What topics do you want to learn about?3 years in the market, studying each day has taught me a lot, and I'm still learning each day. But with a background in Psychology and an interest in Education, I want to know that part of the markets YOU want more information about.
In the comments below, list off some simple topics for beginners that want someone to help explain things from anything charts, what indicators are valuable, and lastly how psychology create the patterns we see on our Trading View apps.
Let me know in the comments below and ill make a post tailored to your inquiries and tag you for ease of use!!
If you see someone ask your question, drop a like on their comment or saw "following" as a reply to their comment. This way ill know which topics are priority!!
Educational
MY MORNING TRADING ROUTINE - Steps I take before I tradeComplete Routine:
06:30: Wake up – My Morning Routine Starts
I just get right up and start my day. Don’t hit the snooze button!
06:40: What’s My Daily Report Card Goal?
Each day my trading journal includes a specific goal that particular trading session, concrete actions that I’ll take to achieve that goal, and self-evaluation at the end of trading to gauge my success in reaching that goal.
The idea is to never trade without consciously working on some aspect of my trading.
06:50: Risk Control Process
I define the risk for the day :
Position sizing guidelines
Per-trade loss limits
Per-trade price targets
Daily loss limits
07:00: Frame The Context
I do a quick scan of my markets, and I frame the context by doing my analysis and establishing potential directional biases. This doesn’t take me a long time since I build upon yesterday’s analysis.
07:20: Define Market Conditions
Here I start by asking myself two questions:
Should I or shouldn’t I trade?
If I do trade, whether to do so cautiously or aggressively?
And then, I go through some variables to understand the market environment
07:30: Identify/Look For Setups
Now I understand what I want to improve on, my risk profile, market context, and how the market moves (the environment; fast, slow, etc.?)
I have specific setups and plays that I love to trade; I wait patiently for these setups to develop. Usually, they develop during London Open, but if there’s a setup at this very moment, I take it and immediately go into my breathing and meditation.
07:50: Deep Breathing + Meditation (Mental rehearsals)
This is where I get my mindset right. Breathing and meditation help me be and sustain a state of calmness and staying focused.
08:40: Cold Shower
Cold showers are amazing; they fill me with energy and the concentration to stay fully immersed in the present moment while I trade the markets.
09:00: Trade The London Open
I’m fully ready and confident to start my trading day. I’m focused, calm, and immersed in front of the screen.
Why We Need Routines:
As traders having routines in our life that encompasses all our desired best practices and habits is key to sustain consistent performance day in and day out in the markets. Trading is hard, and having to maneuver the world of trading without any routines or systems in place, is really doing yourself a disservice. Routines make your life easier. They reduce stress because you don’t have to think about what to do; your brain and body already know what to do because of the patterns you’ve set in place! This is quite amazing and really powerful; therefore, seek to build a routine to facilitate your trading performance.
how to risk smartly? position sizing, risk n reward, SL n TP 👌Risk refers to the probability of a negative event happening in your activities; an event that goes contrary to your intended outcome. Risk is part and parcel of the cryptocurrency trade. It is the chance of an undesired outcome on the trade, which translates to making losses. For instance, a 50% risk on a short position simply means that there is a 50% probability that the Bitcoin price will rise, resulting in a loss on your part.
Today, we take you through the simple rules to follow when managing risk in crypto trading.
Types Of Risk
The crypto trading world is exposed to four main types of financial risks:
Credit Risk
This risk affects crypto projects. It is the probability of the parties behind the crypto project failing to fulfill their due obligations. Credit risk is mostly attributed to theft and fraud in the crypto market. A good example is the hacking of Binance in 2018, which led to over $40 million loss.
Legal Risk
Legal risk refers to the probability of a negative event occurring with respect to regulatory rules. For instance, a ban on cryptocurrency trading in a specific country. A practical example of legal risk is when the states of Texas and North Carolina issued a cease-and-desist order to Bitconnect cryptocurrency exchange due to suspicion of fraud.
