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"Rivian Stock Gaps: Key Insights"There are 2 gaps formed in ''Rivian Automotive'' in the 1st half of 2024; the first gap called '' Exhaustion Gap'', formed on last February, as it appeared after a downtrend that started in July 2023, (which means this downtrend is finished!), and after this, the stock witnessed a sideway move for 4 months, which is considered an accumulation phase, then after this accumulation, the stock witnessed high volatility in the end of June 2024, to form a new gap called ''Breakaway Gap'', as this gap shows conviction in the new uptrend direction, and this gap is not ''Filled''. currently, the stock closed below the last peak 16.35, which is considered the level that needs to be violated to confirm the uptrend, which will trigger further rises near 16.85 - 18.15 - 19.50 - 20.50 - 22 on the short term. The stop-loss lies below 14$. the indicators are heading toward the positive side, which confirms the mentioned positive scenario. The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
NASDAQ:RIVNEducation
by Gehad_Abouelela
5
What is RSP telling us about this market ? For the longest, analyst were not convinced of the market strength although market was making new highs. This is because in their opinion the market was being led by a handful of stocks and the broader market was not participating in this uptrend. Today we have RSP, the equal weighted S&P 500 index breaking out of a triangle and looking set on claiming new highs. So what's the Difference between SPY and RSP ? I'm glad you asked :) SPY is a cap weighted index meaning that the companies with the highest (smallest) market cap hold more (less) weight in the Index and while the equal weighted means each companies have the same weight (2% in the RSP). As of June 21st 2024 (that'll work for the explanation) MSFT 7.19% NVDA 7.01% APPL 6.61% AMZN 3.69% Totaling 24.5% in the SPY. In the RSP they would each have a weight of 2% totaling 8%. Great, but what does that mean ? This means that large caps have less power and small and mid caps have more influence in the RSP than in SPY. So RSP breaking out might potentially signal that small and mid cap companies are on the move. Fundamentally this could be due to the fact that if rates come down, the smaller companies who rely more on debt might face less financial pressure and increase their bottom line. So its good to keep our eyes open on the smaller companies. This is not a call to action nor a recommendation but more of an idea im throwing out there. Cheers,
AMEX:RSPEducation
by jlhamilto
4 entry-strategies with head & shouldersContrary to popular belief, which considers the head and shoulders pattern to be a reversal pattern, this pattern can also be a powerful continuation pattern!!did you know?? 1-reversal role: in this case, when the neck-line of the head and shoulder breaks, sell and buy signals are issued (see the 2 items on the left in the picture) And an BULLISH trend turns into a BEARISH trend or vice versa!! 2-continuation role: In this case, you should draw a line parallel to the neck-line, on the left shoulder. The break of this line is equivalent to buy or sell signal. In this case, we move in the direction of the trend before the formation of the pattern(see the 2 items on the right in the picture) Important points of the head and shoulders pattern: 1- Before the pattern, an BULLISH or BEARISH trend should be seen. Just extend the neck-line to the left, if it passes through the body of the candles, then there is a PRE-trend. 2- Pay attention to the head and shoulder time-frame. You should consider a time-frame where the distance of the left shoulder from the head in this pattern is 15 to 55 candles!! If you want to learn more, support me on this page! Regarding training, I give examples on analytical posts. Be sure to follow.
Education
by Eldorado_Land
Liquidity is KEY to the MarketsIn this video I go through more about liquidity and why it is important. The markets move because of liquidity. Without liquidity, there is no trading. The larger the trader, the larger the liquidity required. Understanding the concept of liquidity and the fractal nature of price, trading becomes very interesting. A whole new world opens up to you and you no longer have to keep guessing where price is going. You no longer have to keep chasing candles. I hope you find this video insightful. - R2F
OANDA:XAUUSDEducation
by Road_2_Funded
1
Understanding Technical Indicators - Avoid FaultsI received a question from a member today related to Divergence on RSI or Stochastics. I've been lucky to actually sit down with the creator of Stochastics, George C. Lane, to discuss his indicator and how he used it to trade. I've also been luck to be able to attend multiple industry conferences over the past 20+ years where I've been able to watch and listen to dozens of the best technicians and analysts explain their techniques. Boy, those were the days - right? This video is going to help you understand most technical indicators are designed based on a RANGE of bars (usually 14 or so). This means they are measuring price trend/direction/strength/other over the past 14 bars - not longer. And because of that you need to understand any trend lasting more than 14+ bars could result in FAILURE of the technical indicator. Watch this video. I hope it helps. Get some.
