Get started

Chart Patterns

Myths about Chartism (Part 1): Diamond FormationsCurrently, the ideas of the fathers of Technical Analysis are outdated in the face of the flood of trendy popularizers. Concepts that once formed the foundation of the profession have been manipulated, and with them, centuries of experience have been diluted in the eagerness for novelty and total disinterest in the past (the main advantage of the investor). Beyond "sticker collectors," a chartist was someone who studied the psychology of the masses and their indelible mark on the markets. Above all, they were logical beings (something suspiciously frowned upon nowadays). Behind every fluctuation or manifestation of price action, a chartist tried to achieve a full understanding, and it was Richard W. Schabacker who was the first investor to compile and publish decades of study in 1932, in the book titled "Technical Analysis and Stock Market Profits: A Course in Forecasting." Relying mostly on this first and purest source of information, and with the belief that mass psychology has not changed, I plan to write a series of well-documented articles on Chartism, the backbone of Technical Analysis in the West. Diamond Formation Ideas from Richard W. Schabacker: "This pattern could be considered a variant of the Head and Shoulders formation. However, it could more accurately be described as a formation composed of two base Triangles with their vertices pointing in opposite directions – an Inverted Symmetrical Triangle merging into a normal Symmetrical Triangle." "Rarely is it found in a perfectly symmetrical and clearly defined form; some degree of leeway must be taken and is permissible when tracing its boundaries. However, when it appears, it is a reliable formation and one that allows the trader to take a profitable position. It is more often found at tops than at bottoms." "Head and Shoulders formations with declining necklines generally offer few opportunities for taking profitable trading positions, but when they also allow for the construction of a Diamond, they provide a good breakout signal at a much higher and more profitable level." "It appears at bottoms as well as at tops, and is equally reliable as a reversal signal in either position." Content Analysis: I want you to pay special attention to how these formations are described as reliable r eversal signals . Unlike what is currently popularized, for Schabacker, a diamond formation is a corrective pattern, provided it forms at the top or bottom of a trend (with a greater presence at the top). The theory that a diamond formation can be either corrective or a continuation pattern, I have researched, goes back to the work of John Magee (and Edwards ), a disciple of Schabacker. Magee, in his influential book "Technical Analysis of Stock Trends" (1948), graphically shows an example where a "diamond formation" ends up generating a continuation of the trend. The issue is that the case presented by Magee, rather than a trend, is a strong and extremely vertical explosion of bullish volatility. By applying technical lines to the (natural) reversal, Magee believes he sees a diamond formation, a mistake that would not have been passed down to future generations of investors had he applied the logic of this type of corrective patterns. Logic Behind Diamond Formations: Imagine an uptrend that cannot surpass the previous high and experiences a deeper-than-normal pullback (both signs of weakness); then, subsequent bullish attempts are thwarted by selling forces. As supply and demand compress, we will find exhausted and demoralized buyers, alongside confident sellers. At some point, many of those demoralized buyers might panic (with good reason) and switch sides to join the selling forces. Another no less crucial detail is that each rejection by the sellers will create walls of liquidity that are difficult for the exhausted buyers to overcome; meanwhile, downward the path will be clear, which will attract more sellers, enticed by the excellent risk-reward ratio and the strategic placement of SLs (close and extremely protected). In such a scenario, a sharp price drop is logical and highly probable. "A process of consolidation involves many trapped participants and increasingly tight SLs, so liquidations will generate strong bursts of volatility." In a downtrend, it would be exactly the opposite. If the selling force cannot break below the previous low and rebounds with extreme strength, these are signs of weakness. Then, if buyers reject each selling attack until supply and demand are compressed, the most likely scenario would be an upward explosion. Demoralized and fearful sellers, worried about a probable liquidation, will not take long to capitulate their positions to increasingly strong and confident buyers. The influx of new demand, attracted by an excellent risk-reward ratio and a relatively close, well-protected SL, will likely precipitate things upward with high probability. Additional Notes: -In the BTCUSDT chart, you can see with lines where John Magee would take profits (TP), but I recommend that profit-taking be done horizontally aligned with the base of the diamond (Richard W. Schabacker did not specify details about taking profits in this type of formation). Richard W. Schabacker and John Magee (and Edwards) considered volume important when validating the breakout of the formation, but I recommend validating the breakout by understanding the logic and context in which the formation occurs (moreover, waiting for a breakout with volume might cause you to miss more than half of the move, as price compressions generate strong bursts of volatility). -It's natural that John Magee's and Edwards' misinterpretation impacted several generations of technical analysts, as "Technical Analysis of Stock Trends" (1948) is one of the most influential works in the field ( "The bible of technical analysis"). It was published after World War II, at a time of financial market expansion and growing interest in investment tools. Schabacker, on the other hand, died young (1938). -The introduction to "Technical Analysis of Stock Trends" (1948) and statements on the book's cover reveal the debt that Magee and Edwards feel towards Mr. Schabacker. Their frankness and honesty should be admired because they freely declare that they did not develop or create the many facets of Technical Analysis they were passing on to a new generation.
Education
by Especulador96
Is Floki Inu really just another version of Dogecoin?Hello and greetings to all the crypto enthusiasts, ✌ Reading this educational material will require approximately 10 minutes of your time . For your convenience, I have summarized the key points in 10 concise lines at the end . I trust this information will prove to be insightful and valuable in enhancing your understanding of Floki Inu and its role in the global financial landscape. Personal Insight & Technical Analysis of Floki Inu Cryptocurrencies linked to well-known figures like Elon Musk tend to have great potential but come with substantial volatility and risk. While the current technical chart for Floki Inu shows an upward trend, some short-term pullbacks may occur before any sustained growth. However, this analysis should be seen as a personal viewpoint, not as financial advice, and it’s important to be aware of the high risks that come with investing in meme coins and that being said, please take note of the disclaimer section at the bottom of each post provided by the website ,. Floki Inu Overview Floki Inu, a meme coin inspired by Elon Musk’s dog, has made waves in the cryptocurrency space, standing out as one of the most influential and talked-about projects. Built on the Ethereum blockchain, Floki Inu began as a meme coin but quickly evolved into something much larger, gaining significant attention due to its sizable market cap and the backing of a passionate community. In this overview, we will dive into what Floki Inu is, who created it, its origin story, how to buy it, its potential as an investment, its utility, and what makes it unique compared to other meme coins. How to Buy Floki Inu To acquire Floki Inu, you must first sign up on a cryptocurrency exchange that supports it. Look for a platform with strong security features, such as two-factor authentication and data encryption, to ensure the safety of your investments. Additionally, consider the transaction fees, as these can eat into your profits. The exchange should also be user-friendly and offer an easy interface for smooth trading. To make the best choice, reading reviews and feedback from other users is essential for selecting a trustworthy platform. The History of Floki Inu Floki Inu was born out of a single tweet by Elon Musk on June 25, 2021, where he announced he would soon adopt a Shiba Inu puppy named Floki. This tweet sparked the creation of the Floki Inu cryptocurrency, which was initially developed by an anonymous creator but soon abandoned. Despite this, a passionate community took over and revived the project by July 6, 2021. The project quickly gained traction, especially after Musk’s tweet on September 12, when he revealed his family had received the puppy. By that time, Floki Inu was already being actively traded. Initially launched as an ERC-20 token on the Ethereum blockchain, Floki Inu has grown into a multifaceted project that includes Web 3.0, decentralized finance (DeFi), and Metaverse elements, transforming it from a meme coin into "The People’s Crypto." Floki Inu’s Mission Floki Inu stands out not only for its cryptocurrency potential but also for its commitment to social causes. The primary mission of the Floki Inu team is to build schools in underdeveloped countries and combat food insecurity worldwide. Their charitable initiatives have attracted attention from major institutions, such as Nasdaq, which listed Floki Inu as one of the top metaverse projects to watch in 2022. Additionally, Floki Inu has partnered with the Million Gardens Movement, led by Kimbal Musk, to fight global food insecurity. These charitable goals give Floki Inu a sense of purpose beyond just financial speculation, aiming to make a real-world impact. Floki Inu Use Cases Floki Inu’s value is reflected in its versatility and the range of use cases it supports: 1. Investment – Many see Floki Inu as a potential investment, especially due to Elon Musk’s influence on the price movements of meme coins. Investors hope for gains based on social media hype and increased market attention. 2. Trading – Just like other cryptocurrencies, Floki Inu can be traded to benefit from price fluctuations in the market. Traders can buy and sell the token to capitalize on short-term movements. 3. Staking – Floki Inu can be staked in various wallets, allowing users to lock their tokens and earn rewards over time, which adds an additional layer of utility for holders. 