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The theory of averageOften while trading markets we use various indicators like SMA, EMA, MACD that are based on the thoery that market trends to follow averages everything else remaining constant. Using the same concept and applying it to vix that it would trade in its normal range we have plotted two horizontal lines on vix. This lines gave us the idea when the market moved beyond averages due to extraordinary situations. It can be seen applying the same average points to Index chart that it has acted as a turning point for the given trend . An interesting observation in the given study is that the vix after a sudden market drop has started declining giving us an indication that bears are losing steam. Same can be used to any index you wish to trade to gain meaningful insights.
NSE:BANKNIFTYEducation
by Shantanuupe
Wyckoff Price CycleHello Traders, Today I wanted to show you a little bit of information to help you understand the market cycle in a Wyckoff Price Cycle. Richard Wyckoff was a world renowned trader from over 100 years ago who gained notoriety back in the roaring 20's. You should take some time to get to know him and his teachings. Here is an understanding of his development of the price cycle. According to Wyckoff, the market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time. As a broker, he was in a position to observe the activities of highly successful individuals and groups who dominated specific issues; consequently, he was able to decipher, via the use of what he called vertical (bar) and figure (Point and Figure) charts, the future intentions of those large interests. An idealized schematic of how he conceptualized the large interests' preparation for and execution of bull and bear markets is depicted in the figure below. The time to enter long orders is towards the end of the preparation for a price markup or bull market (accumulation of large lines of stock), while the time to initiate short positions is at the end of the preparation for price markdown. Wyckoff's chart-based methodology rests on three fundamental “laws” that affect many aspects of analysis. These include determining the market's and individual stocks' current and potential future directional bias, selecting the best stocks to trade long or short, identifying the readiness of a stock to leave a trading range and projecting price targets in a trend from a stock’s behavior in a trading range. These laws inform the analysis of every chart and the selection of every stock to trade. 1. The law of supply and demand determines the price direction. This principle is central to Wyckoff's method of trading and investing. When demand is greater than supply, prices rise, and when supply is greater than demand, prices fall. The trader/analyst can study the balance between supply and demand by comparing price and volume bars over time. This law is deceptively simple, but learning to accurately evaluate supply and demand on bar charts, as well as understanding the implications of supply and demand patterns, takes considerable practice. 2. The law of cause and effect helps the trader and investor set price objectives by gauging the potential extent of a trend emerging from a trading range. Wyckoff's “cause” can be measured by the horizontal point count in a Point and Figure chart, while the “effect” is the distance price moves corresponding to the point count. This law's operation can be seen as the force of accumulation or distribution within a trading range, as well as how this force works itself out in a subsequent trend or movement up or down. Point and Figure chart counts are used to measure a cause and project the extent of its effect. (See “Point and Figure Count Guide” below for an illustration of this law.) 3. The law of effort versus result provides an early warning of a possible change in trend in the near future. Divergences between volume and price often signal a change in the direction of a price trend. For example, when there are several high-volume (large effort) but narrow-range price bars after a substantial rally, with the price failing to make a new high (little or no result), this suggests that big interests are unloading shares in anticipation of a change in trend. This is just a start, it is up to you to develop the rest of your knowledge. I will be posting some more later. As always, have a GREEN week. Savvy
CRYPTOCAP:XRPEducation
by Savvythe1
45
Triple Bottom Pattern of #Doge Chart ?Will #DOGECOIN reach to 1$ ? Examining the #DOGECOIN chart in the weekly time frame : we see that the price has been fluctuating in the range of 16 to 35 cents since May 24, 2021, and does not follow a specific trend (trading range). We expect the price to start to rise again this week and Grow and reach its first target at least up to 34 cents! The first condition to reach this target is the failure of the dynamic resistance indicated on the chart. An interesting scenario could be the formation of the Triple Bottom Pattern pattern, which is completed when the price reaches the level of 34 cents, and with the failure of the neck line, the price can grow up to the specified targets. Targets are $ 0.34, $ 0.45, $ 0.51, $ 0.57 and $ 0.74, respectively, and $ 1 at the end. What is Triple Bottom Pattern ? A triple bottom is a bullish chart pattern used in technical analysis that's characterized