AMEX:IWMEducation
by BradMatheny
Engage - The Set Up. Type of trading Day { The Trend Day}First Step of a successful trader is to build a Trade plan & review what he has done. This is my Trade Journal . (education purpose for all ) This is an Education Video explaining The Type of Trading Day. There are 6 Types of Trading Day, In this video we will look deep into First type 1> The Trend Day Key features: Price moves in a clear and continuous direction Pullbacks are shallow and limited. Trading strategies: Enter on first 15min Break out Ride the full day and exit 15 min before the market ends. Thanks TradeplanNifty
NSE:NIFTYEducation
by Tradeplannifty
Do Not Overwhelm Your Price Chart! In this article, we will discuss a very important term in trading psychology - paralysis by analysis in trading. Paralysis by analysis occurs when the trader is overwhelmed by a complexity of the data that he is working with. Most of the time, it happens when one is relying on wide spectra of non correlated metrics. That can be various trading indicators, different news outlets and analytical articles and multiple technical tools. Relying on such a mixed basket, one will inevitably be stuck with the contradictory data. For example, the technical indicators may show very bearish clues while the fundamental data is very bullish. Or it can be even worse, when the traders have dozens of indicators on his chart and half of them dictates to open a long position, while another half dictates to sell. Above, you can see an example of a EURUSD price chart that is overwhelmed by various technical indicators: Ichimoku, MA, Volume, ATR support and resistance levels fundamental data As a result, the one becomes paralyzed , not being able to make a decision. Moreover, each attempt to comprehend the data leads to deeper and deeper overthinking, driving into a vicious circle. The paralysis breeds the inaction that necessarily means the missed trading opportunities and profits. How to deal with that? The best option is to limit the number of data sources used for a decision-making. The rule here is simple - the fewer indicators you use, the easier it is to make a decision. EURUSD chart that we discussed earlier can look much better. Removing a bunch of tools will make the analysis easier and more accurate. There is a common fallacy among traders, that complexity breeds the profit. With so many years of trading, I realized, however, that the opposite is true... Keep the things simple, and you will be impressed how accurate your predictions will become. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
18
Best Price Action Pattern For Beginners to Start FOREX Trading There are a lot of price action patterns: wedges, channels, flags, cup & handle, etc. If you're just starting out your Forex journey, it's natural to wonder which one to trade and focus on. In this article, I will show you the best price action pattern for beginner s that you need to start forex trading. I will share a complete trading strategy with entry, stop and target, real market examples and useful trading tips. High accuracy and big profits guaranteed. The pattern that we will discuss is a reversal pattern. Depending on the shape of the pattern, it can be applied to predict a bearish or a bullish reversal. Its bearish variation has a very particular shape. It has 4 essential elements that make this pattern so unique: A strong bullish impulse, A pullback and a formation of a higher low, One more bullish impulse with a formation of an equal high, A pullback to the level of the last higher low. Such a pattern will be called a double top pattern. 2 equal highs will be called the tops , the level of the higher low will be called a neckline . Remember that the formation of a double top pattern is not a signal to sell. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Its violation is an important sign of strength of the sellers and increases the probabilities that the market will drop. Once you spotted a breakout of a neckline of a double top pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest support. Stop loss will lie above the tops. A bullish variation of a double top pattern is called a double bottom. It is also based on 4 main elements: A strong bearish impulse, A pullback and a formation of a lower high, One more bearish impulse with a formation of an equal low, A pullback to the level of the last lower high. 2 equal lows will be called the bottoms , the level of the lower high will be called a neckline . The formation of a double bottom pattern is not a signal to buy. It is a warning sign. The pattern by itself simply signifies a consolidation and local market equilibrium. Your confirmation will be a breakout of the neckline of the pattern. Once you spotted a breakout of a neckline of a double bottom pattern, the best and the safest entry will be on a retest of a broken neckline. Target level will be based on the closest resistance. Stop loss will lie below the bottoms. Double top & bottom is a classic price action pattern that everyone knows. Being very simple to recognize, its neckline violation provides a very accurate trading signal. Moreover, once you learn to recognize and trade this pattern, it will be very easy for you to master more advanced price action patterns like head and shoulders or triangle. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
