Get started

Chart Patterns

PEPE - This is why price explode - Speed Index ReadingThere is always a reason why price explodes either true or fake. The criteria to look at are: - Location - very important - where is the price locate - higher probability trades accomplished when the price leaves a significant location such us Fib, Sup/Res, AVWAP - The volume waves - nothing moves without volume - sometimes is not so visible by the volume waves alone because they distribute or accumulate little by little, that's why we have Speed Index - Reading Speed Index - The proper entry signal In the attached chart I will demonstrate how I read it using the above criteria (annotations are in sync with the chart): 1. Price entering Fib Area 50-61.8 - possibility of buyers to come in 2. Price touching AVWAP (three blue lines) coming from the bottom of a previous swing acting as resistance - another possibility of buyers to come in. 3. Speed Index 6.4, that's an abnormal speed index , that what I call first push up or PU, price never drops below the beginning of this wave 4. Speed Index 11.1, that's another abnormal speed index and that's what I call a hard to move down (HTMD) . What's happening here is that all the sell orders are absorbed by buy orders and price breaks on the up wave the origin of the HTMD wave. 5. Finally the entry Long with a PRL (Plutus Reversal Long) signal an up,up,up, we go!!! I hope my years of work helps you out on reading charts! Enjoy!
Education
by TradeTheVolumeWaves
Bitcoin Bulls Aim for $102K – Breakout or Rejection Ahead?🚀📈 Bitcoin Bulls Aim for $102K – Breakout or Rejection Ahead? 🔍🧠 Good morning, good afternoon, or good evening — wherever you are in the world, Bitcoin is pumping, and that’s always a good sign for the bulls! 🐂 In my last BTC update, we anticipated a bounce from the key support zone around $93,600–$93,800, and price respected this level to the dot, rocketing upward just as expected. 🔥✅ That level acted as a strong springboard, and now BTC is climbing through a well-respected ascending channel on the 15-min chart. 📊 Key levels to watch: Middle of the channel: ~$98,689 Top of the channel: ~$100,636 Psychological level: $100,000 Projected breakout target: $102,774 (60% probability 🚦) Major resistance beyond: $113,000 However, there's always the alternate scenario: a 40% chance that we reject under $97,400, re-enter the lower end of the channel, and potentially drop toward $92,000 if that support fails. This would flip the bullish structure short-term — something to keep on your radar. ⚠️ This is a high-momentum situation, and I’ll be watching for confirmation of breakout or breakdown. Stay alert, keep your risk in check, and let the chart guide your trades. 📉📈 Let me know your thoughts in the comments — are we headed for $113K or due for a cooldown? One Love, The FXPROFESSOR 💙
BITFINEX:BTCUSDEducation
by FX_Professor
1
Unlocking the Power of TradingViewWhether you're a forex newbie or a seasoned trader, having the right tools can make or break your trading success. One platform that consistently stands out is @TradingView charting powerhouse packed with features designed to give you an edge. I @currencynerd I'm all about helping traders stay smart and stay sharp, so here’s a look at @TradingView features that can enhance your trading game. 1. Advanced Charting Tools TradingView's clean, responsive charts are one of its strongest features. You can customize everything—from chart types (like Heikin Ashi, Renko, or Line Break) to timeframes (including custom ones like 3-minute or 8-hour charts). Multiple chart layouts allow you to view several pairs or timeframes side by side—perfect for multi-timeframe analysis. Pro Tip: Use the “Replay” feature to practice backtesting and understand market behavior in real-time. 2. Built-in Technical Indicators TradingView offers hundreds of built-in indicators (RSI, MACD, Bollinger Bands) and community-created ones. You can also stack multiple indicators on the same pane for cleaner setups. my is Favorite: “Pako Phutietsile's <50%”, which is an automatic indicator that detects and marks basing candles on the chart. A basing candle is a candle with body length less than 50% of its high-low range. This is essential for supply and demand traders. 3. Pine Script for Custom Strategies If you're serious about systematizing your edge, Pine Script lets you build and backtest custom indicators and strategies. Even with basic coding knowledge, you can automate entry/exit rules, alerts, and more. Nerdy Bonus: Many user-generated indicators are open source. Tweak them to fit your style. 4. Smart Alerts Set price, indicator, or drawing-based alerts that trigger via popup, email, or even webhook. This means you don’t need to watch the chart all day—TradingView becomes your eyes on the market. Example: Get an alert when RSI crosses below 30 on GBP/USD or when price hits a key Fibonacci level. 5. Economic Calendar & News Integration Stay ahead of market-moving events with TradingView's built-in Economic Calendar and News Feed. You can filter by currency or event impact to focus only on what matters to your trades. 6. Community & Script Library TradingView’s social side is underrated. Thousands of traders share ideas, scripts, and trade setups. It’s a great way to test your biases or discover new strategies. Tip: Follow high-reputation contributors in the trading/investing space and learn from their setups. 7. Multi-device Access & Cloud Sync Access your charts and watchlists from anywhere. Whether you're on desktop, tablet, or phone, everything stays synced in the cloud. You can start charting at home and get alerts on your phone while you're out. Final Thoughts: @TradingView isn’t just a charting tool—it’s a full-fledged trading assistant. Whether you're looking to simplify your workflow, test strategies, or get real-time alerts, the platform can enhance every part of your trading process. If you haven’t explored these features yet, give them a try. And if you're already using TradingView like a pro, let us know your favorite features in the comments! Stay sharp, stay nerdy. — @currencynerd
PEPPERSTONE:BTCUSDEducation
by currencynerd
Futures on CME and Launch of XpFinance DeFi PlatformOn May 7, 2025, the XRP ecosystem received two major developments that signal a new chapter in its evolution. First, the Chicago Mercantile Exchange (CME) announced the launch of futures contracts for XRP. Shortly thereafter, developers behind the XRP Ledger unveiled XpFinance — the first non-custodial lending platform built on the network. These two events are poised to reshape XRP's market perception and could attract a wave of new investment. XRP Futures on CME: A Leap Toward Institutional Adoption Set to go live on May 19, the new CME product will enable investors to trade XRP through regulated futures contracts. This is a major milestone. With similar contracts already in place for Bitcoin and Ethereum, XRP becomes the third digital asset to gain such legitimacy in institutional markets. The introduction of futures means greater liquidity, risk management tools, and a clear path for hedge funds, pension managers, and banks to engage with XRP — without needing to custody the underlying token directly. Analysts anticipate that this added market structure could drive up demand, especially if the rollout is smooth and met with trading interest. XpFinance and the XPF Token: DeFi Comes to XRP Ledger The second big announcement came from XpFinance, a new decentralized lending protocol. What sets it apart is its non-custodial model — users can lend assets and earn interest while retaining full control of their private keys. At a time when centralized platforms are under scrutiny, this approach appeals to security-conscious users. XpFinance is powered by a new token, XPF, which will be used for staking rewards, fee payments, and governance. The pre-sale of XPF has already begun and is generating buzz, especially among XRP community members eager to participate in the first major DeFi initiative on the ledger. Market Outlook and Analyst Forecasts Reactions from analysts have been positive. According to a report from DigitalMetrics, if both the CME futures and XpFinance platforms gain traction, XRP could see a sharp upward move — potentially reaching $10 by summer 2025. That would represent a fourfold increase from its current price. However, risks remain. Ripple Labs continues to face regulatory pressure in the U.S., and crypto markets overall remain volatile. Still, the general tone has shifted. With increasing institutional interest and expanding utility, XRP appears to be entering a new phase of growth. Conclusion The combination of institutional infrastructure and decentralized finance innovation makes May 2025 a pivotal moment for XRP. If these initiatives succeed, XRP could transition from a mid-cap altcoin to a primary digital asset in the eyes of both institutional investors and the broader crypto community. Whether this momentum will translate into long-term market dominance remains to be seen — but the foundation is clearly being laid.
