited investor confidence and sparked a sharp breakout in its share price. The bank announced a £10 billion buyback program, coupled with £2 billion in cost cuts, aiming to boost profitability and efficiency. Barclays also set its sights on delivering returns in excess of 12% by 2026, with a renewed focus on its higher-margin UK consumer and business lending divisions. This announcement acted as a major earnings catalyst, forming the foundation for a strong uptrend that followed. BARC Daily Candle Chart Past performance is not a reliable indicator of future results 3. The Buyback Bounce: Share Buybacks Companies that initiate share buybacks signal confidence in their stock and a commitment to returning value to shareholders. When a company buys back its shares, it reduces the total number of outstanding shares, often resulting in an increase in earnings per share (EPS) and potentially boosting the stock price. While this isn’t an exact science, a stock undergoing a share buyback that meets the other criteria on this list can provide a solid tailwind for your investment. Example: Mastercard Incorporated (MA.) In the second quarter of 2024, Mastercard repurchased approximately 5.8 million shares for $2.6 billion. Through the first half of 2024, the company bought back 10.2 million shares at a total cost of $4.6 billion. As of July 26, 2024, MA had repurchased an additional 1.9 million shares for $820 million, leaving $8.7 billion remaining under its approved share repurchase programs. These strategic buybacks not only reflect Mastercard's strong cash generation capabilities but also underline its commitment to enhancing shareholder value, making it an attractive consideration for investors seeking growth. MA. Daily Candle Chart Past performance is not a reliable indicator of future results 4. Focus on Financial Quality When hunting for stocks, there’s often a tendency to bargain hunt, looking for those poised for a bounce. However, we believe that, over the long term, high-quality companies are best positioned to outperform the market. You don’t have to be a Wall Street analyst to develop a robust quality filter. The following financial metrics can help ensure that the stock you’re buying is solid and less likely to face dilution: • Return on Equity (ROE): Most companies will claim they are high-quality businesses that prioritize investors, but checking this metric helps verify their claims. A high ROE of 15% or more indicates efficient use of equity and a commitment to shareholder value. • Free Cash Flow (FCF): Cash is king for a good reason. Strong free cash flow means the company generates ample cash after covering its operational expenses, allowing for reinvestment or returns to shareholders. A FCF yield of 5% or higher is typically desirable. • Debt-to-Equity Ratio: While balance sheet strength may sound boring, it’s crucial. A low debt-to-equity ratio, ideally below 1.0, suggests a company is not overly reliant on debt to fuel growth, making it less vulnerable in downturns. Example: Morgan Sindall (MGNS) With a Return on Equity (ROE) of 22.7%, Morgan Sindall significantly exceeds the 15% benchmark, showcasing effective management and strong profitability. Its Free Cash Flow yield is an impressive 10.81%, well above the desirable 5%, reflecting robust cash generation capabilities. Furthermore, the company boasts a negative Debt-to-Equity ratio of -0.49, highlighting a strong balance sheet with no net debt and low financial risk. These qualities are also evident in its strong price chart (see below). MGNS Daily Candle Chart Past performance is not a reliable indicator of future results 5. Long-Term Trend Structure Just as analysing the strength of the overall market can create headwinds and tailwinds, you should also be mindful of a stock's price history and calibrate your expectations accordingly. An old adage that has stood the test of time is, “trends take considerable time and effort to change.” This doesn’t mean you should buy stocks that have undergone prolonged underperformance, but it does mean you should be cautious and aware of a stock’s long-term trend when making decisions. Example: Marathon (MARA Holdings) A quick look at Marathon’s daily chart shows prices oscillating around the 200-day moving average, indicating a period of indecision. The trend lacks clear direction, with momentum appearing tepid at best. Given the uncertainty, investors should be cautious about taking trend continuation or momentum trades here until a clearer signal emerges. MAR Daily Candle Chart Past performance is not a reliable indicator of future results Conclusion When it comes to stock selection, leveraging favourable market conditions, earnings catalysts, share buybacks, financial quality, and trend structures can enhance your investment strategy. By aligning your selections with these key factors, you can tip the tailwinds in your favour and increase your chances of success in the ever-evolving stock market. 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. 82.67% 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.