Liquidity Risk
Liquidity risk in respect to crypto trading refers to the chance of a trader being unable or incapacitated to convert their entire position to fiat currencies (USD, YEN, GBP) that they can use in their every-day spending.
Market Risk
Market risk refers to the chance of coin prices moving up or down contrary to your desire in an open position.
Operational Risk
Operational risk is the chance that a trader is unable to trade, deposit, or even withdraw money in their crypto wallets.
Main Risk Management Strategies
The rule of thumb in crypto trading is: “Do not risk more than you can afford to lose.” Given the gravity of risk in crypto trading, we generally advise traders to use not more than 10% of their budget or monthly revenue. Also, trading with borrowed money is not advisable as it puts them in a credit risk position.
Risk management strategies can be broadly categorized into three: risk/reward ratio, position-sizing, as well as stop loss & take profits.
1. Position Sizing
Position sizing dictates how many coins or tokens of cryptocurrency a trader is willing to buy. The probability of realizing great profits in crypto trading tempts traders to invest 30%, 50% or even 100% of their trading capital. However, this is a disruptive move that puts you at serious financial risks. The golden rule is: never put all your eggs in one basket. Here are three ways to achieve position sizing.
Enter Amount vs Risk Amount
This approach considers two different amounts. The first involves money you are willing to invest in every single deal. We advise traders to look at this amount as the size of each new order they take, regardless of its type. The second involves money at risk, i.e. the money that you stand to lose in case the trading fails.
This is how you define your enter amount:
A = ((Stack size * Risk per Trade) / (Entry Price – Stop Loss)) * Entry Price
Let’s say we wish to purchase BTC with USDT with a target of $13,000. Our parameters would be:
Stack Size: $5,000
Risk per Trade: 2%
Entry Price: $11,500
Stop Loss: $10,500
Our enter amount would be:
A= ((5,000 * 0.02) / (11,500 – 10,500)) * 11,500 = 1,150
The ideal amount to invest in this deal is $1,150 or 23%. However, due to our Stop Loss, we only risk 2% as it will stop the trade once it reaches the determined level.
Risk trading in cryptocurrency
Elder’s “Sharks” and “Piranhas”
This concept of position sizing relates to diversifying your investments. Dr. Alexander Elder, who is credited with the concept, suggests two rules:
Limiting every position to 2% risk. Elder compares risk to a shark bite. Sometimes you would wish to risk a huge amount, but the risk would be huge and catastrophic as a shark bite.
Limiting trading sessions to 6% per session. In a losing streak, you may end up spending everything you own little by little. Elder compares this risk to a piranha attack, which takes small bites of its victim until it consumes it all.
Following Elder’s sharks and piranhas approach results in no more than three open positions per 2% each or six ones per 1%. Limiting results in reverse compounding; losses get smaller and smaller with each subsequent loss you make.
Kelly Criterion
The Kelly criterion is a formula developed by John Larry Kelly in 1956. It is a position sizing approach that defines the percentage of capital to bet. It suits long-term trading.
A = (Success % / Loss Ratio at Stop Loss) – ((1 – success %) / Profit Ratio at Take Profit)
Using the previous example, the features would be:
Stock size: $5,000
Invested Amount: $1,150
Success %: 60%
Entry Price: $11,500
Stop Loss: $10,500
Loss Ratio: 1.10
Take Profits: $13,000
Our result would be:
A = (0.6 / 1.10) – ((1 – 0.06) / 1.13) = 0.19
This means you should not risk more than 19% of the entire capital of $5,000 for you to arrive at the best possible outcome in a series of deals.
2. Risk/Reward Ratio
The risk/reward ratio compares the actual level of risk with the potential returns. In trading, the riskier a position, the more profitable it can get. Understanding the risk /reward ratio enables you to know when to enter a trade and when it is unprofitable. The risk/reward ratio is calculated as follows:
R = (Target Price – Entry Price) / (Entry Price – Stop Loss)
From the previous illustration:
Entry price: $11,500
Stop Loss: $10,500
Target price: $13,000
Our ratio would be:
R = (13,000 – 11,500) / (11,500 – 10,500) = 1.5 or 1:1.5
A ratio of 1:1.5 is good. We advise traders not to trade with a ratio lower than 1:1.
