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🚩Symmetrical Triangle🚩 #️⃣OKXIDEAS !!!👨‍🏫Hello, everyone!👋 (Reading time less than 7 minutes⏰). I’m here with another educational post to help you learners become super traders gradually. 🔅 As you know, various tools are usually used in any financial market to analyze all types of stocks, cryptocurrencies, and assets. Chart patterns are one of the essential tools used in technical analysis, and analysts evaluate the market movement and prepare to trade based on technical-fundamental studies. 🔅 The Symmetrical Triangle is one of the most used classic continuous patterns in the field, but it can sometimes turn into reversal patterns, as some analysts say. 🔷 So I’ll explain the following in this article: Defining the triangle pattern Getting to know the structure of a Symmetrical Triangle Types of Symmetrical Triangles How to trade using the Symmetrical Triangle pattern Price target after Symmetrical Triangle pattern The importance of trading volume in the Symmetrical Triangle pattern --------------------------------------------------------------------------------------------------------- Triangle Pattern: 🔅The triangle pattern is one of the most well-known patterns many traders spend time on. A triangle is a trend continuation pattern that can occur in upward or downward trends. This triangle pattern is formed when a stock, cryptocurrency, or whatever shrinks towards an uptrend or downtrend. The pattern represents a pause in the price trend, and the price consolidates in a range. 🔅 The triangle pattern consists of two converging lines with different slopes depending on the type. At least four major pivots are needed in the specific time frame to form a triangle pattern. Basically, to form a triangle, 45 to 60 candles are needed in the specific time frame. 🔅 The take-profit of this pattern is considered the distance from the first top to the first bottom inside the triangle. 🔷 According to research, 84% agree that the triangle pattern is a continuation pattern that is divided into three types as follows: Symmetrical triangle Ascending Triangle Descending Triangle --------------------------------------------------------------------------------------------------------- One of the types of triangles that can lead you to money is Symmetrical Triangle which I’ll explain here: Symmetrical Triangle Pattern in Upward Trends: Take a look at the picture below. You can see the price forms tops and bottoms after an upward trend and then forms lower tops and higher bottoms. 🔅 Now try to draw a resistance line at the top and a support line at the bottom. What do you see? Yeah! That’s a triangle. These two lines will make a tip called the triangle's apex. If the four pivots(at least), two tops and two bottoms, are connected with a line, you can say a Symmetrical Triangle pattern in an upward trend has occurred. 🔅 It’s noted that if the price breaks the support trend line and drops, you’ll see this as a reversal pattern or a Symmetrical Triangle in the downward trend. Not always; a Symmetrical Triangle is a continuous pattern. So Watch out! Here’s a picture of a reversal Symmetrical Triangle and how to trade while it is considered a reversal. How to trade on the Symmetrical Triangle in an upward trend: 1-After the pattern completes, you must wait for the pattern to give us the entry confirmation(the upper line of the Symmetrical Triangle). 2-Try to open a long position when the real breakout happens. That can make a good profit. The real breakout occurs when a green candle like the Marubozu candle closes above the upper line of the Symmetrical Triangle or the resistance line. 3-Don’t forget to put a stop-loss. That will be below the breakout candle or below the prior candle’s bottom. The distance between the first top and the first bottom in the triangle would be one of high risk-to-reward ratio take-profit points. The other way to take the profit is to draw a line from the first top facing the support trend line along. --------------------------------------------------------------------------------------------------------- Symmetrical Triangle Pattern in Downward Trends 🔅 Another trend that a Symmetrical Triangle can move is downward trend when the price continues downward after forming the pattern. 🔅 Luckily, one of the best tools that can help you earn lots of money is the Symmetrical Triangle because it supports two-sided markets. But the question is how this type of triangle forms. Stay with me. 🔅 Imagine you’re walking through the bushes for a long time, then you’ll get tired, and you don’t feel energetic in your feet to move on. So do buyers and sellers in the financial markets. 🔅 When the price of an asset enters a converging trend of lower tops and higher bottoms, buyers and sellers test how strong the trend is. The buyers make bottoms at a higher price as sellers prevent the creation of a higher top. 🔅 In this case, the sellers are mostly winners, so better to be a seller rather than a buyer. Like the pattern I already discussed, the Symmetrical Triangle pattern in a downward trend needs at least four significant pivots to be confirmed. 🔅 There's also a possibility of breaking the upper line of the Symmetrical Triangle on the top after the Symmetrical Triangle pattern formation. The reversal pattern has occurred in this case, and the long position is considered a plan. How to trade on the Symmetrical Triangle in a downward trend: 1-You have to wait for the candles to break the lower line of the Symmetrical Triangle. But the only key point is that if the breakout is valid. So if the breakout candle closes below the lower line of the Symmetrical Triangle, it’s time to open a short position. 2-The stop-loss will be above the last top. Therefore, in case of opening a short position on an asset, you can also place your stop-loss above the breakout candle for a higher risk-to-reward ratio. 3-The price targets will be 1) the distance between the first bottom and the first top, or 2) you can draw a line from the first bottom facing the resistance line. 🔷 Below, you can see a Symmetrical Triangle in a downward trend and how you can trade with it. --------------------------------------------------------------------------------------------------------- The Importance of Trading Volume in the Symmetrical Triangle Pattern 🔅 The asset chart is in correction as long as the price chart is inside the Symmetrical Triangle pattern. 🔅 The trading volume in the pattern process will be neutral as most traders are waiting for the follow-up movement of the asset. 🔅 The closer the chart gets to the apex of the triangle to depart from the pattern, the range of fluctuations and the trading volume become less and less. 🔅 The importance of trading volume in the Symmetrical Triangle pattern can be seen near the exit from the pattern. 🔅 If the previous trend of the chart was bullish, it is likely that the trading volume will increase dramatically if the pattern is broken. 🔅 Also, the trading volume will decrease near the triangle's apex, but it increases instantly after breaking out, whether it is an upward or downward trend. 🔅 For this purpose, examining the trading volume in different areas of the pattern can greatly help us better understand the trend and predict the future of the asset. 🔅 In a way, you always have to wait for the chart to go out of the pattern, and by checking the direction of the trend and trading volume, you can make a better decision about buying or selling your currencies. --------------------------------------------------------------------------------------------------------- Symmetrical Triangle in Elliott Theory The Symmetrical Triangle called the “Contracting Triangle,” is a basic pattern in Elliott Waves. Elliott triangles can be considered one of the stable consolidation patterns in the market, which can be divided into five waves. To return, each of these five waves carries three sub-waves. The waves of the triangle are named A, B, C, D, and E. The Symmetrical Triangle can often be seen as a continuation pattern that creates a pause in the trend and then resumes. In this pattern, wave A, which is the biggest wave in the pattern, can be a zigzag, double zigzag, triple zigzag, or a flat pattern, and wave B can only be a zigzag, double zigzag, or triple zigzag. Waves D and C can also move in their pattern by a zigzag pattern, and finally, an E wave is formed, which can be a zigzag, double zigzag, triple zigzag, and sometimes a triangle. In a Symmetrical Triangle, waves B, C, and D often cover 61.8% of the previous wave. Finally, by drawing this pattern's up-and-down trend lines, the lines get close to each other and cannot be parallel. --------------------------------------------------------------------------------------------------------- Conclusion: 🔔 In this article, you learned about the Symmetrical Triangle and how to trade using the pattern. You now know where to enter and exit the market to make a suitable profit. Don’t forget to follow your capital management to lower the trading risks.
