#XAU: Symmetrical triangle breakout 🚨XAU, the symbol for gold, has broken down from a symmetrical triangle pattern after being within it for 91 days. From a technical standpoint, we can anticipate a 10% decrease in gold's price based on this pattern.
After successfully retesting the pattern, we can expect the first drop to target the initial level of support, which is around 1987.
Stay tuned for further updates.
Editorspick
Unveiling the 2024-2025 Price Revolution Post-HalvingIntroduction:
In anticipation of Bitcoin's fourth halving scheduled for April this year, let's delve into historical price patterns to assess potential heights Bitcoin might reach in the years 2024-2025 and when the anticipated start of the next bull run may occur.
Historical Analysis:
First Halving (28-11-2012):
A year before this event, Bitcoin was modestly priced at $2.48. As the market turned bullish, it climbed to $12.20 at the halving and continued its ascent. A year later, it peaked at $1,131.
Second Halving:
Before this halving, Bitcoin had fallen to $269 but rebounded to $650 by the time of the event. It soared for about a year post-halving, reaching an impressive $2,518.
Third Halving:
The cycle repeated, with Bitcoin dropping to $7,255 before the third halving. It then modestly rose to $8,762 at the halving and significantly surged to $56,615 a year after.
Analyzing the Fourth Halving:
The fourth halving is expected in April this year in the current cycle. A year before this date (April 2023), Bitcoin had an uptick to $31,000. This suggests a strong likelihood of a substantial rise post the fourth halving, potentially lasting until April-August 2025 and surpassing the previous high of $69,000.
Key Takeaway:
Bitcoin's price behavior exhibits remarkable consistency around each halving. It gradually begins to rise a year before the halving and continues for 12-16 months post-halving, reaching new peaks before entering a bearish phase.
Investment Strategy:
For long-term investors, understanding these patterns is crucial. The peak for this cycle might be between April - August 2025. It would be strategic to start exiting the market gradually at this point.
Conclusion:
As we analyze historical patterns, Bitcoin's potential trajectory in the coming years appears promising, emphasizing the importance of strategic investment decisions in light of the upcoming halving event.
I'm just simplifying things for you all #Bitcoin #Bitcoin Daily Update:
Bitcoin closed the day at $42,100, showing promise in its current trajectory. The price successfully breached the resistance trendline, and there are expectations for a test of the $44,000 resistance level.
Several influencers and traders, including myself, previously speculated on the possibility of Bitcoin retracing towards the $30,000 range. However, it's worth noting the significance of the 100EMA in the daily timeframe, which, if I'm not mistaken, played out effectively.
Looking ahead, predicting Bitcoin's next moves remains uncertain. All we can do is analyze and evaluate probabilities. At this juncture of $42,000, it is anticipated that Bitcoin will challenge the $44,000 resistance. A successful break higher could lead to the next targets at $47,000-$50,000. It's crucial to keep an eye on the 100EMA as an invalidation point.
Additionally, it's noteworthy to emphasize the importance of the weekly close being in the green, as it holds significance for the overall market outlook. Stay tuned for further developments.
#DYOR
#ETH: UPDATE
Ethereum is currently encountering a crucial price range between $2370 and $2400, with the lower trendline of this range serving as a formidable resistance. Presently, Ethereum is experiencing rejection at this level, indicating a significant challenge for bullish momentum.
For the bulls to gain control and initiate an upward trend, it is essential for Ethereum's price to break through the resistance presented by the $2370 to $2400 range. If successful, this could signal a positive shift in market sentiment.
However, should the prevailing bearish pressure persist, there is a likelihood that Ethereum may face rejection and decline towards the lower support level. Traders and investors are advised to stay informed and monitor the market closely for updates on the evolving situation. I will provide further updates as the scenario unfolds.
PAYTM : When will be best levels to buy ? Alert! Bearish Pattern Spotted! 🐻
📊 Pattern: Falling Channel
📌 Symbol/Asset: PAYTM
🔍 Description: Stock is falling from 1000 and stock can correct upto 300 levels.
250-300 support would be the best level to buy for paytm
👉 Disclosure: We are not SEBI registered analysts, this is not a buy or sell recommendation.