CRYPTOCAP:XRPEducation
by HCN-News12
Ultimate Guide to Master CISDCISD stands for Consolidation, Inducement, Stop Hunt, Displacement. It’s a simple, repeatable structure that shows how smart money sets up traps in the market to grab liquidity and then make a clean move in the opposite direction. If you’re serious about trading the ICT style, this is one of the most useful frameworks to learn. It helps you avoid chasing bad breakouts and teaches you to wait for real setups that come after stop hunts and proper market structure shifts. But there’s one rule that’s non-negotiable — a CISD setup is only valid after a liquidity sweep. If the market hasn’t taken out a clear high or low where stops are sitting, then the rest of the model doesn’t mean anything. No sweep, no trade. 1. Start With the Liquidity Sweep Everything begins with the liquidity grab. If price hasn’t taken out a high or low where stops are stacked, you should walk away from the setup. Don’t try to front-run a move before smart money has done its job. The liquidity sweep is what gives the rest of the move power. That’s when price runs through obvious levels, swing highs, swing lows, the Asian range, New York session highs or lows and hits stop losses. Those stops give smart money fuel to enter in the opposite direction. When you’re watching the market, ask yourself this: "Who just got stopped out?" If you can’t answer that, then it’s not a sweep. And if it’s not a sweep, it’s not a CISD. 2. Consolidation — Where Liquidity Builds This is the first part of the structure. Price starts to move sideways in a tight range, usually during Asian session or during parts of London where volume is low. It can last for hours or even across sessions. The key here is to understand what’s happening. Traders are placing buys above the highs and sells below the lows. Liquidity is building on both sides. It’s a trap being set. Retail traders are expecting a breakout, but smart money is waiting to use that breakout to their advantage. Your job in this phase is to identify the range and mark out the highs and lows. That’s where stops will be sitting. You’re not looking to trade during this phase. You’re watching and planning 3. Inducement (sweep)— Fake Break to Trap Traders After the range is set, price gives a small push out of the range just enough to get people to commit. This is the inducement. It’s the bait. Let’s say the range high is being tested. Price breaks just above it, traders think it’s a breakout, and they go long. Maybe it holds for a couple of minutes, even gives a small push in their favor. But then it rolls over. That’s the trap. Now those traders are caught, and their stops are sitting below. Sometimes the inducement comes before the real sweep. Other times, the inducement is the sweep. What matters is that traders have been lured into bad positions and their stops are exposed. As a trader, your job is not to take the bait. Watch how price reacts to these fake moves. Often, they come with weak volume or are followed by an immediate sharp reversal. 4. Stop Hunt — The Sweep That Validates the Setup This is where the real move starts to form. Price aggressively runs through the level that holds liquidity, usually below the low or above the high you marked earlier. This is when smart money takes out the traders who were induced during the fake move. Their stops get hit, and that gives institutions the volume they need to get into the opposite side. You should be actively watching for a reaction here. Do you see rejection? Does the candle close with a strong wick? Are there signs of absorption or order flow flipping? This is your validation point. Once price sweeps liquidity and starts to reject the level, that’s your cue to get ready for the next part, the actual shift. 5. Displacement — The Real Move Begins Once the sweep happens, price doesn’t just drift, it snaps back hard. This is called displacement. Displacement is a sharp, clean move in the opposite direction of the stop hunt. This is when market structure breaks, momentum shifts, and a fair value gap usually forms. This is your confirmation that the setup is live. The sweep happened, smart money entered, and now the market is moving with intent. You don’t want to chase the displacement candle itself. Instead, wait for the retrace. Look for price to come back into the fair value gap or an order block left behind by the impulse. That’s your entry point. Make sure: Structure is broken in your direction The move away is impulsive, not choppy You’re not forcing an entry on a weak pullback This is the only part of CISD where you actually take the trade. Everything else is just setup. How to Manage Risk and Entries Once you’ve got a valid setup, here’s how to manage it: Entry: Enter on the CISD or wait for the pullback into the fair value gap or order block. Enter on the reaction or confirmation. Stop Loss: Place it just past the low or high that got swept. If you’re long, your stop goes below the stop hunt candle. If you’re short, it goes above. Take Profit: Target the next liquidity level. That could be the other side of the range, a swing high or low, or an inefficiency in price. You can scale out if price approaches a session high or low, or hold for a full range expansion depending on the session. Final Thoughts The CISD model works because it’s built on how the market actually moves, not indicators, not random patterns, but liquidity. Don’t jump in early. Don’t guess. Wait for the sweep. Wait for the displacement. That’s where the edge is. Once you get used to watching this play out in real time, you’ll start to see it everywhere. It’s in Forex, crypto, indices, any market that runs on liquidity. Stick to the rules. Let the model do its job. And remember: no sweep, no setup! ___________________________________ Thanks for your support! If you found this guide helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀 Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈
Education
by TehThomas
59
LTC Long - Learn to read Weis Wave with SI- Target hit overnightLearning to read the chart using Weis Wave with Speed Index will help you understand how the market works. Speed Index is very valuable to understand if there is absorption happening in the market. Remember that absorption takes time, it takes hours or sometimes days, so you have to be patient. In this chart I will explain how to read this 1HR LTC chart using Speed Index and why we had this explosion in price. I have entered long (my target was hit overnight). Annotations on chart are in sync with my below notes. Reading: 1. We had a high volume down move (buyers could be in there but I am not sure yet) 2. We have touched 50-61.8 Fib area - If buyers would like to enter this is a great area. 3. Speed Index 29 that's an Abnormal Speed Index. Why is it abnormal? Because at that time the average Speed Index of 30 waves back was 15. I call this as the first Push or the first absorption. Buyers are entering. 4. Speed Index 78.7 another abnormal SI -> more buying 5. Speed Index 37 on a down wave that's what I call a HTMD (Hard to move down) more buying and finally a PL (Plutus Long signal) breaking by a bit the previous resistance level. This is where I have Entered Long. 6. Another HTMD , hard to move down wave with Speed Index 32.2, more buying and another Plutus long signal PRL. Therefore the explosion is completely justified because it has a history of several hours of absorption. If you were to read just volume waves you would not be able to see this coming Speed Index alerts that something is cooking and when the time is right you enter (PL signal) I hope my above explanations helped you. Enjoy!
