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Chart Patterns

4 Triangle Types You Need to KnowTriangle chart patterns offer valuable insights into market dynamics, symbolizing a clash between buyers and sellers within a contracting price range. These patterns are often classified as continuation or neutral patterns, suggesting that the price is likely to persist in its existing trend after the pattern concludes. 1. Symmetrical Triangle: A symmetrical triangle manifests when the slope of the price's highs and lows converges, creating a triangular structure. This pattern signifies a period of consolidation, with lower highs and higher lows indicating equilibrium between buyers and sellers. As the slopes converge, a breakout becomes imminent, though the breakout direction remains uncertain. To capitalize on a symmetrical triangle , consider placing entry orders above the slope of the lower highs and below the slope of the higher lows, prepared to ride the price in the direction of the breakout. 2. Ascending Triangle: An ascending triangle features a resistance level and a slope of higher lows. Buyers gradually push the price up, testing the resistance level. This pattern often signals an upward breakout as buyers gain strength and attempt to breach the resistance. To trade an ascending triangle , set entry orders above the resistance line and below the slope of the higher lows, anticipating a potential upward breakout. However, remain open to movement in either direction, as the resistance level may prove formidable. 3. Descending Triangle: In contrast to the ascending triangle , a descending triangle comprises lower highs forming the upper line, with a robust support level acting as the lower line. Sellers gain ground against buyers, and in most cases, the support line eventually breaks, leading to a continued downward move. To trade a descending triangle , set entry orders above the upper line (lower highs) and below the support line, prepared for a potential breakout. Note that sometimes, the support line may hold, resulting in a robust upward move. 4. Broadening Triangle: Now, let's delve into the captivating Broadening Triangle , also known as a Megaphone Pattern. This pattern stands out due to its expanding price range, creating a distinctive visual pattern on the chart. The Megaphone Pattern comprises a series of higher highs and lower lows, causing the price range to widen over time. This pattern reflects increasing volatility and uncertainty in the market, with both buyers and sellers actively participating. Trading Triangles demands meticulous analysis and risk management due to their nature and potential for unpredictable price moves. To approach Triangle patterns effectively: 1️⃣ Pay attention to the pattern's boundaries: Identify the upper trendline connecting the highs and the lower trendline connecting the lows. These trendlines define the range of price movement within the pattern. 2️⃣ Watch for breakouts and reversals: Triangles often precede significant price movements. Look for breakouts above the upper trendline or breakdowns below the lower trendline as potential trading opportunities. 3️⃣ Confirm with additional indicators: Combine your analysis with other technical indicators or tools to validate your trading decisions. Consider using indicators like moving averages, oscillators, or volume analysis to confirm the pattern's potential direction. Remember, trading Triangles necessitates careful analysis and risk management. Consider the overall market context, fundamental factors, and other technical signals to make informed trading decisions. While chart patterns provide valuable insights, they cannot guarantee future price movements. Always conduct thorough research, stay updated with market news, and adapt your strategy as market conditions evolve. Wishing you successful trading journeys guided by these patterns! 🚀📈✨ 💬 We would love to hear your thoughts and feedback on the article! Please leave your comments and questions below the article. Your input is valuable to us!
Education
by Vestinda
6
The Best Strategy to Apply Trailing Stop Revealed Hey traders, In this post, I will share with you my strategy to apply a trailing stop. Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are strictly on a retest. 1️⃣ Spotting a price action pattern, I am always waiting for its neckline breakout. (if we talk about different channels, then by a neckline we mean its trend line) Once I see a candle close below/above the neckline, I set my sell/buy limit order on a retest. Stop loss will strictly lie below the lows of the pattern if we buy and above the highs of the pattern if we sell. I spotted a horizontal trading range on an hourly time frame on AUDUSD. I set a sell limit order after a breakout of its neckline. Stop loss is lying above the highs of the pattern. 2️⃣ Once we are in a trade, you should measure the pattern's range (distance from its high to its low based on wicks) and then project that range from the entry to the direction of the trade. In the picture above, the pattern range and its projection are the underlined blue areas. Once the price reaches the projection of the pattern's range, you should move your stop loss to entry and make your position risk-free. Move stop to breakeven in traders' slang. 3️⃣ Then you should let the market go. 📈If you are holding a long position, you should let the market retrace and set a higher low and then a new higher high or AT LEAST an equal high. Once these conditions are met, you can trail your stop and set it below the last higher low. 📉If you are holding a short position, you should let the market retrace and set a lower high and then a new lower low or AT LEAST an equal low. Once these conditions are met, you can trail your stop and set it above the last lower high. In the example above, stop loss was modified when the price set a new lower high. Stop loss is now lying above that. Catching a trending market you should trail your stop based on new higher lows / lower highs that the price sets. Occasionally you will catch big winners. How do you apply a trailing stop? ❤️Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