(BTC) Alert: Forming Head and Shoulders Pattern!😱Bitcoin (BTC) is currently displaying a head and shoulders pattern on the 2-hour timeframe. Confirmation of this pattern requires a candle to close below the neckline. If this occurs, there is potential for a nearly 13% drop in accordance with the pattern. We are eagerly awaiting the next 43 minutes for the candle to close to assess the situation. Stay tuned for further updates.
Can #Bitcoin Sustain Its Parabolic Momentum?🧐The price of #Bitcoin ( CRYPTOCAP:BTC ) has deviated from our initial projections but has adhered to the weekly forecast, notably breaking through a formidable resistance area and experiencing a significant surge. This upward movement appears to be catalyzed by the imminent news regarding a #BitcoinETF, suggesting a sustained price level until additional information is disclosed. We anticipate a probable retest at around $44,500, representing a healthy correction in the market.
According to the current chart analysis, Bitcoin is exhibiting parabolic growth. The formation of the third base is evident, and we anticipate a touch of the $52,000 level after the breakout of the fourth base.
Stay tuned for further quality updates.
#Crypto
"Battling Resistance: Bitcoin's Weekly Struggle and ETF-Induced
On the weekly timeframe, Bitcoin has been facing significant hurdles in overcoming a well-established resistance area. The ongoing struggle to surpass this key zone, situated around $43,250, is of paramount importance. The impending closure of this timeframe holds critical significance, as it is imperative for Bitcoin to secure a decisive breakthrough above this resistance level. A successful breach could potentially open the doors for an upward trajectory, with the next targets set around the $47,000 to $48,000 range.
Despite the optimistic outlook, caution is advised, considering the possibility of a deceptive market move. This cautious approach is especially prudent given the imminent release of ETF-related news, which has the potential to trigger heightened volatility in the market. Staying vigilant and acknowledging the unpredictable nature of the market is essential in navigating the current landscape.
"Bitcoin's Bullish Momentum: Cloud Surge, Triangle Breakout"Bitcoin (BTC) has recently experienced a significant surge in price, characterized by a notable increase in trading volume, particularly evident in the Ichimoku cloud. This surge coincides with a breakout from a symmetrical triangle pattern, a technical analysis formation often regarded as a precursor to substantial price movements.
The Ichimoku cloud, a popular indicator in technical analysis, is comprised of various components, including the Senkou Span A and Senkou Span B, which form a cloud-like area on the price chart. The fact that BTC's price movement aligns with an expansion in the Ichimoku cloud suggests increased market activity and potential for sustained momentum.
The breakout from the symmetrical triangle pattern adds another layer of significance to this price action. Symmetrical triangles are typically considered consolidation patterns, with a breakout indicating a potential shift in market sentiment. In this case, the breakout is bullish, suggesting a favorable outlook for Bitcoin's price.
Momentum indicators further support the notion of a continued bullish rally. Traders often use indicators like the Moving Average Convergence Divergence (MACD) or the Relative Strength Index (RSI) to gauge the strength of a trend. If these indicators show positive momentum, it reinforces the likelihood of the trend's continuation.
Additionally, the concept of a successful retest of the triangle is crucial in technical analysis. After a breakout, prices often retest the broken level to confirm its newfound support or resistance. A successful retest of the symmetrical triangle in this context could provide traders with additional confidence in the sustainability of the upward trend.
In summary, the combination of a volume-driven pump from the Ichimoku cloud, a breakout from the symmetrical triangle pattern, and positive momentum indicators collectively suggest a bullish outlook for Bitcoin. Traders and investors may closely monitor the market for potential opportunities, especially if a successful retest of the triangle occurs, further solidifying the upward trend.
USDT Dominance Breakdown: 20% Potential DropThe breakdown from the descending triangle pattern is indicative of a potential shift in market dynamics. Currently, the dominance is aligning with the established pattern, suggesting a continuation of this trend.
From a technical standpoint, the observed breakdown implies a possible decrease of approximately 20% from the current position. This projection is based on the historical performance of the descending triangle pattern and the associated technical analysis.
Investors and market participants are advised to stay tuned for further updates as the situation unfolds. Monitoring the ongoing developments in USDT dominance will provide valuable insights into the broader cryptocurrency market trends and potential trading opportunities. It's essential to remain vigilant and adapt strategies accordingly in response to market dynamics.
Stay tuned for further updates; I will continue to provide information as the situation develops.
