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Understanding draw down recovery 😬😥Morning traders. Middle of the trading week all ready! I thought I'd take this opportunity to discuss a topic we all fear and we all find ourselves in at some point in our trading journey. That topic being draw down and your account in a loss of starting capital. The table I have drawn on the chart shows the amount of gain required to get an account back to break even depending on how big the draw down is on your capital. Scary stuff when viewed in a simple table format like and hits home just how big of task over turning losses could be. No trading system or strategy has zero losses or draw down and all strategies endure losing runs. To avoid excessive losses there is two crucial elements. Sounds obvious but cut losing trades quickly is the first element, second element is factoring probability into the trading strategy. Probability helps control risk management which in turns keep losses to a minimum, probability is obtained by carrying out back testing on your strategy. You can't plan for probability in your risk management if you have no data for your strategy. The example I am using for this Idea is on AUDCHF H1 timeframe and thanks to our built in strategy tester I can see if I traded this pair in the manner the strategy is set over the last 292 trades at 1% risk I am 22% down on my account. It would not take in the region of a 25% account gain to be back to near break even on my account!!! You don't need a built in strategy tester to gain this information you can also manually back test a strategy in order to avoid losses and to know if you are entering markets with a proven edge. A trading edge means your strategy creates bigger wins than losses. Which in turn means you avoid the situation shown in the table. To avoid hefty draw down don't enter the markets blind with an unproven strategy. Ensure you have back tested strategies with probability factored in to those strategies that way what is shown in the table wont apply to you then 👍 ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
[Trade Review] How I traded $HD, $U, $SPCE, $ROKU In this video I will reviewing trades I took on June 22 ,2021 which were $HD, $U, $SPCE, $ROKU these trades were taken from todays livestream were i explained my plan showed you guys my TA and updated my TA as we went on plus answered questions! Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emma's, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always!
NASDAQ:COINEducation
by Raulf-m
🎓 EDU 6 of 20: What Market Indicators do I Need to Follow?Hi traders, it's time for a new part of our educational series. This series aims to equip new traders with all the necessary tools to trade the forex market. Most of these tools are also used by large market participants in their daily analysis, and for making trading decisions. Getting started with trading isn't easy, mostly because the internet lacks quality when it comes to trading education. Yes, there are some great posts out there, but how are you supposed to know where to find them, and how to distinguish bad trading practices from good ones? This is why I created this educational series, to equip you with the main tools used by institutional investors and banks in trading. Alright, let's move on with the sixth part: What Market Indicators do I Need to Follow? Capital chases yield. Investors will move their capital to markets that offer better yields, be it in the USA, Europe, or Asia. Central banks play a huge role in determining yields when they hike domestic interest rates to fight inflationary pressures (making the domestic currency relatively more attractive), lower yields to support economic activity (making the domestic currency relatively less attractive), or keeping rates unchanged. To recap how this works, visit my previous post (EDU 5 of 20). Central banks follow market indicators to determine what is the correct monetary policy for current economic conditions. Just like traders, central banks follow CPIs, PPIs, industrial output, PMIs, and labor market numbers, to name a few. And if central banks follow them, you should too. 1. CPIs - Since most central banks have a specific inflation target they want to reach, Consumer Price Indices (CPIs) are one of the most followed market indicators. CPIs measure the change in the prices of goods and services at the retail level over a specific period of time (usually one year), and compares that change to a base period (in the US, the base period is 1982-1984, where the value of the CPI is set to 100.) However, markets are mostly focused on the annual rate of change in the CPI. 2. PPIs - While the CPI measures the change in prices at the retail level, PPIs do the same at the manufacturing level. For example, the PPI would catch changes in the prices of manufacturing input, such as raw materials or labor. Since most of the price changes are spilled over to the retail level, traders often follow PPIs to get early clues on where the CPI could be heading. 