2
🐋 Deep Dive Part II: Whale Behavior & Market Mastery!🌊📚 (Vid)Hey Crypto Enthusiasts! 🚀 In a recent analysis, I not only nailed Bitcoin's (BTC) movement but also illuminated the subsequent altcoin surge, driven by insightful whale behavior observations. Let's merge these insights with a focus on ADA (Cardano), OP (Optimism), SOL (Solana), and BTC. 📊 Cardano's (ADA) Meteoric Rise 🌟 ADA's journey began with a break above a pivotal support-resistance level. My entry point at 0.256 turned into a remarkable rally, hitting 52 cents. This movement was a classic case of altcoin buoyancy following Bitcoin's pause. Optimism (OP) and the Altcoin Breakouts 🌈 In the shadow of Bitcoin's stagnation, altcoins like OP exhibited significant breakouts, showcasing the shifting focus of market whales from Bitcoin to promising altcoins. Bitcoin (BTC) and Whale Dynamics 📉 Bitcoin's behavior provided a crystal ball into the whale activities. As BTC approached a major resistance level, it signaled a strategic move by whales to divert funds towards altcoins, catalyzing their surge. Solana (SOL) and Market Trends ☀️ Solana's chart also mirrored this trend, highlighting the broader market dynamics influenced by these significant players. 🔍 Insight on Whale Behavior: My analysis delved deep into the whale behavior, highlighting how Bitcoin's rally and subsequent pause was a precursor to altcoin dominance. This strategic pause in Bitcoin's ascent was a clear signal for the whales to redistribute their focus and capital, sparking a remarkable rise in altcoins like ADA, OP, and SOL. 🔄 The Bigger Picture - Understanding Market Shifts: What this trend teaches us is the importance of reading between the lines. Whale movements often precede major market shifts, and by understanding these patterns, we position ourselves to make informed decisions. 🧠 Future Outlook: As we continue to monitor these market dynamics, it's crucial to stay vigilant. The crypto market is known for its volatility, and while the current trend favors altcoins, it's essential to be prepared for any shifts that may arise. Always keep an eye on key resistance and support levels, market sentiment, and global economic factors that could influence the next big move. 🌐 Together, let's stay ahead of the curve in this fascinating and ever-evolving world of cryptocurrency. Your insights and engagement are what make this journey exciting and rewarding! One Love, The FXPROFESSOR 💙 part 1:
Education
by FX_Professor
2
Understanding the Basics of Market StructureIntroduction: In the vast and dynamic world of financial markets, understanding market structure is paramount for traders and investors seeking to navigate the complexities of buying and selling assets. Market structure encompasses a range of elements that shape how markets function and how prices are determined. This article delves into the fundamental components of market structure, shedding light on the key factors that influence market dynamics. Components of Market Structure: Market Participants: Market structure is inherently defined by its participants, including buyers, sellers, institutional investors, and market makers. Each participant plays a unique role, contributing to the overall ebb and flow of the market. Order Types: The diversity of order types, such as market orders, limit orders, and stop orders, significantly influences market structure. Understanding how these orders interact provides insights into the mechanics of price movements. Market Exchanges: Exchanges serve as the backbone of market structure, providing a platform for the trading of financial instruments. Whether centralized or decentralized, exchanges shape the landscape of trading activities. Market Phases: Bull and Bear Markets: Market structure undergoes distinct changes during bull and bear markets. Recognizing the characteristics of each phase is crucial for anticipating shifts in sentiment and making informed decisions. Cycles and Trends: Market cycles and trends contribute to the dynamic nature of market structure. Observing structural changes during different phases helps traders adapt to evolving market conditions. Case Studies: UPTREND / BULL MARKET: When the market exhibits an uptrend structure, our focus should be directed towards identifying opportunities to go long or initiate buy positions. DOWNTREND / BEAR MARKET: When the market adopts a downtrend structure, our attention should be centered on identifying opportunities to sell or go short. NO TREND / SIDEWAYS When the market is moving sideways without a clear trend, it's a good idea to be careful and closely check the market conditions. Opportunities for buying or selling might be limited during these times. Traders can use specific strategies for this situation, like sticking to a range or paying attention to support and resistance levels. In such a case, it's smart to think about leaving your current position and being cautious by not getting too involved in the market. Since there's no clear trend, avoiding unnecessary risks can help protect against potential uncertainties and unpredictable price changes. Conclusion: In conclusion, a comprehensive grasp of market structure is indispensable for anyone engaging in financial markets. As markets continue to evolve, adapting to changes in structure becomes a key factor in achieving success. By understanding the basics outlined in this article, traders and investors can navigate the intricate web of market structure with greater confidence. Shared content and posted charts are intended to be used for informational and educational purposes only.