4. Charitable Initiatives – Perhaps one of its most unique attributes, Floki Inu is heavily focused on charitable projects, especially around education and addressing global food insecurity, distinguishing it from other meme coins in terms of long-term vision. Floki Inu’s Ecosystem Floki Inu’s ecosystem is broad, encompassing several ambitious projects that are still under development. These projects span areas like NFTs, DeFi, and the Metaverse. Here’s a look at the main initiatives within the Floki Inu ecosystem: - Valhalla – Floki Inu has ventured into the NFT gaming space with its game, Valhalla. This game is based on NFTs, and players can earn FLOKI tokens by participating, with full ownership of the tokens they acquire. These tokens can be used for in-game purchases, creating a dynamic and rewarding experience for players. - FlokiFi – FlokiFi is a suite of decentralized finance (DeFi) products, which aims to bring innovation to the space. The first product launched under FlokiFi is the FlokiFi Locker, designed to be a leading protocol for securing digital assets. Additional staking products are planned but haven’t been fully disclosed yet. - FlokiPlace– An NFT marketplace called FlokiPlace is in the works, where users can buy and sell NFTs and digital assets. The platform is intended to expand the use of Floki Inu, positioning it as a viable alternative to traditional currencies like Bitcoin and even the US Dollar for digital transactions. - Floki University – Floki Inu is also focused on education with the creation of Floki University, a Metaverse-based platform designed to teach users about cryptocurrency and blockchain technology. The university will offer free courses on crypto basics and specialized content, with the possibility of some advanced courses requiring payment in FLOKI tokens. The ultimate goal is for Floki University to become a leading educational platform in the crypto space, providing a large database of resources to users worldwide. These projects are still in development but showcase the ambitious nature of Floki Inu’s ecosystem. They represent the broader vision of the team to transform the project into a multifaceted platform that not only participates in the crypto market but also makes a tangible impact through education, gaming, and charitable work. In conclusion, Floki Inu has moved beyond being a simple meme coin and is working to build a comprehensive and impactful ecosystem. Its commitment to charity, educational initiatives, and its diverse technological projects position it as one of the most interesting and innovative meme coins in the market today. Whether you are considering investing in Floki Inu or just exploring its potential, it’s clear that it has a lot to offer, both as a digital asset and as a project with a deeper purpose. 🧨 Our team's main opinion is: 🧨 Floki Inu is a meme coin inspired by Elon Musk’s dog. It was launched on the Ethereum blockchain and quickly gained popularity. The project was revived by a passionate community after its initial abandonment. Floki Inu has evolved from a meme coin into a multifaceted ecosystem. Its mission focuses on charitable causes, including building schools and combating food insecurity. The coin’s use cases include investment, trading, staking, and charitable initiatives. Floki Inu is developing projects in NFTs, DeFi, and the Metaverse. Valhalla, an NFT game, and FlokiFi, a DeFi product, are key components. Floki University is an educational platform teaching crypto and blockchain technology. Floki Inu aims to make a lasting impact on both the crypto world and society. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
5
High Tight Flag: The Ultimate Key to Explosive ProfitsIn the realm of trading, there exists a chart pattern so powerful, so rare, that it feels like a prophecy for massive success – the High Tight Flag (HTF). This isn’t just another pattern; it’s the holy grail of bullish setups, a gateway to some of the most extraordinary gains the market has to offer. Traders who master this pattern unlock the ability to spot opportunities that others can only dream of. The Magic of the High Tight Flag Picture this: a stock surging over 100% in just 1 to 8 weeks, defying expectations with an almost vertical climb. Then, it pauses – but only briefly – with a shallow pullback of no more than 25%, lasting just 1 to 5 weeks. The tension builds, the stage is set, and suddenly, the breakout erupts, sending the stock to new all-time highs. This is no ordinary pattern. The High Tight Flag signals one thing loud and clear: no one is selling. Despite the enormous gains, buying pressure remains relentless. This shows us that big players – institutional investors – are still loading up. It’s a rare alignment of forces that every trader dreams of catching. Volume: The Hidden Key to Validation Volume plays a critical role in confirming the strength of the High Tight Flag pattern. As the stock consolidates, the volume should decrease, indicating a pause in aggressive buying while holders remain firm. When the breakout occurs, the volume should spike significantly, showing a renewed surge of demand that propels the stock higher. Without this volume confirmation, the pattern’s reliability decreases. Unlocking the High Tight Flag’s Power A Lightning Surge: The stock climbs 100% or more in just 1–8 weeks. A Calm Pause: The pullback stays shallow, between 10–25%, over a short period (1–5 weeks). The Perfect Flag: Flags with a slight downward slope are often the most explosive. The Entry Point: The breakout occurs when the stock surpasses the flag’s high by, for example, 10 cents. Volume Confirmation: Ensure volume decreases during consolidation and surges above average during the breakout. The High Tight Flag is the epitome of market strength, revealing the hand of smart money in action. A Proven Success Rate The High Tight Flag boasts a success rate of over 75%, making it one of the most reliable patterns in existence. But it’s not for the impatient or undisciplined. This is a rare gem, and spotting it requires both skill and dedication. Yet, the reward is unparalleled: explosive moves and the chance to ride the wave of institutional momentum. A Community Built on Success: Let’s Share Our Findings To all TradingView users: I have a suggestion to make this even more powerful. Whenever you spot a High Tight Flag formation, share it in the comments! Let others know the stock, the timeframe, and the setup you’ve identified. By working together as a community, we can uncover these rare opportunities faster and ensure no one misses out. Let’s build a space where knowledge flows freely, and success becomes a shared achievement. So, if you find an HTF pattern, don’t keep it to yourself—help others, and they’ll help you in return. Together, we can dominate the markets! The Pattern That Could Transform Your Trading The High Tight Flag is more than a pattern – it’s a revelation that separates the average trader from the elite. It offers a window into the market’s inner workings and shows you the true power of institutional demand. By mastering it, you’ll gain the edge to capture opportunities others overlook. This isn’t just a tool; it’s your blueprint to extraordinary success. Learn it, apply it, and let your gains speak for themselves. The next big move is out there – are you ready to seize it?
OTC:CYFRFEducation
by ShilpaChawla-pawellazikowski
Is Dogecoin at risk of being replaced by Musk-themed coins?Hello and greetings to all the crypto enthusiasts, ✌ Reading this educational material will require approximately 10 minutes of your time . For your convenience, I have summarized the key points in 10 concise lines at the end . I trust this information will prove to be insightful and valuable in enhancing your understanding of Dogecoin and its role in the global financial landscape. Dogecoin has gained significant prominence in Elon Musk's business ecosystem, thanks to its widespread use in Musk-associated ventures and Musk's personal advocacy. His vocal support has propelled Dogecoin into the mainstream, cementing his position as one of the most influential figures in the cryptocurrency space. While Musk has previously commented on Bitcoin, it was his involvement with Dogecoin that truly bridged the gap between the business world and cryptocurrency, making Dogecoin the first cryptocurrency to connect him to the broader crypto universe. Given Musk's continued backing, it is unlikely that Dogecoin will face a sharp decline in the near future. Instead, it is poised to benefit from Musk’s influence and growing presence in the crypto space. However, the dynamic nature of the cryptocurrency market means new competitors could emerge, potentially impacting Dogecoin's market share. For example, projects like Floki have quickly risen by leveraging high-profile personalities and branding, which could inspire other cryptocurrencies to challenge Dogecoin’s dominance. Musk’s upcoming ventures, such as XMoney—a blockchain-powered payment platform for his companies like Tesla and SpaceX—could increase demand for Dogecoin. This platform will provide a decentralized payment infrastructure across Musk’s businesses, potentially further solidifying Dogecoin's place in his ecosystem. While the full impact of these developments is still unclear, Musk's leadership in integrating cryptocurrency into established industries is likely to continue. Another notable factor is Musk's connection with former President Donald Trump, whose recent engagement with the cryptocurrency market has added further attention to the sector. This intersection between high-profile figures has sparked fresh interest in digital assets, creating upward momentum for Dogecoin and other related assets. This growing attention could drive Dogecoin’s price higher as the market responds to this renewed liquidity. On the technical side , indicators for Dogecoin are increasingly positive. Analysts suggest it may soon break out of its current price channel, signaling the potential for a significant price surge. If Dogecoin can surpass key resistance levels, a bullish phase could emerge, leading to notable price increases in the short-to-medium term. This potential breakout is supported by Musk's ongoing influence in both the tech and crypto spaces, which tends to have a substantial impact on market sentiment. The broader cryptocurrency landscape is also contributing to Dogecoin's promising future. Trends such as blockchain technology development, institutional adoption of cryptocurrencies, and growing recognition of crypto as a legitimate asset class suggest that Dogecoin will remain a significant player in the market. As the cryptocurrency market evolves alongside technological and regulatory changes, Dogecoin’s relevance appears likely to endure. Furthermore , the rise of artificial intelligence (AI) in the crypto space could shape Dogecoin's future. As AI technologies continue to advance, they will influence cryptocurrency trading, market dynamics, and risk management systems. Musk’s involvement in both AI and crypto may provide opportunities to leverage AI-driven tools to enhance Dogecoin's appeal and utility, making it more accessible and efficient for users, which could boost mainstream adoption. Lastly , the regulatory environment around cryptocurrencies will play a crucial role in determining the future of assets like Dogecoin. While regulations remain uncertain in many areas, the increasing push for clearer frameworks could provide stability to the market. As governments and financial institutions set up structures for cryptocurrency adoption, established cryptocurrencies like Dogecoin could gain more legitimacy, integrating into traditional financial systems and further elevating their market position. 🧨 Our team's main opinion is: 🧨 Dogecoin has become a significant asset in Elon Musk's business ecosystem, driven by his strong support and advocacy. Musk's involvement has helped propel Dogecoin into the mainstream, bridging the gap between the business world and crypto. While new competitors may emerge, Musk’s continued backing ensures Dogecoin’s relevance. The launch of XMoney, a blockchain payment system for Musk’s companies, could further boost Dogecoin's use. Musk’s connection to Trump has also sparked renewed interest in digital assets, providing upward momentum for Dogecoin. Technical indicators suggest a potential price surge as Dogecoin nears a breakout. The broader crypto market trends, blockchain development, and growing institutional adoption signal a positive future for Dogecoin. AI advancements may further enhance Dogecoin's appeal, increasing its accessibility. Clearer cryptocurrency regulations could increase stability and legitimacy for Dogecoin. As Musk remains a key figure, Dogecoin is likely to maintain its strong position in the crypto ecosystem. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