3. PMIs - The Purchasing Managers Index is a major leading indicator that catches trends in the overall economic activity. It's based on a survey of purchasing managers in 19 industries, who are asked to assess the current conditions on five major survey areas: new orders, inventory levels, production, supplier deliveries, and employment. Currencies often react with great volatility to PMI releases, making it an important market report to follow. 4. Labor Market Conditions - When talking about labor market conditions, we are actually referring to all the indicators which cover the labor market, including unemployment rates, unemployment claims, non-farm payrolls, average hourly wages, employment change, etc. Many central banks closely follow labor market numbers, as their mandate can also be to target full employment (in addition to an inflation target.) Labor market numbers can also provide some leading insights into the future economy, as the creation of many new jobs usually leads to higher economic output and GDP growth. Besides the mentioned reports, there are many more reports that can have a significant impact on the forex market. Some of them include retail sales and core retail sales, consumer confidence indices, GDP growth rates, etc. Check them out if you want to get a deeper understanding of the major market reports. What's important to mention is that markets are focused on the actual number vs the forecasted number. For example, if non-farm payrolls come in at 500k but expectations were set at 350k, this will usually lead to a strong positive reaction in the US dollar. Also, the reaction is stronger is the surprise comes in the direction of the central bank policy (for the example above, if the Fed is hawkish and the NFP comes in stronger, the reaction in the US dollar will be stronger than in the case of a dovish Fed and strong NFP.) If you find my educational series useful, please consider hitting the "LIKE" button to share the word. Thanks!
Education
by MujkanovicFX
Be like Jake *educational material* *This is not financial advice, so trade at your own risks* *My team digs deep and finds stocks that are expected to perform well based off multiple confluences* *Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management* My team has decided to use a recent failed trade as an example of the importance of stop losses. Here @SimplyShowMeTheMoney you may have noticed that we place stop losses and stop profit losses on the majority of our trades. If we ever post a trade without a stop loss please understand that we're waiting for further information and that we have long-term confidence in the trade and are not worried about the short-term price action in-between. To demonstrate the importance of stop losses we must first introduce you to a successful retail trader by the name of Jake. Our friend Jake has been trading for the past 5 years. Jakes trading strategy is simple: he finds a company that he likes, and he invests his money into it. Jake hits roughly 6 out of 10 of the trades that he places. Jakes 60 percent winning average may sound 'okay' at first but lets say Jake is consistent about managing his take profits and stop-losses. Jake may be losing 40 percent of his trades, but he is able to mitigate most of the risks due to his insane stop-loss precision. But if you've been in the market long enough and have ever used stop-losses then you can probably recall a time where your trade broke through your stop-loss and then the worst thing possible happens...it shoots off to the moon without you while you watch in disbelief with your jaw dropped down to the floor. Jake knows this feeling very well. So to lower this risk, Jake locates key price areas on the chart where the stock may be at its weakest and places his stop losses. Doing this helps prevents scenarios like the one above from occuring. Jake cares about the roof over his head and keeping food in his belly. He cares about the amount of sleep he gets every night. Jake wants to be able to enjoy quality time with his girlfriend without feeling anxious about a trade that was supposed to buy her a ring, but is now worth as little as a ring-pop. That's why Jake uses stop-losses. Be like Jake. If you would like to see more, please please like and follow us @SimplyShowMeTheMoney
TEducation
by SimplyShowMeTheMoney
[Trade Review]How I traded $CRM, $TLRY,$U, + psychology TALK In this video I will reviewing trades I took 6/16/2021 which were $CRM,$TLRY $SQ that were posted in a pervious video about the set up on my New Series *Set Ups For the Week Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emas, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! In the second part of this video I rant about trading phycology and use yesterdays loss as an example I hope yall enjoy!