3. Stop Loss + Take Profit
Stop Loss refers to an executable order which closes an open position when a price decreases to a specific barrier. Take Profit, on the other hand, is an executable order that liquidates open orders when the prices rise to a certain level. Both are good approaches to managing risk. Stop Losses save you from trading in unprofitable deals while Take Profits let you get out of the trade before the market can turn against you.
You can make use of Trailing Stop Losses and Take Profits which follow the rate’s changes automatically. Such a feature, however, isn’t available at the majority of crypto exchanges. Fortunately, with crypto terminals like Superorder, you can set your Trailing Stop Losses and Take Profits right from the terminal.
Winning Strategies
Accept Failures
Risk is part and parcel of trading. Besides, we cannot eliminate it but only manage it. You should, therefore, accept your losses and rely on plan-based decision making to realize profits in future trades.
Consider Fees
New traders often do not know the fees that come along with trading. Such include withdrawal fees, leverage fees, etc. You should consider these in your risk management.
Focus on the Win Rate
Risks will always be there to discourage you from trading. However, focusing on the number of times you win helps to develop a positive attitude in trading.
Measure Drawdown
This refers to the total reduction of your initial funds after a series of losses. For instance, if you lost $1,000 from $5,000, your measure drawdown is 10%. The higher the amount, the more you would need to inject into a trade for it to recover. As Dr. Elder advised, stick to a 6% risk limit.
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USDJPY Overview (05 June)Price fell from Zone 4 into Zone 3.
Looking for buy opportunities from Zone 3 towards Zone 4.
Currency Correlations: The unspoken truthHappy Friday, ladies and gents, and welcome on our another educational post for the day. Today, we are gonna talk about positive currency correlations and examine how they impact our trading. But to begin with, what is currency correlation? Currency correlations are a statistical measure of the extent that currency pairs are related in value and will move together. If two currency pairs go up at the same time, this represents a positive correlation, while if one appreciates and the other depreciates, this is a negative correlation.
As it can be clearly inferred from the graph, the charts of EUR/USD and GBP/USD have been chosen to be scrutinised. These two currency pairs are highly correlated and are moving in the same direction. As we can see, 2 major similarities have been identified on the Daily timeframe charts of both currency pairs. However, there are a lot more than just 2. As it can be inferred from Similarity #1, the price managed to leave a long wick in late February 2020 for both pairs. Looking at Similarity #2, we can observe that the price is forming a top for both pairs and preparing to reverse and continue its move to the downside.
Now that we have talked about the basics, let's move on and talk about some problems faced by currency correlations. Most of the time, new traders do not pay attention to this basic concept and make false decisions without noticing. I have seen hundreds if not thousands of traders that ignore the rule of currency correlations and make irrational conclusions like the following: opening Buy positions on EUR/USD and opening Sell positions on GBP/USD. Of course, you can do that as well, depending on the timeframe that you are trading and depending on how long you are planning on keeping the trades open. However, on the longer term trading, you won't be able to succeed. Furthermore, most of the new traders open buy or sell positions for both of the trades, which results in increasing their risks. If you open BUY or SELL positions for both trades at the same time, and the price moves in the opposite direction of your bias, you are gonna lose both of the trades. Again, not in all cases, but 80-90% of the time, as the two pairs are highly correlated.
What can be done to avoid being the victim of the highly correlative pairs and keep it safe? There are two strict rules that we follow, which have always worked for us:
-Open positions for the trade with the better setup
or
-Open positions for both trades but cut the lot sizes by half
So in the first case, we compare the two setups that we have, in our case it's either EUR/USD or GBP/USD. For instance, let's say that EUR/USD gives us more confluences for opening a transaction. Therefore, what we do is, we ignore GBP/USD and trade EUR/USD. For the second case, let's say that we use 1.0 lot size to open transactions. What we can implement, is using 0.5 for each trade and opening positions for both EUR/USD and GBP/USD.