Education
by TradeTheVolumeWaves
Weekly analysis confirmation and continuation!!!Top-Down Analysis of the Image. 1. Macro Context: Asset Classes & Instruments - USD & XAUUSD. The image focuses on two key financial instruments: - USD.l Likely tracking the US Dollar Index (DXY) or a USD-paired asset. - XAUUSD**: Gold priced in USD, a critical safe-haven commodity. - Bearish Sentiment**: Both sections show descending price levels, indicating a broader market expectation of dollar strengthening and gold depreciation. --- 2. USD Section: Price Structure & Anomalies* - Key Levels**: - Starts at 3,500.000 (potential resistance) and trends downward to 3,375.845*l (support). - Notable mid-level dip at 3,462.199 , possibly a liquidation zone or failed breakout at 33:46 - Hypothesis : Time notation (e.g., 33 minutes and 46 seconds) for a specific trading session or chart timeframe. - Hypothesis 2. Ratio (e.g., 33:46) for risk-reward or position sizing. --- 3. XAUUSD Section: Gold’s Downward Trajectory - **Declining Values**: From **3,324.476** to **3,238.854**, reflecting a **bearish technical breakdown**. - **Purpose**: Likely marks **resistance levels** or **liquidation clusters** where sellers dominate. --- #### **4. Gold-Short/Un-Subtotal: Strategic Short-Selling Plan** - **Uniform Decrements**: Values decrease by **40.000** increments (e.g., 3,160 → 3,120 → 3,080). - **Interpretation**: Predefined **profit-taking levels** or **trailing stop-loss zones** for a short position. - **Risk Management**: Structured steps suggest a disciplined exit strategy to lock in gains or mitigate losses. --- #### **5. Final Line: "May 4 7 9"** - **Possible Meanings**: - **Dates**: May 4, 7, and 9 could mark: - Economic events (e.g., Fed meetings, NFP data). - Expiry dates for options/futures contracts. - Planned trade execution days. - **Code**: Numeric shorthand for order IDs, time intervals (e.g., 04:07:09), or technical indicators. --- ### **Key Takeaways** 1. **Strategic Trade Setup**: The image outlines a **short-selling strategy for gold (XAUUSD)** with explicit price targets and risk parameters. 2. **Technical Focus**: Emphasis on descending levels highlights reliance on **technical analysis** (e.g., trendlines, Fibonacci retracements). 3. **Date-Driven Execution**: "May 4 7 9" suggests alignment with external catalysts or time-bound trade management. 4. **Risk Control**: Uniform decrements in the Gold-Short section reflect systematic profit-taking, reducing exposure to volatility. --- ### **Recommendations for Further Analysis** - Cross-reference the dates (May 4, 7, 9) with economic calendars to identify relevant events. - Validate the "33:46" notation against historical price action or trading session hours. - Assess whether the USD levels correlate with DXY or a specific USD pair (e.g., EURUSD). This structured approach aligns with a trader’s playbook, combining technical levels, time-based triggers, and disciplined risk management.
OANDA:XAUUSDEducation
by S_O_C_H_I_M_A
Understanding the Inverted Cup and Handle Chart PatternUnderstanding the Inverted Cup and Handle Chart Pattern Understanding chart patterns is fundamental for market participants. This article delves into the inverted cup and handle formation, a bearish signal indicating a potential downward movement. Explore its identification, trading strategies, psychological underpinnings, common pitfalls, and more to boost your trading knowledge. What Is the Inverted Cup and Handle Pattern? The inverted cup and handle, sometimes called an upside-down cup and handle pattern, is a bearish chart pattern that may appear during up- and downtrends. It is the opposite of the traditional cup and handle pattern, which is bullish. The inverse formation consists of two main parts: the "cup," which is an inverted U-shape, and the "handle," a small upward retracement following the cup. Identifying the Inverted Cup and Handle Pattern Identifying the inverse cup and handle pattern involves recognising a specific sequence of market movements that signal a potential bearish move. Here's a step-by-step overview of identifying this formation: Cup Formation - Shape: The pattern begins with an inverted U-shaped "cup." The price gradually rises, consolidates, and then begins to decline, reflecting a shift from bullish to bearish sentiment. - Depth: The cup should have a rounded top, not a sharp V-shape, indicating a gradual reversal. The depth of the cup can vary but typically represents a significant portion of the preceding movement. Handle Formation - Upward Retracement: After the cup's formation, prices usually experience a minor upward retracement or consolidation, forming the "handle." This movement should be relatively short and not exceed the initial high of the cup​. - Shape and Duration: The handle often appears as a small flag or pennant and should be brief in duration compared to the cup. An optimal handle retraces no more than half of the cup’s depth​. Breakout Confirmation - Neckline Break: The pattern is confirmed when prices break below the neckline, the lowest point of the handle. This breakout often leads to a significant decline in prices, signalling a bearish trend​. - Volume Surge: Volume typically decreases during the formation of the cup and increases as prices decline, especially during the handle formation. A substantial increase in volume during the breakout can validate the pattern and minimise the risk of false signals​. The Psychology of the Inverted Cup and Handle The psychology behind the inverse cup and handle pattern is rooted in market sentiment and behavioural finance. This bearish pattern reflects a shift from optimism to pessimism among traders. - Initial Uptrend: The formation starts with an upward movement, where traders are generally bullish, driving prices higher. This phase is marked by growing confidence and increasing demand. - Formation of the Cup: As prices peak, consolidate, and start to decline, some traders begin to take profits, leading to reduced buying pressure. The rounded decline of the cup signifies a gradual shift in sentiment from bullish to bearish as traders become cautious and selling pressure mounts. - Handle Formation: The minor upward retracement forming the handle indicates a brief period of consolidation where the market tests the resolve of buyers. It can be considered a dead cat bounce. This phase often traps optimistic traders who expect the uptrend to resume, but the overall sentiment remains fragile and cautious​. - Breakout and Decline: The decisive break below the neckline represents a culmination of bearish sentiment. At this point, selling pressure overwhelms any remaining bullishness, leading to a sharp decline. The volume surge during this breakout confirms the shift in market psychology from hopeful to bearish as traders rush to exit their positions or initiate short sales​. Trading the Inverted Cup and Handle Pattern Trading the inverted cup and handle pattern involves careful identification and strategic decision-making to maximise potential returns. This pattern presents two primary entry points for traders: during the handle formation or after the neckline break. Entry on the Break of the Handle - Risk-Reward Advantage: Entering on the breakout of the handle’s lower boundary offers a better risk-to-reward ratio but requires more skill and confidence in pattern recognition. - Technical Tools: Traders often use a medium-term moving average (like 21 periods) to confirm the downward leg of the handle. A decisive close below the moving average indicates a continuation of the downward handle leg. - Momentum Indicators: Using momentum indicators like the RSI (Relative Strength Index) or stochastic oscillator helps confirm downward movement. Bearish divergence suggests that the bearish trend is likely to continue. - Volume Analysis: Increasing volume