Exploring Bullish Plays with E-minis, Micro E-minis and OptionsIntroduction The S&P 500 futures market offers a variety of ways for traders to capitalize on bullish market conditions. This article explores several strategies using E-mini and Micro E-mini futures contracts as well as options on futures. Whether you are looking to trade outright futures contracts, create sophisticated spreads, or leverage options strategies, this guide will help you design effective bullish plays while managing your risk. Choosing the Right Contract Size When considering a bullish play on the S&P 500 futures, the first decision is choosing the appropriate contract size. The E-mini and Micro E-mini futures contracts offer different levels of exposure and risk. E-mini S&P 500 Futures: Standardized contracts linked to the S&P 500 index with a point value = $50 per point. Suitable for traders seeking significant exposure to market movements. Greater potential for profits but also higher risk due to larger contract size. TradingView ticker symbol is ES1! Margin Requirements: As of the current date, the margin requirement for E-mini S&P 500 futures is approximately $12,400 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Micro E-mini S&P 500 Futures: Contracts representing one-tenth the value of the standard E-mini S&P 500 futures. Each point move in the Micro E-mini S&P 500 futures equals $5. Ideal for traders who prefer lower exposure and risk. Allows for more precise risk management and position sizing. TradingView ticker symbol is MES1! Margin Requirements: As of the current date, the margin requirement for Micro E-mini S&P 500 futures is approximately $1,240 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions. Choosing between E-mini and Micro E-mini futures depends on your risk tolerance, account size, and trading strategy. Smaller contracts like the Micro E-minis provide flexibility, especially for newer traders or those with smaller accounts. Bullish Futures Strategies Outright Futures Contracts: Buying E-mini or Micro E-mini futures outright is a straightforward way to express a bullish view on the S&P 500. This strategy involves purchasing a futures contract in anticipation of a rise in the index. Benefits: Direct exposure to market movements. Simple execution and understanding. Ability to leverage positions due to the margin requirements. Risks: Potential for significant losses if the market moves against your position. Requires substantial margin and capital. Mark-to-market losses can trigger margin calls. Example Trade: Buy one E-mini S&P 500 futures contract at 5,588.00. Target price: 5,645.00. Stop-loss price: 5,570.00. This trade aims to profit from a 57-point rise in the S&P 500, with a risk of a 18-point drop. Futures Spreads: 1. Calendar Spreads: A calendar spread, also known as a time spread, involves buying (or selling) a longer-term futures contract and selling (or buying) a shorter-term futures contract with the same underlying asset. This strategy profits from the difference in price movements between the two contracts. Benefits: Reduced risk compared to outright futures positions. Potential to profit from changes in the futures curve. Risks: Limited profit potential compared to outright positions. Changes in contango could hurt the position. Example Trade: Buy a December E-mini S&P 500 futures contract. Sell a September E-mini S&P 500 futures contract. Target spread: Increase in the difference between the two contract prices. In this example, the trader expects the December contract to gain more value relative to the September contract over time. The profit is made if the spread between the December and September contracts widens. 2. Butterfly Spreads: A butterfly spread involves a combination of long and short futures positions at different expiration dates. This strategy profits from minimal price movement around a central expiration date. It is constructed by buying (or selling) a futures contract, selling (or buying) two futures contracts at a nearer expiration date, and buying (or selling) another futures contract at an even nearer expiration date. Benefits: Reduced risk compared to outright futures positions. Profits from stable prices around the middle expiration date. Risks: Limited profit potential compared to other spread strategies or outright positions. Changes in contango could hurt the position. Example Trade: Buy one December E-mini S&P 500 futures contract. Sell two September E-mini S&P 500 futures contracts. Buy one June E-mini S&P 500 futures contract. In this example, the trader expects the S&P 500 index to remain relatively stable. Bullish Options Strategies 1. Long Calls: Buying call options on S&P 500 futures is a classic bullish strategy. It allows traders to benefit from upward price movements while limiting potential losses to the premium paid for the options. Benefits: Limited risk to the premium paid. Potential for significant profit if the underlying futures contract price rises. Leverage, allowing control of a large position with a relatively small investment. Risks: The potential loss of the entire premium if the market does not move as expected. Time decay, where the value of the option decreases as the expiration date approaches. Example Trade: Buy one call option on E-mini S&P 500 futures with a strike price of 5,500, expiring in 73 days. Target price: 5,645.00. Stop-loss: Premium paid (e.g., 213.83 points x $50 per contract). If the S&P 500 futures price rises above 5,500, the call option gains value, and the trader can sell it for a profit. If the price stays below 5,500, the trader loses only the premium paid. 2. Synthetic Long: Creating a synthetic long involves buying a call option and selling a put option at the same strike price and expiration. This strategy mimics owning the underlying futures contract. Benefits: Similar profit potential to owning the futures contract. Flexibility in managing risk and adjusting positions. Risks: Potential for unlimited losses if the market moves significantly against the position. Requires margin to sell the put option. Example Trade: Buy one call option on E-mini S&P 500 futures at 5,500, expiring in 73 days. Sell one put option on E-mini S&P 500 futures at 5,500, expiring in 73 days. Target price: 5,645.00. The profit and loss (PnL) profile of the synthetic long position would be the same as owning the outright futures contract. If the price rises, the position gains value dollar-for-dollar with the underlying futures contract. If the price falls, the position loses value in the same manner. 