Education
by pejman_zwin
17
What is the Power in Buy and Sell WallsHello, dear @TradingView community! Welcome to another insightful educational topic focused on Buy and Sell Walls in the world of cryptocurrencies! Understanding buy and sell walls is critical for any trader or investor in the cryptocurrency market. It provides access to the order book and valuable insights into the market sentiment of specific cryptocurrencies. This understanding can help forecast future price movements and develop more effective trading strategies. In this article, we will delve into the concept of walls in crypto, explore how to identify and interpret buy and sell walls, and discuss their significance in the market. What is a Wall in Crypto? Understanding Buy Walls Understanding Sell Walls How to Identify Buy and Sell Walls How to Interpret Buy and Sell Walls What is a Wall in Crypto? A wall refers to a large limit order placed on a cryptocurrency trading platform, often depicted as a huge block on the order book. Market makers, institutional investors, as well as individual traders, utilize these large limit orders to buy or sell substantial quantities of a specific cryptocurrency at a predetermined price. Walls tend to have a significant market impact since they can influence the supply and demand levels of a specific cryptocurrency. These large limit orders, representing a considerable quantity of a cryptocurrency bought or sold at a specific price, have the potential to cause significant price fluctuations. Understanding Buy Walls Buy walls are substantial limit orders placed to purchase a specific amount of a cryptocurrency at a particular price or higher. They can be formed by large market makers, institutional investors, or individual traders seeking to buy a significant amount of a cryptocurrency at a specific price or lower. Buy walls can serve to profit from price movements or accumulate a large quantity of a cryptocurrency at a lower price. A buy wall indicates strong demand for a specific cryptocurrency at a certain price or higher, which can be seen as a positive sign for the market. It suggests that buyers are willing to pay the specified price or more, potentially leading to a price increase. Additionally, a buy wall may indicate that a large market maker or institutional investor has faith in the future price of a coin or a token. By investing a substantial sum, they express confidence that the cryptocurrency's price will rise in the future. Traders can utilize the presence of a buy wall to gauge market sentiment and identify potential buying opportunities. Buy walls can also serve as support levels and act as stop-loss points. Understanding Sell Walls Sell walls, on the other hand, consist of large limit orders placed to sell a specific amount of a cryptocurrency at a particular price or lower. Similar to buy walls, sell walls can be formed by market makers, institutional investors, or individual traders looking to sell a substantial amount of a cryptocurrency at a specific price or higher. These limit orders are utilized to profit from price movements or liquidate a large quantity of a cryptocurrency at a higher price. A sell wall indicates a strong supply of a specific cryptocurrency at a particular price or lower, which could suggest overvaluation. It signifies that sellers are willing to sell at the specified price or lower, potentially leading to a price decrease. Furthermore, a sell wall can indicate that a large market maker or institutional investor holds a bearish outlook on the future price of a cryptocurrency. By selling a significant sum, they imply their belief that the cryptocurrency's price will fall in the future. Traders can leverage the presence of a sell wall to assess market sentiment and identify potential selling opportunities. Sell walls can also act as resistance levels for a cryptocurrency and serve as target price points for profit-taking. How to Identify Buy and Sell Walls Buy and sell walls can typically be found in the depth chart of order book on a cryptocurrency trading platform. They are often represented as conspicuous, large blocks, easily identifiable by traders. While some trading platforms provide graphical representations of the order book, this feature is not available on all platforms. When identifying buy and sell walls, it's crucial to consider the context surrounding them, including current market conditions and the specific cryptocurrency being traded. Market conditions can change rapidly, so staying updated and understanding the current market environment is essential for making informed decisions. It's worth noting that larger buy or sell walls tend to have a greater impact on the market compared to smaller ones. A large wall could indicate the involvement of a significant market maker or institutional investor, which can potentially influence the price of a specific cryptocurrency more significantly. How to Interpret Buy and Sell Walls By examining both buy and sell walls, traders can gain insights into the supply and demand levels for a specific cryptocurrency. A large buy wall suggests strong demand, while a large sell wall indicates substantial supply. When used together, these walls provide a comprehensive view of market sentiment and the supply-demand dynamics of a cryptocurrency. Combining buy and sell walls can also help identify potential buying or selling opportunities. For example, if there is a significant sell wall and a large buy wall at the same price level, it may indicate a state of equilibrium in the market, presenting an opportunity for traders to enter or exit positions. The presence of a buy wall typically indicates a bullish sentiment, while a sell wall suggests a bearish sentiment. A market with more buy walls than sell walls tends to exhibit bullish market sentiment, while a market with more sell walls than buy walls suggests a bearish sentiment. It's important to note that the absence of buy or sell walls may indicate a lack of market activity or market uncertainty. It can also imply a period of consolidation or a lack of liquidity, which can impact trading conditions and market volatility. Buy and sell walls can serve as potential entry and exit points for trades as well. A buy wall at a specific price can be seen as an opportunity to enter a long position, while a sell wall at a particular price may indicate a suitable exit point for a short position. Conclusion Buy and sell walls represent significant limit orders placed on cryptocurrency trading platforms, offering insights into the supply and demand levels for a specific cryptocurrency. They are used by market makers, institutional investors, and individual traders to profit from price movements or accumulate/liquidate substantial amounts of a cryptocurrency. Understanding buy and sell walls is instrumental in making informed buying and selling decisions, as they display supply and demand levels and provide insights into market sentiment, which can serve as a reliable predictor of market trends. Analysing the impact of buy and sell walls on the market can help traders develop effective trading strategies, identify potential opportunities, determine entry and exit points, and assess market sentiment accurately. By mastering the concept of buy and sell walls, traders can enhance their ability to navigate the cryptocurrency market with greater precision and confidence. We put a lot of effort into researching and writing this piece, and we would love to hear your thoughts and feedback. Have you found the information in the article helpful and informative? Did it provide you with valuable insights into understanding market sentiment and trading strategies? Is there anything you would like to expand upon or clarify further? Your feedback is greatly appreciated and will help us improve future articles. Thank you in advance for taking the time to read and share your thoughts. Happy trading! @Vestinda
Education
by Vestinda
The Breakout Trading Strategy of Trendlines | OKXIDEAS Hello traders, In this post i am just showing you a very simple and easy trading strategy especially for beginners, in this strategy i am just using two basic things trendlines and 50 simple moving average which is you can also see in the charts above. What you will be doing in this strategy just simply go to the 1hr timeframe see the clear trend draw the trendline wait for the breakout when breakout happen now wait for price to retest or just place a buy limit or sell limit order. I hope you like the strategy this is the trendlines breakout trading strategy. The one good thing about this strategy is the risk to reward ratio because in this strategy you will have potential to have around 1/3 risk to reward ratio so this means if you placed 10 trades and you lose 7 trades out of 10 and you just won 3 trades out of 10, you will be still profitable so meanwhile you just need to have a 30% wining ratio to be profitable in a long run. I just advise you that try the strategy open the chart and back-test your chart and trade it on demo live market condition at least for one month and see the results ask the question to yourself can you be profitable? if the answer is yes so probably you know that what to do next but if the answer is no then look it your one month data that you have, make sure to journal your one month data record and try to analyze what mistakes you do what wining ratio you have can you have a little deference to between 30% see your taken trades you will be seeing some bad trades and you don't wanted to trade next time avoid those trades in the next month and just repeat the process be patient one day you will be consistently profitable but if not then don't lose the hope and just try again again and again learn from your mistakes come back and don't do that mistakes again, remember every strategy is good if you practice and managed it. Just find the strategy that you suit and start the process. I hope you liked the post, i wish you good luck and good trading.
Education
by TheLoserMan
1
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
Trader ⚔️VS⚔️ Analyst !!!(Differences)Hi, everyone👋. Do you like surfing or guiding surfers? In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓ The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast. —------------------------------------------------------------------------------------------------------------------ There are four trading keys in financial markets: Trading Strategy Capital Management Market Psychology Trader Psychology These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered. I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰 . What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both. Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction. Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted." 🔷 A successful trader can take the following steps: Comprehensive analysis of the market situation in which he wants to trade: The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not. Find useful trading strategies to achieve profitable trading: A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading. All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis. Find your own timeframe: Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy. The time frame is important because: The trading strategy should help traders find the entry and exit signals in the same time frame. The Stop Loss(SL) should be determined based on entry points in the same time frame. The time required to reach profitability is estimated based on the same time frame. You can't analyze on a daily time frame and expect to get a very good profit immediately after entering the position. After determining the time frame and with the help of the trading strategy, the following tasks should be done. Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones. Determining the Entry Points(EP) based on the strategy Determining the Stop Loss(SL) based on the strategy Determining the Take Profits(TP) based on the strategy All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit. —------------------------------------------------------------------------------------------------------------------ 🔷 Conclusion: According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Education
by pejman_zwin
20
EURUSD: Part 1 funny story!I. Not proficient unconsciously. When you enter the market and start trading, you may think that it's a great way to make money because you hear a lot about it and know of people who have made a lot of money from Forex. However, it's important to note that this is just the first stage and, like when you first learn to drive, it may seem easy at first but can be challenging as you continue to learn. Prices in the market can fluctuate wildly, adding to the complexity of Forex trading. When you're new to trading, it can be overwhelming and confusing. You may find yourself unsure of what to do when you see the prices fluctuate in the market. Without proper knowledge, you may take risks that could potentially harm your trades. You may even fall into a cycle of increasing your trading volume when you feel confident, only to end up losing capital in the long run. This is a common stage for beginners that typically lasts a few months to a year before moving on to the next phase. Continue ... I will release the next part tomorrow, stay tuned.
Education
by Sphyn-Trader