I hope you liked this educational post, family! If you have any suggestions on what we should post next as an educational post, feel free to let us know in the comment section below. Have an awesome upcoming weekend, everyone!
HOW TO SET PROPER TAKE PROFITS AND STOP LOSSES 🧙♂️Knowing patterns is one thing and using them to the fullest potential is another. Above, we've depicted 3 major patterns commonly used by traders during a technical analysis (wedges and pennants will be covered next week). We all know how to notice them on the charts and general shapes. However, a lot of traders don't know how to act once they notice these patterns and we're here to clarify that.
First, let's look at the proper entry points for these patterns. A general rule of thumb would be to enter the trade at the neckline once we get a closure below/above it. This way we can increase the probability of a trade and make sure the pattern is still valid. What about the take profit? Well, from tons of observations by a lot of talented traders there is a theory that the move following these patterns would be:
1) Double TOP/BOTTOM: the same as the distance from the neckline to the top or bottom
2) Head and Shoulders: the same as the distance from the neckline to the head
3)Rectangle: the same as the range of the rectangle
This way we can maximize our profits made from the trades based on these patterns.
Lastly, let's look at the Stop Losses for our trades. This one really depends on your trading style. More conservative traders (for instance, we like to keep our SLs tight as possible) would go with the mid-range of the pattern ensuring at least a 1:2+ Risk-Reward Ratio. However, if you're using this pattern as an indication that the price will follow further than the expected TP1, you may as well slightly increase your stop loss (not advised).
This is pretty much what you have to do once you notice one of the patterns above and you want to capitalize on the opportunity. Safe trades and stay tuned for more posts!
Ah also, it's Investroy's birthday this weekend, so if you have time, stop by and wish the HAPPY BIRTHDAY to the team :)
USHIBA 🐻❄️ - Shiba on the 4hrlyNOT FINANCIAL ADVICE: DYOR - This idea is IMO for personal use only*
============================================================
Just for fun.
While we see BTC continue with sideways action and low volume across most charts in crypto.
I entered into this meme token this week.
Still very early days but I like the risk/reward on this one!
Let's see if I can get similar returns like my $160USD investment into $SHIB 😂.
As always, watch for volume. Do your own research. This is not Financial Advice. Always be watching BTC.
Good chat.🤖
GBPAUD - Sell signal* TAKE THIS TRADE AT YOUR OWN RISK *
GA Approaches its 20 day highs, potential reversal in play... Lets see how far the correction takes us....
Trading tips for NEW Traders or FAILING onesHey hey traders!
Its been a wild and pip moving day in all markets, from Forex all the way to stocks and everything in between!
In this video we go over a little bit of information that can help new traders and traders who have not had the best of luck in their trading!
We hope the video helps and we'll see you in the next one!
BTCUSDT analysis as simpleCurrently BTC is trading in triangle usually these type of triangles fromed on chart to guess the next move of asset
Now the question is in which direction it will break
Let find it 😎
1- lets eye indicators
EMA's .. BTC currently trading below 21,50,100,200 ema which telling us the triangle will break in down side
.......
RSI, below 50 the same story triangle will break in down side
......
MACD, also bearish pointing the triangle will break in down side
.....
daily trend is also bearish
In such condition its not the right time to trade btc we have to wait tell the triangle is broken mostly likely it wilp break in down side if we fallow indicators in case its broken in upside my inner feeling is that will be fake out to shackout all long position from market if we found high volume on break and reset the triangle uper line the open long position otherwise we will dip lower and triangle will breakdown our price target should be in between 23k to 22k
Result: fuck all scam YouTubers who dont even know ABC about trading nor about what is actually biction and came on YouTube to calim btc is going 200k fuck all them unfallow them and report as well these mother fuckers
Thanks me later ☺️
Silver: Booms, busts and a new opportunity?In today’s educational article we will analyze silver’s historical boom and bust cycles through the lens of financial history but we’ll also provide a forecast for the future price of this asset.