3. Bullish Options Spreads: Options are incredibly versatile and adaptable, allowing traders to design a wide range of bullish spread strategies. These strategies can be tailored to specific market conditions, risk tolerances, and trading goals. Here are some popular bullish options spreads: Vertical Call Spreads Bull Call Spreads Call Debit Spreads Ratio Call Spreads Diagonal Call Spreads Calendar Call Spreads Bullish Butterfly Spreads Bullish Condor Spreads Etc. The following Risk Profile Graph represents a Bull Call Spread made of buying the 5,500 call and selling the 5,700 call with 73 to expiration: For detailed explanations and examples of these and other bullish options spread strategies, please refer to the many published ideas under the "Options Blueprint Series." These resources provide in-depth analysis and step-by-step guidance. Trading Plan A well-defined trading plan is crucial for successful execution of any bullish strategy. Here’s a step-by-step guide to formulating your plan: 1.Select the Strategy: Choose between outright futures contracts, calendar or butterfly spreads, or options strategies based on your market outlook and risk tolerance. 2. Determine Entry and Exit Points: Entry price: Define the price level at which you will enter the trade (breakout, UFO support, indicators convergence/divergence, etc.) Target price: Set a realistic target based on technical analysis or market projections. Stop-loss price: Establish a stop-loss level to manage risk and limit potential losses. 3. Position Sizing: Calculate the appropriate position size based on your account size and risk tolerance. Ensure that the position aligns with your overall portfolio strategy. 4. Risk Management: Implement risk management techniques such as using stop-loss orders, hedging, and diversifying positions to protect your capital. Risk management is vital in trading to protect your capital and ensure long-term success Conclusion and Preview for Next Article In this article, we've explored various bullish strategies using E-mini and Micro E-mini S&P 500 futures as well as options on futures. From outright futures contracts to sophisticated spreads and options strategies, traders have multiple tools to capitalize on bullish market conditions while managing their risk effectively. Stay tuned for our next article, where we will delve into bearish plays using similar instruments to navigate downward market conditions. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME_MINI:ES1!Education
by traddictiv
A Simple/Consistent Trading Strategy Using AnchorBars For AllI was talking with a friend today and he stated he just wanted something simple and consistent. He stated he was using Weekly, Daily, and 30 Min charts to try to confirm his trade setups. He did not want to swing for trades too often - only when the Weekly, Daily, 30 Min charts aligned. I've build multiple systems somewhat like the one I'm showing you in this video. The trick to managing this system is to avoid consolidation periods. When price settles into an extended sideways range - you want to cut your trading down to almost NOTHING and wait for a more defined trend. Here you go. Simple and easy. If you don't understand AnchorBars, you can learn more on my other TradingView videos. Go Get Some...
AMEX:DIAEducation
by BradMatheny
2
ICT Breaker & Mitigation Blocks EXPLAINEDToday, we’re diving into two powerful concepts from ICT’s toolkit that can give you an edge in your trading: Breaker Blocks and Mitigation Blocks. There are one of my favourite PD Arrays to trade, especially the Breaker Block. I’m going to explain how I interpret them and how I incorporate them into my trading. Stay tuned all the way to the end because I’m going to drop some gold nuggets along the way" Ok, so first of all let’s go through what both these PD Arrays look like and what differentiates them, because they are relatively similar and how they are used is practically the same. On the left we have a Breaker Block and on the right a Mitigation Block. They both are reversal profiles on the timeframe you are seeing them on, and they both break market structure as you can see here. The actual zone to take trade from, or even an entry from, in the instance of this bearish example is the nearest down candle or series of down candles after price makes a lower low. When price pulls back to this area, one could plan or take a trade. The defining difference is that a Breaker raids liquidity on its respective timeframes by making a higher high or lower low before reversing, whilst a Mitigation Block does not do that. For this reason, a Breaker is always a higher probability PD Array to trade off from. As you should know by now if you are already learning about PD Arrays such as these is that the market moves from one area to liquidity to another. If you don’t even know what liquidity is, stop this video and educate yourself about that first or you will just be doing yourself a disservice. Alright, so let’s go see some real examples on the chart. Later on I’ll give you a simple mechanical way to trade them, as well as a the discretionary approach which I use. And of course, some tips on how to increase the probability of your setups.
Education
by Road_2_Funded
2
Price Action Fluency As A Second Language: Part TwoPlease watch my previously posted part one video to grasp the fundamentals. Now, let's dive into part two. Price action fluency involves more than just technical knowledge—it requires a deep understanding of your psychological behavioral responses. Your brain will have it as its prime objective to avoid pain. It will send signals to the eyes to ignore setups that don't perfectly align. Your eyes will only see what they want to see. It is essential to train your eyes to recognize every failed setup. To observe every detail of each area, and identify every possible entry point for both directions. Leave no aspect overlooked. The goal is for your brain to understand every nuance of price action intuitively and objectively. Just like when you read a book in a language you're fluent in, your brain doesn’t pause at every letter to decipher vowels, consonants, word meanings, or sentence structures. Instead, it processes a vast amount of information naturally and seamlessly. It doesn't skip letters or words out of fear; it treats every part of the language equally and objectively. Objectivity is purity. Objectivity is clarity. Objectivity is mastery.
