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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😍.
Editors' picks
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
🟢Support🟢 & 🔴Resistance🔴 in TradingView Land !!!👨‍🏫Hello, guys🤪; I'm Pejman, and today we will change the regular TradingView to TradingView Disneyland🎡 . I want to tell the story of Snow White and the trader dwarfs. Once upon a time🌞, in the kingdom👑 of Stocktopia, there was a young princess👰‍♂️ named Snow White Charts. She was the heir to the realm of Stocktopia. Still, unlike her father, the King of Stocktopia, a successful businessman🧔‍, Princess needed help understanding the stock market. She often lost money💸. One day, while walking in the forest🌿🌲, Princess Snow White Charts stumbled upon an old house called Dwarf traders. She became curious and decided to visit this house🏠. Dwarves lived in this house🏠 whose job was to help the traders. They directed the price of different stocks by creating support and resistance lines or zones, and each dwarf was responsible for one of them. The Princess did not know anything about these lines. So she decided to stay to learn about these powerful lines. One of these dwarves, named Doc, looked older and wiser than the other dwarves. The Princess enlisted the help of Doc to learn how these lines worked. Doc was proficient in various methods of technical analysis and had an exceptional talent for simplifying complex issues😝. So he tried to teach these lines to the Princess👰‍♂️ in the simplest and best way possible. If you also want to master technical analysis like Doc before learning support and resistance lines/zones, read the following post to learn what technical analysis is. 🤓👇 Doc showed the following picture to the Princess. Can you tell what the role of support lines is before reading Doc's explanation❓👇 As you can see in the picture, the candles are placed in a downward trend, and they go down🔴 like playful children🧒🧒 playing on the slide. Doc explained that support lines are like a bouncy castle🕍 for price. When the candles reach these Lines, they'll push them up just like a trampoline; the price will grow. Remember that they prevent the price from moving too far down or falling.😅 The candles are safe on the support lines, so Sleepy sleeps peacefully. Doc believes that when a stock's price hits support lines, it can indicate a potential buying opportunity. Still, when it breaks down🔴 the support line, it can show a possible selling opportunity; but I will discuss this in the following. Now you may ask, what are resistance lines❓ The exact same question came up for Princess Snow White Charts😁. First, look at the chart below.👇 Resistance lines are like the roof of a bouncy castle. In an uptrend🟢, when the candles are happy and constantly jumping higher and higher, the resistance lines prevent them from going further. The resistance line is guarded by Goupy, who pushes the candles down🔴 like a bully, whenever the candles hit the resistance line. Let's suppose all these price lines & dwarfs want to lead candles in a particular direction. Now that you are familiar with support and resistance lines, you might have the same question as Princess👰‍♂️had again. How to recognize and find these lines❓ According to Doc, there are several ways to find these lines: Past Price Data: Sir John says: "Price data is like a roadmap, showing you where the market has been and where it might be heading." Looking at past price data is like checking the tracks of a criminal. It may be seen, but it is simply not correct. You can know how he behaved in the past because he may repeat the same behavior in the future. So, to better understand the price, you must also know its past. Even Philip Fisher also believes that: "Price data is the lens through which we can see the market's true nature." Previous Lines: By finding previous support and resistance lines, it's as if you've found a criminal's 🔫 recorded files. Price data is the story of the market, and those who ignore it are doomed to repeat their mistakes. You can't predict the future without understanding the past, and the market's past performance is the best indicator of its future performance. Wow, speak of the devil🤐, I forgot that indicators also have important points to say too. Indicators: Maybe price data is like a roadmap🚨 or past lines like a criminal recorded file. But indicators are like GPS. Indicators are the GPS of the financial markets, and they guide us to our destination and help us avoid getting lost. Indicators are the financial markets' fingerprints, revealing the underlying patterns and trends. Doc and I found some indicators helpful in identifying supply(resistance) and demand(support) zones, such as: Moving Average/Parabolic SAR/Bollinger Bands/Ichimoku Kinko Hyo/Fibonacci/Pivot point There are many ways to recognize these lines and even indicators that help you find them like an assistant, but you should still try to know and learn them yourself. For example, Doc says there are additional support and resistance lines. Like the slides in the game, they can be straight or sloping, going up🟢 or down🔴. I'm kidding, but they really have these types 🙂. In the previous pictures, I showed you only static lines. Now, look at the pictures below because I will show you all the types of these lines with examples. For example, if the support and resistance lines are like a road🛣 on the ground, they are called static support and resistance lines . Now, what if this road turns into steep ropes❓ Well, it is known that they are called dynamic support and resistance lines . For example, if you want to go mountain🗻 climbing, it is as if you are climbing with dynamic support. In general, in an upward🟢 trend, dynamic support lines like a ramp🚧 prevent the price from falling. Now that we are talking about climbing let's introduce another game🎲. The zipline🤐😄. The price decreases from the dynamic resistance lines like a zipline in downward🔴 trends. 😄 I must say that theoretically, the price will go down after hitting the dynamic resistance lines and these lines prevent price growth🟢. Dynamic resistance or support is also called a trend line. Trendlines are helpful in many parts of technical analysis, such as classical patterns. Just take a look at the below post. You will find that trend lines help us effectively identify these patterns or trade with them. That's how I am! COOL!😎😎.👇 Don't worry and don't rush because, as said: Patience is bitter, but its fruit is sweet. Soon I will teach all these patterns in future posts, but we have to go step by step together.