NYSE:PLTREducation
by Raulf-m
2
The best models of the volume profile. Deals with confidenceWhat is the Volume Profile indicator? Volume Profile is an advanced charting study and indicator. It shows the traded volume amount of an asset over a specified period, at certain price levels. Volume Profile makes use of previous traded volume and all the strategies and plans are brought from historical data. Traders focus on the regions where a reversal could occur with volume profile. Some people believe that volume profile analysis provides traders with an “unfair” advantage as a result of market context and that institutions and banks use such strategies. What is Volume? Volume, also referred to as volume of trade, gives the total number of shares or stocks traded for a specific security. Volume indicates the amount of transactions that carried out. As a result, it can also measure the liquidity of security. A security is considered active or liquid when volumes are high. How does indicator work? The volume profile can come in any shape depending on the distribution of volumes. It draws by using horizontal lines to form a histogram. The more the volume trades at a given level, the bigger the profile becomes. The volume profile is usually located at the right side of the chart beside the price levels. It is represented with bars. The volume profile bars are created by getting total volume traded at a price, in a given time. The total buy is then divided, and volumes sold representing it on a histogram chart. Traders can understand and use the volume profile indicator as one of the important tools among all their technical analysis tools. Types of Volume Profile There are three different kinds of volume profile used in trading. There is not so much difference in the way they all operate. The differences that exist amongst them are the way they appear on the chart and the ease of access to volume profile on the precise time period you want to view. Volume Profile Visible Range (VPVR): Volume Profile Visible Range (VPVR) is the basic volume profile tool most trader use. It appears next to price levels on histogram. It displays the volume traded in the price level automatically from the candles displayed on the screen. When one go back and forth in the price action’s time period, the volume profile visible range will change. Volume Profile Fixed Rage (VPFR): This is almost the same volume profile with the VPVR, only with a little difference. When one wants to view the traded volume in a period of price action, like the uptrend or downtrend, you can determine the initial and final point and view the volume profile only for that time period. Volume Profile Session Volume (VPSV): This displays all the volume profile of the session that is appearing on the chart. Each session presenting on the chart has a volume profile grouped with it. Each session is considered daily and that goes for the change of time period of the chart. The various shapes of Volume Profile There are various shapes volume profile histogram can print out and many details and information can be generated from them. D – Shaped Profile: This corresponds with alphabet “D” and it is the most common shape. It informs us that there is a temporal balance in the market. P – Shaped Profile: This corresponds with alphabet “P” and it is an indication of uptrend. b – Shaped Profile: This corresponds with alphabet “b” and it is the inverse of P-shaped profile. B-shaped profile mostly appears in a downtrend or at the rear of an uptrend. Thin Profile: This corresponds with the alphabet “I”. Thin profile indicates a strong trend. There is little to no time for building-up trading positions in a fierce price movement. Just minute volume clusters are made in this type of profile. Terminologies associated with Volume Profile It is very important that one understands has some basic knowledge about the concepts related to volume profile. High Volume Node (HVN): This is a point in volume profile where is a really higher volume than average. The most crucial component of the volume profile is to be able to display the most traded prices for a particular time period. Low Volume Node (LVN): This is a point in volume profile where there is a really lower volume than average. LVN and HVN are inversely proportional to each other. Value Area (VA): This is where 70% of the volume can be found. The volume profile gets a bit complex in this area. This means that 70% of total volume used on the chart had occurred cumulatively at these price levels, hence, called Value Area. Point of Control (POC): This is the highest volume node that exists on the volume profile. Numerous volumes are transacted here. Traders make use of POC for as a vital retest point and for support. Clearance: This is an area in the volume profile that constitute of only LVNs, as there are no HVNs in this region. Developing Point of Control (Developing POC): This is a change in POC over time. As POC changes over time, you can notice the change by observing the Developing POC line to what it was in time past. Value Area High (VAH): This is the highest point in the value region section Value Area Low (VAL): This is the lowest point in the value region section Volume Profile rules Traders can identify the state at which the market is by using the volume profile. When you have been able to determine the state at which a market is, then these rules tells us what to search for in volume profile in those different market conditions. If the price is consolidating (ranging price): Here, the price would be jumping between HVNs and LVNs. Value area will be situated at the center of the volume profile. If the price is trending upward (uptrend): Price here will likely retrace to the value area high. Value area would be situated on beneath the volume profile. If the price is trending downward (downtrend): Price would most probably retrace to the value area low. Value area would exist above the volume profile. Conclusion Volume profile is a very vital valuable analysis tool which is used everywhere by traders. Volume profile has been continually relevant as a result of its versatility. It is a charting tool that has a wide usage capability. The volume Profile provides trader with accurate data. It is more of a reactive tool for discovering traditional and resistance areas and so traders are still developing indicators which would be more proactive and predictive in nature. With every other indicator, calculations are done with only two variable which are: Price and Time but with volume profile indicator, there are three variables available. These variables are: Price, Time, and Volume. Most standard trading indicators only show how the price is moving in the past. The main notable difference between those numerous indicators is how they visualize it. That made them less efficient and makes traders to keeping moving from one indicator to the other. But with volume profile, it directs you to regions which where and will be crucial for large trading institutions. To put it mildly, volume profile is capable of predicting what will happen in the future.