by three equal lows followed by a breakout above the resistance level. KEY TAKEAWAYS A triple bottom is a visual pattern that shows the buyers (bulls) taking control of the price action from the sellers (bears). A triple bottom is generally seen as three roughly equal lows bouncing off support followed by the price action breaching resistance. The formation of triple bottom is seen as an opportunity to enter a bullish position. What Does a Triple Bottom Tell You ? The triple bottom chart pattern typically follows a prolonged downtrend where bears are in control of the market. While the first bottom could simply be normal price movement, the second bottom is indicative of the bulls gaining momentum and preparing for a possible reversal. The third bottom indicates that there's strong support in place and bears may capitulate when the price breaks through resistance levels. There are a few rules that are commonly used to qualify triple bottoms: 1- There should be an existing downtrend in place before the pattern occurs. 2- The three lows should be roughly equal in price and spaced out from each other. While the price doesn't have to be exactly equal, it should be reasonably close to the same price, such that a trendline is horizontal. 3- The volume should drop throughout the pattern in a sign that bears are losing strength, while bullish volume should increase as the price breaks through the final resistance. How to Trade a Triple Bottom The price target for a double bottom reversal is typically the distance between the lows and the breakout point added to the breakout point. For example, if the low is $10.00 and the breakout is at $12.00, the price target would be (12 - 10 = 2 + 12 = 14) $14.00. Stop-loss points are usually placed just below the breakout point and/or below the triple bottom lows. Source : Investopedia Follow our other analysis & Feel free to ask any questions you have, we are here to help. ⚠️ This Analysis will be updated ... 👤 Arman Shaban : @ArmanShabanTrading 📅 02.DEC.2021 ⚠️(DYOR) ❤️ To give us energy and motivation , please like and leave a comment. ❤️
by ArmanShabanTrading
22
Stock Market CrisisHello my friends, today, im gonna show you the biggest falls of stock market SPX. First fall was in 1987 , stocks dropped over 20% in one single day, incredible. Market got back in 22 months. This day (19.11.) is always called " Black Monday ". The second fall was 9 years after "Black Monday". In august have SPX dropped about 15% . There were a lot of reasons, but the main reasons are Asian economic crisis, debt default by Russia and plummeting oil prices . we was back in 5 months. The worse crisis came in 2001 . This crisis is also called " Dot Com Bubble ". All technology companies have dipped and SPX was down 50% . Market got back in 7 years. Right after market got ATH (All-Time-High), market again dropped over 55% . Reason was american type of mortgage called " Subprime ". A lot of investing banks have bankrupted. One of them was Lehman Brothers or Bear Stearns . This crisis was one of the biggest opportunities that ever happened, because properties were really cheap . Market was back on his feet in 6 years. In 2018 dropped market over 15% ? because of interest rate hikes . Market was back in 8 months. The last crisis was an year ago, Covid-19 . Small companies have bankrupted . Market dropped over 30% . Back in 6 months. Okay guys, seems we are at the end, thanks for reading, hope you admire it, if yes, you can support me by Like and also you can Follow me, because i will do these things really often.
SP:SPX
by TommyTK247
14
Ethereum Up or Down is the question?Hello Traders, As is it important to have a plan for both long and short positions as a trader, I wanted to give you a look at a plan for both up and downward price action. As you see on the chart there are two technical patters presenting themselves in the market structure. The first being a bullish cup and handle pattern and the second being a bearish rising wedge. I personally am leaning more on the bullish side as the whole market is bullish aside from the large cap coins which is normal if you note the photo of the I posted on the chart showing how money flows in the market. One thing that leads me to believe that the cup and handle is more likely is due to the fact a rising wedge has a characteristic of generally falling out of the patter with haste to find its target. The other is the bullish divergence shown in the chart on the MACD Histogram. As I always say, when in doubt chart it out, make a plan and pray it pans! Ironically we are sitting tight right between both entry points of each pattern currently. So I hope this brings a little more clarity to this indecisive time we are sitting in as well as makes finding a plan just a bit easier for you! I wish you all a very green week! ~Savvy~ [ .
by Savvythe1
1
NZDUSD LONGS, CHECK OUT MY ANALYSIS AND FOLLOW ME UP :)Here we have a descending trendline which price has respected, one previous breakout occurred however it was a fake breakout. We are also seeing lower highs and lower lows forming with price currently making a new lower low at a previous resistance level at - 0.69200 and this is where price began to become bullish and our moving averages were also bullish on the 1H time frame, all giving us extra confluence that price will be making a new lower high and potentially at the trendline.