In the modern era of precious metals markets that began in 1971, silver (XAGUSD) had 2 previous bull markets that reached the fabled $50 USD level and then pulled back. We think that this current bull market that will unfold in the coming year/s has the power to break that $50 glass ceiling and reach an all-time high. First, we will look at some basic characteristics and things that set silver apart from its precious metal counterpart gold.
Silver is similar to Gold in many ways:
1. Accepted as a form of money since ancient times
2. It must be mined, isn’t made out of thin air
3. Total global supply is limited
But Silver has qualities that Gold doesn’t:
1. It has a myriad of industrial uses (batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (or solar) energy, RFID chips (for tracking parcels or shipments worldwide), semiconductors, touch screens, water purification, wood preservatives)
2. There are few pure silver mines . Overwhelmingly silver is mined only as a byproduct of mining other metals, such as base metals (copper, zinc, etc.).
The 1979-1980 Silver crisis
In the era of high inflation with the Consumer Price Index (CPI) at the time reaching 10-12%, there were many books that recommended investments in precious metals and strong currencies to protect your wealth. Investors, in general, shared this view and the price of precious metals soared. Prices for silver rose from less than $10.61 an ounce in August 1979 to $52 an ounce in January 1980. Inflationary pressures from throughout the world pushed up prices.
Herbert and Nelson Bunker Hunt, who were buying silver in previously unheard-of quantities, also had an impact on prices. The Hunts had attempted to corner the silver markets in 1973 with little success, but their trade in 1979 would rock the financial world. Bunker Hunt had about 21 million ounces of silver bullion and coin on August 1, 1979, as well as over 9,000 silver futures contracts covering another 46 million ounces of the metal. Bunker's brother, Herbert Hunt, possessed another 21 million ounces of silver and over 4,000 silver futures contracts. To acquire even more silver, the Hunts founded the International Metals Investment Co. It had accumulated over 8,400 silver futures contracts by August of 1979.
When the Hunts started buying silver in 1979, they were billionaires. Nelson Bunker Hunt reportedly had a net worth of about $3 billion. Another $1.38 billion belonged to Herbert Hunt. When the value of the Hunts' silver investments surged to about $10 billion, their fortune grew significantly. Despite their affluence, the Hunts bought their silver largely with borrowed money.
Several banks loaned the Hunts over $650 million to fund their silver purchases including Citibank, the First National of Chicago, and Dallas. Also, a big source of funding for the Hunts was Bache &Co which was the second-largest brokerage firm at the beginning of the 1970s. The silver market was disrupted as prices shot up rapidly. On November 30, 1979, silver was trading at just under $19. By January 3, 1980, its price had risen to over $38 an ounce. Silver prices peaked at over $50 an ounce on January 18, 1980. Under pressure from the CFTC, the Commodity Exchange, Inc. (COMEX), the primary futures market for silver trading, announced on January 21 that it would allow trading for liquidation only. The exchanges increased margin levels to 100 percent, which further dried up the liquidity in the market. Prices plunged after the exchanges took those actions. In one twenty-four-hour period, silver prices dropped from $39.50 to $10.80 an ounce.
This generated massive margin calls on Hunt's positions. Margin calls had to be met in cash, and this strained even the enormous resources of the Hunts. They failed to meet $135 million in margin calls at Bache on March 26, 1980. Shortly thereafter, on March 28, 1980, the Hunts advised their brokers that they could not meet further margin calls in cash. That announcement threatened the financial stability of several large brokerage firms that had held Hunt positions, resulting in the “Silver Crisis.”
The CFTC was among those pursuing the Hunt brothers. The Hunts eventually agreed to a permanent bar from trading on all commodity exchanges, and they were assessed with a $10 million civil penalty by the CFTC. The Hunts were the subject of numerous private actions in which large judgments were returned. They then filed for bankruptcy.