16
VSA Rays: Mastering the Art of Predicting Future Price MovementsThe cryptocurrency PUFFER/USDT.P has captured our attention today as it flirts with a critical moment of decision. Currently trading at $0.5659, the price reflects a staggering 44% deviation below its all-time high of $1.0122, achieved just 50 days ago. Yet, it has also soared over 138% from its absolute low, a testament to its volatility and potential for rapid moves​. With a Relative Strength Index (RSI) hovering near a neutral 50, and buy volume patterns increasingly dominant over the past 24 hours, the market appears to be in a state of consolidation​​. The Moving Average 50 (MA50) at $0.5752 suggests minor overhead resistance, while psychological resistance levels are forming near $0.5961, possibly triggering the next rally​. Fundamentally, macroeconomic whispers of liquidity adjustments and renewed interest in altcoin markets are setting the stage for a bold shift. The big question remains: Is this your chance to ride the wave up, or will the bears claw back dominance at this critical threshold? For both traders and investors, the stakes couldn't be higher. The coming days will determine whether PUFFER/USDT.P’s momentum builds into a breakout or fades into retracement. Are you ready for the ride? The clock is ticking, and this could be your chance to capitalize on a decisive market move. Stay tuned for our detailed analysis on key levels and patterns shaping this opportunity. PUFFER/USDT.P Roadmap: Decoding the Patterns for Success Understanding the flow of market movements is crucial for both traders and investors. Here’s a detailed roadmap of the key patterns recently observed in PUFFER/USDT.P, using historical data to confirm their validity and align with anticipated price directions. January 25, 2025 – VSA Manipulation Buy Pattern 4th Direction: Buy Trigger Point: Low of the last 3 bars ($0.5514) Outcome: The market closed slightly higher at $0.5564, hinting at a bullish impulse. This aligns with the main direction, as the next pattern confirmed upward movement to a high of $0.5777. This is a textbook pattern execution, showing strong buyer momentum. January 26, 2025 – Increased Buy Volumes Direction: Buy Trigger Point: Open price ($0.5628) Outcome: This pattern delivered as expected, with a close above the open at $0.5768. The immediate next high of $0.5777 supports this buy direction, emphasizing consistent buyer dominance. January 25, 2025 – Increased Sell Volumes (Skipped) Direction: Sell Trigger Point: High of the last 3 bars ($0.6345) Outcome: Contrary to the sell direction, subsequent price action leaned bullish. This pattern did not trigger effectively, and its impact is minimal in the broader roadmap. January 24, 2025 – VSA Buy Pattern Extra 1st Direction: Buy Trigger Point: Not applicable Outcome: The market moved consistently higher, with the high extending to $0.6112 shortly after. This pattern highlighted the continuation of a buying trend, supported by increasing volume and a steady climb. January 22, 2025 – Sell Volumes Take Over (Skipped) Direction: Sell Trigger Point: Low of the last 3 bars ($0.5873) Outcome: While sell volumes showed a momentary dip to $0.5873, the market rebounded quickly, invalidating the sell direction and confirming a persistent bullish bias. January 23, 2025 – Buy Volumes Take Over Direction: Buy Trigger Point: Open price ($0.6024) Outcome: The price continued upward to $0.6094, marking this as a clean execution of a bullish pattern. Traders who spotted this transition capitalized on the trend. Key Takeaways from the Roadmap Bullish patterns like VSA Buy Pattern 4th and Buy Volumes Take Over consistently outperformed, confirming strong market optimism. Sell patterns were largely invalidated, indicating underlying buyer control over the asset during the observed period. Trigger points proved reliable markers for entry, with clear follow-through seen in consecutive highs. This roadmap demonstrates how understanding pattern execution and aligning with validated directions can significantly enhance trading success. Watch for future VSA Buy Patterns—they've consistently marked golden opportunities for upward momentum. Stay sharp, and ride the trend! Technical & Price Action Analysis: Key Levels to Watch When it comes to trading, knowing your levels is half the battle. Below are the critical support and resistance zones for PUFFER/USDT.P, straight from the charts. If these levels fail to hold, you can expect them to flip and act as resistance in the future. Mark these on your radar—miss them at your own risk! Support Levels 0.5201 – Your first line of defense; a break below could open the door to further downside. 0.2934 – A deeper support level that traders should keep an eye on if the price dives lower. Resistance Levels 0.5961 – The immediate overhead barrier. Bulls need to clear this for any meaningful push higher. 0.6934 – A higher resistance zone that could attract sell-side interest. 0.7277 – A strong ceiling to watch, marking the upper range of current price action. 0.8881 – A psychological level that’s likely to be a battleground for bulls and bears alike. Powerful Resistance Levels 1.0122 – The absolute high. Breaking and holding above this level would signal a major trend reversal. What Happens If These Levels Fail? If support levels crumble under selling pressure, they’ll likely become resistance as sellers defend their positions. The same goes for resistance—if bulls break through, it flips to support, creating a solid base for further upward momentum. Keep these levels in mind to navigate the chop and make informed decisions in this dynamic market. This is your roadmap to the action—stay sharp, and let the levels guide your trades! Trading Strategies Using Rays: From Concept to Actionable Scenarios The Rays from the Beginning of Movement concept provides a systematic approach to predicting price reactions based on Fibonacci-based geometrical rays. These rays, combined with dynamic factors like moving averages, offer traders a reliable method to identify high-probability trade setups. Below, we outline the framework and suggest two scenarios—optimistic and pessimistic—to align with potential market conditions. Concept of Rays in Action Fibonacci Rays and Their Purpose: Each ray defines key dynamic levels derived from the beginning of the price movement. They help map the probable path of the price and identify zones for potential reversals or continuations. Dynamic Factors: Moving averages (e.g., MA50, MA100, MA200) act as secondary confirmation tools. When price interacts with a ray and aligns with a moving average, the probability of a valid move increases. Actionable Levels: Traders focus on interactions between rays, moving averages, and VSA patterns on the chart. After a confirmed interaction, the price typically moves from one ray to the next, presenting opportunities for profitable trades. Optimistic Scenario: A Breakout with Momentum Initial Interaction Zone: $0.5752 (MA50) First Target: $0.5862 (MA100, next ray level) Second Target: $0.6272 (MA200, upper ray boundary) Third Target: $0.6468 (Extended ray, potential continuation) Commentary: In this scenario, the price demonstrates bullish momentum after interacting with the MA50 and first Fibonacci ray. Buyers take control, driving the price to subsequent ray levels. Pessimistic Scenario: A Controlled Decline Initial Interaction Zone: $0.5752 (MA50) First Target: $0.5201 (Key support level) Second Target: $0.2934 (Lower ray boundary) Third Target: $0.2375 (Absolute low) Commentary: Here, the price fails to sustain above the MA50, leading to a downward interaction with Fibonacci rays. Sellers dominate, targeting progressively lower levels. Potential Trade Setups Based on Ray Interactions Bullish Entry: After price confirms an upward bounce from $0.5752, enter long, aiming for $0.5862 (first target). Place a stop-loss below $0.5730 to manage risk. Bearish Entry: If the price rejects $0.5752, consider a short position targeting $0.5201 with a stop-loss above $0.5770. Breakout Trade: Watch for a breakout above $0.5862 with strong volume. Enter long with targets at $0.6272 and $0.6468. Range Trade: If the price oscillates between $0.5752 and $0.5862, use the range to buy near support and sell near resistance. Final Notes The combination of Fibonacci rays and moving averages creates a robust system for identifying dynamic trade zones. Remember, trades should only be entered after clear interaction and validation from the rays and dynamic factors. Whether the market trends bullish or bearish, these scenarios provide a clear framework for traders to follow and adapt as conditions unfold. Your Turn to Join the Conversation Hey traders and investors! Let’s make this space interactive. If you’ve got questions about the analysis, specific levels, or just want to dive deeper into the strategy—drop them right in the comments. I’ll be happy to answer and discuss with you. If you found this analysis helpful, don’t forget to hit Boost and save the idea to revisit later. Watching how price reacts to these levels is the best way to learn and grow as a trader. Remember, understanding entry and exit points is key to consistent success. For those interested, my proprietary indicator automatically maps out all the rays and levels you see here. It’s available privately, so if you’re curious about using it, feel free to send me a message directly. Have a specific asset in mind? I’m open to providing analysis! Some ideas I’ll post here for everyone to benefit from, and for others, we can discuss more personalized setups. Whether it’s public or private, we can figure out the best approach together. Lastly, don’t forget to follow me here on TradingView. This is where I post all my insights and updates, and I’d love to have you as part of my trading community. Let’s keep learning and growing together—one chart at a time. 🚀