NYMEX:CL1!Education
by LokiMilo
1
RITCO- Rectangle Pattern and Case Study of Cup and Handle PatterBreakout Chart to Watch: NSE:RITCO 287 1. Cup and Handle Breakout (Case Study): Time Frame: December 2022 - July 2023 Breakout Level: 195 Outcome: Successful breakout to 292 levels Gain: 50% Explanation: RITCO recently experienced a notable cup and handle pattern breakout, characterized by a robust move from the breakout level of 195 to 292. This gain of 50% was supported by strong volume, indicating significant market interest. 2. Current Consolidation within Rectangle Pattern: Presently, the stock is undergoing consolidation within a rectangle pattern, formed over a six-month period from July 2023 to December 2023. This pattern is defined by a support level around 217 and a resistance level near 290. 3. Upside Movement Indicators: Recent price action reveals attempts to ascend, supported by a surge in both volume and price over the last 15 days. Bullish marubozu candlesticks on the chart signify potential upward movement. 4. Key Breakout Level: A crucial level to monitor is the 290/300 range. A breakout and sustained trading above this level would mark an all-time high breakout, potentially paving the way for substantial upside in the near term. 5. Anticipated Upside Targets: Upon confirming the breakout, the stock may target significant upside, potentially reaching levels in the range of 350 to 400. This projection is contingent on sustained strength post-breakout. 6. Consolidation Scenario: Conversely, if the price encounters resistance and fails to establish itself above the breakout level, a consolidation phase within the rectangle range of 293 to 217 may transpire. 🚫 Disclaimer: This analysis is for educational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor. It is recommended to conduct thorough research and seek advice from certified financial professionals before making investment decisions. #TechnicalAnalysis #Trading #Investing #StocksToWatch
NSE:RITCOEducation
by Mr_Chartist_
10 Day Trading TipsVenturing into day trading promises the thrill of rapid profits, but it's a realm that demands caution and strategic acumen, especially for beginners. 💜 If you appreciate our guides, support us with boost button 💜 To pave the way for success, this article provides 10 crucial tips, emphasizing the need for education, meticulous planning, and an unwavering commitment to continuous learning. 1. Invest Time in Education: Embark on your day trading journey by immersing yourself in knowledge. Explore online courses, books, and forums that delve into market intricacies, trading strategies, and risk management. A solid grasp of technical and fundamental analysis, chart patterns, and market psychology is foundational for success. 2. Develop a Solid Plan: Day trading without a clear plan is akin to navigating uncharted waters without a map. Establish a comprehensive strategy outlining your objectives, risk tolerance, preferred markets, timeframes, and capital allocation. A well-defined plan serves as your anchor, fostering discipline and informed decision-making. 3. Prioritize Risk Management: Safeguard your capital by making risk management your top priority. Seasoned traders advocate risking no more than 1-2% of your trading capital on any given trade. Implement stop-loss orders to curtail losses and shield your investment. 4. Practice with a Demo Account, Including TradingView's Paper Trading: Before venturing into live trading, it's crucial to hone your skills and test your strategies in a risk-free environment. Many brokers offer demo accounts with virtual funds, mimicking real market conditions. This allows you to gain experience, refine your strategy, and build confidence without the fear of losing actual money. Additionally, consider leveraging TradingView's paper trading feature. TradingView, a versatile charting platform, provides a simulated trading environment known as paper trading. With this tool, you can execute trades in real-time using virtual funds, closely simulating actual market conditions. This integration allows you to apply technical analysis, test strategies, and familiarize yourself with the platform's features before committing to live trading. Using both traditional demo accounts and platforms like TradingView's paper trading feature provides a comprehensive practice regimen. It not only helps you become proficient in executing trades but also ensures that you are well-prepared for the dynamic challenges of day trading when you transition to live markets. 5. Choose the Right Broker: Selecting a reliable broker is paramount for day trading success. Seek a broker with low commissions, rapid execution times, and a user-friendly trading platform. Regulatory compliance is crucial for fund protection, and auxiliary factors like customer support and educational resources should also be considered. 6. Master Technical Analysis: Technical analysis forms the bedrock of day trading. Grasp the art of reading price charts, identifying trends, and recognizing support and resistance levels. Familiarize yourself with key technical indicators such as moving averages, RSI, MACD, and Bollinger Bands to inform your trading decisions. 7. Develop a Tailored Trading Strategy: Crafting an effective trading strategy is pivotal for day trading success, and today's traders have access to powerful tools that can significantly enhance their capabilities. Utilize TradingView with PineScript and Strategy Tester: Leverage the robust features of TradingView, a popular charting platform. With its proprietary scripting language, PineScript, traders can create custom indicators and strategies tailored to their specific needs. The Strategy Tester allows you to backtest your strategies against historical data, providing valuable insights into their performance. If you not familiar with the PineScript Take your trading strategy to the next level with Vestinda, an app that empowers traders to build strategies without the need for coding. With a library of over 200 templates, you can choose a strategy that aligns with your preferences and easily customize it to suit your liking. Vestinda also offers a comprehensive backtesting feature, allowing you to simulate your strategy's performance under various market conditions and assets. By incorporating these advanced tools into your strategy development process, you refining, and optimizing your trading approach. Whether you prefer the flexibility of PineScript on TradingView or the user-friendly interface of Vestinda, these tools empower you to make data-driven decisions and stay ahead in the dynamic world of day trading. 8. Stay Informed: Remain vigilant and well-informed about market news and events that can influence your trades. Leverage economic calendars, financial news websites, and social media platforms as valuable sources of information. Be prepared for market volatility, especially during significant economic releases and news events. 9. Control Your Emotions: Emotional discipline is paramount in day trading, where fear and greed can lead to impulsive decisions. Adhere to your trading plan, follow risk management rules, and avoid revenge trading. Developing emotional resilience is critical for sustained success. 10. Keep Detailed Records: Maintain a meticulous trading journal documenting entry and exit points, trade sizes, profits, and losses. This tool facilitates performance analysis, identifies improvement areas, and fine-tunes your strategy. A detailed record is your compass for assessing progress and making necessary adjustments. Day trading offers a lucrative path for those willing to invest time and effort into mastering the craft. Approach it with caution, discipline, and a commitment to continuous learning. By educating yourself, crafting a solid plan, and adhering to these tips, you enhance your prospects of success in the dynamic world of day trading. Remember, proficiency takes time, so be patient and persistent on your journey to financial independence.
Education
by Vestinda
"At most dont go beyond 2000 shares."A penny stock is a stock priced below $1. As a chartist you dont need indicators. You want to stay within volume. When you become a chartist it doesnt matter what industry you are in. In penny stocks make sure the price is affordable. In case look at the top left to the bottom right. Be a chartist and look at price direction. As Timothy Sykes says dont buy more than 1000 shares Rocket boost this content to learn more. At most dont go beyond 2000 shares. **Disclaimer:** The information provided above is for educational and informational purposes only. It does not constitute financial advice, and trading always involves a risk of substantial losses, regardless of the margin levels used. Before engaging in any trading activities, it is crucial to conduct thorough research, consider your financial situation, and, if necessary, consult with a qualified financial advisor. Past performance is not indicative of future results, and market conditions can change rapidly. Trading decisions should be made based on careful analysis and consideration of individual circumstances. The user is solely responsible for any decisions made and should be aware of the inherent risks associated with trading in financial markets.