The 2010-2011 Boom
In April of 2011 Silver traded at $49.80 per ounce in the spot exchange at the New York market. The Gold/Silver Ratio was one of the criteria that many traders were examining. Some people felt that silver was undervalued compared to gold and that it would eventually return to its historical price parity of around 16 ounces of silver per ounce of gold. Despite the fact that silver had not been this expensive in terms of gold in 28 years, and despite the fact that Dollar prices had doubled in 6 months, some traders believed the move wouldn't be complete until silver traded above the $50 price level it had reached in 1980.
The conditions for this bull market were very different compared to the boom of the 1980s. Thirty years later, the world economy was once again at risk. The US economy was still reeling from the housing crisis and the collapse of Lehman Brothers in 2008. Greece, Ireland, Portugal, Italy, and Spain have all revealed major financial issues, putting the Eurozone in jeopardy.
In the United States, consumer confidence in the economy had remained at all-time lows. The news from Europe only added to concerns of a fresh financial catastrophe. Then, in November 2010, the Fed announced the start of a new cycle of Quantitative Easing. The US Mint set a monthly record for silver coin sales, only topped by the rise in private-investor demand in early 2011. As a result, many investors believed the Dollar was under siege. It became critical to seek safe-haven investments that would hold or expand in actual value during a period of sustained inflation.
Meanwhile, there was news coming out of the silver market that seemed to support an optimistic long-term outlook on silver's industrial demand. For example, the solar sector began consuming substantially more silver than in prior years. Solar panel manufacture begins with silver paste, which necessitates a better quality of silver than is available on the wholesale market. As the sector's growing demand sucked in these 0.9999 fine bars, it drew a lot of attention. Because while there was no shortage of the more common 0.999 bars, there was a shortage of immediate supply of this higher purity. And because of the growing demand, and the coincidental rise in the silver price, the story stuck.
Furthermore, as the narrative progressed, the enormous private-investor demand for tiny bars and coins in silver grew as a result of the global economic crisis, causing immediately available retail items to command larger premiums than those scheduled for delivery later. In February 2011, this trend continued in the futures market. When demand for physical items exceeds expectations, it can be difficult for producers to fill additional client orders rapidly. If supply becomes erratic as a result, it provides the impression that there is a raw material scarcity when, in fact, there is just a product scarcity.
When the short-term risks were believed to have subsided, many investors reallocated their assets back into yielding (dividend or interest) investments such as stocks or bonds causing the price of silver to crash in the following months.
Today…
Inflation is historically bullish for silver and all commodity prices. We find ourselves in a low-interest rate environment (or zero) accompanied by a strong debasement of all currencies being done by central banks. Base metals, grains, oil, lumber have started a new boom cycle fueled in part by central bank policies, higher demand, and supply bottlenecks caused by the pandemic.
Based on the monthly chart we believe that Silver made the first impulse to the upside after reaching $11 in March 2020. It rallied to $29,90 in a couple of months reaching the top in August 2020. From August to the day this article is written (June 2021) it is still consolidating, preparing the next move up.
Trade with care.
If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
Axis Bank only for education purpose.
and if you trade the remember stoploss is your best friend .
Disclaimer: The above is shared just for educational purpose and is my personal view.
By no means shall I be accountable for any debits/losses amounting out of it.
I am not a SEBI registered Analyst, so please consult your Investment Advisor and take rational decisions
Beauty of PatternsThis is an Educational post.
*Trade Confirmations*
:- Breakout in daily time frame has a lower chances to fail.
:- A green candle has broken the trendline
:- Huge volume near trendline that acted as amazing support.
:- Good quarterly results.
*When to Buy*
:- Enter with half quantity after the trend line is broken.
:- Add the rest of quantity when the price is near the support/trendline/retest region.
:- This retesting region is a key level where many traders will start to buy resulting in a huge volume.
*When to Sell*
:- The gap between the 2 trendlines is calculated as the target zone.
*Some more points*
:- Triangle is not only the pattern out there. There are lots of patterns that are good too.
:- I personally like triangle patterns.
:- So, I'm posting the educational idea to let everyone know the power of patterns.