Long
by FOREXWITHD
2
The rule you should never forget! About a week ago bitcoin suddenly started to drop and falling more and more unexpectedly While everyone was talking about 98K. Now everyone is talking about 52. Most of people are waiting to buy at 52 and lots of traders are selling bitcoin so they take profit at 52. But there's a rule you shoul never forget. When most of people thinking about an ultimate target it will be never hit. That's it! Most of people were waiting for bitcoin to hit 100K but it started to drop from 64K then they were waiting for 13K bitcoin but bitcoin started to rise up from 30K. Now people think the reversal point will be 52_53 and i did too But when i noticed everyone is thinking like me i doubted it. The logic behind this rule is a bit complicated and takes much time to explain but anyway it works well.
Education
by CryptoTitans1
14
How to Swing Trade Using the Ichimoku Cloud's Base LineIn this post, I'll be introducing a swing trade technique that I like to use often, that involves the use of the base line (blue line) from the ichimoku cloud indicator, and the 5 simple moving average (SMA), marked in green. Disclaimer: This is not financial advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. Conceptual Explanation - The base line is a component of the ichimoku cloud that demonstrates price momentum. - When the candles trade above the base line, it indicates that there is price momentum to the upside, and vice versa for the downside. - The base line is combining the highest and lowest price over the last 26 period (since this is the hourly chart, 26 hours in this case), and calculating the average value. - This means, that when the price action lacks momentum, is converges above and below the base line, as demonstrated by the box in orange. - But when a breakout takes place that deviates upwards significantly, the base line is dragged up towards the new high, as opposed to the price returning back near the baseline. - In other words, the base line's upward movement indicates that there is strong momentum behind the price action. - Thus, given that the price doesn't break down below the baseline again, it's safe to assume that the price will continue to rally upwards with momentum. Application to Trading - The chart above is the hourly chart I was looking at for a swing trade opportunity on Bitcoin. - Initially, there was lack of momentum as demonstrated by the box in orange; Bitcoin failed to break significantly above the baseline, and even with small breakouts, it continued to return back to the baseline and 5 SMA. - It was also trending below a descending trend line resistance, marked by the dotted black line, indicating that a breakout through the resistance trend needed to take place. - I then saw the price breakout of not only the baseline and 5 SMA, but also the descending trend line resistance. - As price pulled back to retest the 5 SMA support, the baseline and 5 SMA also formed a golden cross, indicating an opportunity for a long position. - After entering a long position, I saw the position continue to rally upwards with strong momentum. - At a certain point, it broke down the 5 SMA, and the base line as well, and the candle closed below the base line, providing bearish confirmation. - At that point, I closed my long position, and ultimately capitalized on a 9.11% move in 2 days and 19 hours. Conclusion The base line can serve as an effective indicator when scalping or swing trading. However, you need to have a clear entry/exit strategy, as well as an understanding of price action backed by momentum. Often times, the most effective trading techniques can end up being the most simple ones. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
BITSTAMP:BTCUSDEducation
by Michael_Wang_Official
16
why we should buy and hold ELON MUSK mothers TOKEN (RACA)!!Hi Guys Today I want to introduce you the ELON mothers TOKEN, Mia Musk, and tell you why we should buy and hold this currency. at firs let me tell you What is Radio Caca(RACA)? 🔴Radio Caca is the native token for the Universal Metaverse. Radio Caca is also the exclusive manager of “Maye Musk Mystery Box” NFT. Radio Caca is also the motive of decentralized finance and decentralized games in the USM Metaverse. The project is known On the Reddit social network as the gateway to various NFT markets. 🔴According to the description on the official website of Radio Caca, this currency has three general plans and goals for itself in the future Which I will tell you briefly:(⚠️Fundamental analysis is a bit specialized, and if you are not interested in reading it, you can go to the next red circle.) 