LSE:BARCEducation
by Capitalcom
2
Learn Best Time Frames For Scalping Any Forex Pair I am trading forex with top-down analysis for many years. In this article, I will teach you powerful combinations of multiple time frames for scalping any currency pair. For scalping financial markets with multiple time frame analysis, I recommend applying 3 time frames: 4H, 15 minutes and 5 minutes time frames. 4H time frame will be applied for trend and structure analysis. On a 4H time frame, you should identify the direction of the market and significant supports and resistance. Key supports in a bullish trend will be applied for buying the market. While key resistances will be applied for counter trend trading. Above is USDJPY chart, 4H time frame. The trend is bullish and I have underlined important historical structures. Key resistances in a bearish trend will be applied for selling the market. While key supports will be applied for counter trend trading. Look at a structure and trend analysis on EURUSD on a 4H time frame. 15 minutes and 5 minutes time frames will be applied for confirmation, entry signal and trade execution. The logic is that once you identified key levels on a 4H time frame, you are patiently waiting for the test of one of these structures. Once one of the key levels is tested, you start analyzing 15 minutes and 5 minutes time frame and look for a signal there. What should be the signal? It can be a specific candlestick pattern, price action pattern, some signal from a technical indicator or some other stuff. Personally, I look for a price action pattern. I am looking for a bearish price action pattern on a 4H resistance and a bullish price action pattern on a 4H support. Look at GBPUSD. The pair is trading in a bearish trend on a 4H time frame, and it tests a key horizontal resistance. On 15 minutes time frame, we see a strong bearish price action signal. Head and shoulders pattern formation and a bearish breakout of its horizontal neckline. That will be our strong scalping short signal. If you sell the market in a bearish trend on a 4H from a key resistance, you can anticipate a bearish movement to the closest 4H support. Look how nicely GBPUSD dropped after a strong bearish confirmation of 15 minutes time frame. In that case, we did not apply 5 minutes time frame in our analysis, keep reading and I will explain when we apply 5 minutes time frame for scalping. Above is USDCAD. On a 4H time frame, I executed trend and structure analysis. We see a test of a key support in a bullish trend. At the same time, no pattern is formed on 15 minutes time frame after a test of structure. In such a situation, analyze 5 minutes time frame. If there is no pattern on 15m, probabilities will be high that the pattern will appear on 5m. On 5 minutes time frame, the pair formed the ascending triangle formation. A bullish breakout of its neckline is a strong bullish signal and confirmation for us to buy. If you buy the market in a bullish trend on a 4H from a key support, you can anticipate a bullish movement to the closest 4H resistance. You can see that after our confirmed bullish signal, the price went up to Resistance 1. Both trading opportunities that we discussed are trend following ones. Remember that the trades that are taken against the trend are riskier and have lower accuracy. For that reason, if you are a newbie trader, strictly trade with the trend! Good luck in scalping with multiple time frame analysis! ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
2
How to Master Technical AnalysisHow to Master Technical Analysis Price action traders are avid chart enthusiasts, constantly scouring price charts for valuable insights. Their trading approach is deeply rooted in technical analysis, a method that has been in the books of market participants for centuries. This article will cover technical analysis strategies and go into advanced technical analysis techniques. Definition and Purpose of Technical Analysis Technical analysis is a method used to evaluate and forecast the future movements of financial assets, such as stocks, currencies, commodities, or cryptocurrencies*, based on historical market data and statistics. The primary purpose of technical analysis is to help traders and investors make informed decisions by studying patterns and trends in charts and identifying potential entry and exit points. Key Principles of Technical Analysis Technical analysis in trading is based on several principles: - Supply and demand. This principle reflects that the asset price is influenced by supply and demand. When demand outpaces supply, instruments tend to move up, and vice versa. - "Trend Is Your Friend". This principle emphasises identifying and following prevailing trends and not going against them. Traders can spot trends by using tools like trendlines, moving averages, and indicators like