EURUSD: Bullish consolidation in short term?From a technical point of view, a bullish consolidation on the intraday chart (30') is still possible. That said, the FX:EURUSD pair is triggering a corrective structure within a triangle (corrective Structure), so the bullish breakout should be able to push the price to 1.100 and then 1.1040 area.
Trade with care
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"Bitcoin's Crucial Moment: Symmetrical Triangle & 200MA Dynamics#Bitcoin update
Bitcoin is currently trading within a symmetrical triangle pattern, and a decisive breakout or breakdown is essential to determining the next directional move for Bitcoin.
In this context, the 200-day moving average (200MA) is functioning as a support level.
Stay tuned for further updates; I will continue to provide information as the situation develops.
BTC ETF! What Is Going To Happen In Markets ?In the next 25 days, the approval decision for the #Bitcoin ETF is anticipated. The market reaction to such news is often influenced by three types of news psychology:
> Sell The News: Traders may opt to sell their assets once the news is officially announced.
> Sell Before The News: Some investors may choose to sell their holdings in anticipation of the news, trying to secure profits or avoid potential losses.
> Buy The News: If the news is positive, there might be a surge in buying activity as investors seek to capitalize on the favorable outcome.
With the BTC ETF approval looming just 24 days away, it's crucial to consider these scenarios. The second scenario, "Sell Before The News," suggests that some traders may take a cautious approach by selling off assets ahead of the announcement. Following the news, the third scenario, "Buy The News," could come into play if the outcome is positive. Conversely, in the event of unfavorable news, the first scenario, "Sell The News," may result in a market sell-off.
Investors are advised to make their decisions based on their risk tolerance and market analysis, keeping these news psychology scenarios in mind.
This chart is likely to help you make better trade decisions if you consider upvoting it.
I would also love to know your charts and views in the comment section.
Thank you
"Ethereum Price Analysis: Breakout, Daily Trends, and HistoricaIn the weekly time frame, Ethereum broke out of this horizontal resistance, resembling the pattern observed in the last bull run. Following this breakout, a retest similar to the previous bull run is anticipated.
In the daily time frame:
- Ethereum faced rejection at the $2400 level.
- The $1800 to $2000 range is identified as a support level, also representing the 0.382 level of Fibonacci retracement.
- In my opinion, the optimal entry point for Ethereum is within the $1750-$2000 range.
Regarding Ethereum's historical data:
- In the first cycle, after the all-time low (ATL), CRYPTOCAP:ETH took 777 days to surpass its previous all-time high (ATH).
- If history repeats itself, a new ATH could potentially be reached around 700 days from today, possibly by July 2024.
- The last bull run lasted around 1071 days.
- This time, it is expected to last between 1071 to 1064 days of a bull market.
Based on fractal analysis and chart data, it is anticipated that Ethereum will reach its next bull market peak in May to June 2025.
"Heading: Altcoins on Track for $5 Trillion Surge by 2025"Anticipating a Massive Altcoin Season: Exploring Potential Growth in Market Cap
Introduction:
The cryptocurrency market is abuzz with predictions of an impending altcoin season that could lead to a staggering $5 trillion Altcoin MarketCap by 2025. This forecast is grounded in historical data, fractal analysis, and chart patterns, suggesting a pattern reminiscent of previous market cycles.
Historical Context:
Examining the historical data reveals intriguing patterns:
After the all-time low (ATL), it took 762 days for the Total Market Cap to surpass its previous all-time high (ATH).
If history repeats itself, a new ATH could be reached approximately 761 days from today, potentially around December 2024.
The last bull run lasted about 1066 days, and the current one is expected to span between 1071 to 1064 days.
Fractal Analysis:
The fractal analysis unveils a compelling narrative:
In 2014–2015, the market experienced 610 days of consolidation.
2016-2017 witnessed a parabolic rise in Altcoin MarketCap, hitting Extension 3.168 at around $400 billion.
2018-2019 saw another 609 days of consolidation before a breakout.
Currently, in 2022-2023, the market has undergone 548 days of consolidation, hinting at an imminent breakout.
Future Projections:
Building upon the historical context and fractal analysis, the projection for 2024-2025 unfolds:
Anticipating that Altcoin MarketCap will experience a surge, reaching Extension 3.168, estimated at $5 trillion.