NASDAQ:GOVXEducation
by lubosi
NCLINDIA- Case Study of Classic PatternsCase Study of Patterns in NSE:NCLINDIA 183 ### 1. Ascending Channel Pattern (May 2009 - Nov 2010 ): - Time Frame: 1.5 years - Pattern Characteristics: - Upward Sloping Channel - Range of 20 points - Breakdown: - Breakdown Level: 78 - Price Decline: 50% or 37 points - Strong Volume and Price Strength during Breakdown Explanation: The Ascending Channel during this period indicated a sustained bullish trend. However, the breakdown at the 78 level marked a significant shift, accompanied by robust volume and price strength, leading to a substantial 50% decline. ### 2. Curve Pattern (Aug 2014 - Jan 2017): - Time Frame: 2.5 years - Pattern Characteristics: - Resembles Rectangle Pattern - Breakout: - Breakout Level: 56 - Strong Breakout with Volume and Price Spike - Post-Breakout Movement: - Reaches 78 Resistance - Followed by Bearish Candlesticks Explanation: The Curve Pattern, resembling a rectangle, unfolded over 2.5 years. The breakout at 56 saw a strong surge with significant volume and price spike. However, reaching the 78 resistance led to bearish candlesticks, signaling potential resistance and a shift in momentum. ### 3. Morning Star Pattern: - Pattern Characteristics: - Strong Formation at Bottom - Horizontal Support at 35 - Long Dojis Indicate Indecisiveness - Strong Volume Strengthens the Pattern - Post-Pattern Movement: - Price Moves Upside - Reaches 78 Resistance Explanation: The Morning Star pattern, forming at a bottom with a strong horizontal support at 35, suggested a reversal. The presence of long dojis indicated market indecisiveness, but strong volume strengthened the pattern. Subsequently, the price moved upside, reaching the 78 resistance level. ### 4. Rectangle Pattern (2009 - Mid-2023): - Pattern Characteristics: - Formation Range: 28 to 92 levels - Long Formation Period (2009 to Mid-2023) - Breakout: - Breakout Level: 56 - Strong Breakout with Volume - Post-Breakout Movement: - Breaks 100 Psychological Level in 3 Weeks - Price Movement: 92 to 188, a 105% Gain Explanation: The Rectangle Pattern, spanning from 2009 to mid-2023, showcased a range from 28 to 92. The breakout at 56, supported by strong volume, was followed by a rapid ascent, breaking the psychological 100 level in just three weeks and achieving a substantial 105% gain. ### Conclusion: NLCINDIA's chart patterns offer valuable insights. The recent breakout from the long-term Rectangle Pattern, coupled with strong volume and bullish candlesticks, suggests potential upside. However, comprehensive analysis, including fundamental factors and external market influences, is crucial. Always monitor for signs of reversal or consolidation in the current market context. #TechnicalAnalysis #Trading #Investing #Stocks
NSE:NLCINDIAEducation
by Mr_Chartist_
Fibonacci: The FundamentalsApplying Nature's Harmony to Financial Markets From flower petals to far away galaxies, the Fibonacci pattern is found across the natural world. Fibonacci patterns are derived from the Fibonacci number sequence where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, and so forth. Some traders believe the Fibonacci sequence and its derived ratios, like 38.2%, 50% and 61.8% occur in the price movements of financial markets. These ratios are used to predict levels at which assets might retrace or extend their trends. I. Fibonacci Retracements: Add Precision When Timing Pullbacks Fibonacci retracements are based on the idea that after a significant price movement, an asset often retraces a portion of that move before continuing its original trend. The retracement is simply a pullback against the impulsive trending move. Identifying the impulsive trending move is pivotal to drawing Fibonacci retracements. This trending move is known as the ‘impulse leg’ and is labelled X-A on our charts (below). The Fibonacci retracement tool can be overlayed on top of any impulse leg to provide a series of retracement levels generated from the Fibonacci number sequence. Fibonacci Retracement Levels: Past performance is not a reliable indicator of future results 38.2%: This level indicates a moderate retracement. It's often seen as an area where traders might anticipate a reversal or a continuation of the trend. 50%: A key level, suggesting a potential halfway point for the retracement. Traders closely watch this level for potential shifts in market sentiment. 61.8%: Known as the "golden ratio," this level holds perhaps the most significance in the world of Fibonacci – it is the ratio described by Leonardo da Vinci as representing divinely inspired simplicity and orderliness. 78.6%: While not as commonly used as the others, some traders like the 78.6% retracement as it is perceived to offer the greatest potential reward relative to X (the inception of the trending move). However, the deeper the retracement the weaker the trend. Fibonacci Retracements in Uptrends: Past performance is not a reliable indicator of future results Fibonacci Retracements in Downtrends: Past performance is not a reliable indicator of future results Uses of Fibonacci Retracements: Identifying Support and Resistance: These retracement levels often act as potential areas where price movements may pause or reverse. Planning Entry and Exit Points: You can use Fibonacci retracements to plan entry points for trades during a trend and set exit points to take profits or minimise losses. Confirmation Tool: When Fibonacci levels align with other technical indicators or chart patterns, they can provide confirmation for trade setups, adding confidence to trading decisions. II. Fibonacci Extensions: Projecting Price Targets and Beyond Fibonacci extensions are used to project potential future levels beyond the initial trend. They help traders anticipate where price movements might extend. Like Fibonacci retracements, the impulse leg (labelled X-A) is key. The Fibonacci trend extension tool can be overlayed onto your impulse leg to generate Fibonacci-based levels to which the impulse leg may extend. Common Extension Levels: Some commonly used levels are 138.2%, 161.8%, and 261.8%. Fibonacci Extension Levels Past performance is not a reliable indicator of future results Fibonacci Extensions in Uptrends Past performance is not a reliable indicator of future results Fibonacci Extensions in Downtrends Past performance is not a reliable indicator of future results Uses of Fibonacci Extensions: Setting Profit Targets: You can use extensions to establish potential price targets, aiding in setting profit-taking levels for their trades. Predicting Price Reversals or Extensions: These extension levels can signal where a trend might exhaust or where it could extend further, assisting traders in adjusting their strategies accordingly. Conclusion: While debates surround the impact of Fibonacci in markets, the core principles—identifying strong impulse legs, timing pullbacks precisely, and projecting targets—form the cornerstone of price action trading. Next week, we'll explore the synergy of retracements and extensions, delving deeper into the captivating realm of advanced Fibonacci patterns. 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. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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. Social media channels are not relevant for UK residents