the Average Directional Index (ADX). - Volumes. Volume, the traded amount of an asset, is crucial; high volume during price changes indicates strong interest and validates movements, while low volume suggests uncertainty. You may employ several indicators for a better technical analysis on FXOpen’s TickTrader platform. Chart Types and Timeframes The most common chart types used in technical analysis include: - Line Chart: It connects closing prices with a line, providing a simple overview of chart movements over time. - Bar Chart: Each bar represents the high, low, open, and close prices for a specific period, offering more detailed information than a line chart. - Candlestick Chart: Similar to a bar chart, but each candlestick's body represents the difference between the open and close prices, and the wicks (shadows) show the high and low prices. Timeframes in technical analysis refer to specific durations for representing price data on charts. Common timeframes include intraday (1-minute, 5-minute, 15-minute, 30-minute, and 1-hour) for short-term trading, daily for swing trading, weekly for identifying longer-term trends, and monthly for long-term investors. Essential Technical Analysis Tools and Indicators Traders utilise a wide array of indicators to inform their trading decisions, which can be categorised into five main groups: - Momentum Indicators: These indicators gauge the velocity and strength of price movements, aiding in the identification of whether a trend is gaining or losing momentum. - Volume Indicators: These indicators analyse trading volume to assess the potency of price movements. They offer insights into the level of market participation and can confirm or question the validity of price trends. - Trend Indicators: These indicators assist in recognising the direction and strength of trading trends. - Oscillators: Oscillators signal overbought or oversold conditions and can help identify potential trend reversals. - Volatility Indicators: Volatility indicators quantify the rate at which the prices of an asset fluctuate. Chart and Candlestick Patterns Traders also use chart and candlestick patterns. Chart Patterns, such as Head and Shoulders and Double Tops/Bottoms, serve as indicators of potential trend changes, while Flags and Pennants point towards trend continuations. Candlestick Patterns, such as Doji, Hammer, and Engulfing, reveal market sentiment and potential reversals. Support and Resistance Levels Support and resistance points are essential in technical analysis. Support levels are where an asset tends to find buying interest and reverse its downward movement. Resistance levels are where selling interest tends to emerge, causing the instrument to reverse its upward movement. Support and resistance levels are crucial as they indicate potential turning points in the market. A break below support or above resistance can signal a trend change. You can practise adding different tools in various markets right now. Limitations of Technical Analysis Technical analysis has the following limitations: - Subjectivity: Technical analysis relies on interpreting historical price patterns and indicators, which can be subjective and open to different interpretations. - Lack of Fundamental Analysis: Technical analysis does not consider fundamental factors like company financials or economic indicators, which can have a significant impact on an instrument. - Market Sentiment Shifts: Unexpected news or events can quickly invalidate technical analysis predictions, leading to potential losses. Conclusion Technical analysis may be a valuable tool for traders and investors to analyse price movements and make informed decisions; however, it's essential to acknowledge its limitations and consider it as one of many techniques when trading. Combining technical and fundamental analyses may lead to a more comprehensive approach to trading and investing. As you get a better understanding of the subject, you may consider opening an FXOpen account and applying the concepts to live trading. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients. 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
4
HFTs gaps: Learn how to enter a stock before a huge gap up.High Frequency Trading companies are market makers/takers that provide liquidity for the public exchanges, and they now use AI. HFTs have a huge impact on your profitability. You can make higher profits from trading ahead of the HFT gaps and riding the momentum upward or downward. In this short video, you'll learn some basics on how to identify the patterns that precede HFT gaps, which I call Pro Trader Nudges . Learn what to look for in Volume patterns and pre-gap price action. Make sure you are not chasing HFTs but riding the wave of momentum they create, just like professional traders do.
PEducation
by MarthaStokesCMT-TechniTrader
2