The expected timeframe for this extraordinary surge is set for the period of September to October 2025.
Conclusion:
Considering the historical patterns, fractal analysis, and projected timelines, the narrative paints a bullish outlook for altcoins in the long term. The predicted Altcoin MarketCap of $5 trillion by 2025 suggests significant potential for growth and underscores the importance of keeping a keen eye on market dynamics in the coming years. As the cryptocurrency landscape evolves, investors may find compelling opportunities in the altcoin space, marking the potential for a substantial shift in market dynamics.
GBPNZD ____ INCOMING BEARISH MOVEHello Guys,
This pair has been on my radar for a long time now. Let's break down this pair.
On the monthly timeframe, a bearish CHOCH was formed and if you use your fib to measure the retracement, you will notice that the price has retraced more than the equilibrium price, meaning that GBPNZD is in a premium zone. This doesn't mean it would be wise to short the pair just like that.
On the weekly timeframe, using your fib you will also notice that price has retraced to the equilibrium price.
On the daily timeframe is where it gets interesting, notice the sell-side liquidity (equal lows) and also the imbalance (FVG) as drawn on my chart. Also, price has formed a bearish CHOCH on the daily timeframe.
If price should retrace into the daily supply orderblock, I will go into the 1 hour timeframe to wait for my trade setup.
Keep this pair on your radar.
Follow for more updates like this.
Cheers,
Jabari
BITCOIN: HISTORICAL CYCLES AND HEALING ROADMAP!THIS CHART IS BASED ON HISTORICAL DATA
In the first cycle, after the ATL, CRYPTOCAP:BTC took 532 days to break above it’s previous ATH.
In the second cycle, it’s taken 546 days to break above its previous ATH.
If history repeats itself, we could see a new ATH around 385 days from today, possibly by December
2024.
ROADMAP FOR BITCOIN HEALING
First Halving: July 9, 2016
546 days of the bull market!
Second Halving: May 11, 2020
546 Days of Bull Market after Halving 3
Third Halving: April 25, 2024 (Expected)
Likely to last 528 days to 546 days of bull market.
Based on fractal analysis and chart data, it is anticipated that Bitcoin will reach its next bull market peak in September 2025. Subsequently, a shift back into the bear market is expected. Consequently, a decision to exit the market before September is considered, given that these projections are assumptions derived from fractal chart data.
I hope this graph clarifies how BTC's long-term growth dynamics work.
Only in a probabilistic approach, this concept is.
This chart is likely to help you make better trade decisions if you consider upvoting it.
I would also love to know your charts and views in the comment section.
Thank you
"Bitcoin Halving: Your Complete Guide""Hello everyone, I hope you are all doing well. Without further delay, let's proceed to the chart."
"The Bitcoin halving is a significant event in the cryptocurrency market, happening approximately every four years. It involves cutting the block reward for miners in half, reducing the new BTC supply by 50%. The next halving is expected in early 2024, occurring after 840,000 blocks, and will decrease the mining reward from 6.25 BTC to 3.125 BTC per block."
"The hard-coded technical mechanism forms the foundation of scarcity, providing Bitcoin with its value proposition as verifiably finite digital gold. This comprehensive guide will delve into Bitcoin halving dates, their impact on price and mining, and why they hold significant importance."
What is Bitcoin Halving?
The Bitcoin halving refers to the periodic reduction by half of the block reward granted to miners for solving the cryptographic puzzle to add new blocks to the Bitcoin blockchain. This action effectively cuts in half the quantity of new Bitcoin introduced into circulation with each discovered block. Given the consistent reduction in supply alongside ongoing demand growth, these anticipated halving events typically trigger an increase in Bitcoin's market price over the subsequent 12–18 months.
Bitcoin was ingeniously designed with a fixed and capped supply of 21 million coins, gradually released through mining rewards. The periodic halving events are crucial to gradually diminishing new issuance until the total supply cap is reached. This systematic reduction in inflation enhances scarcity in a predictable manner.
Historical Significance and Market Impact
Each Bitcoin halving event has historically brought about significant market dynamics. Previous halvings have resulted in increased demand and subsequent price appreciation for Bitcoin. The decrease in block rewards directly influences the available supply, frequently creating a supply-demand imbalance that propels the price upward. After past halvings, Bitcoin has undergone remarkable bull runs, culminating in new all-time highs.