KRAKEN:BTCUSDEducation
by EsotericTrading
1
Inverted Head and Shoulders: A Comprehensive GuideThe Inverted Head and Shoulders pattern is a popular and reliable reversal pattern that signals a potential shift from a downtrend to an uptrend. Understanding and identifying this pattern can provide traders with profitable trading opportunities. Anatomy of the Inverted Head and Shoulders Pattern. Left Shoulder: The price declines to a trough and subsequently rises. Head: The price falls again, forming a lower trough. Right Shoulder : The price rises once more before declining to a trough similar to the left shoulder. Identifying the Pattern To accurately identify an Inverted Head and Shoulders pattern, look for the following characteristics: Three Troughs: The head should be the lowest point, with the two shoulders on either side. Neckline: Draw a trendline connecting the peaks of the two shoulders. This line acts as a resistance level. Breakout Confirmation The pattern is confirmed once the price breaks above the neckline with increased volume. This breakout indicates a reversal of the previous downtrend and the start of a new uptrend. Trading the Inverted Head and Shoulders Entry Point Enter a long position when the price closes above the neckline. To reduce false breakouts, consider waiting for a retest of the neckline as support. Stop-Loss Place the stop-loss order below the right shoulder to limit potential losses. This level provides a cushion against false breakouts and unexpected market movements. Target Price The target price can be estimated by measuring the distance from the head to the neckline and projecting this distance upward from the breakout point. Example: Example Reference image of chart ONGC on Daily Time Frame shared below Distance from Head to Neckline: 62 points Breakout Point: 280 points Target Price: 342 points Practical Example of ONGC chart The neckline is drawn connecting the two peaks at 280 level. A breakout occurs at 280 level with increased volume and now candle closed bullish at 288 levels with Good intensity of Volumes. Key Points to Remember Volume: Volume should increase during the formation of the pattern, especially at the breakout point. Timeframe: The pattern can form over various timeframes, but it is more reliable over longer periods. Market Context: Always consider the broader market context and other technical indicators to confirm the pattern. Conclusion The Inverted Head and Shoulders pattern is a powerful tool for traders looking to capitalize on trend reversals. By understanding its structure and applying disciplined trading strategies, traders can enhance their ability to identify and profit from these patterns. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Happy Trading! RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:ONGCEducation
by RK_Chaarts
2
EBS Base Breakout SetupHey everybody got my camera working for this trade idea. Here we have the ebs stock setting up for a breakout in an uptrend and we're hoping for a bullish continuation here. I describe my entry points my stop loss and my profit target one and the logic behind them and how to position your share count so you can manage your risk and prepare to lose as much or as little money that you want if the trade goes against you every decision in this trade has meaning and logic to it that pertains to the particular stock and the setup therefore you know why you are doing everything that you're doing when trading. Let me know if you have any questions or if this is new to you or if you need help setting it up or calculating how much money you should win or lose. The only issue with this stock is that it's not in the technology sector and it's not in the communication sector so it is not in the most high performing sector right now although the healthcare sector is performing pretty decently with financials as well.
NYSE:EBSEducation
by PappyTrading
4
10-Year T-Note vs. 10-Year Yield Futures: Which One To Trade?Introduction: The 10-Year T-Note Futures and 10-Year Yield Futures are two prominent instruments in the financial markets, offering traders unique opportunities to capitalize on interest rate movements. This video compares these two products, focusing on their key characteristics, liquidity, and the differences in point and tick values, ultimately helping you decide which one to trade. Key Characteristics: 10-Year T-Note Futures represent a contract based on the value of U.S. Treasury notes with a 10-year maturity, while 10-Year Yield Futures are based on the yield of these notes. The T-Note Futures contract size is $100,000, while the 10-Year Yield Futures contract size is based on $1,000 per index point, reflecting a $10 DV01 (dollar value of a one basis point move). Liquidity Comparison: Both 10-Year T-Note Futures and 10-Year Yield Futures are highly liquid, with substantial daily trading volumes and open interest. This high liquidity ensures tight spreads and efficient trade execution, providing traders with confidence in entering and exiting positions in both markets. Point and Tick Values: Understanding the point and tick values is crucial for effective trading. For 10-Year T-Note Futures, each tick is 1/32nd of a point, worth $31.25 per contract. The 10-Year Yield Futures have a tick value of 0.001 percent, worth $1.00 per contract. These values influence trading costs and profit potential differently and are essential for precise