during the handle's breakout indicates strengthening seller control. High volume often validates the pattern and potentially reduces the risk of false signals​. Note that volume data may be less reliable in a decentralised forex market. - Stop Loss and Profit Target: Traders typically place a stop loss above the handle's high to potentially protect against upward spikes. The reverse cup and handle pattern target is usually set at a distance equal to the cup's height, projected downward from the handle's breakout point, although it can be greater if the retracement is particularly shallow. Entry After the Neckline Break - Confirmation Advantage: Waiting for the neckline break offers greater confirmation of the formation but may provide a less favourable risk-to-reward ratio. - Price Action: A decisive close below the pattern's low, ideally with a strong candlestick and minimal wicks, indicates a reliable breakout. This typically confirms the bearish trend and provides a clear entry signal. - Volume Confirmation: Higher volume during the neckline break can further validate the pattern and indicate that the breakout is genuine and not a false signal​. - Stop Loss and Profit Target: In this scenario, the stop loss is typically set above the handle's high. The profit target remains the same, projecting the cup's height downward from the breakout point​. Common Mistakes to Avoid When trading the upside-down cup and handle pattern, avoiding common mistakes is key for maximising potential returns. Some of the more common mistakes traders make include: - Premature Entry: Entering a trade too early, before the handle completes or the neckline breaks, can lead to false signals and losses. Most traders wait for clear confirmation, such as a decisive close below the neckline with increased volume​. - Ignoring Volume: Volume is a critical component in confirming the pattern. Low volume during the breakout phase may indicate a fakeout. Traders typically look for a substantial increase in volume to validate the pattern​. - Incorrect Pattern Identification: Misidentifying the pattern is a common error. The cup should have a rounded bottom, not a sharp V-shape, and the handle should be relatively short. Accurate identification requires practice and attention to detail​. - Overlooking Market Conditions: External factors, such as news events or broader market trends, can impact the pattern’s reliability. Traders consider these conditions when planning their trades​. Advantages and Disadvantages As with all chart patterns, the inverted cup and handle pattern comes with its pros and cons. Here are some key advantages and disadvantages of using this pattern: Advantages - Clear Signal: The pattern provides a clear signal of a potential bearish movement, helping traders anticipate market declines​. - Risk Management: With defined entry and exit points (handle high for stop loss and cup depth for profit target), it aids in effective risk management. - Flexibility in Analysis: Several forms of analysis, from support/resistance and momentum indicators to volume and price action, can be used to trade the pattern. - Versatility: Applicable across various timeframes and markets, including stocks, forex, and commodities, making it a versatile tool for different trading strategies​. Disadvantages - Complex Identification: Accurately identifying the pattern can be challenging, requiring significant experience and skill​. - Rarity: The pattern doesn’t occur frequently, limiting trading opportunities. - False Breakouts: Like all chart patterns, it is susceptible to false breakouts, especially if not confirmed with volume and other technical indicators​. - Timing Sensitivity: Entering too early during the handle formation can result in premature positions, while waiting for the neckline break might reduce the risk-to-reward ratio​. The Bottom Line The inverted cup and handle pattern is one of the most popular chart patterns among traders of all levels. However, like any technical formation, it should be used alongside other indicators and sound risk management to potentially increase its effectiveness. By mastering patterns like the inverted cup and handle, traders can gain deeper insights into market psychology and price action to navigate volatile markets with greater confidence. FAQ What Is the Inverse Cup and Handle Pattern in Forex? The inverse cup and handle pattern in forex is a bearish chart pattern. It features an inverted U-shaped cup followed by a small upward retracement (the handle). This pattern suggests that sellers are gaining control, and prices are likely to decline further once the neckline is broken. How Can You Trade the Inverse Cup and Handle? Traders can enter positions either on the break of the handle’s lower boundary or after the neckline break. Entering during the handle might offer a better risk-to-reward ratio, while waiting for the neckline break provides greater confirmation. Key tools to validate the breakout include moving averages, momentum indicators like RSI or stochastic oscillator, and volume analysis. What Happens After the Reverse Cup and Handle Pattern? After the reverse cup and handle pattern is completed, the price typically moves downward strongly. This bearish movement is often confirmed by a strong breakout below the neckline with increased volume, signalling a sustained decline in prices.​ What Is the Opposite of the Cup and Handle? The opposite of a cup and handle is the inverse cup and handle pattern. While the cup and handle indicates a bullish movement, the inverse version signals a bearish trend. Is the Inverted Cup and Handle Bullish or Bearish? The inverted cup and handle pattern is bearish. It indicates that the price will move downwards, suggesting that traders may open short trades. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
A 3-Step Process For Analytical SuccessIn this video I go through the 3-step process of implementing a Bias, Narrative, and Model. This process was a game-changer for me when it came to analysis, as well as taking actual trades. It considered high-probability targets, patience in waiting for traders to coming for me, and the calm of being prepared when it was time to take an entry. It filters out pointless trades, because if I don't have Bias, then I can't have a Narrative, and if I don't have a Narrative, then I don't have a Model. I use ICT concepts, but this process works equally well for most other methodologies that aren't completely mechanical and algorithmic. I give a real example of a trade I took yesterday on EURUSD where I utilized this 3-step process to frame a trade. I hope you find this video insightful and gives you more clarity in your trading! - R2F Trading
Education
by Road_2_Funded
17