Implications for the Cryptocurrency Industry:
The Bitcoin halving event carries several implications for the broader cryptocurrency industry. Firstly, it reinforces Bitcoin's scarcity and limited supply, positioning it as a store of value akin to precious metals like gold. The halving also serves as an incentive for miners to secure the network by contributing computational power, as reduced block rewards can potentially impact mining profitability. Furthermore, the event heightens investor and public awareness, drawing attention to the innovative nature of cryptocurrencies.
Historical Bitcoin Halving Dates:
November 28, 2012 — Block 210,000 mined (Reward decreased to 25 BTC)
July 9, 2016 — Block 420,000 mined (Reward decreased to 12.5 BTC)
May 11, 2020 — Block 630,000 mined (Reward decreased to 6.25 BTC)
March 2024 (Estimated) — Block 840,000 mined (Reward expected to decrease to 3.125 BTC)
Halving Price Impact Patterns:
While various complex macroeconomic and sentiment factors contribute to Bitcoin's well-known price volatility, halvings have consistently preceded significant bull runs.
Following the initial two halvings, BTC experienced substantial increases within 12–18 months. For instance, Bitcoin was valued at under $12 during the first halving in November 2012, soaring over 100x to approximately $1,150 by December 2013.
The 2016 halving foreshadowed Bitcoin's remarkable 2017 bull run, reaching nearly $20,000. Just nine months after the May 2020 halving, Bitcoin reached new all-time highs surpassing $64,000 before retracing to a lower trading range.
This recurring pattern supports the notion that halvings shape Bitcoin's boom-and-bust cycles by significantly limiting new supply issuance while user adoption and demand continue to grow exponentially.
However, accurately predicting the timing and magnitude of peak prices following halvings remains challenging due to the multitude of variables influencing market sentiment swings.
"Bitcoin Analysis Across Multiple Time Frames(First, let's have a look at the shorter time frame)
Bitcoin (BTC) is currently operating within a bullish channel and has recently experienced a bounce off the support provided by the ascending trendline and the 100-day moving average (MA). The cryptocurrency is presently trading within the Ichimoku cloud, accompanied by the Relative Strength Index (RSI) signaling a bearish divergence move.
For a bullish trend confirmation, it is imperative for the bulls to regain momentum and achieve a decisive breakout above the horizontal resistance level, approximately around 38,000. Conversely, a sustained breakdown of the ascending trendline would suggest the potential for a short-term correction.
In simpler terms, Bitcoin is following an upward trend, finding support at the ascending trendline and the 100-day moving average. However, caution is advised as the RSI is signaling a potential bearish divergence. A clear breakthrough above the resistance at 38,000 would be a positive indicator for a bullish continuation, while a sustained break below the ascending trendline could indicate a short-term correction in the market.
(Daily time frame)
On the daily time frame, Bitcoin (BTC) has exhibited a volatile pattern, characterized by both a breakout and subsequent breakdown. This fluctuation weakens the established support, emphasizing the importance of a conclusive breach of the 38,000 resistance level and the subsequent closure of a daily candle above it to solidify the support.
The Relative Strength Index (RSI) is currently in the overbought range, suggesting an elevated market condition that may require a period of relief. This, coupled with the choppy price movement, raises the likelihood of a correction in the market.
Key support levels to monitor are approximately 30,000 and 33,500, serving as local support. Until a decisive breakthrough and daily candle closure above the 38,000 resistance level occurs, caution is advised, as there is a heightened probability of a market correction, especially given the overbought condition signaled by the RSI.
(WEEKLY TIME FRAME)
Over the past weeks, Bitcoin has experienced a surge in price, entering a phase of notable price discovery and achieving new yearly highs by surpassing the previous consolidation range.
Historical research reveals a consistent pattern of Bitcoin accumulation in past market cycles.
The initial wave typically occurs shortly after Bitcoin hits its All-Time High in a market cycle, with prices swiftly moving away from that peak. The second wave transpires during the Bear Market's trough, as the price floor for that cycle is established and tested. The third wave unfolds post-cycle bottom, with prices showing an upward trend in anticipation of the Bitcoin halving.
It's crucial to acknowledge that the previous market cycle experienced a significant correction following the third wave of accumulation, leading to a downward price trend until March of the halving year.