strategy formulation. Margin Information: The initial margin requirement for 10-Year T-Note Futures typically ranges around $1,500 per contract, while the maintenance margin is slightly lower. For 10-Year Yield Futures, the initial margin is approximately $500 per contract, reflecting its lower notional value and DV01. Maintenance margins for yield futures are also marginally lower, providing traders with flexible capital management options. Trade Execution: We demonstrate planning and placing a bracket order for both products. Using TradingView charts, we set up entry and exit points, showcasing how the different tick values and liquidity levels impact trade execution and potential outcomes. Risk Management: Effective risk management is vital when trading futures. Utilizing stop-loss orders and hedging techniques can mitigate potential losses. Avoiding undefined risk exposure and ensuring precise entries and exits help maintain a balanced risk-reward ratio, which is essential for long-term trading success. Conclusion: Both 10-Year T-Note Futures and 10-Year Yield Futures offer unique advantages. The choice depends on your trading strategy, risk tolerance, and market outlook. Watch the full video for a detailed analysis and insights on leveraging these products in your trading endeavors. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CBOT_MINI:10Y1!Education
by traddictiv
4
EGO NO GO Traders’ Downfall: Six Actions to AvoidThere is NO place for ego and bravado with trading. If it falls under your personality, you have been warned. Do you know why? Because ego and emotion are traders’ kryptonite. In this piece, we’ll dive into the egotistical trader’s playbook and shine a light on six actions that could be crippling your trading game. EGO NO GO #1: Overtrade: More is Not Always More Overtrading is like trying to sprint a marathon; it’s unsustainable and a fast track to burnout. You need to pace yourself or you’re going to get a spasm or a stitch. As a trader, you’re not a machine-gun trader, firing rounds at every shadow. You need to only look and wait for the highest probability trades. Remember, it’s about the right trades, not just more trades. Solution: Quality Over Quantity as I always tell my MATI Traders! EGO NO GO #2: Revenge Trade: The Emotional Spiral After a loss, I know it feels tempting to jump straight back into the markets in order to recover your funds. But let’s face it… Revenge trading is about as effective as using a leaky bucket to bail water out of a sinking ship. Solution: Keep Cool and Carry On Clear your head. Take a walk, grab a beer – The market will always be there for you the next day. And it will probably dish out even better trades. Remember, the market doesn’t know you, and it certainly doesn’t owe you. Stick to your plan, not your pride. EGO NO GO #3: Ignore Risk Management: The Silent Killer If you ignore risk management, it’s like skydiving without checking your parachute. What if you jumped and instead of a parachute you’re wearing a backback? Don’t laugh, these things happen. With trading you need your risk management measures: Stop loss of less than 2% Drawdown management when the portfolio goes down. Risking money you can emotionally handle to lose. Making sure of your trade size. Checking your risk to rewards. Ensuring you’ve protected your positions. Solution: Plan Your Risk Decide on your risk parameters before you enter a trade, and then—this is key—stick to them. Your future self will thank you. EGO NO GO #4: Dismiss Market Analysis: Gut Feelings vs. Hard Data You also need to check the weather. By weather I mean, look at the news events coming out for the day and week. Is it NFP (Non Farm Payrolls)? – The day when you DON’T day trade. Is it CPI (Consumer Price Index)? – The day you DON’T Trade Is it FOMC where the federal committee talks and causes volatility? Solution: Check the news events and be vigilant. EGO NO GO #5: Blame Everything: The Pointless Game When trades go south. They look to blame. They point fingers to their mentors, their strategy, themselves. There is NO blame game with the markets. If you followed your rules, strategies, risk to reward and everything else – You did the best of your ability for that trade. Solution: Own your trade to Hone your trade It Accept responsibility, learn from your mistakes, and grow stronger. It’s the only way. EGO NO GO #6: Fail to Adapt: Evolve or Be Left Behind The market is a beast that’s always changing. I always say adapt or die. Feel the general market’s environment. Know whether it’s in a favourable or unfavourable period. Tweak your system to improve your metrics. Change the markets by adding or removing ones that aren’t working. Take ego out of the analysis. Solution: Stay Sharp, Stay Updated FINAL WORDS: I’m sure you already feel less egotistical when it comes to trading. And that means, this article has done it’s job. Whenever you feel ego creeping in, remember this article save it and store it. In fact go through all the articles that resonate, print them and store them in a file. It will be your guide to trading well! Let’s sum up the ego tendencies and how to avoid them… Avoid Overtrading: Less can be more. No Revenge Trading: Act with strategy, not emotion. Stick to Risk Management: It’s your safety net. Conduct Market Analysis: Never trade uninformed. Stop the Blame: Learn and move forward. Adapt to the Market: Evolve your strategy to stay relevant.