From Tulips to Tech: The Evolution of Financial Bubbles 🎯 Introduction: financial/economic bubbles are a recurring theme in economic history, this is often when a particular financial asset goes to unrealistic price levels often making money for early investors but usually these high price levels do not match their fundamental value this is then followed by a large public participation who also want a piece of the pie eventually with the price collapsing or sharply declining blowing or living investors in a large financial loss.. From 17th-century tulip gardens to 21st-century crypto manias, one thing has remained constant: Humans never learn. Every generation thinks this time is different — but the pattern of bubbles keeps repeating. Here's the crash course in 400 years of financial euphoria, panic, and pain. 🧠 Section 1: 1637 — Tulip Mania 🌷 The original bubble. In the Netherlands, rare tulip bulbs were worth more than houses. Prices exploded... then collapsed 90% in a matter of weeks. Lesson: Speculation + FOMO is not new. Humans were flipping flowers before they flipped crypto. Mini Nerd Tip: "When people stop caring about value and only care about price rising, watch out." 🧠 Section 2: 1720 — South Sea Bubble 📜 Britain’s South Sea Company promised massive profits trading with South America (but barely did any business). Politicians and aristocrats pumped the stock price. Collapsed spectacularly → ruined many fortunes (including Isaac Newton himself: "I can calculate the motion of heavenly bodies, but not the madness of men.") Mini Nerd Tip: "If a bubble needs government help to stay alive, it's already dying." 🧠 Section 3: 1929 — Wall Street Crash 🏛️ Roaring 20s: endless optimism, cheap margin loans, "stocks only go up!" 1929: Stock market crashed, triggering the Great Depression. People were buying stocks with 10% down and gambling recklessly. Mini Nerd Tip: "When leverage is everywhere, the smallest panic causes waterfalls." 🧠 Section 4: 2000 — Dotcom Bubble 💻 Everyone thought the internet would change everything (it did — but slower and differently). Companies with no profits were valued in billions. "Eyeballs" were treated as real revenue. NASDAQ lost 78% from top to bottom. Mini Nerd Tip: "Innovation creates real value... but hype inflates fake value faster." 🧠 Section 5: 2008 — Housing Bubble 🏡 Banks handed out mortgages to anyone. Financial engineering (CDOs, synthetic MBS) created the illusion of safety. US housing prices collapsed → global financial crisis. "Too Big to Fail" became the famous phrase. Mini Nerd Tip: "If everyone is getting rich easily, someone is lying or blind." 🧠 Section 6: 2017/2021 — Crypto & Meme Stocks 🚀 Gamestop, Dogecoin, NFTs, Shiba Inu — the wildest "everyone’s a genius" market since the 1920s. Social media + free apps = amplified bubble speed. Massive rises, insane collapses. Mini Nerd Tip: "Technology changes, human emotion doesn’t." 🧠 Final Section: Why Bubbles Will Never End Greed, fear, and FOMO are timeless. Every era dresses up bubbles in new clothes (flowers, sea companies, internet, crypto). Smart traders understand this pattern — and use it to survive and thrive. "**Bubbles don't pop because of bad assets. They pop because confidence disappears put together by : Pako Phutietsile as @currencynerd courtesy of : @TradingView
PEPPERSTONE:XAUUSDEducation
by currencynerd
Mastering Order Blocks: How to Trade Like Smart MoneyIntroduction Order Blocks (OBs) are one of the most critical concepts in Smart Money trading. They represent areas where institutional traders have entered the market with significant volume, typically leading to strong price movements. Identifying and trading Order Blocks gives traders an edge by aligning with the footprints of Smart Money. What is an Order Block? An Order Block is the last bearish candle before a bullish move for bullish OBs, or the last bullish candle before a bearish move for bearish OBs. These candles represent areas where institutions accumulated or distributed large positions, leading to a market shift. Types of Order Blocks A Bullish Order Block appears at the end of a downtrend or during a retracement just before the price moves sharply upward. It is typically represented by the last bearish candle prior to an impulsive bullish move. Price will often return to this level to mitigate institutional orders before continuing upward. A Bearish Order Block, in contrast, forms at the end of an uptrend or retracement where price begins a downward reversal. It is characterized by the last bullish candle before a strong bearish move. Price tends to revisit this level to mitigate before continuing lower. How to Identify a Valid Order Block The key to identifying a valid Order Block is first observing a strong impulsive move, also known as displacement, that follows the OB candle. The move must also result in a break of market structure or a significant shift in direction. Order Blocks that produce Fair Value Gaps (FVGs) or Market Structure Shifts (MSS) tend to be more reliable. Another important sign is when price returns to the OB for mitigation, offering a potential entry. Entry Model Using Order Blocks After locating a valid OB, the next step is to wait for price to return to this area. The ideal entry happens within the OB body or near its 50% level. For extra confirmation, look for a Market Structure Shift or Break of Structure on a lower timeframe. Entries are more powerful when combined with additional elements like Fair Value Gaps, liquidity grabs, or SMT Divergences. The stop-loss should be placed just beyond the OB’s high or low, depending on the direction of the trade. Refinement Techniques To increase precision, higher timeframe OBs can be refined by zooming into lower timeframes like the 1M or 5M chart. Within a broad OB zone, identify internal market structure, displacement candles, or embedded FVGs to determine a more precise entry point. One effective refinement is the Optimal Trade Entry (OTE), which is often found at the 50% level of the Order Block. Order Blocks vs. Supply and Demand Zones While they may seem similar, Order Blocks are more narrowly defined and specifically related to institutional order flow. Supply and Demand zones are broader and typically drawn around areas of price reaction, but OBs are derived from the final institutional candle before a large move and are often confirmed by structure shifts or displacement. This makes OBs more precise and actionable in the context of Smart Money concepts. Target Setting from Order Blocks Targets after entering from an OB should align with liquidity objectives. Common targets include internal liquidity like equal highs or lows, or consolidation zones just beyond the OB. External liquidity targets such as previous major swing highs or lows are also ideal, especially when they align with imbalances or Fair Value Gaps. It's important to adjust targets based on the current market structure and trading session. Common Mistakes to Avoid A frequent mistake is treating any candle before a move as an OB without verifying key signals like displacement or a Break of Structure. Entering without other confirmations, such as an MSS or liquidity sweep, can lead to poor trades. Another common error is placing the stop-loss too tightly within the OB, instead of just beyond it, increasing the chance of premature stop-outs. Traders should also avoid executing OB trades during low-liquidity sessions where price action can be unpredictable and wicky. Final Thoughts Order Blocks are foundational to Smart Money trading. They allow you to enter where institutions have placed large positions and offer clear invalidation and entry logic. With practice, you can identify high-quality OBs and combine them with other concepts like FVGs, MSS, and SMT for powerful, precise trades. Practice on different timeframes and assets, and always look for clean displacement and structure confirmation. Mastering OBs is a big step toward becoming a consistently profitable trader. Trust the Blocks. Trade with Intention.
Education
by Louigi_24
104
This is how to read the chart using Weis Wave with Speed IndexReading the chart: 1. We have bottom down and we pull back with high up volume waves, approaching the Fib area. Notice how SI is increasing on the up waves as we are reaching Fib from 13.3 to 15.7 to 18.4 and last not able to break previous resistance at 20.4. This means sellers are absorbing all buy orders of people entering long thinking that the trend will continue. 2. Notice the up volume wave with SI 20.4 and respective pip move right above it which is small compared to the amount of volume used - This is absorption. 3. The highest PVR bar at the beginning of the down wave - more sellers 4. Entry Short on the Plutus Short signal Notice all the Short signals following confirming the continuation of the down move! Simple as that, if you are able to read the chart and not just following signals from an indicator. Enjoy!