Editors' picks
CAPITALCOM:GOLDEducation
by Capitalcom
27
Essential Tips for Newbie Day Traders: Forex and Gold Trading Entering the world of day trading can be both exciting and daunting, especially for those who are new to the game. This article aims to provide simple yet valuable recommendations for beginner day traders specifically focusing on forex and gold trading. 💼💰🚀 1. Educate Yourself: Before diving into day trading, it is crucial to understand the intricacies of the forex and gold markets. Take the time to learn about the basic terminology, technical analysis, fundamental analysis, and different trading strategies. Knowledge is your best weapon in this realm. 📚✍️📈 Start by reading books, attending webinars or courses, or even joining online trading communities to gain insight into successful day trading techniques. 2. Practice with a Demo Account: To avoid unnecessary losses, it is highly recommended to practice trading using a demo account. This allows you to gain hands-on experience without the risk of losing real money. Take the time to experiment with different strategies and understand how the market works. 📊📝💡 Tradingview paper trading offers demo accounts where you can simulate real trading scenarios and test your skills. 3. Develop a Trading Plan: A well-defined trading plan is essential for any day trader. Specify your goals, risk tolerance, and trading style. Determine the maximum amount you are willing to risk per trade and set realistic profit targets. Stick to your plan and avoid impulsive decisions. 📝🎯💼 Example: Decide on a risk-to-reward ratio, such as 1:2, which means you are willing to risk $1 to potentially earn $2, and only take trades that meet this criteria. 4. Manage Your Risks: Risk management is a crucial aspect of day trading. Never risk more than you can afford to lose and always set stop-loss orders to limit potential losses. It is important to maintain a disciplined approach to preserve your capital. 💪💸📉 Example: Let's say you have $10,000 as your trading capital. Set a maximum loss limit per trade, such as $200, and ensure your stop-loss order reflects this limit. 5. Keep Up with Market News: Stay informed about global events, economic indicators, and market news that can impact the forex and gold markets. Develop a routine of reading relevant financial news and reports to stay ahead of market trends. 🌍📰💼 Important events like central bank announcements, political developments, or changes in commodity prices can significantly affect currency and gold prices. Tradingview nicely displays the coming news on the horizontal scale of a price shart. Just click on a circle and you will see the coming related events. In conclusion, starting out as a newbie day trader in the forex and gold markets requires a combination of knowledge, practice, discipline, and risk management. By following these simple recommendations, you will be better equipped to navigate the markets and enhance your chances of success in day trading. 💪📊✨
Education
by AnabelSignals
1
[EDU] Why doesn't Market goes in a straight line? 3 Reasons WhyHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. 1. Market Psychology and Greed/Fear Dynamics Trader psychology plays a significant role in market movements. As prices rise, greed may drive buying, causing the market to become overbought (likewise when market is down). Eventually, fear sets in as traders worry about a potential reversal. This fear can lead to profit-taking and trigger a pullback. This can happen at previous supply demand zone,pivot points, whole or quarter numbers etc) 2. Profit-taking - Traders who entered the market early in the trend may decide to take profits as the price moves in their favor. This selling activity can lead to a temporary pullback as these traders exit their positions. 3. Fundamental Factors - Economic events, geopolitical developments, or changes in market sentiment can trigger profit-taking or reevaluation of positions. Unexpected news or data releases may prompt traders to adjust their positions, resulting in a temporary pullback. (E.g. ECB or FED Speeches, unexpected rate changes not aligned with expectations, outbreak of diseases/wars) Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! --
Education
by Shadowing_The_Big_Boys
[EDU] Why Risking 5-10% a trade is sucidal?Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Here are 5 reasons why it is too RISKY and you should'nt do it! > Challenges to recover - Large losses require proportionally larger gains to recover. A 50% drawdown requires you to have a gain of 100% to BREAKEVEN! > Emotional Stresses - Trading with such high risk can amplify your stress and anxiety. Fear and panic may set in during losing streaks, impairing sound decision-making and leading to impulsive actions. > Account Blow-Up Risk - You just need to have a string of 5-6 losses and that will be devasting to both your mental and capital, which could lead to margin calls. > Reduced Learning Opportunities - Excessive risk can limit the number of learning opportunities for a trader. If a significant portion of the trading capital is lost quickly, the trader may not have the resources to apply lessons learned from mistakes. Why not risk 1-3% a trade, if at 1% you have under your belt , 100 times to lose ! > Market Volatility Impact - In volatile market conditions, high-risk strategies can be particularly vulnerable. Sudden price movements can result in larger-than-expected losses.What if you got caught in a black swan event? Ouch...That sucks! Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! --
Education
by Shadowing_The_Big_Boys