The Story of a Failed Trader | OKXIDEASOnce upon a time there was a man who was a very poor and he belong to a middle class family but he had the ability to dream it. He was 20 years old and he also think that he spend all of had 20 years doing nothing, he was a dreamer. He wanted to become a rich man, he finding ways to become a rich man, he tried almost every thing but failed. One day he watched a video about trading on YouTube and he decided to become a trader, become a rich with trading and fulfill all of had dreams. He started to learn trading, he watched all of educational videos about trading on YouTube and spend had 15 hours every day just watching videos, now he knows about the basic trading he shifted to the analysis part of trading, he started to practice and learn the technical analysis. He find the method that he can trade with, he combined some technical indicator signals and created strategy for himself. Now he had very passionate about trading, wanted to open a real account and start trading with real account. He had some saving money around 500 dollar he deposited that money in the real account and start trading with that money. He started dreaming from the first day of trading and created some trading rules for himself like he had to take 10% risk per trade and don't take that trade which is below 1/1 risk to reward ratio. On the first day he had taken almost 3 trades and win all of them, now he was more excited for trading he had made $192 profit means something around 38% profit on 500 dollar account. He wanted to trade more but he was a little bit smarter one, he think that i am in profit and my wining ratio is 100% so why i just damage my wining ratio and why i just risk my today profit so he had decided to come back tomorrow. On the second day he had $692 total balance in the account, he had to play a little bit more smarter than a previous day and he decided to take 10% risk per trade of the current total balance $692 in the account rather than the starting balance which is $500. On the second day he take almost 4 trades and he won 2 trades out of 4 trades, now the account condition had almost break-even no loss & no profit, he decided to try again and trade more, he finding the reason to trade more and then he calculate today and yesterday total taken trades which is 7 trades, he think that i won 5 trades out of 7 trades so my wining ratio is almost around 70% which is good and i can trade more because my wining ratio is still above 50% so i am still in positive side. He trade almost 3 trades again and he lose all of them, now he had very sad and almost broken, he decided to step back and come back later. He sturdy himself and come back on the third day, now he had facing a little bit draw-down on the third day the total account balance is around 484 dollar, he started looking for the trades opportunity and at the end of the day he took almost 5 trades with the 10% risk per trade but the third day results had also again bad and he lose 4 trades out of 5 and just win 1 trade, he had very shameful from himself, he closed the laptop goes to outdoor and talk to himself. He analysis the current situation of the account, it that point the total account balance is around 276 dollar he almost around 45% in draw-down and the wining ratio had below 50% so now he entered to the negative side. On the fourth day morning he traded 2 trades and he lose both of them now he almost lose the hope and the account condition had around 72% in draw-down and he left only 138 dollar in the account. At the time he give up and he just decided to depend on just one trade, he just waiting for the best opportunity of the day and finally he got the trade but at the end he lose that trade again and he almost blow out had account. After that all he had stressful and sad from almost one week, he decided to leave the trading and move on to the next thing and he looking to find other things that suitable for him because he think that trading is not suitable for him. One month later he just scrolling on the internet and he see the FAQ that 90% of traders lose and only 10% had succeed, now he had a little bit shock and he think that its pretty normal every trader in the 90% had facing that stage which stage that i faced. He decided to come back to trading and start from the zero, he started to modify had strategy and created new rules for had strategy like he set this time risk to reward ratio for had trades is minimum 1/2 and he decided to risk only 2% of the total account also he decided to take only 2 trades per day, this time he opened the demo account rather than the real account and start trading with demo account, he decided to journal had journey and after one month of consistency he hadn't break any rules and when he see the results after month he had profitable, now he feel like stronger and he continue the journey with that same demo account after three months he had similar results and still profitable. In that time he think that i don't have much money and in trading it's required a lot of money to earn a lot of profits, he started to search for that how he had to prove himself to big investors and raise money for himself to trade. One day he searching and he knows about prop firms trading now he had interested in that and wanted to know more about prop firms, he think that this is the big opportunity for himself to become succeed quickly, now he decided to trade with prop firms and buy the challenge from the prop firms, he adjusted had strategy rules and trading plan according to the prop firms requirement, now but the only problem is that he don't have money to actually buy the prop firms challenge. By the way he was dropout from the school after completing had secondary education and so he just setting at the home, he don't have much money to buy the challenge, the pocket money of him had just depend on him father and he hadn't want to say to father to give me extra money because of him father was very poor and he work as a taxi driver, so then he had decided to get the any kind of job for himself and try to earn some money in the form of salary and buy the challenge with that money, he worked hard and after one month he got the salary and then he just swift to the prop firm website and buy the $50000 account challenge for himself, now he started trading with challenge account phase one, on the phase one he decided to risk only 1% per trade, take only 2 trades a day and the every trade risk to reward ratio had to minimum 1/2 after one month of consistency he gained +8% profit, he was in profit but he hadn't achieved the prop firm required profit target which is +10% in that case prop firm gives traders free retake so then he take the challenge again with the new account and new month from zero and he think that my wining ratio for the previous month is almost around 40% with minimum 1/2 risk to reward ratio and my daily limit is 2 trades so i need to increase my daily limit from 2 to 3 because if i traded with the same rule 2 trades a day then i hadn't pass with 40% wining ratio. He calculate some numbers like he think, if i take 3 trades per day so then at the end of the month my all trades had to be 60 trades per month and if i maintain my 40% wining ratio then i can easily pass the challenge with that mindset he started the challenge and strictly follow the rules after month he hadn't maintain the 40% wining ratio and he end up with some loss and failed the challenge, this time he almost faced big depression after some days left he realized had mistake and he think i made mistake that i increase my daily trades limit because of this my wining accuracy goes down, i just forced myself to take 3 trades per day and get trapped into the normal trades. At that time he hadn't left any pathway he almost try everything but at the end he faced failure, him father had now getting older and he decided to step back again he start going to the normal job and start saving 30% of had salary, he do that job for almost one year and after one year later he had some saved money in the bank account to buy multiple 10x challenges, he come back to the trading but this time he hadn't leave the job and he do trading like part time thing. He started had journey again he decided to hadn't give up and repeat the process so then he started buying challenges after one by one in some challenges he failed in phase one in some he failed in phase two in some he almost pass the challenge and got the live funded account but hadn't get payout and lose the account in the first month. The journey had started goes on and he just repeating the process and doing try again and again. Will be continued..... Some lessons from the story > Never open real account in the start, try to learn first on demo account. > Don't try to be smart in the front of the market. > Don't lose hope in draw-downs just repeat the process of your trading plan. > Take every trade with the hope of wining. > Never depend on a single trade. > Don't leave too fast stay in the market. > Give yourself enough time to create the solid proven strategy that works at least for you. > Respect your trading limits. > Don't depend on just trading and never leave your job, consider trading like part-time thing in the starting. > Learn from your mistakes and improve your performance. > Make mistakes but don't repeat that mistakes again. > Never depend on small capital always look for an opportunity. > Journal your journey, record your trading performance and improve next time. > Don't fear from failure. > Be patient, market is here not going anywhere. > Don't force yourself to take normal trades wait for good opportunity always. > Don't count the numbers, you need to count the percentage. > Don't try to be rich quickly. > Step back, if you damaged from market then simply step back and come back stronger don't try to fight. If you learned any other lessons from the story, let me know in the comments. What you feel about one day he will be succeed or just the failure always, also let me know in the comments. I hope you enjoyed the story, appreciate my work with like comments and share. I wish you good luck in trading.
Education
by TheLoserMan
1
6 simplest and most effective forex trading methods!Popular forex trading methods Typically, strategies for forex trading are primarily founded on fundamental and technical analysis. Hence, astute traders possess the skill to creatively merge efficient trading techniques to identify the most appealing gains. 1. Day trading Day trading is a trading strategy where traders, known as day traders, do not hold any trades overnight and close all orders before the end of the trading session. Day traders commonly use technical analysis to assess and capitalize on price changes by observing time frames or trading volumes throughout the day. Typically, day traders keep trades open for a few minutes to a few hours. - Advantage: By effectively managing risks, traders can secure monthly profits without having to worry about prices moving unfavorably due to news or paying overnight fees. Additionally, closing positions at the end of each session can help avoid potential risks. - Defect: Monitoring the market throughout the day can be both stressful and time-consuming for traders. Failure to do so could result in significant losses if the market experiences a decline or deviates from predicted movements. 2. Scalping Scalping, a technique utilized by investors known as Scalpers, involves short-term trading wherein orders are held for just a few seconds or minutes at most. This approach entails buying and selling multiple times a day to capitalize on minor price movements within short time frames in order to gain small spreads. Scalpers execute numerous orders during trading sessions due to the brief trading period. With adept use of financial leverage, a trader can typically earn 5-10 pips per trade on average. However, choosing a broker with low spreads and commissions is crucial for maximizing the benefits of the scalping approach and minimizing trading costs. - Advantage: There are always plenty of profitable trading opportunities every day. Overall income is quite high. - Defect: Always have to watch forex charts for hours. The mind is always tense and pressured. 3. Swing trading Swing trading is a strategy used by traders to take advantage of oscillations in the market. It involves holding positions for a few days to weeks, typically averaging two to four days. This approach relies heavily on technical analysis, including candlestick patterns, support and resistance levels, and indicator lines, to identify suitable entry and exit points. Since it is a medium-term strategy, traders usually analyze forex charts on 1H (1 hour) and 4H (4 hours) time frames. - Advantage: You don't have to constantly monitor the market like scalpers and day traders, which frees up time for other important tasks. This allows for a more relaxed mental state and less pressure. The rate of return is still quite appealing. - Defect: Take the risk for holding orders overnight. It is not possible to get a large profit when the market has strong fluctuations in a bad trend. 4. Position trading Position trading is a trading strategy that involves holding orders for a prolonged period, ranging from several weeks to even years. Consequently, forex charts of position traders are viewed over days or weeks. Unlike scalpers, position traders rely more on fundamental analysis rather than technical analysis to make informed decisions regarding future price trends and determine whether to buy or sell currency. - Advantage: No need to spend a lot of time "watching" the market. The sentiment is relaxed and not under great pressure because position traders are not affected by short-term price movements. Profit margins can be huge if the market moves according to your expectations. - Defect: Requires traders to have a solid background in fundamental analysis and technical analysis, especially when it comes to regularly monitoring economic and political news in the world. The capital requirement is quite large as the stop loss is usually deeper. Profit is calculated on an annual basis because the number of trades is very small. 5. Price action Price action trading is a technique that involves analyzing previous price movements to make technical trades. This strategy can be used alone or in conjunction with other technical tools. Fundamental analysis is seldom used by price action traders, who instead rely on resistance/support levels, Fibonacci retracement, price patterns, and indicators to determine entry and exit points. Price action trading is applicable to short, medium, and long-term timeframes, and investors are advised to analyze prices across multiple timeframes for a more comprehensive and precise overview. - Advantage: Trading is relatively simple because mainly just using candlestick charts. Therefore, the price action method is very suitable for new traders. Cultivate analytical thinking ability. - Defect: For intensive use is very difficult. It is highly subjective, depending on the assessment and experience of each trader. There are many risks such as strong price fluctuations or the market being manipulated by the makers. 6. High-Frequency Trading Price action trading is a technique that involves analyzing past price movements to make technical trades. This strategy can be used alone or in conjunction with other technical tools. Unlike fundamental analysis, price action traders rely on resistance/support levels, Fibonacci retracement, price patterns, and indicators to determine entry and exit points. This approach is suitable for various timeframes, and investors are advised to consider multiple timeframes for more precise analysis. - Advantage: Contributing to stabilizing the market to avoid strong price fluctuations. From there, helping traders limit big losses. Make full use of the price difference and make a profit. - Defect: Trade with fast speed and large volume, so it is easy to have a strong impact on the market. No broker involvement due to complex algorithms applied. Easy to cause virtual transactions. How to choose the right trading method for you 1. Determine the purpose of forex investment. 2. Determine the transaction time. 3. Consider some other factors. Conclude: The article mentioned six successful forex trading methods along with their benefits and drawbacks. This comprehensive guide will assist you in selecting an investment plan that aligns with your objectives and vision. By skillfully combining these trading methods, you can increase your chances of successful transactions. Good luck in achieving your investment goals!