Education
by GoldenEngine
32
The Evolution Of A Profitable Trader (Educational Idea)Hello traders , make sure to read this post . This is probably something that everyone need to read if he or she want to jump into the next level. Please Like to make this post reach as much as possible traders in order to Help the community. With that being said let's jump into the explanation. The average human is not wired to properly trade the financial markets. We are wired in the worst way to be a good profitable trader. We are emotional human being by nature. As a trader you are 100% responsible of your results. You cannot blame your mentor the market or any other person because you are the one behind the ''click'''. No one can manage external parameters more than you ( you can manage when to open close how much to risk etc...) This should be a very transformative post , and you should take advantage of that and use it to begin your cycle of positive momentum. Just like we are able to exponentially grow an account we can also use this opportunity to trade properly and compound your own results 1 stage : Self destructive Trader In this stage , you do not have rules , you do not respect the money Management and you believe in the holy grail. You are here to make money because you think in that get rich quick solution. Most of traders in this stage believe that there is a magic solution that it's going to make them money. Most of these traders tend to blame the market the mentor etc... They have so many back-up bridges available for retreat. They have a backup plan if it doesn’t work out and their attention is scattered  across different areas that won't help to improve. They are already preparing mentally for failure. These are the part-timers GAMBLERS. They have a Plan B and C and on and on to the last letter of the alphabet. They doubt their decisions and jump from one thing to the next. How many traders have you seen changing form one strategy to another? from one class of assets to another? , from one course to another technical course? In order to become profitable you should know that the outcome does not come from the market . You are the Problem and good news you are also the solution. In the related section you will find post that is going to change your trading. just follow us for more content. 2 stage Booms and Bust Trader. In this stage you have probably lost your first account ( like me at the beginning) , you realized that all they have been told you about the markets it's real. you can make a lot of money and you can lose a lot of money. Most of traders stay in this Stage sometimes for years. You already have a trading system , but most of your problems come from your perspective and your actions. Between the perception and the action there is a space and it's up to you to chose the response . You must learn that this is not a get rich scheme. You need to understand that you need to build subconscient proper trading habits to PROTECT YOUR ACCOUNT. 3 Profitable trader In this stage you probable have overcome the worst moments in your trading carrer and you realized that you should play with probabilities . In this stage profitable traders have a probabilistic approach that a few minority of the traders use. This approach is not based on predicting anything; rather is a precise pre-defined system of pulling the trigger when your system or edge presents itself, and the outcome of the trade is irrelevant Win lose , Breakeven , who cares. You don't focus or you don't expect anything from one single trade rather you focus on the outcome of a series of trades. You effortlessly pull the trigger no matter what when your charts meet the criteria of your system or edge. We take a series of trades, and we are entirely focused on the outcome of the series, and NOT the outcome of each individual trade. The outcome of each trade and attempting to predict the outcome of each and every trade is an non sense battle because humans are designed to expect what they predict. It is difficult to implement your system or edge in the markets flawlessly if we become attached to any one single prediction. Like most of those retail gamblers that expect everything believing that their life depends on one single trade. we do not know what will happen next; we don't need to know what is going to happen as mark Douglas say : the only certainty is the markets uncertainty. Hope this post was helpful , make sure to follow and support this idea to impact more traders. What advise would you give to someone in order to become Profitable? Comment your thought Please do Follow and Like this post in order to support this work. AFX1
Education
by AIRFOREXONE_
21
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.