1️⃣NFTs of Mia Musk: Maye Musk has merged four leading names in the NFT industry: CryptoPunks , Hashmasks , Bored Ape Yacht Club and Maye Musk Mystery Box. Mia Musk is the only one designed on the BSC (binance Smart Chain) network, the other three are mounted on the Ethereum blockchain. Mia Musk also has a functional token known as MPB. Each MPB unlocks new countries and forces in USM Metaverse. The minimum price of 1 MPB in the market is about 20 BNB and the maximum price is 10 thousand BNB. Binance Exchange CEO Changpeng Zhao tweeted that the Maye Musk Mystery Box is a challenge designed and launched by Mia Musk, the mother of Elon Musk's famous billionaire. s4.uupload.ir 2️⃣Launched USM Metaverse by Radio Kaka: "USM Metaverse" is a 3D mapping MMO metaverse, developed over the past two years by a team from Tencent and Roblox. The way it works is that USM launches a mini-game and customers can play a role in that game based on the "play and make money" theory. In this game, RACA acts like an AXS token for the Axie Infinity game. USM Metaverse will probably be in the style and model of Final Fantasy XIV, but only with FFXIV frames, sequences and structures, not similar to its battles. Their avatar will be launched in September 2021. The official launch date of USM Metaverse is March 2022. 3️⃣ is a lovely robotic dog on the Radio Caca platform: Koda, a four-legged robotic dog, is one of the first decentralized robotic artificial intelligence projects in the world. With optional feature, to store information on IPFS and Quinn file community.The Non-Fungible "Dancing Koda" token is a good demonstration of Koda's agility. This NFT is issued through Radio Caca and the RACA token is the only way to offer a purchase. 🔴Now back to the first question, why we should buy and hold this currency. 🟫The first reason: this currency has a very good foundation and the projects ahead of this currency are very exciting. ⬜️The second reason is that the management of this token is with Mia Musk, who has a lot of credit and money, which is definitely very influential in the growth of this currency. And definitely, the reputation of this woman will make the companies and big names of the crypto world quickly announce their readiness to cooperate with this project. 🟪The third reason is that the woman's son is Elon Musk, It may sound like a joke, but it 's a fact that if your son is Elon Musk, it will help Token grow a lot😂.Since the relationship between Elon Musk and his mother is very good and we all saw how Elon, through his credit and his Twitter account, grew two currencies, Shiba and Dodge, which are not fundamentally valuable, And these two currencies are currently among the 11 most important currencies in the crypto market.SO rest assured that in the near future we will read a lot of Elon Musk tweets about RACA And after each tweet, we will see the pumps of this currency. 🟦The fourth reason is that the market cap of this currency is not large and it will experience a lot of price growth with the entry of medium capital, and since it is not listed in many international exchange yet, a lot of capital is still going to enter this currency and every time after Listing in an exchange will experience great growth. I bought it and I am waiting for it to be listed in binance.🤩 🟩The fifth reason is that for this currency, there are plans for burning tokens, which after the implementation of each, a large growth in this currency is predicted. 🔴Specifications of Raca tokens ▪️Token ID: Radio Caca ▪️Trade Abbreviation: RACA ▪️Blockchain: Binance Smart China ▪️Token standard: BEP-20 ▪️Token type: functional ▪️Supply: 500 trillion RACA ▪️Direct supply in exchange offices: 320 trillion RACA ▪️Allocated to RACA Team: RACA 70 billion (3-year period - Available on quarterly intervals) ▪️Allocated to mining and steak: 60 billion RACA (over 1 year) ▪️Tokens allocated for burning: 50 billion RACA (after the start of the second round of RACA) s4.uupload.ir ⚜️⚜️If the number of likes ❤️ reaches 400, I will publish a detailed technical analysis of this currency so that you know its price by the end of this year and the years to come.
by seyed_mehdi
21
Another vital lesson in the markets...Perhaps the most important rule when trading professionally Is that history repeats itself in the markets.. So you may be asking what exactly does this mean? Well its rather simple; Market moves that happened before happen again!... Over and over. The reason is because markets have memory. When price returns to these levels you see similar reactions. Why is this information so important?.. It is Important because it allows you to Make better decisions in your trading. If you know price repeats, you can add it into the formula you use to trade any asset. This is because it works in any setting and is relevant in ALL markets. You will notice no matter the chart you are looking at, there is oscillations and consolidations. These are all based on price action from previous events.
Long
by WillSebastian
A Great example of core market functions.I thought it was a good time to share this lesson on understanding price movement within markets. Often, traders will not be able to remain 'calm in the game' as long as the market maker. Price can go up, or it can come down. Inevitably, as liquidity and orders are taken in the market, it will stall and reverse. It is just inevitable. Markets have to go up and come down in order to properly function. You can't have a liquid market without buying AND selling, therefore everything has to come back at some point. The key is not to assume price will just keep going forever, as it will not.
TVC:USOIL
by WillSebastian
2