Presently, Bitcoin has attained a High-Volume Node on the Volume Profile, indicating a zone with substantial potential supply or selling pressure. This observation underscores the importance of closely monitoring market dynamics and potential corrections in the ongoing bullish trend.
Bitcoin has successfully converted prior resistance into a support level, leading to a period of consolidation as traders anticipate a potential breakout.
Conversely, if Bitcoin is unable to solidify the former resistance as support, it may experience a decisive breakdown, reverting back to a previous trading range.
After analyzing Bitcoin across various time frames, we have concluded that there is a significant likelihood of BTC ranging between approximately 33,500 and 30,000. However, in the long term, the outlook remains bullish.
A similar pattern was observed in the last bull run, where a final substantial drop occurred, eliminating inexperienced and small traders, before the onset of the bullish market. Therefore, it is advisable to stay vigilant, adapt to Bitcoin's movements, and continue learning in order to navigate potential market fluctuations.
This chart is likely to help you make better trade decisions if it does consider upvoting it.
I would also love to know your charts and views in the comment section.
Thank you
"Stop Loss Essentials: Preventing Losses in Uptrends"Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Let’s get to the chart!
I have tried my best to bring the best possible outcome to this chart, Do not consider financial advice.
Common Reasons Why Traders Lose Money Even in an Uptrend
#Not Setting Stop-Loss:
#Not Conducting Technical Analysis:
#Going against the Trends:
#Following the Herd:
#Being Impatient:
#Not doing Homework or Research:
#Averaging on Losing Position:
Buy low sell high' is the motto. As simple as it sounds, why do most people lose money trading or investing?
There are four major mistakes that most beginners make:
1. Excessive Confidence
This stems from the idea that people think of themselves as special. They think they can 'crack the code' in the stock market that 99.9% of people fail to, and eventually make a living trading and investing. However, taking into consideration the fact that more people lose money in the market, this form of wishful thinking is the same mentality as going into a casino feeling lucky. You may actually get lucky and win big the first few times, but in the end, the house always wins.
2. Distorted Judgements
While simplicity is key, the approach most beginners make in trading and investing are too simplistic, to the extend where it's hard to even call it a trading logic or reason to invest. They spot a few reoccurring patterns within the market, and this is almost as if they discovered fire. It doesn't take long to realize that the "pattern" they spotted was never based on any solid reasoning, or worse, wasn't even a pattern at all in the first place.
3. Herding Behavior
The fundamentals of this is also deeply rooted in a gambling mindset. Beginners are attracted to the idea of a single trade or investment that will make them a millionaire. However, they fail to realize that there is no such thing. Trading and investing is nothing like winning the lottery. It's about making consistent profits that compound throughout time. While people should definitely look for assets that have high liquidity and some volatility , the get-rich-quick mentality drags irrational beginners into overextended/overbought stocks that eventually drop drastically.
4. Risk Aversion
Risk aversion is a psychological trait embedded within all of mankind's DNA. Winning is fun, but we can't tolerate losing. We tend to avoid risk, even when the potential reward is worth pursuing. As such, many beginners take extremely small amounts of profits, in fear that they might close their position at a loss, trading with a terrible risk reward ratio. In the long run, their willingness to not take any risks leads to losses.
Depending on the price action, they also go through seven phases of psychological stages:
- Anxiety
- Interest
- Confidence
- Greed
- Doubt
- Concern
- Regret
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Lack of Discipline
An intraday trader must stick to a proper plan. A full-fledged intraday plan includes profit targets, factors to consider, methods to put a stop loss, and ways to select the right trading hours. The trading plan provides a comprehensive overview of how trading should be executed. Also, you can keep a record of trades executed during the day with the performance analysis of each stock at the end of the day. Such records help you identify the weak areas in your trading strategy and correct them. It is very important to be disciplined as a trader, the proper discipline will help you minimize the losses and maintain your capital.
Not Setting Proper Trading Limits
In intraday trading, the success lies in managing the risk. You should pre-define a stop loss and profit target when entering intraday trading. This strategy itself is an important part of trading discipline and this is where most people fail. For instance, if you incur a loss in the first hour itself, you should shut down the trading terminal for the rest of the day. You should also have an overall capital loss limit in place, it will safeguard you against trading losses.