JSE:J200Education
by Timonrosso
The chart is a battleground, revealing who got crushed!In the early days of exchange trading, there was no technical possibility to visualize market quote movements, and traders analyzed ticker tapes. The real hype and massive interest in exchange speculation owe it to the technical possibility of displaying exchange information in the form of charts with ticks, bars, candles, and other more exotic ways of displaying price movements (Renko, Kagi). This led to a rapid growth of various schools of technical and graphical analysis. Just Google it, and you'll be overwhelmed by the sheer amount of info out there. It's like, every chart can be interpreted in a million ways, and three analysts will give you four different opinions on the same chart. It's crazy! But after 15+ years of trading, I've come to realize that the essence of graphical analysis is all about finding the "suffering" market participants. Classic patterns make it easy to spot areas of market activity and where traders are piling in. I'll give you some examples, backed by data from open sources, that'll show you just how predictable retail traders can be. Now, I know some experienced traders might say, "Patterns don't work, and this knowledge isn't enough." But I call BS - patterns do work, and the real question is who's extracting the most value from them? Of course, interpreting market patterns is just one piece of the puzzle. Here's an analogy: think of experienced hunters preparing for a hunt. They don't just wander around looking for prey; they identify the habitats, study the location, and track the animal's migration paths. They have a plan, limited time, and the right gear to get the job done. It's the same with pro traders with really big money. They plan and execute their strategy, using the behavior of less-informed participants in certain "hotspots" that attract retail traders like magnets. It's simple: a a newbie sees a market situation that looks just like one from a technical analysis book, and they're like, "Ah, I've got this!" Alright, let's take a look at the current situation with the Euro. I've got a screenshot with the average long and short positions of retail traders marked on the chart. It's a 1-hour time frame, which is probably the most popular one, right? Think about it, why is this time frame so popular? The data is from an open source, as of Friday evening. Take a minute to study this chart. What catches your eye? Let's zoom in and add some lines and arrows. Voilà! What do we see? The average long and short positions of participants (from the open source) almost perfectly match the breakouts of local highs and lows. This is what's called "trading the breakout" in the books. We can make an intermediate conclusion: the "bulls" were encouraged to open positions and got stuck in a losing zone, while the "bears" are celebrating their victory, as the market is favoring them and they're in a small profit. In other words, the market sentiment is bearish. Woohoo, case closed, let's go to short the Euro now! And yes, and no! The Euro quotes have been below the average short position of traders since June 14th, for two whole weeks, inviting everyone to start shorting. Even a blind "bull" can see it's time to switch sides). Here are some more numbers from the open source: short positions on the Euro decreased by 11.55% last week , while bearish positions grew by 8.55% . These are broker-aggregated data, no insider info here. You can find them yourself if you put in some time and effort. These numbers, as you understand, confirm our hypothesis that this "shorting invitation" didn't go unnoticed. Now, in the context of this article, think about it: "Will the 'Hunters' take advantage of this situation?" Or will the market take us all for a profitable ride? Oh boy... Let's look at the current situation with the Yen. It's a 1-hour chart with opened buys and sell levels marked. What can we conclude: a massive bearish candle clearly encouraged a lot of short positions to open, while the "bulls" opened at the upper range boundary during its test, and the market is favoring them, while the bears are suffering. But what's even more important, they're not just suffering, but also reversing the market. According to open data, the number of open short positions grew by 14.09% last week . Good luck to them in this tough business! However we should remember that short positions are closed at a stop-loss by "market buy" orders, which gives an impulse for further growth. What do I want to convey with this article, what do I want to share with you, mates? Evaluate market sentiment through the prism of "suffering" participants - that's, in my opinion, the best indicator! Usefully utilize information from open sources about retail positioning, there's a lot of value in it. Try to look at the chart with the eyes of a "hunter", search for traps set. Make such analysis a necessary part of your strategy to gain an edge, without which trading on markets is like playing "roulette". It's a journey, folks. Some get it earlier, some later, but eventually, most traders come to realize they need to "dig deeper", learn more about market mechanics, and improve their strategies. It's a painful process, but it's worth it. So, don't give up! Get back on your feet, and try again. As 50 Cent said: Get rich or die trying!
Education
by ClashChartsTeam
Ultimate Trading Strategy: Reaction to Supply and Demand Levels!🔍 Identifying Potential Buy or Sell Zones: In this step, you need to identify the zones that are likely to react and wait for the price to potentially reach them. ⏳📊 🌟 With the reaction to the first area, a buy trade is activated. 🌟 📝 Confirmations: 📉 Reaction to the expected area – Watch for a price movement hitting our anticipated zone! 🛠️ Formation of a combined hammer pattern – Look out for this powerful reversal signal! 📈 Formation of a bullish engulfing pattern – A strong indicator of upward momentum! 🔍 Trading Tips: 💡 High-risk stop-loss location: 👉 Place it below the candlestick pattern. At least twice the spread to ensure you're covered! 📏🔒 💡 Lower-risk stop-loss location: 👉 Place it below the expected area. Again, at least twice the spread for extra safety! 📏🔒 💰 Take-profit strategy: 👉 Base it on risk management mathematics, such as risk-reward ratios of 2, 4, and 6. 👉 Alternatively, observe reactions to past market areas, especially near important market highs and lows. 