Education
by brandlabelden
Traders MindsetLet’s talk about mindset! You hear everyone saying; mindset is the most important in trading. But what is having “the right mindset” ? Now here is a little secret. Mindset is not just being focused on the money. “I must be profitable”. No. Having the right mindset is having a set of attitudes. Quite literally the definition.. Mindset /ˈmʌɪn(d)sɛt/ noun (usually in singular) the established set of attitudes held by someone. How you approach the market is very important. Have a set of rules for yourself. - Do I have a trading plan? Having a trading plan is important. It helps you follow something day in and day out. - Do I have good market conditions? Having good market conditions is important as it helps you make more clear decisions. Trading in sideways markets usually ends badly. It forces the trader to become impatient and entering too soon, expecting a breakout to either side usually leads to loses. - Do I know the risk? Understanding the risk before you enter the trade is important. Majority of traders over-leverage, meaning they use high leverage thus being able to open higher lot size positions. That usually leads to blown accounts. Knowing what you are risking, eliminates a lot of the emotions. - Do I have any confirmations? Whether that’s a break, a pullback, fundamentals supporting your view that’s great! Having confirmations on your analysis or trade is important. - Is this trade forced? Am I being nervous before entering? Am I not sure? Am I gambling on this trade? Understanding your emotions is important. Ever felt like this when you opened a trade, knowing you shouldn’t and it instantly went against you? Avoid these trades. One more thing I would like to add. Ever been stuck to your screen 24/7? Lost sleep over a trade. Here is a fact. You watching the chart, won’t change its path. Sad truth. There is nothing wrong with following your trade, but if you are watching your losing trade, then I already know where it leads. You do too. Avoid this. Going back to the #1 rule. Know your risk before entering. Eliminate emotions. Having the right mindset is following your own rules and having a set of habits. Habits that help you to grow as a trader. Eliminate bad habits. Review your past trades. You all know why you lost a trade. But will you look for an excuse? “Ah the market did a liquidity sweep” or “market is manipulated”. The market is never wrong. You as a trader are. Don’t celebrate wins or mourn loses on your account. Treat it as your full time job. You have some good days, you have some bad days. You win, you move on. You lose, you move on. As long as you are following the trading plan, you will succeed. Understanding this, combined with experience will grow you as a trader. And guess what the by product of this is? Money. So don’t focus on money. Focus on self-growth, mindset, experience and upgrading your skillset of trading. Money will be the byproduct of your journey. Create your mindset plan. A set of rules for yourself. Try doing it for 30 days. Come back to this post and tell us if you have improved. Nothing or no one is stopping you from being a successful trader but yourself. It’s not the market and no it’s not the broker. Majority of traders quit after blowing a few accounts. The rest stick around for years but make no progress. Only a few % of them actually find the meaning behind it and succeed. What’s the secret? Signals? Prop Firms? Account managers? EA’s? No. Sure all these things can benefit you slightly. But what truly is the secret to being successful in trading? You! You are the secret. Understanding yourself, your emotions, your reactions to certain events. Trading is a mirror of you. An amplified picture of you. Are you impatient? Scared? Nervous? Greedy? Forex will amplify those emotions. The biggest battle you have to win is the battle with yourself. Not the market. Trading is easy, you have a trading plan, you stick to it. Sometimes you may have a loosing week, happens right? But as long as you are sticking to your strategy, understanding the market, using a positive R:R and understanding the importance of consistency you should be fine. But here is the hard part. Your reactions. Your emotions. Let’s take for example NFP Data release. Weeks or even months of progress can be wiped out due to irrational decisions during news. Don’t be that trader. Suppress your emotions, don’t get greedy. Take a jab at the market, but only after the data is out. Remember, no one is stopping you from being a successful trader, but yourself. A key element added to a traders mindset is PATIENCE . patience /ˈpeɪʃns/ (noun) - the capacity to accept or tolerate delay, problems, or suffering without becoming annoyed or anxious. That’s the definition of patience. Trading is a stressful field. Not only does your analysis have to be on point, you have to be focused, have a trading plan, use proper risk to reward ratio… so many factors and then comes the patience. We already know that the market always provides unexpected problems. It plays with our emotions, ranges, does not move, goes against us etc. How many times have you entered in a position and the price started to range, while you float in loss? You start doubting, you get scared and you close the position. Or even worse, you get stopped out. Later in the day you check the chart and you see your Take Profit (TP) would have been hit, but only if you were more patient? Or how many times have you had an A+ setup, everything was going to plan but you closed it early because you wanted to secure the profit? Being a good trader is hard, but it’s not impossible. Discipline is everything as well as patience. Without patience you are bound to lose. From talking to many people, you would be surprised at how many of them want to “flip” their account. “Do you think I can make 2000$ this week” with 1000$ in their account. We will always advocate for patience. Playing the long game. Consistency + patience will get you far. Check some of the last trades you did. Were you patient? Ask yourself. Majority can find themselves in these stories. Work on your patience, and you will get far. For example, check out this long-term analysis on XAUUSD (Gold) posted on January 9th. Now we did close it earlier, but we still managed to secure +500 pips (50$ price action) in 3 days of holding. Patience. This post was made due to a high request of people liking our minds, so it has all been posted in a single educational post. FxPocket
OANDA:XAUUSDEducation
by FxPocket
1
best tips and strategies to avoid losing money while trading solTrading Solana meme coins (or any speculative assets) can be risky, but there are strategies you can implement to reduce the likelihood of losing money. Here are some tips and strategies: 🔸### **1. Perform Thorough Due Diligence** - **Project Research**: Investigate the team, roadmap, and purpose of the meme coin. Look for transparency and active community engagement. - **Smart Contract Audit**: Verify if the project’s code has been audited by reputable firms to rule out vulnerabilities or malicious intent. - **Tokenomics**: Understand the coin's supply, distribution, and vesting schedules to assess inflation risks. - **Liquidity**: Check the total locked liquidity and if it's controlled by trusted third parties (like in a locked contract). 🔸### **2. Be Cautious with New Listings** - **Avoid FOMO**: Don't jump into a token right after its launch due to hype. Often, prices spike initially and then crash. - **Verify Listings**: Ensure the coin is listed on reputable platforms like CoinGecko or CoinMarketCap and recognized by reliable exchanges. 🔸### **3. Use Risk Management** - **Position Sizing**: Only invest a small portion of your portfolio in highly speculative meme coins, such as 1-5%. - **Stop-Loss Orders**: Set stop-loss orders to automatically sell your coins if the price drops to a certain level. - **Profit-Taking**: Use a systematic approach to secure profits, such as selling a portion after the coin gains a specific percentage. 🔸### **4. Avoid Projects with Red Flags** - **Anonymous Teams**: Be cautious of projects with unknown or unverified developers. - **Low Liquidity**: Avoid coins with low trading volumes or liquidity, as you may not be able to sell without affecting the price. - **Over-Promises**: Be wary of projects that make outrageous claims, such as guaranteed returns or revolutionary technology without proof. - **Excessive Marketing**: Projects focusing more on memes and hype than utility are often short-lived. 🔸### **5. Check for Rug Pull Indicators** - **Owner Privileges**: Analyze the smart contract for owner permissions that allow for token minting or draining liquidity. - **Liquidity Lock**: Ensure the liquidity pool is locked for a significant period (e.g., 6 months or more). - **Token Distribution**: Avoid coins where a single wallet holds a large percentage of the supply, as this indicates a risk of dumping. 🔸### **6. Use On-Chain Analysis Tools** - **Explorer Tools**: Platforms like Solscan and Solana Explorer can help analyze token distribution, liquidity, and transactions. - **Rug-Detection Tools**: Use services like RugDoc or Token Sniffer to evaluate the safety of the project. - **Social Analytics**: Monitor community activity on Discord, Telegram, or Twitter to gauge organic growth and sentiment. 🔸### **7. Diversify Your Investments** - Don't put all your money into one meme coin. Spread your risk across multiple assets, including more established cryptocurrencies. 🔸### **8. Stay Updated on Market Trends** - **News Awareness**: Follow Solana-related news and updates, as ecosystem changes could impact meme coin performance. - **Whale Activity**: Track large transactions in meme coins to anticipate potential dumps. 🔸### **9. Protect Against Scams** - **Phishing Attacks**: Be cautious of fake websites, wallets, or social media impersonators. - **DYOR (Do Your Own Research)**: Verify all information independently before taking action. - **Secure Wallets**: Use reputable, non-custodial wallets like Phantom or Solflare to store your meme coins securely. 🔸### **10. Control Emotions** - **Avoid Emotional Trading**: Stay rational and stick to your strategy, even during extreme volatility. - **Know When to Quit**: If you’re consistently losing or the market becomes unpredictable, step back and reassess. 🔸### **11. Use Decentralized Exchange (DEX) Safely** - **Verify DEXs**: Use established platforms like Raydium or Orca for trading. - **Slippage Settings**: Adjust slippage tolerance to avoid unintended price impacts during trades. 🔸### **12. Learn from Past Mistakes** - Keep a trading journal to track your decisions, evaluate outcomes, and refine your strategies. 🔸### **13. Avoid Leveraged Trading** - Avoid trading meme coins with leverage, as their inherent volatility can amplify losses. 🔸By implementing these strategies, you can reduce your risk and make more informed decisions while trading Solana meme coins. Always prioritize risk management and long-term sustainability over short-term gains.