TRADING FOUNDATION: WHY DOES PRICE MOVE (PART 1 - LIQUIDITY)WHY DOES PRICE MOVE IN THE FOREX MARKET? A simple answer to this question is... price moves for 2 major reasons To take liquidity To fill imbalances or price inefficiencies I will break this into two parts and discuss Liquidity first. What is Liquidity in Forex Trading? Liquidity is the presence of orders at specific prices in the market, ensuring that transactions can take place without disruptions. When traders talk about liquidity, they are usually referring to the resting orders in the market. These orders can be absorbed or targeted by banks and financial institutions (BFIs) to influence the patterns of price movement. Liquidity can be found throughout the market, although certain areas may have higher levels than others. The good news is that it is indeed possible to learn how to identify and recognize liquidity patterns. Liquidity comprises a variety of orders that gather in the market, including limit orders, stop loss orders, and stop limit orders. These orders come into play when prices reach specific levels of supply or demand in the market. Understanding liquidity is essential in comprehending how prices move. Why do you need to understand Liquidity? Liquidity is crucial for predicting price movements. Analyzing liquidity, along with market structure, supply and demand, and order flow, provides insights into potential price directions. It's important to consider liquidity alongside trend analysis and supply and demand to understand market conditions effectively. Highly liquid markets can be manipulated by large banks or institutions, leading to liquidity shortages, price slippage, and poor trade execution. Recognizing liquidity pools during slow sideways price movements is key. What are the main types of Liquidity in Forex trading? 1. Buy-side liquidity (see chart for example) Buy-side liquidity refers to the accumulation of orders above a range or high, including buy-stop limits and stop losses placed by sellers and breakout traders. Banks and financial institutions (BFIs) may target these orders to fuel temporary or sustained bullish price movements. Buy-side liquidity can be divided into 3 a. Relatively equal highs liquidity b. Previous high liquidity c. Trendline liquidity a. Relatively equal highs: This is when the price fails to break a level within a minimum of two tries. When this happens, there is a high tendency that orders will be above that level i.e. stop-losses or buy-stop orders. Due to this, large institutions will target that level to liquidate their orders or fill new orders. see the example below. b. Previous high: A previous high is the top of a level or range from which a retracement in price started. Every high in the market holds liquidity. Usually not as appealing at the relatively equal highs. see the example below. c. Trendline: This liquidity setup is usually as appealing as the relatively equal highs as it provides enough liquidity in the market to liquidate orders of large funds or fill in more orders. Anytime you notice a buy-side trendline liquidity building up, expect that price will move radically fast towards it. see example below 2. Sell-side liquidity (see chart for example) Sell-side liquidity refers to the collection of orders situated below a range or low, including sell-stop limits and stop losses placed by buyers and breakout traders. Banks and financial institutions (BFIs) can target these orders to generate temporary or sustained bearish price movements. Similar to buy-side liquidity, sell-side liquidity serves a crucial role in the market dynamics. Sell-side liquidity can be divided into 3 a. Relatively equal lows liquidity b. Previous low liquidity c. Trendline liquidity a. Relatively equal lows: This is when the price fails to break a level within a minimum of two tries. When this happens, there is a high tendency that orders will be below that level i.e. stop-losses or sell-stop orders. Due to this, large institutions will target that level to liquidate their orders or fill new orders. see the example below. b. Previous low: A previous low is simply put at the top of a level or range from which a retracement in price started. Every low in the market holds liquidity. Usually not as appealing at the relatively equal lows. see the example below. c. Trendline: This liquidity setup is usually as appealing as the relatively equal lows as it provides enough liquidity in the market to liquidate orders of large funds or fill in more orders. Anytime you notice a sell-side trendline liquidity building up, expect that price will move radically fast towards it. see example below Note : This does not mean you should just trade based on where you see liquidity, you should also do a proper multi-timeframe analysis, and if your narrative aligns with where liquidity is resting, there is a higher chance for it to go there. I will make a post on the Part 2 - Imbalances. Ensure to follow so you see what it is and how to make good use of it. Cheers, Jabari
OANDA:XAUUSDEducation
by jabariofafrica
Fibonacci Retracement/Extensions- How & Why? | Live ExampleFibonacci retracements in technical analysis of various assets use a mathematical sequence discovered by Italian mathematician Leonardo Fibonacci. This sequence is a series of numbers where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on. In stock trading, Fibonacci retracements are used to identify potential levels of support or resistance during price corrections. Imagine you have a stock that has been rising in price for some time. Suddenly, it starts to decline. Traders who use Fibonacci retracements believe that during this downward movement, the stock price will likely retrace or bounce back to certain levels before continuing its downward trend. These retracement levels are derived from the Fibonacci sequence. The most commonly used levels are 38.2%, 50%, and 61.8%. For example, if a stock's price drops from 100 to 80, traders would expect it to bounce back to around 88.20 (38.2% retracement), 90 (50% retracement), or 93.20 (61.8% retracement) before continuing its decline. While their effectiveness is debated just like any other tool, many traders including myself believe that these levels act as psychological support or resistance points due to the large number of market participants who follow this approach. Let us get back on the example above. I drew a trendline which had helped me back in 2021 to predict the top in GOLD. This is the perfect example of how EVERY PRICE movement matters. The Fibonacci levels are derived from levels from 2008. In this example the Fibonacci extension level 3.618 held as a perfect resistance for the price of GOLD. 2008 to 2023, isn't this amazing? How long can a single price movement can have its affect! How to draw a Fibonacci Retracement/Extension? It's fairly simple. Just plot one end of the fib to the high of the price movement and the other to the low or vice versa. I'll answering all your queries in the comments below. Please feel free to reach out!