TVC:USOILEducation
by INotFancy
2
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!
Education
by Investroy
29
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 :)
BITSTAMP:BTCUSDEducation
by Investroy
24
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 Unfortunately, my english is not so good and I work with google translate, but if you have any questions I will be happy to answer them . ➡️If you like my posts smash the like👍👍 button, comment or follow me. It helps me to publish more free education, also on request ⬅️ Fib retracement and Extension application follow 📚
Editors' picks
Education
by TR7z
114
best tool for predicting tops and bottomsi've been talking about margin buying/selling pressure levels a lot lately. why? because they're a simple and effective tool for predicting tops/bottoms and support/resistance levels. if you're trading crypto and you're ignoring these levels, you're putting yourself at a disadvantage. just take a look at this simple example from bitcoin's recent volatile price action. the levels are simple to calculate, and most traders probably at least have the 2x/3x levels in mind, but i published public scripts that will plot them on your chart for anyone who is interested. all you need to do is input the support/resistance level. would be better as a drawing tool (i.e. like fib extension, or something like that), but as far as i know there's no way for regular users to develop TV tools (please let me know if there is!). shout out to CryptoStackers (youtube) for pointing out how well these levels work.
BITSTAMP:BTCUSDEducation
by reees
13
Risk per unit (R) & ExpectancyIn this article, we will expand the notions presented in the first part of the series. If you haven’t read the first part, you can check it out below in our related ideas section. We define risk as to how much you’ll lose per unit of your investment if you are wrong about the position. We called this in the first part initial risk (1R) . All your profits and losses should be related to your initial risk. Example 1: You buy a stock at $100 and decide to sell it if it drops to $80. What’s your initial risk? The initial risk is $20 per share. So, in this case, 1R is equal to $20. If you buy 10 shares then your total risk is $200. R represents your initial risk per unit. Example 2: You want to do a foreign exchange trade with a $10k account, selling the EURUSD. Let’s say that $100 USD is equal to 77 Euros. The minimum unit you must invest is $10,000. You are going to sell if your investment drops by $1k. What is your risk? What’s 1R for you? It may sound complex, but it is very simple. If you’d close your position if it drops $1k from $10k to $9k, then your initial risk is $1000 and that is equal to 1R. R represents your initial risk per unit. Let’s say that you have noted on your trading journal the following trades: 1. 400 CSCO at $23 - R $1000 - P&L $2,317 2. 80 IBM at $80 - R $1000 - P&L ($813) 3. 300 VLO at $50 - R $1000 - P&L $3,413 4. 400 HRB at $51 - R $1000 - P&L ($1,531) The R multiples for these trades are: 1. 2.32 R 2. -0.81R 3. 3.41R 4. -1.53R The average R for your system is: 0.84R Expectancy really refers to the mean (average) R-multiple of your system. As a trader, if you want to be successful you need to start quantifying your trading performance. You should always calculate your R-multiple and it’s average (expectancy). The expectancy of your system is the average of the R-multiples (both positive and negative) of your system . It tells you what you can expect in terms of R, on average over many trades. This information is pretty straightforward and easy to grasp. In our example above if we have a system with an expectancy of 0.84R and we risk 1% per trade we should expect a profit of 0,84% per trade. After 100 trades you should be up 84%! The average however is not the total picture! To understand how much your system can deviate from the expectancy, you must not only know the average R-value, you must also know the variability of R or standard deviation. The variability will tell us how far away from the mean most samples are likely to be. It would be great if all samples were at mean, but this is never the case because it would mean that there is no variability to the sample. Now you truly understand why the 3rd and 4th golden rules that we mentioned in the first article are very important! 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.