Education
by ProjectSyndicate
16
Learn What is Higher High, Higher Low, Lower Low, Lower High In this educational article, we will discuss the foundation of price action analysis: the concepts of highs and lows. In order to grasp that concept, you should learn to perceive the price chart as the sequence of zigzags . Depending on the direction of the market and the shape of these zigzags, its peaks will be called differently. There are 6 types of them that you should learn to recognize. 1️⃣ Equal Highs (EH). The peaks of bullish moves will be called equal highs, if they perfectly respect the same level (resistance), retracing from that and not managing to break above. Above is the example of equal highs on Gold chart on a daily. 2️⃣ Equal Lows (EL). The peaks of bearish moves will be called equal lows, if they perfectly respect the same level (support), bouncing from that and not managing to break below. Find perfect equal lows on USDCAD on the chart above. 3️⃣ Higher High (HH). The peak of a bullish move will be called Higher High, if the price manages to violate the previous high after a retracement. Look at a perfect sequence of higher highs on NZDUSD. 4️⃣ Lower Low (LL). The peak of a bearish move will be called Lower Low, if the price manages to violate the previous low after a pullback. Trading in a strong bearish trend, NZDCAD keeps updating lower lows on a daily. 5️⃣ Higher Low (HL). The peak of a bearish move will be called Higher Low if, after a retracement from the high, the price manages to set a low that is higher than the previous low. Back to the example on NZDUSD. Not only the price updates the higher highs but also the higher lows. 6️⃣ Lower High (LH). The peak of a bullish movement will be called Lower High if, after a pullback from the low, the price sets a high that is lower than the previous high. That's how EURJPY acted on a daily, setting 2 nice lower highs. Why these terms are so important? Because, firstly, you can apply them to objectively identify the market trend. Secondly, all the price action patterns are based on a combination of these highs and lows. You should learn these terms by heart, and you should learn to perceive the price chart as the sequence of zigzags, with a strict designation of each peak. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
Is Ripple the best cryptocurrency in the world right now?Hello and greetings to all the crypto enthusiasts, ✌ Reading this educational material will require approximately 10 minutes of your time . For your convenience, I have summarized the key points in 10 concise lines at the end . I trust this information will prove to be insightful and valuable in enhancing your understanding of Ripple and its role in the global financial landscape. Personal Insights and Technical Analysis of Ripple: Ripple stands out as an innovative solution for interbank communication and a glimpse into the future of global financial transactions. Its vast potential has caught my attention for several years, and I’ve been following its development closely. From a technical standpoint, I believe Ripple’s price could initially hit targets of $4, $6, and even $10 . Looking further ahead, there's potential for even higher valuations in the long run. That being said, please take note of the disclaimer section at the bottom of each post provided by the website, this is merely my personal opinion and should not be interpreted as financial advice. Understanding Ripple’s True Nature: When most people hear "Ripple," they immediately think of cryptocurrency. However, many overlook that Ripple is not just a digital currency, but mainly a digital payment network. This is a key distinction because Ripple’s goal is much broader than simply being a cryptocurrency. While Bitcoin is mainly a store of value and a form of digital money, Ripple’s primary focus is on facilitating global money transfers. XRP, often called Ripple, is the currency used within this payment system, mostly for paying transaction fees. Ripple runs on the XRP Ledger (XRPL), an open-source, decentralized blockchain built to enable fast, secure transactions through Ripple's protocol, RTXP. Ripple’s network is often confused with blockchain, but it’s more accurately a type of distributed ledger technology (DLT). Ripple uses a unique consensus method known as the Ripple Protocol Consensus Algorithm (RPCA), based on the Federated Byzantine Agreement (FBA) protocol. This approach differs from Bitcoin’s, allowing Ripple to offer quicker transactions and lower fees than traditional banking systems. Ripple's Consensus Mechanism: Ripple’s RPCA is designed to quickly and securely verify transactions. A group of independent nodes within the network work together to reach a consensus on whether transactions are valid. This process is central to Ripple’s mission of enhancing transaction speed and cutting costs, making it a real alternative to traditional financial systems. XRP Supply and Distribution: XRP is integral to Ripple’s network. The total supply of XRP is capped at 100 billion tokens, all of which were pre-mined before Ripple’s official launch in June 2012. Here’s how they were distributed: 20 billion XRP went to Ripple’s founding team and early investors. 55 billion XRP were locked in an escrow account, with 1 billion XRP released each month according to a set plan. The rest was sold to early investors during the initial coin offering (ICO). Ripple vs. SEC Legal Dispute: The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) started in late 2020 and became one of the most high-profile cases in cryptocurrency history. The SEC argued that XRP should be classified as an unregistered security, claiming Ripple Labs raised over $1.3 billion from XRP sales. Ripple denied this, stating that XRP is a utility token with multiple use cases beyond being a security. In June 2023, a judge ruled that while XRP sales to institutional investors counted as unregistered securities, the “blind bid” method (where buyers' identities are hidden) allowed Ripple to win partially. This ruling was a significant step in the case, though legal challenges were far from over. By October 2023, the SEC expanded its lawsuit to include claims that Ripple executives Garlinghouse and Larsen had violated securities laws. However, in August 2024, the court ruled with Ripple, fining the company $125.023 million—much less than the $1.9 billion the SEC had initially sought. The most important takeaway was that XRP itself was not considered a security. Ripple’s Main Products: Ripple offers three key products for banks and financial institutions, collectively known as RippleNet: xCurrent xRapid xVia Each of these solutions addresses different problems in the financial industry, but it’s important to note that only xRapid directly uses XRP. The other two, xCurrent and xVia, don’t require XRP to function. xCurrent: xCurrent allows financial institutions to process real-time, cross-border payments. It uses a distributed ledger called Interledger, which was created by Ripple’s team but is managed by the World Wide Web Consortium (W3C). Unlike Ripple’s proprietary XRP Ledger, Interledger’s role is to facilitate seamless and secure exchanges between currencies, not just digital assets like XRP. XRP is not needed for xCurrent. xRapid: xRapid solves liquidity problems in cross-border transactions by using XRP. This service enables financial institutions to convert fiat currency into XRP for transfer, and then back into the local currency when it reaches the destination. This eliminates the need for intermediary banks and makes international payments faster and more cost-effective. However, XRP’s liquidity across global exchanges is crucial to xRapid’s success. xVia: xVia is an interface that connects Ripple’s products, xCurrent and xRapid, to streamline how businesses integrate Ripple’s solutions. Launched in 2018 and still in testing, xVia aims to simplify payments for businesses around the world. Ripple’s Team and Evolution: Ripple’s journey began in 2004 when Ryan Fugger created RipplePay, a system meant to enable global peer-to-peer payments. Although it had potential, it didn’t gain much traction, with fewer than 10,000 users by 2011. In 2011, Jed McCaleb, a well-known figure in the Bitcoin community, took over the project. He convinced Fugger to hand him control, setting the stage for Ripple’s transformation. Chris Larsen’s Role and Ripple’s Rebranding: In 2012, McCaleb brought on Chris Larsen, a successful tech entrepreneur, to help drive Ripple’s development. Together, they rebranded the company as Opencoin, which was the first of three name changes before it became Ripple Labs. That same year, Jesse Powell, the founder of a major cryptocurrency exchange, invested $200,000 in Ripple, helping propel the company’s growth, along with backing from early investors like Roger Ver, Bitcoin Cash’s creator. McCaleb’s Departure and Stellar: In 2014, McCaleb left Ripple due to internal differences, feeling the company was moving away from his original vision. Soon after, he co-founded Stellar, another blockchain project focused on financial inclusion and cross-border payments. 🧨 Our team's main opinion is: 🧨 Ripple is an innovative digital payment network, not just a cryptocurrency. Its primary focus is enabling global money transfers, with XRP acting as the utility token for transaction fees. Operating on the XRP Ledger, Ripple uses a distinct consensus mechanism (RPCA) to ensure fast and cost-efficient transactions. The total XRP supply is capped at 100 billion, with a large portion kept in escrow. Despite facing legal challenges, particularly with the SEC, key rulings, including one in 2024, affirmed that XRP itself isn't considered a security. Ripple offers three main products: xCurrent (for cross-border payments), xRapid (providing liquidity through XRP), and xVia (for easy integration). Ripple's journey began in 2004, but it took a pivotal turn in 2012 when Chris Larsen and Jed McCaleb rebranded the company. McCaleb eventually left in 2014 to co-found Stellar, another blockchain project focused on similar goals. Give me some energy !! ✨We invest countless hours researching opportunities and crafting valuable ideas. Your support means the world to us! If you have any questions, feel free to drop them in the comment box. Cheers, Mad Whale. 🐋