Education
by TradeTheVolumeWaves
1
How to Trade Gold with AI-Powered Algos in 2025📊 How to Trade Gold with AI-Powered Algos in 2025 A practical action plan for serious gold traders 🔍 1. Know Why Gold Requires Custom Algo Tactics Gold is volatile, news-sensitive, and driven by macro events like Fed policy, geopolitics, and inflation. Generic stock or crypto bots fail here — gold needs precise, event-aware automation. 🧠 2. Use AI-Powered Bots Trained for Gold Volatility Deploy bots that adapt to real-time data like CPI releases, bond yields, and geopolitical headlines. Use machine learning models that detect gold breakouts, consolidations, and safe-haven flows. Top AI algos for gold traders: Multiple systems based on MT4/MT5 Fully-automated, AI-based gold bot with breakout detection, precision entries, and built-in risk control. ⚙️ 3. Build or Choose the Right Algo Strategy for Gold Trend-Following: Use 21/50 EMA crosses on H1 and H4 Mean Reversion: Bollinger Band fades in range-bound sessions Breakout Algos: Trigger trades on CPI or FOMC event volatility Volume-Based AI: Analyze volume spikes vs. historical patterns 🧪 4. Backtest Gold-Specific Models Always test your bot using historical gold data, especially during NFP weeks, Fed meetings, and geopolitical escalations. Use data from 2018 to 2024 for high-volatility periods. Tools: TradingView for Pine Script testing, MetaTrader 5 for EA deployment 🛡️ 5. Control Risk with Gold-Specific Parameters Max drawdown: Keep under 15 percent Stop-loss: Always use hard stops (not just trailing) Position sizing: 0.5 to 1 percent of capital per trade Use volatility filters: Avoid entries during thin liquidity hours 🔄 6. Automate Monitoring and Adaptation Run multiple bots for breakout, momentum, and reversal setups Use dashboards to track gold-specific metrics like VIX, USDX, DXY, and 10Y Treasury yields Integrate AI that adjusts parameters after major data releases 🚀 7. Prepare for 2025 Market Structure Gold is increasingly driven by Central bank digital currency rollouts USD de-dollarization risks Global stagflation or recession themes DeFi and tokenized gold products Your algo must factor in these macro narratives using real-time data feeds 📌 Gold Algo Trading Success Plan 2025 Use AI bots built for gold volatility Trade high-probability breakouts post-news Backtest with gold-specific macro filters Maintain strict risk limits with max 15 percent drawdown Monitor global news and macro data with bot triggers Continuously optimize and adapt Gold is not just a commodity — it’s a signal of global risk. Automate smartly, manage risk tightly, and use AI to stay one move ahead.
OANDA:XAUUSDEducation
by ProjectSyndicate
28
How to Enter Trades the RIGHT Way!In this video, we're tackling an important question from our community member who's been crushing it in paper trading but faces the common challenge of entering trades blindly based on alerts, fearing they'll miss out otherwise. We'll discuss: Why blindly following signals can hurt your long-term success The power of context in market structure: Why waiting for price to hit key support/resistance levels drastically improves your entries A practical approach to manage FOMO: How scaling into trades can balance quick reaction times with better entries and tighter stops Real examples of good vs. rushed entries, highlighting the impact on your risk-to-reward
CME_MINI:ES1!Education
by WallSt007
Learn KEY PRINCIPLES of Technical Analysis in Gold Forex Trading In the today's article, we will discuss the absolute basics of trading - 3 key principles of technical analysis in Forex & Gold Trading. 1️⃣History Repeats History tends to repeat itself in the Forex market. Certain trends are cyclical and may reemerge in a predictable manner, certain key levels are respected again and again over time. Take a look at the example: Silver perfectly respected a historical horizontal resistance in 2011 that was respected in 1980 already. Moreover, the price action before and after the tests of the underlined zone were absolutely identical. 2️⃣Priced In All relevant information about a currency pair: economical and political events, rumors, and facts; is already reflected in a price. When the FED increased the rate 26th of July by 25 bp, EURUSD bounced instead of falling. Before the rate hike, the market was going down on EXPECTATIONS of a rate hike. The release of the news was already price in. 3️⃣Pattern DO Work Some specific price models can be applied for predicting the future price movements. Technicians strongly believe that certain formations - being applied and interpreted properly, can give the edge on the market. Depending on the trading style, different categories of patterns exist: harmonic patterns, price action patterns, wave patterns, candlestick patterns... Above, I have listed various price action patterns that are applied by many traders and investors as the main tool for analyzing the financial markets. If you believe in these 3 principles, you are an inborn technician! Study technical analysis and learn to apply these principles to make money in trading. b]❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
11
Mastering chart patterns - How to use them in trading!Chart patterns are visual formations created by the price movements of a financial asset—like a stock, currency, or cryptocurrency, on a price chart. Traders use these patterns in technical analysis to predict future market direction based on historical behavior. The main chart patterns are the reversal and continuation patterns. ------------------------------- What will we discuss? - Bullish reversal patterns - Bearish reversal patterns - Bullish continuation patterns - Bearish continuation patterns ------------------------------- Bullish reversal patterns: Double bottom A double bottom in trading is a bullish reversal pattern that signals the potential end of a downtrend and the beginning of an uptrend. It forms when the price of an asset falls to a low, bounces back up, then drops again to roughly the same low before rising once more. This creates a "W" shape on the chart. How to trade it: Before entering a trade, wait for the price to break back above the neckline with strong volume, as this indicates a potential bullish reversal. Once the breakout is confirmed, look for an entry on the pullback to the neckline. Inverted head and shoulders An inverted head and shoulders is a bullish reversal pattern that typically forms after a downtrend and signals a possible shift to an uptrend. It consists of three parts: * The left shoulder, where the price makes a low and then bounces. * The head, which is a deeper low followed by another bounce. * The right shoulder, a higher low similar in level to the left shoulder. How to trade it: Before entering a trade, wait for the price to break above the neckline with strong volume, as this confirms the pattern and signals a potential upward move. After the breakout, it's important to wait for a retest of the neckline to look for an entry. Traders typically place a stop-loss just below the right shoulder to manage risk. Falling wedge A falling wedge is a bullish chart pattern that often signals a potential reversal or continuation of an uptrend, depending on where it forms in a price trend. It appears when the price is moving lower but within a narrowing range, creating two downward-sloping, converging trendlines. Both the highs and lows are falling, but the lower highs are coming down faster than the lower lows, which shows that selling pressure is losing strength over time. How to trade it: Wait for the falling wedge to break above the downward trendline and for the price to reclaim the most recent lower high. A breakout alone isn’t always reliable, sometimes the price moves briefly above the trendline without making a higher high, resulting in a fake-out. To confirm the move, wait for a clear higher high and then look to enter on the retracement that follows. ------------------------------- Bearish reversal patterns Double top A double top is a bearish reversal pattern that signals a potential shift from an uptrend to a downtrend. It forms when the price reaches a high, pulls back, then rallies again to the same or similar high but fails to break above it. This creates an "M" shape on the chart. The neckline is the support level at the low point between the two peaks. When the price breaks below this neckline with strong volume, it confirms the pattern and suggests that selling pressure is taking over. How to trade it:
Before entering a trade, wait for the price to break below the neckline with strong volume, as this indicates a potential bearish reversal. Once the breakout is confirmed, look for an entry on the pullback to the neckline. Head and shoulders A head and shoulders is a bearish reversal pattern that typically forms after an uptrend and signals a potential shift to a downtrend. It consists of three peaks: * The left shoulder, where the price rises and then falls. * The head, which is a higher peak followed by another decline. * The right shoulder, a lower high that is roughly equal in height to the left shoulder. How to trade it: Before entering a trade, wait for the price to break below the neckline with strong volume, as this confirms the pattern and signals a potential downside move, After the breakout, it’s important to wait for a retest of the neckline to look for an entry. Traders typically place a stop-loss just above the right shoulder to manage risk Rising wedge A rising wedge is a bearish chart pattern that often signals a potential reversal or continuation of an downtrend, depending on where it forms in a price trend. It appears when the price is moving higher but within a narrowing range, creating two upward-sloping, converging trendlines. Both the highs and lows are rising, but the highs are increasing at a faster rate than the lows. This suggests that buying pressure is weakening over time, and the market may be preparing for a downturn. How to trade it: Wait for the rising wedge to break below the upsloping trendline and for the price to reclaim the most recent high low. A breakout alone isn’t always reliable, sometimes the price moves briefly below the trendline without making a lower low, resulting in a fake-out. To confirm the move, wait for a clear lower low and then look to enter on the retracement that follows. ------------------------------- Bullish continuation patterns Bullflag A bull flag is a continuation pattern that signals the potential for a price to continue moving upward after a brief consolidation or pullback. It forms when the price experiences a strong upward move (the flagpole), followed by a period of consolidation or a slight downward movement (the flag). The flag typically slopes downward or moves sideways, and the consolidation phase usually occurs within two parallel trendlines, creating a rectangle or slight downward channel. How to trade it? Before entering a position, wait for the price to break above the downsloping trendline and establish a higher high. If the price doesn’t make a higher high, it could be a fake-out. Once a higher high is confirmed, look for an entry on the retracement. The target is typically the length of the flagpole projected upward from the breakout point. Bullish pennant A bullish pennant is a continuation pattern that indicates the potential for a price to continue its upward trend after a brief consolidation. It forms when a strong upward move (the flagpole) is followed by a period of consolidation, where the price moves within converging trendlines, creating a small symmetrical triangle or pennant shape. The consolidation typically shows lower highs and higher lows, and the pattern suggests that the market is taking a "breather" before continuing its upward momentum. How to trade it? Before entering a position, wait for the price to break above the downsloping trendline and establish a higher high. If the price doesn’t make a higher high, it could be a fake-out. Once a higher high is confirmed, look for an entry on the retracement. The target is typically the length of the flagpole projected upward form the breakout point. Ascending triangle An ascending triangle is a bullish continuation pattern that typically forms during an uptrend, signaling that the price is likely to continue moving higher. It is characterized by a horizontal resistance line at the top, formed by a series of peaks at roughly the same price level, and an ascending support line at the bottom, formed by higher lows. This creates a triangle shape, where the price is gradually compressing between the horizontal resistance and the rising support. How to trade it? Before entering a position, wait for the price to break above the horizontal resistance level with strong volume. Once the breakout occurs, look for an entry on the retracement back to this area. ------------------------------- Bearish continuation patterns Bearflag A bear flag is a bearish continuation pattern that suggests the price is likely to continue moving downward after a brief consolidation or upward pullback. It forms when there is a strong downward move (the flagpole), followed by a period of consolidation or slight upward movement (the flag). The flag typically slopes upward or moves sideways, and the consolidation occurs within two parallel trendlines, creating a rectangular or upward-sloping channel. This pattern shows that, despite the short-term pullback, the overall downtrend remains intact. How to trade it? Before entering a position, wait for the price to break below the upsloping trendline and establish a lower low. If the price doesn’t make a lower low, it could be a fake-out. Once a lower low is confirmed, look for an entry on the retracement. The target is typically the length of the flagpole projected downward for the breakout point. Bearish pennant A bearish pennant is a bearish continuation pattern that signals a potential continuation of a downtrend after a brief consolidation. It forms when there is a strong downward move (the flagpole), followed by a period of consolidation where the price moves within converging trendlines, creating a small symmetrical triangle or pennant shape. The consolidation typically shows lower highs and higher lows, indicating that the price is taking a pause before continuing its downward movement. How to trade it? Before entering a position, wait for the price to break below the upsloping trendline and establish a lower low. If the price doesn’t make a lower low, it could be a fake-out. Once a lower low is confirmed, look for an entry on the retracement. The target is typically the length of the flagpole projected downward for the breakout point. Descending triangle A descending triangle is a bearish continuation pattern that typically forms during a downtrend, indicating that the price is likely to continue moving lower after a period of consolidation. The pattern is characterized by a horizontal support line at the bottom, formed by a series of lows at approximately the same price level, and a descending resistance line at the top, formed by a series of lower highs. The price contracts between these two trendlines, creating a triangle shape with a downward-sloping upper boundary and a flat lower boundary. How to trade it? Before entering a position, wait for the price to break below the horizontal support level with strong volume. Once the breakout occurs, look for an entry on the retracement back to this area. ------------------------------- Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!