TVC:GOLDEducation
by financialflagship
20
Make it simple🔥Don't make your trading hard TOP 5 DOs ON THE MARKET Backtesting Significance of backtesting is very high. You have to test your strategy on previous data every time to see your probable winning percentage in future. Work-life balance If you spend all 24/7 of your time for trading after a couple of stressful situations you won't be able to recover. Your hobby and family is your safety bag. Be realistic If you understand that your trade is going in the wrong direction and most likely will not go. You must accept the loss and liquidate the position Always have plan Before entering a trade, you must think about when and where you will have to exit a trade, regardless of whether it will be profitable or unprofitable. Never stop learning The market does not stand still and is always progressing. You should also do the same, because the market may change and your strategy will no longer be relevant for the current market. TOP 5 DON'Ts ON THE MARKET Believing indicators Indicators are only statistical data obtained on the basis of the previous price movement. They can only guess, so don't trust them all of your capital. No trading plan Without a ready-made trading plan, you leave your capital to chance. You will never be confident in your actions in the market. The market does not spare such people. Don't be this kind of trader. Over-leverage Everything is clear without words. The larger the lot, the greater the risk. Ask yourself if you are ready for this. Being too emotional Emotion is the last thing you can rely on in the market. As emotions grow, the risk of not surviving the usual drawdown grows and you can only worsen the situation by closing a trade that could work. Overconfidence You should rely on your strategy, but do not be blind in the market and understand that the trade may not work and this is just a game of statistics. Always be clear about your risks _____________________________________________________ If you enjoy my FREE Analysis , support the idea with a big LIKE👍 and don't forget to SUBSCRIBE my channel, you won't miss anything! Feel free to leave comments✉️ And always remember: "we don't predict, we react".
Education
by Berzerk_invest
19
Bullflag -The Bullish patternThe Flag pattern is one of the best-known continuation pattern in trading which happen after an uptrend.On-chart you can see a good pump and after a minor consolidation zone.This consolidation zone is important to calm down slowly indicators and calm volume,after this step we can see a growth of volume and a breakout What is the target of a bullflag? The first target of confirmed can be derived from measured move tehnique.The first target of bullflag is the vertical distance between the lower and the uper point of flag The second target is the size of the FLAGPOLE(measure the flagpole size and you will put this size at the breaking point from the bullflag It s important to book some profit also after the first target(size of flag). If the flag during too much will fail.Keep your eyes on it all time and have a stop-loss Have fun and good luck!
Education
by Rowhales
HOLLYWOOD meets WALL STREET- Top 10 movies In this post I will introduce you to 10 stock market films and documentaries about trading and the financial markets that will both entertain and motivate you, some are real, others just funny or very critical WALL STREET 1 and 2 1987 u 2010 DRAMA whit Michael Dougles Rogue Trader- The Nick LEESON Story 1999 REALLITY whit Ewan McGregor INSIDE JOB 2010 DOKU whit Matt Damon The Wolf of Wall Street 2013 TRUE STORY whit Leonardo Di Caprio Money Monster 2016 ACTION whit Georg Clooney The big Short 2015 BIOGRAFY whit Christian Bale To Big to Fail 2011 DRAMA whit William Hurt Boiler Room 2010 DRAMA whit Giovanni Ribisi Margin Call 2011 DRAMA whit Kevin Space The Corporation 2003 DOKU independent Tell me about your favorite financial films and determine the rating If you like the post,smash the like button,follow me, and comment Thanks
GEMINI:BTCUSDEducation
by TR7z
13