Education
by MadWhale
17
Mastering Bearish Patterns: Trade Like a ProMastering Bearish Patterns: Trade Like a Pro Bearish patterns are critical tools for traders aiming to anticipate potential downward price movements in financial markets. Here's a complete explanation of some key bearish patterns: 1. Descending Triangle Definition: The descending triangle is a bearish continuation pattern that forms when the price makes lower highs while maintaining a horizontal support level. This indicates that sellers are gaining strength, and buyers are struggling to maintain the price. Key Features: Lower highs form a descending trendline. A flat support line at the bottom. Typically breaks downward when support is breached. How to Trade: Enter a short trade when the price breaks below the horizontal support with significant volume. Place a stop-loss above the most recent lower high. Target the height of the triangle projected downward from the breakout point. 2. Head & Shoulders Pattern Definition: This classic reversal pattern signals a shift from an uptrend to a downtrend. It consists of three peaks: a higher central peak (head) flanked by two lower peaks (shoulders) and a neckline acting as support. Key Features: Left shoulder, head, and right shoulder. Neckline connects the lows of the shoulders and head. A break below the neckline confirms the pattern. How to Trade: Enter a short trade when the price breaks below the neckline. Place a stop-loss above the right shoulder. Measure the height from the head to the neckline and project it downward for the profit target. 3. Bearish Flag Pattern Definition: The bearish flag is a continuation pattern that occurs after a strong downward move. The "flag" represents a period of consolidation, and the breakout typically continues in the direction of the prior trend. Key Features: A steep downward move (flagpole). A parallel, upward-sloping consolidation channel (flag). Breaks downward from the flag. How to Trade: Enter a short trade when the price breaks below the flag’s lower boundary. Place a stop-loss above the flag’s upper boundary. Target the length of the flagpole projected downward. 4. Symmetrical Triangle Definition: A symmetrical triangle forms when the price consolidates with lower highs and higher lows, creating a triangle shape. Though this pattern can break in either direction, it often signals a continuation of the prior trend, making it bearish in a downtrend. Key Features: Converging trendlines. Price oscillates within the triangle. Breaks in the direction of the prevailing trend. How to Trade: Enter a short trade when the price breaks below the lower trendline. Place a stop-loss above the upper trendline. Target the height of the triangle projected downward. 5. Double Top Pattern Definition: The double top is a bearish reversal pattern that forms after an uptrend. It features two peaks at roughly the same level, separated by a trough. Key Features: Two similar highs. A neckline at the trough level. A break below the neckline confirms the pattern. How to Trade: Enter a short trade when the price breaks below the neckline. Place a stop-loss above the second peak. Measure the height between the peaks and the neckline and project it downward for the target. 6. Up Channel Pattern Definition: An up channel, also known as a rising channel, is a bearish reversal pattern when it forms in a larger downtrend. The price moves within two upward-sloping parallel trendlines before breaking downward. Key Features: Parallel upward trendlines. Lower lows and higher highs within the channel. Breaks below the lower trendline. How to Trade: Enter a short trade when the price breaks below the lower boundary of the channel. Place a stop-loss above the upper boundary. Target the height of the channel projected downward. 7. Triple Top Pattern Definition: This bearish reversal pattern forms after an uptrend and consists of three peaks at roughly the same level, indicating that buyers are unable to push the price higher. Key Features: Three similar highs. A neckline at the lowest trough between the peaks. Breaks below the neckline to confirm. How to Trade: Enter a short trade when the price breaks below the neckline. Place a stop-loss above the highest peak. Measure the height from the peaks to the neckline and project it downward for the target. 8. Bearish Rectangle Pattern Definition: A bearish rectangle is a continuation pattern where the price consolidates between two horizontal levels before breaking downward. Key Features: Horizontal support and resistance lines. Price oscillates within the rectangle. Breaks below the support line. How to Trade: Enter a short trade when the price breaks below the support line with volume. Place a stop-loss above the resistance line. Target the height of the rectangle projected downward. 9. Inverted Cup & Handle Pattern Definition: This bearish reversal pattern resembles an upside-down cup with a handle. The "cup" forms a rounded top, and the "handle" represents a consolidation phase before the breakdown. Key Features: Rounded top (cup). Slight upward-sloping consolidation (handle). Breaks downward from the handle. How to Trade: Enter a short trade when the price breaks below the handle’s lower boundary. Place a stop-loss above the handle. Measure the height of the cup and project it downward for the target. By mastering these bearish patterns, traders can anticipate price movements and execute informed trades with confidence. Practice identifying these patterns on charts and combine them with other technical tools for optimal results.
BITSTAMP:BTCUSDEducation
by GentleGoldenEngine
33
COFORGE Options Trading Strategy: Breakout and Momentum-BasedIn this post, we’ll explore a couple of options strategies for COFORGE using the data for strike price 9000 . By closely monitoring the price action and key option data, we can make informed decisions that align with market trends. Here’s how we can approach trading this stock’s options effectively: Key Option Data Breakdown Call Short Covering: Indicates that the market sentiment is bullish as traders are closing their call positions, signaling a potential upward movement. Put Writing: A strong sign of bullishness as traders are actively writing puts, expecting the price to stay above the 9000 strike. Call and Put LTP (Last Traded Price): Calls LTP: 278.8 (indicating that calls are gaining traction). Puts LTP: 100.7 (a lower LTP for puts suggests lower demand). Open Interest (OI) and Change in OI: Calls OI Change: -47,850 (indicating a reduction in call positions due to short covering). Puts OI Change: +123,975 (signifying an increase in put writing, which reinforces the bullish sentiment). Strategy 1: Buying the Call or Put Based on the First 5-Minute Candle This strategy involves observing the price movement in the initial 5 minutes after the market opens and deciding whether to buy a call or put, depending on the price action and option data. When to Buy the Call or Put: If the first 5-minute candle shows a bullish move, consider buying the call option as the market sentiment appears to be in favor of upward movement. If the first 5-minute candle shows a bearish move, consider buying the put option. However, given the overall data showing strong put writing, this could be less likely. Why It Works: The first 5 minutes are crucial for gauging market sentiment, and with the data indicating strong bullishness (due to call short covering and put writing), a call option is likely to perform well. Considerations: This strategy requires watching for clear momentum during the first 5 minutes. If the market remains indecisive, it may be better to stay on the sidelines to avoid wasting premium. Strategy 2: Breakout Strategy – Buy Calls or Puts on the Break of Highs This strategy involves waiting for a breakout of the call or put’s high price. The breakout indicates a shift in momentum, and we’ll enter the trade based on whichever direction triggers first. When to Buy the Call: Watch for the call’s high price (389.85). If the call option breaks this level, it signals that the upward momentum is gaining strength. Buy the call to capitalize on the breakout. When to Buy the Put: If the call option doesn’t break its high and the price starts to show weakness, consider buying the put once it breaks its high (360.6). However, the data suggests that the market bias is bullish, so a call breakout is more likely. Why It Works: Breakouts are powerful signals of market momentum. Since the data shows heavy put writing, the call option is more likely to break its high first. This creates an opportunity to buy calls in a bullish trend. Considerations: Always monitor the volume and the price action for confirmation of the breakout. If both calls and puts test their highs without clear direction, consider waiting for a clearer signal. Conclusion: Given the strong bullish sentiment reflected in the options data—call short covering and put writing—the most reliable strategy is Strategy 2. Watch for a call breakout above 389.85 or a put breakout above 360.6 (if the call fails to break its high). The bullish bias suggests that the call option is more likely to outperform, but a breakout in either direction can trigger the strategy. Pro-Tip: Set a stop loss just below the breakout level to manage risk effectively. The market sentiment is heavily tilted towards bullishness, so a call option breakout is the most probable outcome.