Education
by Youriverse
74
SPY/QQQ Plan Your Trade Update : Behind The Scenes ResearchI want to say thank you to all of you and to share with you all the work/resources/servers/and other data I maintain to help me identify where and how the markets will present opportunities to all of us. This video shows you a bit of the behind-the-scenes work I do and some of my proprietary modeling systems. I'm not sharing this with you to try to win you over or to tell you I do more than anyone else in terms of research. I'm sure there are many others who go much further than I do in terms of trying to dissect the markets and the opportunities available. But I do believe I deliver very unique research, which is a one-of-a-kind solution for traders. Again, I'm not 100% accurate (I wish I were). But I am trying to share some of the decision-making solutions I use to understand where the markets are likely to move over the next 2- 4+ months and how traders can profit from my research. Remember, you are only seeing about 10% of my total research, tools, modeling systems, and capabilities in these Plan Your Trade videos. I want to thank all of you who continue to value my work. It is not easy. It takes money, time, and resources to continue to monitor all of these systems/algos. The end result, I believe, is one of the most unique future/current modeling system resources you can find anywhere. Again, thank you for making my research a success. I promise to do more and improve my tools over the next 12+ months for everyone to find better profits. Get some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver
AMEX:SPYEducation
by BradMatheny
2
How to Trade Liquidity Sweeps Using PDH/PDL Levels (Smart Money This guide shows how to use the **Liquidity Sweep Detector – PDH/PDL Levels** script, now live on my profile. **What It Does:** - Accurately plots the previous day's high and low on intraday charts (15m, 1H) - Detects when price *sweeps* above or below those levels (potential liquidity grabs) - Visually marks sweeps with a dashed line and alerts you in real time - Optional table to show current sweep status (can be toggled off) **How I Use It:** - Wait for a sweep above PDH or below PDL - Look for rejection candles or structure shift afterward (e.g., CHoCH or BOS) - Combine with session timing (e.g., London/NY) for confluence **Pro Tip:** Set alerts to catch sweeps even when you're away from the screen. Just click "Add Alert" and use: - `PDH Sweep Triggered` - `PDL Sweep Triggered` This is part of how I approach Smart Money trading — combining market structure with real liquidity events. Script is open and free to use — find it on my profile: **Liquidity Sweep Detector – PDH/PDL Levels**
Education
by backtestbay
Three Peaks and Domed House Identification Guidelines Points Discussion 1, 2 This is the base. It may or may not appear and has no significance. 3, 5, 7 These points form the three peaks pattern. It’s not a triple top where price needs to peak near the same price. The shape of the peaks may be flat or pointed. The time between peak 3 and 7 is about 8 months. 4, 6, 8 These are valleys between peaks 3, 5, and 7. The drop to the valley floor can be considerable (that is, the retrace of the move up from 2 to 3 can be large). 8, 9, 10 This is the separating decline. Price drops in at least two selling waves (7 to 8 and 9 to 10). The word least suggests there can be multiple selling waves, so be flexible. The separating decline divides the three peaks from the domed house, making both look squarish. 10 Valley 10 is always lower than 4 or 6 and often lower than both. 11–14 Price bottoms at 10 and then recovers to form at least two valleys that test the low at 10. The peaks and valleys here should look symmetrical, not irregular. 14–23 or 27 The time from turn 14 to 23 should be 7 months and 8-to-10 days, but the measure from 14 can include peak 27. In other words, be flexible and don’t exclude a pattern because the duration is incorrect. If price at 12 or 14 fails to test the low at 10 (or 12 or 14 are absent), then try using valley 4 or 6 in the 7-month calculation to better predict the domed house peak. 15 Price rises quickly and steeply to peak 15, forming the left wall of the first story. 15–20 Look for price to form five waves here, 15–16, 16–17, and so on, ending at 19–20. Price bounces between peaks and valleys, forming the firstfloor roof. 20–21 This is the second story’s left wall. It’s the move up to 21 from 20. 21–25 This is the dome of the house. Price forms another set of peaks and valleys, trying to move to a new high but failing. 25–27 Price drops from 25 and forms a wave 26–27, which may mirror the roof from 15–20. Point 27, if tall enough, may be the right shoulder of a headand- shoulders top formed by the move from 21–25. 27–28 Price drops all the way back to the level of point 10 (or close to it). The drop may be a straight-line run down or it may have several retraces, but price will eventually make it to the price of 10 (in theory). Thomas_N_Bulkowski_Encyclopedia_of_Chart_Patterns_John_Wiley_&_Sons
Education
by alnoman
Candlestick Patterns + Trend and Momentum: A Perfect CombinationCandlestick patterns provide valuable insights into price action, showing potential reversals, continuations, or market indecision. However, to significantly improve their effectiveness, combining candlestick analysis with trend and momentum indicators is essential. Here’s how you can use these combinations to trade with more confidence and accuracy. 1. Why Candlestick Patterns Matter Candlestick patterns visually represent traders’ psychology through price movements, including four key prices: Open, Close, High, and Low. Some of the most common and useful patterns include: Doji: Indicates market indecision and potential reversals. Hammer & Hanging Man: Signals possible trend reversals at support or resistance. Engulfing Pattern: Often marks the beginning of a significant reversal. Morning/Evening Star: Combination patterns that strongly suggest a trend reversal. 2. Adding Trend and Momentum Indicators Candlestick patterns alone might lead to false signals or confusion. By pairing them with other technical tools, such as moving averages, RSI (Relative Strength Index), or MACD (Moving Average Convergence Divergence), you gain crucial context to confirm the reliability of the patterns. Here’s how: Trend Alignment: Using moving averages, such as the 20 or 50-period EMA, helps confirm whether a bullish candlestick pattern appears in an uptrend (strengthening the signal) or countertrend (potentially weaker signal). Momentum Confirmation: Oscillators like the RSI or MACD can confirm the underlying momentum behind a candlestick pattern. For instance, a bullish engulfing pattern becomes more reliable if it coincides with RSI moving upward from oversold territory or MACD showing a bullish crossover. Volume Analysis: Higher volume on the candle that forms the pattern typically confirms increased market interest and strengthens the validity of the signal. 3. Practical Example: Bullish Engulfing + RSI Imagine you spot a bullish engulfing pattern forming at a clear support level after a downtrend: Step 1: Identify the Pattern: Confirm the bullish engulfing visually. Step 2: Check RSI: Ensure RSI is below 30 or rising, signaling oversold conditions and potential bullish momentum. 4. Why This Approach Works Enhanced Accuracy: Combining candlestick signals with trend and momentum indicators increases signal reliability. Improved Risk Management: Clearer signals mean more confident entries and better-defined stop-loss levels. Reduces False Signals: Multiple confirmations reduce the risk of false breakouts or reversals. 5. Final Tips Always look for multiple confirmations (trend, momentum, volume) before making trade decisions based solely on candlestick patterns. Be patient—waiting for full confirmation can help avoid premature trades. Regularly backtest and practice recognizing these combined signals to strengthen your trading strategy.
AMEX:SPYEducation
by TrendGo_Official
GBP/USD – 1992 Replay | George Soros “Broke the Bank” TradeHistorical Context Summary: This chart revisits the iconic 1992 short by George Soros against the British Pound, which ultimately forced the UK to abandon its currency peg and exit the European Exchange Rate Mechanism (ERM). The marked zones reflect the approximate levels where Soros reportedly initiated and closed his short position, anticipating a collapse of the GBP against the USD. Real-time Trade Thesis: Soros identified that the British economy was fundamentally too weak to sustain a fixed exchange rate against the Deutsche Mark, enforced through the ERM. Inflation was high, the economy was slowing, and the government was hiking rates and burning through reserves to defend the pound. Meanwhile, Germany’s economy was far stronger, making the GBP significantly overvalued relative to its fundamentals. The Quantum Fund went short over £10 billion worth of GBP using highly leveraged positions, primarily via GBP/USD. On September 16, 1992 ("Black Wednesday") , the Bank of England capitulated after failing to hold the peg, and the pound collapsed—securing Soros one of the most profitable trades in history with over $1 billion in gains. Technical Analysis Context: This GBP/USD chart highlights the upper “order activation” zone where Soros began scaling into his short, as price stalled near the artificially defended level. As speculative pressure intensified, the central bank’s interventions failed, leading to a violent breakdown. The lower box marks the approximate range where Soros likely began closing the trade and locking in profit as the peg failed and panic selling set in. Key Lessons: Pegged currencies can’t defy economic fundamentals forever. Macro conviction + tactical timing = asymmetric return. Central banks can lose to coordinated market pressure. Use leverage wisely, only when your thesis is airtight. Liquidity stress often precedes capitulation—watch reserve flows and bond yields. History leaves patterns—legendary trades repeat in new forms across cycles.
Education
by GreenZoneCapital