Compensating for a Rapid Loss
This is one of the common mistakes in the trading community. When a trader incurs a loss, he/she either tries to average a position or overtrades excessively to recover the loss. This further leads to a greater loss and put them into more trouble. Losses are a part of intraday trading, instead of overtrading, it is wise to accept the loss, analyze the strategy and make improvements from the next day.
Heavy Dependency on Tips
Nowadays, there are ample of intraday tips flowing everywhere on the digital media. It is a common phenomenon for a trader to rely on these external tips, however, this needs to be avoided. The best way to learn intraday trading is by gradually learning how to read charts, understanding structures, and interpreting results on your own. Many traders refrain from taking these efforts and because of this, they end up on the losing side. The Beyond App by Nirmal Bang provides deeper insights into the market, the technical research offered by Nirmal Bang is spot on. You can use that research for reference, however, nothing can beat practical experience.
Not Keeping Track of Current Affairs
The external news, events, and tragedies do have an impact on the stock market. Hence, it is important for an intraday trader to keep a track of the Indian as well as global markets. Even the performance of global markets has an impact on the movement of Indian markets. Make your trade after the news or event has been announced, do not try to speculate the market based on the news.
There are even instances when traders do not have any sound trading strategy, they just make decisions based on gut feelings or emotions. One needs to remember that intraday trading in itself is a skill, it is not a gamble, it takes time to develop proficiency, you cannot expect rapid results. The above are some of the major reasons why intraday traders lose money, ensure that you are disciplined enough, stick to a proper strategy, analyze your strategy at regular intervals, and things will fall in place.
we will discuss 3 classic trading strategies and stop placement rules.
1) The first trading strategy is a trend line strategy.
The technique implies buying/selling the touch of strong trend lines, expecting a strong bullish/bearish reaction from that.
If you are buying a trend line, you should identify the previous low.
Your stop loss should lie strictly below that.
If you are selling a trend line, you should identify the previous high.
Your stop loss should lie strictly above that.
2) The second trading strategy is a breakout trading strategy.
The technique implies buying/selling the breakout of a structure,
expecting a further bullish/bearish continuation.
If you are buying a breakout of resistance, you should identify the previous low. Your stop loss should lie strictly below that.
If you are selling a breakout of support, you should identify the previous high. Your stop loss should lie strictly above that.
3) The third trading strategy is a range trading strategy.
The technique implies buying/selling the boundaries of horizontal ranges, expecting a bullish/bearish reaction from them.
If you are buying the support of the range, your stop loss should strictly lie below the lowest point of support.
If you are selling the resistance of the range, your stop loss should strictly lie above the highest point of resistance.
As you can see, these stop-placement techniques are very simple. Following them, you will avoid a lot of stop hunts and manipulations.
What Is a Stop-Loss Order?
A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. Suppose you just purchased Microsoft (MSFT) at $20 per share. Right after buying the stock, you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.
Stop-limit orders are similar to stop-loss orders. However, as their name states, there is a limit on the price at which they will execute. There are then two prices specified in a stop-limit order: the stop price, which will convert the order to a sell order, and the limit price. Instead of the order becoming a market order to sell, the sell order becomes a limit order that will only execute at the limit price (or better).
Advantages of the Stop-Loss Order
The most important benefit of a stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold.
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One way to think of a stop-loss order is as a free insurance policy.
Additionally, when it comes to stop-loss orders, you don't have to monitor how a stock is performing daily. This convenience is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period.
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Stop-loss orders also help insulate your decision-making from emotional influences. People tend to "fall in love" with stocks. For example, they may maintain the false belief that if they give a stock another chance, it will come around. In actuality, this delay may only cause losses to mount.
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No matter what type of investor you are, you should be able to easily identify why you own a stock. A value investor's criteria will be different from the criteria of a growth investor, which will be different from the criteria of an active trader. No matter what the strategy is, the strategy will only work if you stick to it. So, if you are a hardcore buy-and-hold investor, your stop-loss orders are next to useless.
At the end of the day, if you are going to be a successful investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.
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Finally, it's important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions. If you don't, you'll lose just as much money as you would without a stop-loss (only at a much slower rate.)
Types of Stop-Loss orders
Fixed Stop Loss
The fixed stop is a stop loss order triggered when a particular pre-determined price is hit. Fixed stops can also be timed-based and are most commonly used as soon as the trade is placed.