📊📈 🎯 Entry point strategies: 👉 Enter at the close of the confirmation candle. 👉 Or, set a limit order around 50% of the confirmation candle for a bigger volume opportunity! 📉📈 🌟 Buying in Two Phases: A Smart and Exciting Strategy! 🌟 🔹 Phase One: When you reach a profit of twice the risk, exit the trade. Why? Because the Asian high has been hunted and the candlestick formed has a long upper shadow. 🌄💹 💡 Analysis: The price hasn’t reached other zones yet and has risen in reaction to the first expected zone. Therefore, we expect a pullback and continued upward movement. 💪📈 So, I’ll place a second buy trade. 🚀💵 🔍 Confirmations for the Second Buy Trade: A double bottom has formed, marked with an X. ❌❌ A small hammer candlestick has swept the double bottom. 🔨 A long positive shadow candlestick has swept the bottom and reacted to a small order block on the left. 🌟 💡 Tips for the Second Buy Trade: Enter at the close of the long-shadowed doji candlestick or place a stop limit order above the long-shadowed doji candlestick. 📉📈 The stop loss should be below this candlestick. 📏🔒 🔹 Phase Two: Next, the price has reached an expected reaction zone from where we expected a price drop. 🌐💡 🔍 Confirmations for the Sell Trade: Reaction to the expected zone. 🔍 An inverse hammer candlestick reacting to the zone. 🔨 💡 Tips for the Sell Trade: The entry point should be in a candlestick with a negative signal indicating a price drop. This hammer candlestick can indicate a decline. 📉🔻 The target can be a reward of 2 or the last price bottom. 🎯💰 The stop loss should preferably be behind the expected zone. 📏🔒 🔥 Important Points!!: Since the price hasn’t deeply penetrated the zones, there’s a chance it might go higher or even mitigate this zone twice, ultimately turning it into a pullback for a further price rise. 🚀📈 Continuing on, the price reached the upper zone area. We expected a price drop from this zone, but it reached at 03:15, which is outside our trading session. However, we could have traded on it. 🔍 Sell Confirmations: The price has reached the expected zone. An inverse hammer candlestick pattern. 💡 Interesting Fact: If you had placed a limit order around the midpoint of the previous two zones, you would have profited by now. So, for this zone, you can also place a limit order around 50% of it. Continuing further, other zones have formed below that could be useful for new trades. ✨ Successful Sell Trade Achieved, Reaching a Reward of 4 Times the Risk. 📉 During the session continuation, the trend line was broken, triggering an upward price pullback. 🔹 Now, at the beginning of the session, we have a new zone, likely a selling order placement area. We're taking the risk on this zone. This time, we can place the trade around 50% of it. 🚀💼 🔥 Alright, what's your take now? 🔥 🌟 Is the price reacting to this level or not? 🌟 🚀📈 or 📉💥 Where are the upper zones located? What do you think? 🤔💬
Education
by mohamadrezaKhorsand
Debunking Al Brook's 90 Minute Theory (81% Win Rate Strategy)Al Brook's states that on the E-Mini S&P500 after the first 90 minutes, we have a 90% chance of seeing the high or low of the day. I dug through the data myself from 6-28-2024 to 5-17-2024. Below (and in the video) is what I found. First, I changed my timeframe to 90 minutes to make this task super easy. Then recorded all the of the 90 minute ranges within an excel sheet. This was not required for the research but, I had other plans for my blog. Then I looked to see what days the high and low were breached. These days were counted as days that disproved Al's theory. There were 12 where the high and low were breached. 17/29 = ~59% There you have it, 59% the time the 90 minute range is either the high or the low of the day. But, what could you do with this information? Since I already calculated the ranges, I had a good starting place. I tried to take the full average 90 minute range (22pts) and 1:1 Reward to Risk Ratio (R/R) indicators and place the entry at the closing price of the 90 minute bar. I didn't see any pattern that made since and the losers were considerably bigger than the winners. After making this video, I realized I should have only used half of the range. I think there is still work to be done here. Anyway, I went through each opening range and looked for the distance of breakouts they had before turning around. I still used the R/R indicator for this but, that was just to get a measurement of points. At this point (no pun), I knew I could take an average of points from the range breakout and apply them to make a strategy. If the original data says 59% chance we have seen the high or low of the day. That means if the next bar breaks the high or low of the range that we still haven't seen the high or low yet. A strategy with a 59% win rate really only needs a 1:1 R/R (without fees and commissions) to be profitable. So, I measured out 26.50 (this was the average breakout) on the R/R indicator for both a profit target and a stop loss. The entry was the first break of either the high or low. The results were about 50/50 but, the total points collected was around 81.50pts over 29 days. Using a pretty mindless set and forget strategy. The one caveat was that positions that didn't hit stops or targets had to be closed out at EOD. Well, 50/50 and 81 points of profit isn't bad but, what if we had a string of big loser and the strategy ended up 40/60 or something? Then we would be screwed. So, I applied a turtle trading technique where I only entered after a loser. If I won, I had to wait for another loser to appear. I couldn't trade a string of winners. This is where the money shot is! There were a total of 11 trades when applying the turtle method. 9 of the 11 trades were winnings for a whopping 81% and 136pts over 29 days. What a set and forget strategy, huh!? Ok Joe, but what about Al Brook's and his theory? Well, we have a small sample size here. Its a great starting place. I don't know what Al's sample size was nor do I know the timeframe in which this theory was developed. Markets are forever changing and I think that may be the case for this theory.
CME_MINI:ES1!Education
by JoeRodTrades
4
How to use Fibonacci Retracement ?‼️ Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels. After a significant price movement up or down, the new support and resistance levels are often at or near these trend lines . Usually the price retracts to 50% or until OTE (0.618, 0.705, 0.79) before another impulse movement occurs.
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