FX:XAUUSDEducation
by Sphyn-Trader
5
6 Short term Forex trading tips.To succeed in short-term forex trading strategies such as scalping and intraday, there are six key secrets that must be understood and implemented. These secrets are essential to success and have been proven effective. 1. Trading capital Many traders aim to grow their small account from 10$ to $100 by frequently trading small orders, and some may even turn it into $100,000. However, it is not a guaranteed outcome for everyone. Short term trades require sufficient capital as they involve frequent opening and closing of positions. Failure to understand concepts such as Lot determination, pip valuation, and capital management may result in significant losses. Having low capital increases the risk of losing the account quickly, especially if the trader has poor control over their gains and losses. 2. Determine leverage It's important to keep in mind that leverage has both positive and negative effects in Forex trading. Traders often suffer losses not because of their trading abilities, but rather due to two primary reasons: Do not know how to use leverage, or abuse leverage Lack of funds When you use full leverage to trade, you are putting your account at the highest risk. 3. Transaction costs All businesses have to bear transaction costs, and in the case of the Forex market, these costs are in the form of Spread, Comission, and Tax. The frequency of transactions directly impacts the escalation of costs, which can be pretty significant, especially for accounts that incur high Comission charges. However, if you avoid Comission, you may have to bear high Spread costs instead. If you are interested in scalping or intraday trading, it is advisable to select a broker that offers low commission and narrow spread. But make sure that you are using an ECN account, as it will only require you to pay the commission fee. Moreover, it is suggested that you enroll in an IB account to receive additional commission rebates. It is crucial to consider these factors while choosing a broker for scalping and intraday trading. 4. Fluctuations of market trends For traders who engage in Intraday and Scalping, it is crucial to select the appropriate position for trading. The initial step involves assessing the overall market trend, followed by recognizing significant price levels. You should then analyze the underlying factors that influence short-term fluctuations within those price levels. Lastly, you must opt for a Forex trading timeframe that aligns with your trading approach. 5. Scalping and Intraday Trading Strategy To effectively track and analyze the shorter time periods M1 and M5, it is important to identify the four factors and key rate areas that can lead to errors. After doing so, it is recommended to backtest and determine if any of the trading frameworks are suitable. An effective intraday and scalping strategy is to utilize the breakout trading strategy, specifically targeting psychological zones such as support and resistance zones. 6. Trading Psychology When it comes to short-term trading, traders face greater psychological pressure and must exercise more patience in order to achieve maximum profit while minimizing risk. Compared to long-term traders, those who engage in short-term trading experience more pressure. Additionally, it is important for traders to maintain a high level of trading discipline by entering trades quickly, placing accurate and timely orders, and avoiding greed. These factors are essential for success in short-term trading. Greetings to all traders! I have some valuable trading-related information that I would like to share with you ❤️
Education
by Sphyn-Trader
12
The Process of Creating StrategyHello traders, In this post i am going to show that how we can create and develop the trading strategy that works. Now the first step we need to do is just search and find the any trading method that suitable for us for example that would be like elliott wave, ict concept, VSA, just using indicators and maybe you can also create your own method and backtest it. when you learned the method now its time to create your trading rules every strategy has own different rules like what is your risk to reward ratio? what is your trade management plan? either you manage your trade or just take the trade and come back after its hit TP or SL, how much is your daily limit means how much trades you will be taking in a day or in a week if you want to become a swing trader depends on you, what is your risk per trade? can you will be cutting the risk to half or just use fixed risk after lose trade? what is your daily limit of losing? can you hold trade overnight or over weekend? what is your trading timeframe? what is your trading sessions? etc... These all kind of rules you will be require to create for yourself they might be different rules depends on your strategy method now we learned the method and created the rule move forward to the next step is open the live demo trading account and trade with your strategy and apply the rules don't break the rules that you created trade at least 30 days and journal your data your taking trades after 30 days check the journal you will see your data for example in your rules you set 1/2 risk reward ratio so you need to have around 40% winning ratio check the journal check the results did you have a 40% winning ratio if the answer is yes then good to go i am sure that you know what to do next but if you failed and your winning ratio is below 40% now analyze your journal data the trades you taken you will see some of bad trades that you don't wanted to trade again just avoid those trades next time and try again the process for the next 30 days. repeat the process one day you will be profitable and consistent but if you not then try again again learn from your mistakes and don't do that mistakes again. When yo have been profitable this is the time you wanna enter in the market open the real live trading account and start trading with your strategy and follow the rules that you created for yourself run the process and always remember trading is not quick rish scheme you need to have a lot of patience, trading is a long run game like marathon race and its required patience. some of my advice is don't try to break the rules, don't depend on one trade, some times market will give you some results that you don't want from it but be patient and be consistent with your strategy with your rules, you will be facing drawdowns but that is the learning process you will learn a lot from the drawdown so with the time you will be better consistent and be profitable just don't leave the process too soon and believe in yourself and try again again and again, trading is a very beautiful and also the easiest thing to live life but firstly in the starting it required from us to pass the test. trading is a very easiest thing but also a very hardest thing. i hope you find this post useful, i wish you good luck and good trading. If you like the post, boost my work with like comments and share thanks!
Education
by TheLoserMan
1
The Two Types of Risk Management PlanHello traders, 1) Fixed Risk Calculates position size for next trade as a percentage of account depend on how much risk you willing to take every time every trade you taking you need to use fixed risk for every trade like for example 1% risk per trade so in this type of risk management plan we should require 100 losing trades in a row to blowing out our account a lot of people just using this simple method and this is very easy and understandable. 2) Cutting the Risk : In this method cutting the risk we just normally trade 1% risk per trade but if we lose that trade so we just cut the risk to half for example if i trade with 1% risk and i lose so now the next second trade which i am taking i will be using 0.5% risk in that trade if i lose then i will be just keep using the same risk 0.5% some traders are are keep reducing the risk size like they come all the way to to 0.25% maybe they work for it but in our scenario if we keep losing we will be not reducing more than 0.5% risk per trade and when win comes then after our winning trade we will be back to the normal risk which is 1% risk per trade and keep trading with 1% risk per trade so short summary is if we lose cut the risk to half if we when if we win back to the normal risk if we win again stay with same normal risk but if lose then reduce the risk to half. The reason behind that is in the fixed risk you have 100 traders to blowing out your account means 100 chances but in cutting the risk now we just calculate if we lose 100 trades in a row like fixed risk we would not blow out our account,, let's say we take our first trade and we lose now we are in -1% then another trade we will be taking with 0.5% per trade risk so here is 0.5% × 100 trades = 50 means if we continue to lose in a row after 100 trades we will be facing -50 draw down, so cutting the risk to half after lose trade is the safest method who wants to play safe and more chances to survive in the market. I wish you good luck and good trading. If you like the post, support my work with like comments and share thanks!
Education
by TheLoserMan
DLF- WEEKLY TIMEFRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart). Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle. Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.... Tradelikemee Academy
NSE:DLFLong
by Tradelikemee
Trading is a game of numbers and probabilitiesFirst of all, let us clarify, that what we mean by a "bad trade" is simply a transaction that was unsuccessful . There are no "good" or "bad" trades as the whole system of trading is random and unpredictable. In other words, if we knew how to differentiate between bad and good trades, then technically, we would always choose to enter good trades, right? Or should we wait for our trades to close before we label them "good" or "bad"? Anyways, moving to the main part, we would like you all (especially beginners) to embed the following in their minds forever: trading is a game of numbers and probabilities. No, you will not have a 100% win rate. No, you won't be making 200 pips per day. Yes, you will have losses. Yes, things are gonna get emotional. The above-stated may seem bizarre to newbies. "Like, what do you mean I cannot make 200 pips per day? This Free Forex Signals group on Telegram shares 50 signals per day and promises me a 100% return per month and you are telling me I cannot make 200 pips a day? Hahaha, do not make me laugh". Been there, listened to that. At the beginning of our trading careers, we are greedy, emotional, and extremely optimistic about our skills and abilities. We get angry, question ourselves, change our strategy every second day and so forth. All that up until we get more mature and wise in the markets. With time, we gain experience and double up on our skills; and that is exactly when we become acknowledging the market for what it actually is and understand how it functions. Experienced traders think, move, and act in probabilities. They predetermine their risk, calculate all possible outcomes, execute at ease knowing that they are following their strategy. To put it into simple English, they do not get mad over one loss, because they know that their backtested and fully planned strategy is there to lead them towards long-term profitability and consistency.