TVC:GOLDEducation
by YieldYogi
2
What Traders and Chefs Have in Common 📊👨‍🍳As we start the last month of 2023, which includes many holidays involving cooking and eating, I would like to reflect on how this journey has been much like mastering the art of a seasoned chef in the kitchen. ⏱ Timing is Everything: A chef knows that perfect timing can turn a good meal into an extraordinary one. Similarly, in trading, being at the right place at the right time, seizing opportunities, and executing trades with precision can make all the difference. 🌐 Global Flavors: Trading, like cooking, allows us to savor the diverse flavors of the global market. Exploring different markets and adapting to their unique characteristics is akin to a chef experimenting with various cuisines to create a signature dish. 💡 Innovation and Adaptation: Just as a chef experiments with new ingredients and techniques, successful traders innovate and adapt to changing market conditions. Staying ahead of the curve requires constant learning and the ability to pivot when necessary. 📊 Balancing Act: A chef expertly balances flavors to create a harmonious dish. In trading, finding the right balance between risk and reward is crucial. It's about managing the portfolio like a carefully crafted menu, ensuring diversity, and minimizing potential pitfalls. ⚖️ Consistency is Key: Like the consistent quality expected from a chef's creations, trading success often hinges on a consistent approach. Whether it's sticking to a well-defined strategy or maintaining discipline during market fluctuations, consistency is the backbone of lasting success. 👨‍🍳 Continuous Improvement: A chef's journey is one of continuous improvement, refining techniques and expanding culinary skills. Similarly, in trading, our commitment to learning, evolving strategies, and honing our skills is a never-ending process. 📜 Follow the Recipe: Just as a chef follows a carefully crafted recipe, in trading, having a well-defined plan is essential. A recipe guides a chef through the cooking process, just as a trading plan provides a roadmap for navigating the complexities of the market. 🥂Here's to another year of savoring the highs, navigating the challenges, and crafting a trading experience that's as delightful and rewarding as a perfectly crafted meal. Cheers to the journey ahead! 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Richard Nasr
Education
by TheSignalyst
40
How RSI Alerts Can Supercharge Your Long-Term Crypto PortfolioBuilding a long-term portfolio demands a strategic approach that goes beyond random buys and impulsive decisions. Instead, savvy investors employ tools like the Relative Strength Index (RSI) to identify advantageous entry points and navigate the market cycles effectively. 💜 If you appreciate our guides, support us with boost button 💜 Here’s a step-by-step guide on how to harness RSI alerts to fortify your long-term crypto holdings. Step 1: Spotting Entry Opportunities with RSI < 35 When aiming for long-term crypto accumulation, the goal is to buy assets at opportune prices. Setting up your charts with the RSI indicator and adjusting the lower band to 35 enables you to pinpoint instances where cryptocurrencies in your portfolio might have experienced an unwarranted dip. This can be a golden opportunity to acquire assets for the long run, aligning with the principle of buying low. Step 2: Steering Clear of Overbought Zones with RSI > 70 Conversely, an RSI reading surpassing 70 signals potential overbought conditions. In such instances, it's prudent to exercise caution. Holding off on new purchases during these periods or even considering exiting certain positions that have seen significant price surges allows you to safeguard your returns. Converting gains into stablecoins during overbought phases enhances liquidity, positioning you strategically for future opportunities. Step 3: Confirm with Other Indicators & DYOR RSI functions most effectively when complemented by other indicators. Incorporating tools like Moving Averages, Bollinger Bands, and MACD provides a more comprehensive view of market conditions. Remember, thorough research is crucial. Rely on multiple indicators to reinforce your decision-making process and mitigate risks associated with single-point analyses. Step 4: Get Timely RSI Alerts On Your Email & TradingView App Time is of the essence in the volatile crypto market. Instead of constantly monitoring prices across various platforms, set up RSI alerts on TradingView to receive timely notifications. This ensures you don’t miss critical market movements and can respond promptly to favorable conditions or potential risks. How to Create RSI Alerts on TradingView Open TradingView: Log in to your TradingView account. Select the Chart: Open the chart of the cryptocurrency you're monitoring. Add RSI Indicator: Click on "Indicators" at the top, search for RSI "Relative Strength Index", and add it to your chart. Set RSI Levels: Adjust RSI levels by clicking on the RSI label on the chart, then edit the Upper and Lower Band levels to your preferred values (e.g., 35 for Lower Band, 70 for Upper Band). Create Alert: Click on the alarm bell icon at the top of the chart, then select "Add Alert." Choose the condition (crossing above/below RSI level), set the desired RSI level, and customize the notification settings. Save Alert: Confirm and save your alert. You’ll now receive notifications via email or within the TradingView platform when the specified RSI conditions are met. Effectively utilizing RSI alerts is a game-changer for long-term crypto investors. By intelligently identifying entry points, avoiding overbought conditions, confirming signals with other indicators, and staying informed with timely alerts, you position yourself for success in the dynamic world of cryptocurrencies. Enhance your portfolio strategy with RSI – a tool that brings precision and efficiency to your crypto investment journey.