Time-bound fixed stops are useful for investors who want to provide the position with a pre-set amount of time to profit prior to moving on to the next trade.
Only utilize time-based stops when positioned sized properly to permit major adverse swings in share price.
Trailing Stop-Loss Order
Trailing order caters to the capital gains protection of an investor, while simultaneously providing a hedge against any unexpected price downturns. It is set as a percentage of the total asset price, and the order to sell is triggered in case market prices fall below the stipulated level. However, in the case of a price rise, the trailing order adjusts automatically in tune with an overall increase in market valuation.
Suppose, in a trailing stop-loss market, an order for execution is set if the price of a security falls below 10% of the market value. Assuming the purchase price is 100 an order to sell the security is executed automatically by an authorised broker if the price falls below 90.
In case the share prices rise to 120, the trailing order stands at 10% of the current market price, which is 108. Hence, if prices consequently start falling after peaking at. 120, a stop-loss order will be executed at 108. It allows an individual to enjoy a capital gain of 8 (108 – 100) on his/her investment corpus.
Stop-Loss Order Vs Market Order
While a stop-loss order performs a sale of underlying securities provided the price falls below a prescribed limit, a market order is issued to a broker to conduct trade (both buying and selling) at the prevailing market price. Stop-loss orders are designed to reduce the risk factor, while market orders aim to increase liquidity in the stock market by eradicating the bid-ask spread difference. A market order is the most basic form of trade order placed in a stock market.
Stop-Loss Order and Limit Order
Limit orders execute a trade of stipulated securities if the price reaches a pre-set value. While a buy limit order facilitates the purchase of any securities if the price falls below the given limit, a sell limit order is executed if the price rises above the value. Limit orders are designed to maximise the profitability of an investment venture by maximising the bid-ask spread. It is in contrast to stop-loss orders, which are implemented only if the price is equal to the limit stated by investors, as a method of minimising losses in a bear market.
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XAGUSD (SILVER) ____ INCOMING BULLISH MOVEHello Traders,
I trust you are doing great and getting reading for the new trading week.
Here is my view on Silver.
To begin with, I will draw your attention to the monthly chart. Based on where I plotted my monthly OB, go and look at your monthly chart. Price mitigated the manipulation. Hence the rally. If you measure that bullish candle that price mitigated on the monthly chart, note where it ends.
Now come back to the daily chart and look at the kind of structure we have. It is an inverse heads and shoulders pattern. My speculation is that price will continue to rally to the weekly supply orderblock.
You will also notice that whilst other USD pairs made massive moves last trading week, Silver didn't. Which means that we might get an explosion this week.
There is just one suspicious thing... price formed a trendline liquidity, but I am still interested in taking the long as there are more confluences for a long than short.
What do you think?
Follow for more updates like this.
Cheers,
Jabari
WILL BTC BE ABLE TO CONTINUE THIS BULLISH RALLY?
In the higher timeframe, Bitcoin (BTC) is currently encountering two significant resistance levels that it must surpass for a more bullish movement to materialize.
Why is it so strong? it's a 446-day resistance
In the daily time frame
"After each significant or sudden movement, Bitcoin has exhibited a tendency to consolidate sideways."
here we can see a bearish divergence in RSI also
So what do you expect?
LET'S HAVE A LOOK AT THE SHORTER TIME FRAME
In the shorter time frame, Bitcoin (BTC) has broken out of this bullish pennant pattern and is currently in the process of retesting it. According to the technical pattern analysis, we can anticipate a potential bounce of approximately 15% to 17% from the current level.
LET'S HOPE THIS IS NOT BEAR TRAP
This chart is likely to help you make better trade decisions if it does consider upvoting it.
I would also love to know your charts and views in the comment section.
Thank you
AUDUSD ____ INCOMING BULLISH MOVEHello Guys,
I do hope the trading week has been fair to you.
Now the breakdown of this pair.
Let's start from the weekly, we have a bullish CHOCH on the weekly timeframe. Dropping to the daily timeframe, you will notice that we have buy-side liquidity (relatively equal highs) to hunt and the actual demand orderblock is below a swing low. (see annotations)
You will notice that I marked my daily demand orderblock on the wick of the candle. That is because the wick embodies the manipulation that ran the sell-side liquidity (relatively equal lows).
Follow for more updates.
Cheers,
Jabari