BITSTAMP:BTCUSDEducation
by Investroy
7
From Zero to Hero: The Art of Finding Winning Crypto Projects!!!Hello there, fellow traders👨‍💻! As a trader, I know that choosing the right crypto project to invest in can feel like navigating a sea of uncertainty. But fear not mateys😎! Today, we will set sail on a journey to discover the best crypto projects.😉 I will examine critical factors to help identify the most promising crypto projects💡. But I won't be venturing blindly into the unknown. Oh no, I have a trusty checklist for each crypto project to guide us on our quest. I give a score from 1 to 10 for each factor. With this checklist in hand✅, we will be able to evaluate each crypto project based on essential factors(But I must say that the ✨ starred factors ✨ are more important in our checklist). So let's dive into the factors. Founders ✨: The founders' vision, expertise, reputation, leadership, and decision-making abilities are essential to a crypto project's success and sustainability. Project's Goal ✨: The project goal is a critical component of a crypto project that defines its purpose, attracts investors, guides development, and measures success. Source Code ✨: The importance of source code in a crypto project lies in its ability to determine its functionality, security, and transparency. Access to source code enables security experts and auditors to review the project's security measures, identify weaknesses, and recommend improvements. Open-source projects promote transparency and accountability, building trust among stakeholders. Also, new commits submitted to the project can be analyzed through the project's repository. Token Inflation Rate ✨: The importance of a crypto project's token inflation rate lies in its impact on the token's value, liquidity, and long-term sustainability. A high inflation rate can decrease the token's value and liquidity, while a low inflation rate can promote token scarcity and sustainability. White Paper Analysis ✨: The importance of a whitepaper in a crypto project lies in its ability to communicate the project's vision, value proposition, and technical specifications to investors. It is a marketing tool, technical specification document, project blueprint, and credibility establishment tool. Community ✨: This is a significant factor when analyzing a crypto project. Community in a crypto project provides the ability to support the project's growth, adoption, and sustainability. A strong community can promote adoption and awareness, provide feedback and insights, offer support and resources, and promote the project's values and mission. Tokenomics : Can determine the token's value, utility, and sustainability. Tokenomics can help balance token supply, demand, and circulation, design token utilities that incentivize user participation, and regulate token supply to promote. Developers : They play a crucial role in a crypto project, as they are responsible for designing, building, and maintaining the project's software and infrastructure. The importance of developers in a crypto project lies in their ability to ensure the project's functionality, security, and scalability. Developers are responsible for designing, building, and maintaining the project's software and infrastructure, promoting innovation and creativity, and promoting the project's vision and values. Venture Capital (VC) Investors : The importance of VC investors in a crypto project lies in their ability to provide the project with funding, expertise, and connections to help it grow and succeed. VC investors can help the project overcome challenges, expand its reach, and promote its legitimacy and credibility. Competitors : Comparing a crypto project to its competitors is essential to understand its strengths and weaknesses, assess its potential for growth and profitability, identify any potential risks, and evaluate the project's unique features. These factors are critical for making a well-informed investment decision in crypto. 👆According to the factors mentioned, getting lost in this sea is challenging.👆 With this map or lantern, you will find your way to the safe shore and the treasure.💎 Warren Buffett once said, "Risk comes from not knowing what you're doing." In today's ever-changing financial markets, staying informed and making well-informed investment decisions is more critical than ever. So hoist the anchor and embark on this exciting adventure together.✌🏻 With this checklist and knowledge, you'll be able to navigate the treacherous waters of the crypto market and find the projects that will lead you to the ultimate booty - success! 🙏🏻😍 Share your ideas with me💡, and if you have any questions❓, you can ask in the comments.💬 Learn and always stay updated📚. Don't forget to invest what you can afford to lose.💸 Discretion is the greater part of valor.🤗
Education
by pejman_zwin
10
Human weaknesses that need to be overcome in the trading process Fear of missing out Before entering the market, you may have a bullish or bearish view and enter accordingly. Once you have a position, you are constantly concerned with the fluctuations of your account funds, tormented by various temptations, fears, greed, persistence, hope, and emotions influenced by these changes, and ignoring the market itself. This greatly interferes with normal thinking and judgment. Whether it's a long or short position, whether it's a profit or loss, as long as small gains and losses are within an acceptable range, one should beware of large losses. Traders should focus on the correctness of the process and be content with the results as they come. If you think about the results in advance, it will disturb the entire trading process and result in losses every time. The human mind always jumps ahead to imagine unrealistic outcomes and ignores what is actually happening in the present. This is a big mistake in our lives. These are the causes of fear or greed, which can lead to traders regretting after placing an order or closing a position, causing hesitation and indecision. The reason for this is that there is no effective trading system, causing traders to lack confidence in any aspect of the trading process. Confronting the market Traders must first understand that the market does not shift according to human will. The education we have received since childhood is based on competition, such as overcoming various obstacles and fighting difficulties. This consciousness has deeply rooted itself in the hearts of traders. In fact, when traders enter the market, they still carry this mentality. Often, some elites from various industries come to the market and suffer failures, and even more thoroughly than ordinary people. This is because successful people in other industries have a strong sense of self and do not believe they will fail. They are also unwilling to accept their own failures. Their success makes their personalities become very tough, so when the market turns against them, they do not know how to yield and compromise, but adopt a confrontational attitude until they are destroyed. People in life tend to defend their views to some extent, unwilling to admit their judgment errors. Therefore, regardless of whether a person is right or wrong, they will stick to their attitude to the end. What they defend is not the truth, but their self. This inherent nature of struggle and the attitude of not wanting to yield or give up self is the biggest obstacle in trading. Holding positions, not setting stop losses, and not admitting mistakes can eventually result in large losses or even liquidation. The pursuit of perfection The pursuit of perfection is a very greedy and extreme mentality. Because of this pursuit, it does not allow any flaws, cannot bear even very small losses, and it is difficult to execute a stop loss when necessary, and wants more profit when it is time to close a profitable position. Because of this pursuit, a person tries to capture every movement and does not want to miss any market situation. Everyone has their own limitations and areas in which they are not good at. The pursuit of perfection can easily lead to frequent and impulsive trading. To be continued...
INDEX:BTCUSDEducation
by triumphing
3
💲Catch Profits in Channels💲Hello dear traders🙋🏻; I'm Pejman & this is the "How to get fish from channels" class. I guess you've heard, "Give a man a fish, and you feed him for a day🍣; teach a man to fish🎣, and you feed him for a lifetime." Like every other educational post, today I will teach you how to fish and make money from the Market River🏞️. As you know, fishing requires patience and practice, and you also have to take risks and throw bait into the water⛲. But today, together, we can use all kinds of price channels that are formed in this attractive river as a fishing net.🕸️ Our tool for fishing in the market river is technical analysis, which we discussed in previous posts. You can refer to this post and pick up your fishing rod. You must have noticed that in the financial markets, the prices have their patterns and trends, which help us to catch the best fish🐠. These patterns and specific price movements cause various trends in the market, which I explained in the market types post. Another feature of specific price patterns and trends is the creation of price channels. Of course, don't get me wrong, I don't mean TV channels📺. Although these channels are as attractive as sports channels and watching the Barcelona and Real Madrid games⚽🏟️, they have other features besides attractiveness✨. They help you to predict the area of price movement even for the future. But please don't confuse channels with a magic 8-ball🎱. Based on past trends, they can give you a sense of where the price may be headed👀. Trading without a price channel is like fishing without a net🕸️; you just guess.🤔 So, let's check the channels more closely and catch fish from them until the river is wavy.🌊 First, we need to know what the channel is.🤷🏻 Channels are like riverbanks that guide water flow, except, in this case, the channels guide the flow of candlesticks.🕯️ Price channels are made when the price is under the pressure of two ranges of supply and demand. A channel is a trading range between two trend lines in which the price of an asset moves in almost predictable directions💁🏻. A price channel is like a trend line with a friend; two are always better than one, right?🧑🏻‍🤝‍🧑🏻 They also say: "The trend is your friend, but the price channel is your guide🙏🏻." By drawing the channels, you can find the possible price path🛣️, and at the right time, your hook will be stuck on sweet and big dollars💰. Channels can be formed and used in any market with trending price changes, from stocks to forex and cryptocurrencies. Channels, like many other tools in this market, have different types. Put down your fishing rods and put on your swimsuits🩲👙; we have to dive into the next topic.🏊🏻‍♀️ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Dear students welcome to the types of channels class.🧑🏻‍🏫 The first lesson is ascending channels.⬆️ The ascending channel for the price is like a staircase to heaven! An ascending channel is the same as an upward trend line, with the difference that in addition to the aligned valleys🌄, the peaks⛰️ are also aligned and are formed parallel to the valleys. Both the peaks and valleys will be predictable.💁🏻 Of course, you cannot be sure what the next price move will be, but you can predict many possibilities.👀 Now that we climbed the stairs and got acquainted with the ascending channel, it is time to get acquainted with the descending channel⬇️ and do some skiing⛷️. They say: In the deepest water is the best fishing. So let's swim deeper and get to know the descending channel.🤿 The descending channel is like a waterfall, pulling down everything in its path. Candles are no exception, and when they are in a descending channel, they slide like fish🐠 in a waterfall and go lower and lower. Look for a series of Lower Highs(LH) and Lower Lows(LL) to identify descending channels. The difference between ascending and descending channels is similar to climbing🧗🏻 and skiing⛷️; Descending channels push the price down and cause lower peaks and valleys. If you were trading in one-sided markets and encountered a descending channel, my friend, just sell and run🏃🏻. But if you were in two-sided markets, you can enjoy taking short positions🔻 and fishing in this drop.🎣 The noteworthy point✨ is that the longer a channel is and the more times⏳ the price has hit any side of this channel, the more essential and reliable this channel becomes.✅ But what if the price is too tired to climb the stairs🔺😩 and not in a good mood to play on the slide🔻😒? In this case, it will be stuck between two✌🏻 horizontal trend lines and form a range or sideway channel. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Range channels are just like ponds. There is no exceptional water flow🌊 in a pond, and fish and other creatures can only Move inside this pond. But range channels could be more attractive and eye-catching, like ponds.🌟 Range channels make traders tired.🙍🏻 Because trading in these channels will be more difficult than in other channels, it is challenging to recognize price movements or profit from small price movements in range channels.🤷🏻 The range channel is not similar to the ascending or descending channel. Because as its name suggests, it does not have a particular trend at all and is trendless. When the price is in a channel range, the number of buyers🟢 and sellers🔴 is almost equal, and supply and demand are virtually identical. 🙅🏻Unlike ascending and descending channels, no peaks or valleys can be seen in a range channel higher or lower than its previous peaks or valleys. Range channel is created by considering two trend lines from one peak to another peak and from one valley to another valley. 