Education
by Vestinda
5
Strategy Smarts Part 4: 3-Step Confluent ZonesWelcome to the conclusive part of our Strategy Smarts series, a set of practical trading templates expanding on concepts from our previous Day Traders Toolbox and Power Patterns series. In this final instalment, we introduce the concept of 3-Step Confluent Zones designed to add some precision, discipline, and consistency into your trade entries. I. Confluence: The Power and Balance Confluence in trading aligns multiple factors to signal market moves, acting as a quality filter for trade entries. While it reduces overtrading and prevents reliance on a single indicator, excessive confluence might limit entry signals, hindering learning and skill refinement. Achieving a balance between confluence and signal quantity is crucial. The goal is to create a nuanced approach, harnessing the power of confluence without missing valuable opportunities. II. 3-Step Confluence Zones Explained A 3-step confluence zone demands three components for an entry signal: a price pattern, a key market level, and a supporting technical indicator. 1. Level Identify crucial market levels like support, resistance, or Fibonacci retracement levels, pivotal for defining entry points and risk management across various trade types. 2. Indicator Utilise indicators that complement your chart pattern: · Reversal Patterns: RSI, Keltner Channels, VWAP Bands · Breakout Patterns: Volume, MACD · Trend Continuation Patterns: Moving Averages, Anchored VWAP, Volume 3. Pattern The price pattern acts as the catalyst for trade entry. It could be a single candle or multiple candles forming recognised patterns, backed by confluence at the chosen indicator and responding to a market level. Select one from each group to meet the 3-step confluent zone criteria Past performance is not a reliable indicator of future results III. Real-World Examples The 3-step confluence zone technique can be used when trading any market on any timeframe, we’re simply combining the confluence of a price pattern with a level in the market and an indicator. Let’s take a look at some real-world examples: Example 1: EUR/USD Hourly Candle Chart In this example, a fakeout reversal pattern occurs at a clear level of horizontal support. Bullish divergence on the RSI indicator provides the additional confirmation which meets our 3-step confluent zone criteria for entry. Past performance is not a reliable indicator of future results Example 2: Tesla (TSLA) 1min Candle Chart This is a day trade example in which a fakeout occurs at the previous day’s low (PDL) and price is outside of the lower VWAP band – meeting our 3-step confluent zone entry criteria. Past performance is not a reliable indicator of future results Example 3: Gold (spot price) Daily Candle Chart Here’s a recent swing trading example in the gold market displaying a decisive descending channel breakout at a significant support level coinciding with VWAP anchored to previous lows. Past performance is not a reliable indicator of future results 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. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.
CAPITALCOM:GOLDEducation
by Capitalcom
The overall shape is curved like a arcA Trader looks at both sides and does not have an opinion on are we going bear or bull today, up or down. We could go up 100 points now to match the actual ATH, or we could continue rolling over in thi arm, spending more time in the S3 area, more selling than before, we will see what unfolds. Nobody knows the probazbly future in advance if they can't read elliot waver charts. This rally on the right could actually be a 4th wave counter trend complex 5 waves, that would be ideal to fall back into the new trend down or like i said go up 100 points to math /ATH? like a goal
CME_MINI:MNQ1!Education
by dryanhawley
[EDU] Trading the Chart pattern SeriesTrading the Chart pattern Basics and Advanced Concepts Anatomy of Head and Shoulders Head and shoulder could possibly be one of the most common chart pattern we see on the chart. So what makes up this pattern? They are: 1. Left Shoulder: > The left shoulder forms as the price initially rises and then experiences a pullback. This creates the left peak of the pattern. > The pullback is typically less severe than the subsequent pullback after the head is formed. 2. Head: > The head is formed when the price makes a higher peak than the left shoulder, indicating a strong upward movement. > The head is the highest point in the pattern and is often characterized by increased trading volume. 3. Right Shoulder: > Following the formation of the head, there is another pullback in price, creating the right shoulder. > Similar to the left shoulder, the right shoulder is usually lower than the head and is accompanied by a decrease in trading volume. 4. Neckline: > The neckline is a horizontal line that connects the lows of the left shoulder, head, and right shoulder. > The neckline serves as a support level, and a significant break below this line is considered a confirmation of the pattern. This is Shown in Figure 1 Advanced Concept Of course, the world is not Perfect, and so is the financial market. "textbook" head and shoulder patterns would be a small fraction of the head and shoulders formed in the market. Therefore, we should also be aware of "catching" these other variants! Complex head and shoulder Figure 2 > could be one that has more than 1 left shoulder. > Right shoulder made a new Lower Low, tell tale sign this uptrend is weakening Extended head and shoulder Figure 3 > the left and right shoulder showed extended stretch in terms of duration but still it is a head and shoulder in nature > at the same time, this pattern also brings out to yet another variation, head and shoulder no necessarily is a reversal pattern. In this case it is a trend continuation pattern!(if you didnt realize that) :) Head and shoulders pattern as continuation Pattern Figure 4 > over here we have a trend continuation pattern of head and shoulder > 2nd, it has a slanted neckline > other than that it is pretty much a classic head and shoulder. Hope you all learn something from this article! Cheers. Follow and like my post if you find it useful! Thank you!
Education
by Shadowing_The_Big_Boys
1