:- Remember there are a lot of people who see the same chart. So many many might have done the same analysis. that results in everyone buying the stock which will raise
the price
Why I like the Trading View Community ?
There are 1000s of stocks out there. Even a full time trader can't look at them all.
That's where the community plays an important role. There are many curious and intelligent minds out there who post ideas based on charts that helps other people to look at the chart.
So the 1000 companies or more can be easily scanned that saves a huge time.
However don't copy the analysis. With the stock name, open the chart yourself and draw the patterns to find key levels to enter and exit
Don't forget to plan the number of quantities that you'll take.
Plan everything before entering the trade
This is just my personal view on their community.
That's it. Congrats if you have read everything. You really are a curious and patient person because a person could be judged by the amount of patience they have while reading.
Follow me so that you'll get notified whenever I post some content.
All the best!
All you need to know about tradingHi all,
He is simple educational points for you,
1) The trend is your friend!
2) Always wait for a correction or pullback to join your friend (the trend)
3) Never risk more than 1% of your account per trade! - Risk management
Good luck! :)
BTCUSD 35319.85 + 1.94 % PREDICITVE BREAK DOWNHELLO EVERYONE
HOPE EVERYONE IS DOING GOOD HAVING A GOOD ONE IN THE MARKET THIS WEEK, HERE'S A PREDICTIVE IDEA ON BITCOIN BASED ON PRICE ACTION.
Looking from the monthly chart bit coin saw an impulsive move with the bulls, just as with every move we are most likely to see a correction of this move, which played out with a rally of the bears toward the 61.8 Fibonacci level seeing a rejection at this level 101 price action.
Where to from here?
Well just as with all price action patterns we are more than likely to see consolidation and consolidation as always comes with various patterns i used a symmetrical triangle on the chart but we can possibly trade in a bull flag, an ascending triangle or descending triangle etc. following the price notion either way from here, the targets are the Fibonacci extensions,
Fibonacci extensions are excellent tools not only on BITCOIN with no historic data but basically any pair or stock but in this case everything about BITCOIN is new and we have no historic data to refer to, we are privileged to be creators of this that for future traders so fib extensions will come into play as we look forward to bullish rallies on the coin.
hopes this assists with your plans....
*follow your entry rules on entries
* significant moves with the bears change the plan.
lets see how it goes.
many stars must align with the plan before executing the trade, kindly follow your rules.
HAPPY TRADING EVERYONE & LET YOUR WINS RUN...
_________________________________________________________________________________________________________________________
ENTRY & SL - FOLLOW YOUR RULES
RISK-MANAGEMENT
PERIOD - SWING TRADE
__________________________________________________________________________________________________________________________
If this idea helps with your trading plan kindly leave a like definitely appreciate it.
61.8% recovery ?MATICSo from looking at the MATIC / BTC charts we have already done a 50% recovery from the bottom but I think we may see 1 more leg up to the 61.8% fib level before another pullback occurs. This is not a guaranteed leg up so I am watching closely to see where we go but it can turn downward very quickly considering the bearish flag forming in bitcoins hourly charts.
This is not Financial Advice so please DYOR before investing into cryptocurrencies. This is a very volatile market and no place for ignorance unless you want to give you're hard earned dollars / fiat away to other people who took the time to educate themselves.
Thank you everyone for all of you're support it means alot to me and for those of you who have not followed me please feel free to smash the like button / follow in order to continue to get daily analysis on BTC, MATIC, ADA which are currently the coins I am spectating at this given time.
As always,
Happy Trading Traders & Never Trade Leverage!!
Ultimate Divergences Course: FREE MaterialIf you like our content then follow us for up to date news and analysis.
EW FIBONACCI Ratios, FIB Retracement and Extension application !In this post, I'm going to focus on Fib Retracement and Fib Extension Ratios by Elliott Wave, and show you how to best use these tools.
Fibonacci ratios are mathematical ratios derived from the Fibonacci sequence.The Fibonacci sequence is the work of Leonardo Fibonacci.