👌🏻Actually, the difference between a range channel and other channels is that these peaks and valleys are equal and basically in the same direction. These channels may be permanent for river fishes🐟 and have become their home🏡, but there is no permanent channel or trend line for candles.😉 Remember that candles can leave their channel just like a bird🕊️ that jumps out of its cage or a prisoner escaping prison.🏃🏻 Do you remember in the previous posts when I talked about support and resistance lines, we said that candles could finally be released from their support or resistance prison? This case is the same.💁🏻✅ If you forget or don't know about support and resistance lines, take a breath and read this post before going to the next steps.👇🏻 The longer a channel is and the longer the price is locked in it🔒, the pressure of supply and demand on the price is more significant, and you will probably see a strong movement of the candles after the failure.💪🏻 But don't worry. You can still make money trading channels and even breakouts. In the following steps👣, I will teach you how to trade with all types of channels, as well as how to trade in breakouts.😉 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now you must have questions about how to draw channels.🤷🏻 Well, obviously, with a very sharp pencil✏️ and a steady hand✍🏻. Just kidding😅, you must first recognize the trend and look for regular price movements to draw channels. To catch a good fish, you must patiently monitor the price movements and look for peaks and valleys that move in the same direction.🕵🏻 You will find your channel by connecting these peaks and the valleys to each other. You need at least two✌🏻 parallel peaks and two valleys to draw a channel. But how do you know that a channel has been drawn correctly?🤔 Channels have conditions, my friend. I wrote these conditions, so pay attention when drawing the channel.😊 When you draw your channel, make sure that the upper and lower lines of the channel must be parallel. If the two channel lines are not parallel and are angled, this is a sign of your terrible drawing🤦🏻‍♀️. What kind of school🏫 did you go to where you can't draw two parallel lines?😐 I'm kidding😄, but if this happens, the pattern is no longer a trend channel but a triangle, which I discussed in previous posts. Channels and trend lines create patterns by forming different shapes, which I explained in the above post. I said the lines should be parallel but don't take a ruler📏 to measure each channel and trend line. There is nothing quite like books, my friend.😉 According to the definitions, don't expect to always find a channel 100%. In that case, you will lag behind the whole market.🙅🏻 But there is a tool with the help of which you can draw your channels correctly and lower your error percentage. ✅You can find this expression from the toolbar beside your TradingView charts. Who doesn't like to cheat sometimes? Look to the left of your charts and click on the second one from the top. New options are displayed; the fifth option from the bottom is the Parallel Channel. Select this tool and look at your chart. Use this tool wherever you can draw a channel. To draw ascending channels, you have to find two valleys with a peak between them and you can look for the second peak by drawing the parallel channel. And vice versa, to draw descending channels, you must look for two peaks with a valley between them. If you found two valleys and there were no peaks between them, something must be wrong & you should reconsider to find the right points. Finally, the task of the range channels is also straightforward🙂 When you start drawing, from peak to peak or valley to valley, the range channel will show itself, and it will not be different.😊 By default, parallel channels are also a middle line.👀 The middle line is like a negotiator between the other two lines. When the price moves from the upper band of a channel to the bottom, the middle line can mediate and supports the price.🟢 Or when the price moves from the lower band of a channel to the top, the middle line can prevent the price from moving further.🚫 Dear students🧑🏻‍🏫, now you have acquired the necessary skills, and it is time to take your sticks🪝 and come with me to the river. Before you trade and catch fish yourself, pay attention🙏🏻 to the positions I took with the help of channels to gain skills in this field because a poor worker blames his tools. There are ✌🏻two strategies for trading using channels, both of which I will teach you. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- For example, in an ascending channel, such as trading with a support line, you can buy🟢 when the price is on the lower line of the channel and wait for it to reach the upper line of the channel and exit the positioning 🔚. In previous articles, we talked about candlestick patterns. Using these patterns, you can get help to enter and exit your positions. You can place your stop loss below the bottom line of the channel. You must indeed lose a fly to catch a trout.🎣 But always remember to be careful.😉 They say to invest what you can afford to lose. But remember to manage your Risk-Ratio and only trade after practicing and testing your strategies several times.✅ Indeed, even if the channel is downward🔻, you should only trade in the direction of the trend; as soon as the price reaches the upper line or resistance line, enter the position and take your profit💲 when you get the lower line of the channel. Of course, if you are facing a range channel, your general strategy should be to buy at the bottom and sell at the top of the channel, and it's like eating a piece of cake.🍰👌🏻 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- When the price is stuck in a channel, is it like a prisoner who can't guess whether he will finally escape by digging a tunnel or climbing over the prison walls? It is impossible to know from which side the price will eventually break its channel.🤷🏻 It seems that channels usually break against the direction of their slope, but it is always possible for a channel to break on both sides.😉 If a channel is broken, the price usually starts a significant move in the same direction as the break.🏃🏻 Did I say that the more the price is locked in a channel, the stronger it will move?💪🏻 Usually, the price can move according to the width of its channel. When the price is stuck in a channel, is it like a prisoner who can't guess whether he will finally escape by digging a tunnel or climbing over the prison walls? It is impossible to know from which side the price will eventually break its channel.🤷🏻 It seems that channels usually break against the direction of their slope, but it is always possible for a channel to break on both sides.😉 If a channel is broken, the price usually starts a significant move in the same direction as the break.🏃🏻 Did I say that the more the price is locked in a channel, the stronger it will move?💪🏻 Usually, the price can move according to the width of its channel. You can even use both strategies to trade channels.👌🏻 For example, if the price is locked in this channel, trade in the direction of the channel trend. Breaking channels is like breaking trend lines or support & resistance, and it comes with a breakout candle🚩 and a confirmation candle✅. After the breakout, if you have an open position in the trend direction of the channel, you should close it.🙅🏻 After seeing the confirmation✅ of the breakout, enter the position according to your trading strategy and follow the risk management points. For example, I would have ✌🏻two entry points. And I place my stop loss slightly above the breakout candle🔴. My first point of entry is after seeing the confirmation candle. And if the price returns🔁 to its channel for the last kiss💋, I activate my second entry point. This will reduce my Risk-Ratio, and I will have a safer position. To know that your channels are ending🔚, you should look for signs of weakness in price movements; for example, in an ascending channel, breaking below the low trend line or failing to reach higher peaks are signs of weakness. It's like the price is taking a break before going higher again. The last thing I'd like to tell you is don't try to force a price on a channel when it doesn't exist. Remember, patience is vital, and it is better to lose a trade than accept a losing trade. As said: "Sometimes the best catches are found in still waters." 🎣 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Conclusion : Price channels are the rails that keep asset prices on track.🛤️ Just like fishing in a river, trading requires patience, skill, and an understanding of your environment. Check and avoid being affected by market fluctuations.🙅🏻 Now you can take your fishing rod🎣. Whether you are fishing in a bullish, bearish, or range market, the right approach and tools can help you make big profits.😉💲 Remember that profit and loss are together. Profits are never permanent and remember that a bad day at fishing is better than a good day at work. Am I right?😊 For you to have more good trading days than bad days, remember that it's okay to make mistakes when drawing🖌️ those price channels. You can make up for all your mistakes by practicing and finding the right strategy. Warren Buffett says: The best investment you can make is your abilities.💪🏻 Feel free to experiment and try new strategies.✨ Don't be like a fish out of water; use the channels for swimming🏊🏻‍♀️ towards the market river. Remember what Jesse Livermore said: "Price channels are like guardrails on the highway🚧 - they keep you from going off track and help you stay on track." This post is over, but the road to the technical analysis journey is not over🧳✈️. In the following posts, I will accompany you step by step👣 and teach you other tools. Be healthy🙏🏻, profitable💲, and successful!✌🏻 Ask your questions in the comments💬 and share your opinions with me😍.
Education
by pejman_zwin
86
Bull and Bear Traps!!!👨‍🏫Hello, dear traders🙋🏻; I am Pejman, and welcome to TradingView Tunes📺. As a lover of classic cartoons, I would like to explain Bull and Bear Trap using the Road Runner and Coyote cartoons😍. If you've never seen this cartoon👀, let me tell you, it's a masterpiece of trapping and pranking. But what does it have to do with financial markets🤷🏻❓ Believe it or not, there are some striking similarities between the traps Coyote🐺 sets for Road Runner🐦 and the traps that exist in financial markets💲. The market traps are known as bull🐮 and bear🐻 traps, and they can lead to significant losses if investors aren't careful.🙍🏻 For example, the Coyote paints🖌️ the road to drag the Road Runner to a suitable place and traps him with stones🪨 and TNT💣. Or he is trying to surprise the bird with TNT & cactus🌵, in another way.🤭 Large financial institutions and market makers, or whales🐋, try to deceive amateur traders in the financial markets. Like coyotes, they try to trap inexperienced people by creating fake buy🟢 and sell🔴 signals. To trade with these traps, you should know technical analysis to neutralize the coyote traps of the market like Road Runner.😉 In the financial markets, we have two types of fraudsters. Bulls are the ones who buy and cause prices to rise☝🏻, and on the contrary, bears are the ones who sell and make prices fall👇🏻. Simple enough, right😊❓ However, I explained more about bulls and bears in the market types post👀. You can refer to this post to better understand the rest of the article.👇🏻😉 Every hunter needs prey. For example, we said that the Coyote used to paint the roads. Exactly bulls, by pumping up the price and bears by a sharp drop in the price, fool the inexperienced people. Also, all these events are short-term. Like Road Runner, you have to pay close attention to the market⚠️. In this post, I will teach you how to turn threats into opportunities and profit from them.✅ The first step is to identify these traps. Our first trip today is the bull trap. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Bull Trap: Let's start with the Bull Trap🏁. This is when the market looks like it's on the up-and-up⬆️, so you start throwing money around like a looney tune💸. But just like Coyote's contraptions, the market can suddenly backfire and leave you feeling like you just got hit with an anvil💥. It's enough to make you want to go "meep meep" all the way home☹️🏠. Be like Road Runner and stay alert, or you'll end up with a crate of dynamite💣 strapped to your back. That's a bull trap in a nutshell. A bull trap is when the market appears to increase, so investors jump in, hoping to make a profit. But then, the market suddenly drops, and those investors are left holding the bag👜. They thought they were getting ahead of the game but were just falling into a trap.🪤 You may be fooled by the chart and expect the price to pump up, but in reality, the price will start to fall or act like a reversal pattern.↩️ At this time, those who traded without stop loss🚫 will lose the most. It would help if you watched out for these traps in any type, whether up, down, or sideways (range market). The price must be below a resistance zone for a bull trap to form a reversal pattern. A bull trap can change an uptrend to a downtrend after creating classic reversal patterns such as double tops, heads & shoulders, diamonds, etc.😉 If you want to know the patterns and learn classic patterns with a quick review⏩, you can get help from the following post. Now that you know this trap, we can talk about ways to recognize and deal with this trap. How to recognize the Bull Trap🔎 Sir John Templeton says: The four most dangerous words in investing are: "This time it's different."