NSE:COFORGEEducation
by ruelfernandes
How To Navigate: Breakouts with Tools, Indicators & StrategyHaving a Clear and Precise understanding of whether you're dealing with a Breakout or False Breakout can help you: 1) Find potentially profitable opportunities & 2) Avoid making risky investment moves! Also knowing how to Confirm Trend Change can: 1) Rise probability of profitable trades & 2) Limit the total # taken! So today, I lay out the tools, indicators and tips I use to visualize and to make a decision! Examples: COINBASE:XLMUSD & BITSTAMP:XRPUSD Tools: - Trendline - Parallel Channel - Rectangle Indicators: - Volume - RSI - "True or False" Formula : Close + 20-25% Break + 5-6 Days Outside of Break = Breakout
BITSTAMP:XRPUSDEducation
by Novi_Fibonacci
36
Mastering the Indecision Candle Strategy: Trade with MomentumHave you ever wondered how to spot high-probability trade setups that align with momentum and can quickly deliver solid risk-to-reward ratios? 📊 Candlesticks are one of the most critical tools for traders, second only to volume. Today, I’m sharing one of my go-to setups— the Indecision Candle Strategy —a momentum-based approach that I personally use in my trades. This strategy is built around recognizing indecision candles formed during the second wave of price movement. Let’s dive into how this strategy works, the rules for executing it, and some real market examples. 🔍 What is the Indecision Candle Setup? The indecision candle forms during the second wave of a price movement and reflects a tug-of-war between buyers and sellers. Here's how to identify it: - In an uptrend: The lower shadow of the candle is ≥ 1.5x the body size, indicating strong buyer presence. The upper shadow is smaller than the body, showing limited seller pressure. - In a downtrend: The upper shadow is ≥ 1.5x the body size, showing strong seller dominance. The lower shadow is smaller than the body, reflecting weak buyer activity. This setup gains its edge by combining candlestick analysis with momentum indicators, such as the SMA (7), to confirm the strength of the trend.\ Rules for Trading the Indecision Candle Setup This strategy is momentum-based and requires discipline to follow these specific rules: 📈 Uptrend Setup 1.Candle Characteristics: Green candle: Lower shadow is at least 1.5x the body size. Upper shadow is smaller than the body. 2.Momentum Confirmation: The SMA (7) is below the candle, sloping upward, and either touching or slightly below the shadow. 3.Entry: Use a stop-buy order above the upper shadow of the candle. 4.Stop-Loss: Place your stop-loss below the lower shadow or at the SMA if it's slightly below. 5.Ideal Conditions (Optional): Low volume or momentum before the setup, but this isn’t mandatory. 📉 Downtrend Setup 1.Candle Characteristics: Red candle: Upper shadow is at least 1.5x the body size. Lower shadow is smaller than the body. 2.Momentum Confirmation: The SMA (7) is above the candle, sloping downward, and either touching or slightly above the shadow. 3.Entry: Use a stop-sell order below the lower shadow of the candle. 4.Stop-Loss: Place your stop-loss above the upper shadow or at the SMA if it's slightly above. 5.Ideal Conditions (Optional): Low volume or momentum before the setup, but this isn’t mandatory. Optimize Entries: For both uptrend and downtrend setups, consider using the order book to refine your entry and stop-loss levels. This can improve your precision and reduce risk. 🎯 Real-World Example from the Market Let’s look at a real example: 1.Scenario: Second wave of a downtrend. 2.Candle Setup: - Red candle with a large upper shadow (≥ 1.5x body size). - Strong bearish momentum confirmed by the SMA (7) sloping downward and positioned above the body. 3.Trade Setup: 4.Entry: A stop-sell order placed below the lower shadow. 5.Stop-Loss: Above the upper shadow. Why it Works: The bearish momentum combined with the indecision candle's characteristics creates a high-probability setup for continuation in the downtrend. Key Tips for Success Backtesting is Essential: Before applying this strategy in a live account, ensure you backtest it thoroughly across multiple markets and timeframes. This will help you gain confidence and understand its performance in different conditions. Risk Management: Stick to your capital management plan. Avoid risking more than 1-2% of your account per trade. Never chase the market out of FOMO (Fear of Missing Out). Ignore Noise During News Events: If the market creates large wicks or volatile candles due to news, focus on candles before and after the event for clarity. The Indecision Candle Strategy is a powerful tool for capturing momentum-driven moves with high risk-to-reward ratios. However, like any strategy, it requires patience, discipline, and proper backtesting before use. 💬 Have you used similar candlestick strategies in your trading? Share your experiences and let’s discuss in the comments! I’m Skeptic , here to simplify trading and share actionable strategies to help you grow as a trader. Let’s master the markets together !
Education
by SkepticWise
1
One set up, less chart time, more RRLet me take you down a rabbit whole and show you a strategy with a high win rate conviction. High risk to reward. Consistency and less chart time. Pros: high win rate, 2rr plus consistency, less chart time, systematic approach. Less entry's better reward. Cons: if you use funding accounts & they don't allow weekend, over night, or news trading this is not for you. Trades can be between 2 to 5 days if using higher time frames. Eg daily. This strategy is based on a set of checks on a check list that needs to be confirmed in order to take entry. Building confluence and a stronger trade set up. If caught on 4 hr or daily it allows a swing trade, with multiple scaling in trades with shorter duration on smaller time frames like 15 min and 1 hr. Let's break down the check list and show some break downs. The checklist 1. Is the higher time frames moving in the direct of your entry? First you analyze higher time frames. Determin if over all trend and market structure is bullish or bearish. We will be trading the Continiuation of structure. Eg if bullish we looking for buys. 2. Has there been a break of structure leaving an imbalance? We want to look for a break of structure to comfirm the bullish or bearish bias, leaving an imbalance (fvg). This gives us a retracement point to retest along with more confluence as the imbalance is likely to be filled. As part of this strat we will be using fib retracement tool with the settings 0.5 and 0.618 only. This is the golden zone our entry's will be based on the 0.618, or golden zone. Stoploss the base of fib, take profit the high of fib. Example one: bullish Weekly time frame showing higher highs and higher lows bullish market structure. Daily time frame showing a break of structure to the upside. Showing bullish continuation making a new high. Leaving a imbalance to fill. Seeing a retracement we take the low to the high. Giving us our trade set up. Trade complete minimum draw down, creating a new high. Now with the same bullish bias looking for buys. Let's take a look inside the trade on a smaller time frame and apply the same principles. 1 hr time frame Example Example 2 5 min time frame Example 2 bearish Weekly showing bearish market structure Daily created a break of structure to the down side, leaing an imbalance. 1 hr time frame Example 1 hr time frame Example 2 Combining multiple confluences like support and resistance levels, order blocks, pivotd and trend lines ect. It can provide a strong trade setup string. Each confluence acts as a confirmation of the others, increasing the likelihood of a successful trade. By stacking these confluences together, traders can build a comprehensive analysis and increase the effectiveness of their trading decisions.
OANDA:XAUUSDEducation
by samstoobad
Notes on the Correct Use of Technical IndicatorsTrend Indicators : Moving Averages, Ichimoku Cloud, Bollinger Bands, Keltner Channels. Oscillator Indicators: MACD, RSI, Stochastic, DMI, Fisher Transform. All these instruments were created to recognize points of equilibrium and disequilibrium (inflection points) in the market. Essentially, they are tools designed to detect the optimal times to buy or sell. The profession of trading can be summarized as follows: people creating theories, tools, indicators, and systems to know when to buy and sell based on the historical record of price. Keys to Using Technical Indicators 1-Indicators Do Not Predict the Future Indicators alone lack predictive capability; they are just mathematical formulas based on historical data. However, their correct or incorrect use can significantly impact your success rate. 2-The Importance of Harmony with Price Structure If your tools or indicators do not show a clear and harmonious pattern aligned with the price structure, you are probably making decisions based on randomness. Avoid erratic movements. 3-Using Trend Indicators Correctly These indicators detect trends and points of continuity. Your success rate will increase if you avoid looking for trend reversals with them, unless there is a structural or historical pattern in a higher timeframe that justifies such a reversal. 4-Resolving Contradictory Readings If an indicator shows contradictory readings across various timeframes, give more weight to those harmoniously aligned with the historical price structure. 5-Risk-Reward Ratio When price fluctuations aligned with your indicators show a risk-reward ratio of at least 1:2, the probability of success in your trades increases, attracting more participants. 6-Conflicting Signals When trend indicators and oscillators in the same timeframe send contradictory signals, the market is uncertain. Consider moving to a higher timeframe for clarity or avoid entering at that timeframe. 7-Indicator Confluences Confluences of indicators of the same type in one timeframe do not add value since the signals will be very similar. Aligning multiple indicators does not necessarily improve your success rate. 8-Reversal Signals in Oscillators Divergences in oscillators show weakness in price action but do not justify a trend reversal unless there is an aligned historical structure or pattern. 9-20-day Moving Average It is the most used indicator by investors due to its accuracy in revealing trend strength and equilibrium points. It's fundamental in indicators like Bollinger Bands, Donchian Channels, and Keltner Channels. 10-Price Action vs. Technical Indicators You can make good decisions based solely on price action, but not solely on technical indicators. Practical Examples: •MACD : The more erratic, the more randomness. In a trend, if it accompanies continuations harmonically, its predictive capability increases, identifying reliable inflection points. •Ichimoku Cloud: Useless in range-bound markets; its function is to show strong trends and equilibrium zones. •EMA 20: If the price reacts strongly when touching it in a trend, it is likely that many market participants are watching it, making it an opportunity zone. •Crosses of Moving Averages and MACD: If the 20-day and 50-day moving averages cross above a declining price while the MACD crosses upwards, it indicates a contradictory signal of market doubt. Conclusions: No single indicator is superior by itself; all have strengths and weaknesses. The key lies in how, where, and when to interpret their signals. Avoiding randomness by relying on structure and historical records improves your success rate. Remember to study more about mass psychology than psychotrading, do not buy courses (especially scalping courses), respect the ancients, and above all, question everything except your own capabilities.