Fibonacci sequence is used in many applications, movies and photography, space studies, stock market actions, and many other fields.
Fibonacci is a proven approach for measure price movement relationships. For Elliott heads, it means Fibonacci numbers are tools to help guide us in our interpretation where we think price movements will go.
The most common Fibonacci ratios used in the stock markets are:
1 - 1,272 - 1,618 - 2,618 -3,618- 4.23 (extension)
0.236 - 0.382 - 0.5 - 0.618 - 0.786 (retracement)
Let's start with Elliott Impulsive Wave rules !
Wave 1: the beginning of each wave and retracet with
Wave 2: may never retrace deeper than the beginning of wave 1
Wave 3: often the longest, but never the shortest
Wave 4: may never retrace below the top of wave 1
Wave 5: x
Fibonacci ratios :
Wave 2
The most common retracements we look for in a Wave 2 pullback are either a 0.5 or 0.618 retracement of Wave 1
We expect only 12% of Wave 2 to hold 0,382 retracements of Wave 1
We anticipate 73% of Wave 2 retracements between 0,5 to 0,618
We anticipate 15% of Wave 2 to retrace below the 62%
Wave 3
Wave 3 is related to Wave 1
Fibonacci relationships:
Wave 3 is either
1,618 length of Wave 1
or 2,618 the length of Wave 1
or 4,236 the length of Wave 1
The most common multiples of Wave 1 to Wave 3 are the 1,618 and 2,618
If Wave 3 is extending, we typically look for 4,236 or higher
Only approximately 2% will a Wave 3 be less than Wave 1
We anticipate 15% of Wave 3 trade between 1 and 1,618 of Wave 1
We can anticipate 45% of the time Wave 3 will push to between 1,618 and 1,75
We can anticipate 8% of Wave 3 will extend beyond 2,618 or higher
Wave 4
Wave 4 is related to Wave 3
0,236 of Wave 3 or
0,382 of Wave 3 or
0,50 of Wave 3 or
0,618 of Wave 3
We can anticipate only 15% of the time Wave 4 to retrace between 0,236 to 0,382
We can anticipate 60% of the time Wave 4 to retrace between 0,382 and 0,5
We can anticipate 15% of the time Wave 4 to retrace between 0,5 and 0,618
We can anticipate 10% of the time Wave 4 retrace 0,618 or greater
Wave 5
Wave 5 has two relationships. Wave 5 has a direct correlation to the Fibonacci relationship of Wave 3
1. If Wave 3 is greater than 1.62, or extended
Wave 5 is a 1 to 1
or 1.618 of Wave 1
or 2,618 of Wave 1
I don't know any statistics, but in my experience a 1.618 or 1 to 1 is the most likely
2. If Wave 3 is less than 1,618. Wave 5 will often overextend.The ratio of Wave 5 will be based on the length from the beginning of Wave 1 to the top of Wave 3
Extended Wave 5 is either 0,618 from the beginning of Wave 1 to top of Wave 3
or 1,618
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Possible Bull Flag in the 6HR Time FrameSo from what I can see on my laptop which has a small screen because I am at work while looking at these charts I do see a bull flag forming in the 6HR time frame. So I have personally bought back in at $1.56 & I will be waiting to see what is gonna happen over the NEXT 24 - 48 hours. #markcubanforthewin!
This is not financial advice this is only my personal opinion using tools I know in order to produce a good analysis. Please DYOR before investing into cryptocurrencies because they are EXTREMELY VOLATILE and you need to understand in this market if you want you're long term assetts to last you must invest in fundamentally strong projects.
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When the market opens, will look for price opportunity to sell towards Zone 1.
When to Buy in Bullish trend in 3 simple steps ??..Educational Analysis
When to Buy or When to wait in Bullish trend..
1- Have patience in the corrective structure.
2- wait for the price to form trend continuation pattern & Buy the breakout.
3- Ride the Impulse.
No need to complicate things in Trading.
Push LIKE & SUPPORT the Idea...
*The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent
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