🤔 We may have said these words and confused real traps with fake traps. But how can you prevent this mistake?🤷🏻 Do you remember that we talked about fake and valid breakouts in the Support and Resistance post?💭 You can also read the link below for a background on this topic. Let's go back to our topic. To ensure that the breakout is valid, we should look for two confirmation signs✅️: 1. Increase in Trading Volume 2. Bullish candlestick patterns Now let's go through each one in detail because the devil👹 is in the details 😂. Increase in Trading Volume For the breakout to be valid, the volume📶 of the broken candle must be significantly higher than the previous candles. But more is needed because coyotes are clever and intelligent. Even after the breakout, the trading volume for the other candles should remain high to ensure the failure is real. In a bull trap, the volume of the fake breakout candles either does not increase or only slightly. If you see that the trend has lost momentum after breaking out or has no strong momentum to continue or start the trend, this is precisely the trail of coyotes in the market. Along with market volume, considering candlesticks and their patterns can be equally helpful as they clearly show market movement. You can take a look at the following post to learn about these candlestick patterns and review them. For example, by seeing bullish candlestick patterns, you can understand that a breakout is not fake. Bullish Candlestick Patterns: If the breakout candle is a giant momentum candle, it's called a Marubozu , which is not difficult to find on the chart. This candle has a green and long body, and its wick is tiny compared to its body, or it does not have a wick at all. This candle is associated with a high trading volume, and it shows that TNT is not working in this upward trend, and real buyers are in the market. Also, the pattern of the 👩‍🚀👩‍🚀👨‍🚀 Three White Soldiers 👩‍🚀👨‍🚀👩‍🚀 is a reversal pattern that can be seen as a continuation pattern in the charts. Along with all these signs, you should always keep the market trend in mind. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Bear Trap: Next up is the Bear Trap. This is when the market looks like it's going to crash💥 and burn🔥, so you start selling your assets like there's no tomorrow. But just like Coyote's rockets, the market can suddenly bounce back and leave you feeling like you just got flattened by an Acme anvil. Don't panic! Be like Road Runner and stay calm, or you'll fall off a cliff. Bear traps are similar to bull traps. Young and inexperienced bears🐻 are caught in these traps. When the young bears think the market is going down, these traps are activated, and the hunters place heavy buy orders. At this moment, this heavy order will cause the price to turn upward, and anyone who has a short position without a stop loss will lose their money💸. A trap is a trap, and it doesn't matter if it is a bear or a bull🐮. Here we use the duplicate confirmations we used in bull traps, like a steady increase in trading volume and continuation candlestick patterns. When a support zone is broken, hunters prepare to set traps. If the bearish momentum candle is not accompanied by increased trading volume, this can be a sign of a trap. The ⚫️⚫️⚫️ Three Black Crow ⚫️⚫️⚫️ candlestick pattern is usually a reversal pattern but sometimes acts as a continuation pattern. If a high trading volume accompanies this pattern, it can be a valid sign of a breakout. Now I will tell you how to use these traps (Bull&Bear) and get profit from them like a professional trader. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- How to trade with a Bull Trap The bull traps start with an uptrend. As you can see the picture has a resistance zone, and the price may test a zone several times before passing it. When a fake breakout occurs, it may initially be accompanied by an increase in trading volume, but it is entirely temporary, and you will notice a decrease⤵️ in the intensity of the trend from the next candles. When the intensity of the trend decreases, market coyotes activate their traps. And they set sell orders, and the bloody🩸 candles appear on the chart. With a valid breakout of the last support, the price reaches our entry point station⛽️. You can place your stop loss a little higher than the top of the bull trap and place your stop loss🚫 above the breakout candlestick of the support zone, considering the higher Risk-Reward ratio. To find the take profit💰 point, consider the difference between the peak trap and the support zone as X, and Viola, now expects X amount to profit from your entry point. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- How to trade with a Bear Trap Now it's time for the second trap. After occurring a valid support zone breakout and an increase in price, you must wait for the price to break through the last resistance zone after a sudden sharp move. When you can use the signs⚠️, you are sure that the coyotes have abandoned the process, that there is no trap🪤, and that real failure has happened; you can open your long positions. Now, this passed resistance zone has turned into support, and you can wait for the price to test this area several times for more confidence and then open your entry point. Like trading in bull traps, in bear traps, you can place your stop loss a little below the valley of the bear trap. Considering the higher Risk-Reward ratio, you can also put it below the breakout candle of the resistance zone. The take-profit point is the same as the bull trap, but vice versa. Consider X from the lowest price in the bear trap and the resistance zone. Now, as much as X, we can expect that the upward trend will continue and precious dollars will rain on our heads. Now that you have learned about the bull trap🪤 in an uptrend and the bear trap in a downtrend↘️, you should remember that the market is not always up🔺️ and down🔻, and the road runner should also expect traps on the range roads. You should be aware of bull/bear traps in the range market. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Range Market When the price gets stuck between the support and resistance zones, the range market is created, and the coyotes also look for inexperienced road runners in this market. This is a sad story for new traders who rush into positions when they see the resistance or support zone break. Price fluctuations in range markets are minor; trading in a range market is much more complex than in bull and bear markets. So I suggest you spend more time on your trading strategies and test them several times. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Conclusion: Even in life, some coyotes seek to trick you by creating fake situations. But you have to be careful and smart like Road Runner. Sir John Templeton believes that: "Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria." And also, David Dreman says: "Bear markets are like avalanches: they start slowly and accelerate gradually before gaining momentum and becoming a force of nature🏞." In the financial markets, bulls and bears are constantly fighting each other, but the real winners are always those who use various tools and indicators to avoid risk and find safe spots for trading and profit. Once you practice and familiarize your eyes with all kinds of trends and traps, you will become a road runner in the market. So, if you want to be like the clever road runner and avoid falling into the bull and bear traps in the financial markets, stay alert, stay informed, and be prepared to adapt your investment💰 strategy when necessary. In future posts, we will take new steps in technical analysis and travel to the world of classic patterns. So follow the future posts and share your opinions and ideas in the comments. Your comments🎓 are precious to me. Also, if you have friends👬👭 who are into classic cartoons🎆 and trading, send them this post.
Education
by pejman_zwin
10
Risk-to-Reward > Win RateWe have mentioned it in a list of our previous educational posts and we will state it again: your risk-reward plan is much more important than your win rate. You can have a 90% win rate and still be losing in the long-run. On the contrary, you only need a 35% win rate to be a consistently profitable trader on the longer term. Beginners mainly focus on winning as many trades as possible and it is totally understandable, because we have all been there. "The more trades I enter, the more money I will make" principle has destroyed many trading careers. The explanation to the "Why?" question is pretty simple: when we are new to trading, every win gives us euphoria and makes us think we are the rulers of the market. Guess what happens next, the market hits back, puts us in a position where we are stuck in a losing streak, and humbles us enough to quit trading and think it does not work. As we get more experienced, we lean towards the "Less is more" principle and believe that quality will always be over quantity. As an instance, we have orchestrated 2 scenarios on the graph. The example on the upper side of the screen shows how our trader has a 80% win rate but has yet failed to remain in profits due to the fact that he does not have a solid risk management plan. On the opposite side of the road, we have Trader B who is able to remain in consistent profits by winning only 20% of the executed transactions. All those minor losses that he made got covered by one big win, and as long as he keeps following the current risk management policy and strategy of his, he is sure that he will be consistently profitable in the long run.
BITSTAMP:BTCUSDEducation
by Investroy
11
Blue Pill or Red Pill? Choose your side ... and do it wisely.“You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes." - the exact line that Morpheus used when offering Neo a choice between two options. You may wonder how this legendary Matrix reference is related to the trading industry. Believe it or not, even though one of our favourite mottos is “beauty lies within simplicity”, trading can get much deeper and more complex (deep down the rabbit hole) than the traditional textbook method. Firstly, we have the Blue Pill. “Mike Johnson is indicating that we should wait for a crossover of 50 and 200 Exponential Moving Average levels before executing positions”. Yes, we have all been here. The thing is, 99% of the trading courses and most of those YouTube and TikTok gurus make you believe that trading is as easy as buying when a Double Bottom is formed, selling once a Head&Shoulder pattern has been identified and so on. Obviously, if it was that easy, then everyone would have succeeded in this industry, right? “Let me spoil my charts with hundreds of indicators. Surely, if 80% of them are indicating that the market is bearish, then we should definitely go short”. Yes, been there too. Oh, and let’s not forget this one: “I will just buy at support and sell at resistance, and keep it consistent until I am profitable in the long run”. Wait, but if I have learned all that from Mike Johnson, and he claims to be an 8-digit professional trader with an experience of 20 years, why am I not succeeding? If I follow everything he says, then by the same logic, shouldn’t I be profitable just like him? And that is exactly why we have the Red Pill. The pill that frees us from the enslaving control of the machine and guru-generated dream world. The dream world is the world where trading is super simple and is as described in the textbooks. However, going down the rabbit hole, one can realise that things are more detailed and structured than they might seem, and that more factors should be considered in analysing, executing, and monitoring setups. While a blue-pilled trader is considering an execution upon a formation of a Double Bottom, a red-pilled participant of the market is waiting for a quick spike below that pattern formation and liquidity grab before pressing the "BUY" button and riding the price to the upside. Analogically, alongside with plain support and resistance levels, a red-pilled trader uses the Fibonacci retracement tool mixed with his/her conscious intuition and years of experience to form-up a bias and enter the markets. And so the list goes on. One thing to indicate: we are not saying that the methods listed under the Blue Pill category are useless and inefficient. As long as it works for you, you can continue following your own plan and strategy without having to give a damn about opinions and ideas of others. We are just trying to emphasise, that a trader with more experience and knowledge in the markets, and with a more detailed and structured approach of the charts will be a step ahead of those that blindly generate ideas by taking a quick look at the charts posted by others (word of mouth), following every single chart pattern suggested by John Doe on his book about the sorcery of trading.

 One last mention, it all boils down to two things: consistency and persistence. No wonder that as long as you keep working on becoming a better version of yourself on and off the markets, your skills will develop further and help you with what we call "opening the 3rd eye". With time, you will make more rational decisions, you will have a clearer sight of the market, you will be more powerful psychologically. Until then, keep grinding till 3AM, keep making mistakes, stay hungry and curious. And remember one thing, only the strongest survive. With all that being said, we would love to see a nice poll in the comment section below. Which pill are you taking: the Blue Pill or the Red Pill? Feel free to comment below and let us know your thoughts and opinions. Have a great weekend ahead. Investroy.