BINANCE:BTCUSDEducation
by Especulador96
Using Volume to Validate Market MovesVolume is one of those metrics that often sits quietly at the bottom of your chart, unnoticed by many traders. Yet, it plays a critical role in understanding the market’s behaviour. Think of volume as the fuel behind price movements—without it, even the most promising breakout can fizzle out. But, just like with fuel, more isn’t always better. Today, we’re focusing on the simple volume histogram that appears at the bottom of most charts. While there are countless indicators built around volume—like On-Balance Volume (OBV) or the Volume-Weighted Average Price (VWAP)—the histogram is a straightforward, effective tool for gauging participation in the market. Let’s explore how to use it, how to put volume into context, and how it behaves with different price patterns, including the concept of volume divergence. Simple Volume Histogram Past performance is not a reliable indicator of future results Why Volume Matters (and Why More Isn’t Always Better) Volume measures how many shares or contracts change hands during a given period. When volume spikes, it signifies heightened interest—buyers and sellers actively engaging. However, it’s not as simple as “more volume equals better signals.” For instance, a breakout on high volume often reflects strong conviction, but it can also indicate exhaustion at the end of a trend. Conversely, a low-volume breakout might lack the interest needed to sustain the move. Understanding the relationship between volume and price action is key to avoiding false signals. A Simple Trick: The Volume Moving Average One of the easiest ways to contextualise volume is by applying a moving average to the volume histogram. Platforms like TradingView make this simple: double-click the volume histogram, select ‘Style,’ tick the Volume MA box, and adjust the average length under ‘Inputs.’ A 9-period moving average, for example, acts as a baseline. When volume spikes significantly above the average, it suggests increased participation and potentially more meaningful price moves. Conversely, volume below the average often reflects quieter market phases. Adding MA to Your Volume Histogram Past performance is not a reliable indicator of future results Volume Divergence: When Volume and Price Don’t Align Volume divergence occurs when price action and volume move in opposite directions, often hinting at weakening trends or potential reversals. Imagine an uptrend where the price makes higher highs, but volume decreases at each new peak. This divergence signals fading participation, suggesting the trend may be losing steam. On the other hand, if the price trends lower while volume rises, sellers could be gaining momentum, increasing the likelihood of further downside. Take the example below, where volume divergence on the FTSE 100 preceded a period of sideways consolidation. Volume Divergence: FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results Patterns That Thrive on High Volume Certain price patterns rely on strong volume to confirm their validity. A classic example is a triangle breakout. As the price consolidates within the triangle, volume often contracts. When the breakout finally occurs, you want to see a surge in volume, confirming that participants are backing the move. Without it, the breakout might lack the conviction needed to sustain the trend. Patterns That Prefer Lower Volume Other patterns work best with subdued volume. A pullback within a trend is a great example. Let’s say a stock is in a strong uptrend and starts to retrace slightly. Ideally, you want to see declining volume during the pullback. This suggests the selling is more about profit-taking than aggressive distribution. Once the pullback completes and the trend resumes, volume should pick up again. If the pullback occurs on high volume, it could indicate stronger selling pressure, signalling that the uptrend might be in trouble. A Practical Example: DXY Pullback and Breakout Let’s apply these concepts to a real-world case. In October, the dollar index (DXY) formed a steady uptrend followed by a pullback, creating a descending channel or bull flag. During the flag formation, average volume declined, indicating reduced selling pressure. When the price broke out, volume surged to nearly triple the 20-day average—a clear signal of strong buying interest. This breakout led to a multi-week uptrend. DXY Daily Candle Chart Past performance is not a reliable indicator of future results Final Thoughts The volume histogram is a simple yet invaluable tool for traders. By applying a moving average to identify volume trends and watching for divergences between price and volume, you can gain a clearer understanding of market dynamics. Volume isn’t just about how much activity is happening—it’s about when and how it aligns with price action. Whether you’re trading breakouts, pullbacks, or reversals, understanding volume can provide an essential layer of confirmation and help you spot potential warning signs. Keep in mind, volume is just one piece of the puzzle. But when used correctly, it can give you a better sense of whether a price move has the backing it needs to succeed—or if it’s running on empty. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% 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.
NASDAQ:TSLAEducation
by Capitalcom
Using Volume to Validate Market MovesVolume is one of those metrics that often sits quietly at the bottom of your chart, unnoticed by many traders. Yet, it plays a critical role in understanding the market’s behaviour. Think of volume as the fuel behind price movements—without it, even the most promising breakout can fizzle out. But, just like with fuel, more isn’t always better. Today, we’re focusing on the simple volume histogram that appears at the bottom of most charts. While there are countless indicators built around volume—like On-Balance Volume (OBV) or the Volume-Weighted Average Price (VWAP)—the histogram is a straightforward, effective tool for gauging participation in the market. Let’s explore how to use it, how to put volume into context, and how it behaves with different price patterns, including the concept of volume divergence. Simple Volume Histogram Past performance is not a reliable indicator of future results Why Volume Matters (and Why More Isn’t Always Better) Volume measures how many shares or contracts change hands during a given period. When volume spikes, it signifies heightened interest—buyers and sellers actively engaging. However, it’s not as simple as “more volume equals better signals.” For instance, a breakout on high volume often reflects strong conviction, but it can also indicate exhaustion at the end of a trend. Conversely, a low-volume breakout might lack the interest needed to sustain the move. Understanding the relationship between volume and price action is key to avoiding false signals. A Simple Trick: The Volume Moving Average One of the easiest ways to contextualise volume is by applying a moving average to the volume histogram. Platforms like TradingView make this simple: double-click the volume histogram, select ‘Style,’ tick the Volume MA box, and adjust the average length under ‘Inputs.’ A 9-period moving average, for example, acts as a baseline. When volume spikes significantly above the average, it suggests increased participation and potentially more meaningful price moves. Conversely, volume below the average often reflects quieter market phases. Adding MA to Your Volume Histogram Past performance is not a reliable indicator of future results Volume Divergence: When Volume and Price Don’t Align Volume divergence occurs when price action and volume move in opposite directions, often hinting at weakening trends or potential reversals. Imagine an uptrend where the price makes higher highs, but volume decreases at each new peak. This divergence signals fading participation, suggesting the trend may be losing steam. On the other hand, if the price trends lower while volume rises, sellers could be gaining momentum, increasing the likelihood of further downside. Take the example below, where volume divergence on the FTSE 100 preceded a period of sideways consolidation. Volume Divergence: FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results Patterns That Thrive on High Volume Certain price patterns rely on strong volume to confirm their validity. A classic example is a triangle breakout. As the price consolidates within the triangle, volume often contracts. When the breakout finally occurs, you want to see a surge in volume, confirming that participants are backing the move. Without it, the breakout might lack the conviction needed to sustain the trend. Patterns That Prefer Lower Volume Other patterns work best with subdued volume. A pullback within a trend is a great example. Let’s say a stock is in a strong uptrend and starts to retrace slightly. Ideally, you want to see declining volume during the pullback. This suggests the selling is more about profit-taking than aggressive distribution. Once the pullback completes and the trend resumes, volume should pick up again. If the pullback occurs on high volume, it could indicate stronger selling pressure, signalling that the uptrend might be in trouble. A Practical Example: DXY Pullback and Breakout Let’s apply these concepts to a real-world case. In October, the dollar index (DXY) formed a steady uptrend followed by a pullback, creating a descending channel or bull flag. During the flag formation, average volume declined, indicating reduced selling pressure. When the price broke out, volume surged to nearly triple the 20-day average—a clear signal of strong buying interest. This breakout led to a multi-week uptrend. DXY Daily Candle Chart Past performance is not a reliable indicator of future results Final Thoughts The volume histogram is a simple yet invaluable tool for traders. By applying a moving average to identify volume trends and watching for divergences between price and volume, you can gain a clearer understanding of market dynamics. Volume isn’t just about how much activity is happening—it’s about when and how it aligns with price action. Whether you’re trading breakouts, pullbacks, or reversals, understanding volume can provide an essential layer of confirmation and help you spot potential warning signs. Keep in mind, volume is just one piece of the puzzle. But when used correctly, it can give you a better sense of whether a price move has the backing it needs to succeed—or if it’s running on empty. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% 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.
NASDAQ:TSLAEducation
by Regency_Capital
12