BITSTAMP:BTCUSDEducation
by Investroy
6
Various phases of the market and identification of a trendThere is a famous saying in the world of trading: trend is your friend until it tends to bend. Following the mighty trend and riding its impulsive moves is one of the most satisfying feelings out there. There are several ways of identifying a trend and hoping on it. One group of people favours using indicators such as SMAs or EMAs for this case. Another group of traders prefers sticking with price action and technical analysis. In this educational idea, we are gonna show two techniques that can be utilised for determining a trend looking at multiple timeframes and examining various factors. First of all, for identifying a trend, we filter out all small timeframes and stick with the big ones like the Monthly, Weekly, Daily. STF graphs are filled with noise and indecision. Whereas, HTF charts show the bigger picture and make it easier for us to predict where the price is headed. Second, as we know, the market has three phases: uptrend (bull market), downtrend (bear market), range (kangaroo market). As long as the price keeps printing Higher Low and Higher High points, the market is in a bullish phase. Vice versa, if Lower Lows and Lower Highs are being formed, it signifies that bears are in control. Another method that we could utilise to determine a trend is by using line charts instead of candlesticks. Due to the fact that a line chart filters out all the noise, we get a clear picture of the ongoing trend. On the other hand, Differing from an actual trend, ranging markets are associated with indecision, choppiness, and imbalance. Such "kangaroo" markets are formed when bulls and bears fight each other over direction. This traps the price within borders of a sideways-moving rectangular range. All in all, even though the process looks simple, it can get tricky and confusing from time to time. Therefore, always and always, stick to the plan, be risk tolerant, remain disciplined and patient.
BITSTAMP:BTCUSDEducation
by Investroy
5
Types of Markets in TradingView Land !!!👨‍🏫Hello👋 dear traders. I am Pejman👦, and today I want to explain the types of markets📈 with another story from TradingView🎢. Maybe you love the world of animation👶 like me, and I'm trying to make the trading world as beautiful and colorful as the animation👶 world🌍. So let's dive into another Tradingview🎢 land story. Once upon a time⏳, in Hundred Acre Wood, Christopher Robin decides to go to Stocktopia to live with other traders and try to learn trading skills📉. Since Winnie the Pooh🧸 likes Christopher Robin very much, he and his friends decided to go with him and move to the city🌆 of Stocktopia. They all knew that the path might be long and complicated😢, so they decided to compare different Types of Markets 📈 and talk about markets📈 along the way🛣. Do you know the Wise Owl 🦉? He always has many experiences of everything and explains them loudly. On the other hand, he had a lot of experience in technical analysis and said: When I was a beginner, I was baffled😟 and even lost a lot of money🤑 because I didn't have a good perception of the market📈. When my buy orders were filled, the stock would face a crash💥. And when I was selling, green candles📊 jumped one after the other. Annoying!😡 I only found out why when I went to Stocktopia and realized that the market📈 has its own types. Trends are essential in the market📈, and you need to learn to recognize trends. For training, first, I had to know what technical analysis📊 and its benefits are. There was a moment something caught my eyes👁 when I was surfing🏄‍♂️ on a website called “Tradingview,” and I opened the post to see what technical analysis is.👇 During my trading, I learned three types of markets 📈. Bullish 🟢, Bearish 🔴 & Range market📈. Tiger🐯: Whoo Whoo Whoooooo! I liked the name of the Bullish trend🟢. Can we start from that first? What is a Bullish trend🟢? The Wise Owl🦉 showed Tiger🐯 a chart from the book that was with him and said: Dear Tiger🐯, to find a Bullish🟢 market📈, you must first draw a trendline like a dynamic support trend line. Do you remember dynamic support and resistance lines? If you don't know these lines, it is better to read the story of Princess👸 Snow❄️White Chart and Trader Dwarfs before hearing the story of the market📈 types.👇 By the way, the Bullish🟢 market📈 is very similar to Tiger🐯. In the Bullish 🟢trend, buyers are happy and positive emotions are seen in the market📈 atmosphere. There are more buyers than sellers. That is, buyers hope for the growth of a stock. In the Bullish trend🟢, you must be fast, so that you don’t lose opportunities. As you can see in the chart, the price inflates more like a balloon🎈. It goes Higher High (HH)every time and forms a Higher Low(HL)🗻 than the previous one. But no Bullish trend🟢 is permanent. The market📈 will experience a crash eventually. So you have to be smart because shopping will only sometimes be profitable. You will get bloody candles if you wait to buy them in time. The Wise Owl 🦉 continued: The Bullish market📈 has conditions that I will explain based on my experience: Each Low should be at least one step higher than the previous one and make a Higher Low(HL) like the Tiger🐯. Usually, each High🗻 is formed one step Higher High(HH) than the previous one. Preferably, when the price rises above a High🗻, it is better not to return below it. This type of trend is called a Bullish market 📈 because when the bulls🟢 want to attack, they raise their horns from the bottom to the top. And the buyers increase the stock higher and higher by buying. Christopher Robin asked: What if Higher High(HH) doesn’t touch the previous High🗻? The Wise Owl🦉 said: This is a sign of a strong Bullish trend🟢. If you see such an event, prepare your dollars for shopping. Does anyone have any other questions? Eeyore said: What is the trend of Bearish🔴? Why is it named like this? Wise Owl🦉: How interesting that Eeyore himself asked this question because the Bearish trend🔴 is exactly like Eeyore. Ivor John has some negative feelings about him. Shareholders also feel disappointment😩 and fear😱 in the trend. Because of this, the number of buyers decreases, and the number of sellers increases. Candles turn red like roses🌹; the more sellers there are, the bigger this red flower garden🏡 will be. Highs and Lows🗻 form one after the other lower⬇️ and lower⬇️. In a downward trend🔻, if you are in a one-sided market📈, you should sell your shares, but if the market📈 is two-sided, you can present yourself for a sell/short position. In this trend, negative emotions may dominate the market📈, but sellers will be happy. Like the upward trend, the downward trend also has its conditions. Can you guess them before I say them? Po said: Ah, in the growth trend, each High🗻 should be formed lower⬇️ than the previous High(LH)🗻, and each Low should be formed below the previous one(LL). On the other hand, if the price falls below a Low in the downward trend, it is better not to return above that Low. The Wise Owl🦉: It was great, Pooh🧸. Now let's take a look at this Bearish trend🔴 chart. As you can see, there is no news of going up(HH)🔺 in downward trends🔻. Instead, we see Lower Lows(LL) and Lower Highs(LH). But the market📈 is only sometimes bullish🟢 or consistently bearish🔴. Does anyone remember the name of the third type of market📈 that I mentioned? Piglet answered with a bit of stress: Ummm, I think it was Range Market 📈. Wise Owl🦉: Hohohoho, you are right, Piglet. But don't be afraid and don't stress because this market📈 has no particular trend. If you looked at the chart and could not find an upward🔺 or downward trend🔻, the sea market📈 is tame, and no waves move the candles up🔺 or down🔻. The number of buyers and sellers in the Range market📈 is almost equal. In the market📈, Range traders are like piglets. A group of them have hope for stocks and buy with confidence, and another group is still afraid, like piglets, and thinks that the value of their shares may decrease. So they sell it. Neither bears🔴 or bulls🟢 win in the Range market📈 because they need more trading volume to pull the market📈 in the same direction and form a strong up🔺 or down🔻 movement. In the market📈, the price range is involved in two Ranges: buy or demand Range and sell or supply Range. The support zone pushes the price upwards🔺 in the buying Range, but the resistance one does not allow the price to advance. Therefore, the price is passed between these Ranges like a yo-yo until one of the parties enters more volume and breaks this price compression. The head will run away from one side when the price is done. As you can see in the picture, finally, the sellers ran away from the price :) And the bears🔴 won over the bulls🟢. Rabbit: I have heard that most financial markets are Range, and it’s more difficult to trade in this type of market. By the way, I don't want to rush, but I guess it's time to tell us the use of all this information. The Wise Owl🦉 laughed and replied: "Hey, you didn't rush. Now that you are familiar with different types of markets📈, it is time to learn how to trade in these markets📈." You must first draw trendlines in trending markets📈 to get a general view of the chosen stock📈. Then you can take a position in the direction of the trend. Be sure to remember that you’re entering at the right points. Take your time, because waiting is a flower that doesn’t grow in everyone's garden. The owl🦉 opened a new page and showed a downward trend🔻, which later turned into an upward trend🔺. Owl🦉 continued: As you can see from the chart below, the price is caught under the bears' claws, and the market📈 is bearish🔴. It has formed Lower Lows(LL) and Lower Highs(LH). But after the Bullish engulfing candlestick pattern, the trend changed and turned into a Bullish🟢 market📈. If you want to learn about candlesticks and how to trade with them, you can go to the following post because I have collected how to trade with all candlestick patterns in this post.👇 As you know, the more the price collides with a trendline📈, the more valid the trendline will be. So these lines📈 will become valuable, like support or resistance lines📉. In this example, we learned how effective candlesticks could be in identifying or finding the end of trends. Now it's the turn of the Range market📈, and it is possible to trade in this market📈 considering the volatility of the trend. In the Range market📈, as I said, the price is like a small fish🐠 stuck in a fast Eeyore. The flow of water💧 and the flow of buyers and sellers move this fish🐠 into the Eeyore bed🛌. As a trader, if you want to catch fish🐠 from this water, you must wait until it approaches one of the Eeyore beds🛌. Up🔺 or down🔻 bed, i.e., support line or resistance line. You can buy when you see the price on the support line, and when you see it on the resistance line, it is time to sell. Rabbit said: Haha. That is very easy. Buy low and sell high. The wise owl laughed😂 and said: You are exactly right. Trading in this market📈 may seem simple, but this fish🐠 can escape anytime. Trading in Range Market📈 is like eating a sandwich🥪. If you press your sandwich🥪 too much, the fillings of the sandwich🥪 maybe spilled out from the top or bottom. Everyone heard the sound of Po's stomach and laughed😂. Po said: We have been walking for a long time, and I also ate my honey🍯 on the way. How much is left? Christopher Robin looked around with his camera📸 and said we're finally there. I can see the lights💡 of Trading Wave🌊 Land🎡. The Wise Owl🦉 continued: Now, knowing the types of markets📈, you can learn more than technical analysis in this land. All of them went to the land of Trading Wave🌊, happy😊 that they got good information along the way🛣 by heaRange about the experiences of the wise owl. If you want to learn how to trade well like the people of this land🎡, practice today's tips and join me every week because I have many stories to tell about this market📈. This land🎡 is full of traders who lost their capital💸 and became disappointed😔 without carefulness and practice. If you don't want to be one of them, remember to manage your capital💸 and training. I hope you are always healthy and prosperous😎.
Education
by pejman_zwin
9