😎😎😎 But I must add that the price is also very playful😛. The price may cross these lines, be above the resistance or below the support, and escape from them. "If price can make a credible breakout, this could be a good place to trade and make some sweet dollars," Doc whispered to Princess Snow White Charts. What is a valid breakout❗️❓ This was the question that arose in the Princess's 👰 mind, and I think it is your question as well. Imagine that the resistance line is like a prison that confines the candles. A diligent & playful candle needs the support of buyers to escape from this prison. If the buyers support it, it can get out of this prison. After escaping the breakout candle, if another candle, called the confirmation, escapes from this prison and jumps above the breakout candle, the way will be clear for other prisoners, and they can run. So a valid breakout will happen. A valid breakout is created with a strong candle called a breakout candle(such as the Marubozu candle); after that, a candle as a confirmation candle will confirm this breakout. Don't worry about selling below the Support line or buying above the resistance line. If a valid breakout has occurred, the target stock will decrease/rise further, and the trend will not stop or end anytime soon. Let's walk through an example of a valid breakout with Doc. As you can see, the price broke this line with a strong candle and made a confirmation candle. As a result, we consider this a valid breakout. If you have noticed, finally, the price went back to this line to greet the previous line. This movement is called Pullback . In general, to say that a breakout is valid, there are several conditions: Preferably, the breakout candle and the confirmation candle are the same color. The point where the breakout candle closes must be above resistance or below support. The breakout must have happened with the body of a candle, not with the candle's shadow. Even the closing point of the confirmation candle should be above the resistance breakout candle or below the support breakout candle. But I should mention that the trading volume increases when a valid breakout occurs. Now that you know a valid breakout, we can also check an invalid breakout, so dive down🔴 to the chart below. As you can see, the price tries to be playful😜😜 and break the support line. But there are no buyers to support the price for this movement, so this breakout will be temporary and short-lived. The price will soon return below the Support line. The invalid breakouts are sometimes known as bull traps or bear traps which I will explain in future posts. I advise you to only sometimes look for a straight line for support or resistance. I use support and resistance lines in my analysis to draw trend lines. But when I want to determine the support and resistance of a currency, I draw them as support and resistance zones. Using zones makes you no longer involved in each line's small & fake breaks, and you won't make mistakes with each break. Now that you have learned almost everything about these lines😎😎, it's time to start fishing and apply these tips to real trades. I have considered all the necessary items for trading with these lines in the chart below. You might understand the reason for trading by looking at the picture before reading the description. ( The First Method ) The picture shows the price below this resistance zone, and they tried to escape several times. Still, finally, when the trading volume and the number of buyers increased, it could cross its resistance zone with a strong candle(breakout candle), and then the confirmation candle formed. Now, as traders, we should place our Entry Point(EP) slightly higher than the confirmation candle. And also, be careful;😱 maybe this break is invalid, or it returns below its resistance. So we place our Stop Loss(SL) a little lower than the breakout candle. Now, look at this chart again. But I am going to teach you another method for trading. ( The Second Method ) You should only sometimes enter into a position at one point. For example, when the price returns to its resistance to greet(Pullback), it's a good time to divide your money into two parts & re-enter the position. With this, your average Entry Point will be lower, and the Risk/Reward(RR) ratio will increase. ( I know that the Risk/Reward(RR) is something that some of you are unfamiliar with, so don't worry cause I'm going to talk about it in future posts.) There is another way to trade with these lines. (The Third Method) You've got another way to trade with two Entry Points. You can enter the position when the pullback accrues; the other entry point is a little higher than the highest price before the pullback. In this method, you will be more confident about the position, but at the same time, the Risk/Reward (RR) is decreased compared to the previously mentioned methods. The Stop Loss is the same as the others. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Prince Snow White Charts learned all these tricks along with Doc and the other Dwarves. Excited to try this new knowledge, he immediately returned to Stocktopia😊and applied what he had learned to his trading. To his surprise, his trades became more profitable. The king was pleased with his daughter's improvement, & these lessons were taught to all the traders in the kingdom👑 of Stocktopia. From that day, Stocktopia was known as the kingdom with the most successful traders, thanks to the wisdom of Doc and Princess Snow White Charts.😊😊 Stocktopia's traders lived happily ever after, thanks to the protection and guidance provided by the Seven Dwarfs of Support.😇😇 I hope you enjoyed this story and use support and resistance lines/zones in your trading. But never forget that before using any new method, try it several times to master that method.😎😎😎. Now let's leave the world of stories and return to the real world of traders. Take advantage of the following posts. In the end, I wish you health and success.
Editors' picks
Education
by pejman_zwin
82
AUDNZD. one of the best book ever you gona read on trading.book notes my faviourit trading book. youtu.be all was looking for parallelisms of behavior learning read the tap. all I knew was the arithmetic of it it was a matter of fact mine was the ideal way to operate in a bucket shop. being right by using your head if I was right when I tested it was one man's business to anyhow it was my head wasn't it prices either were going the way doped them out help from friends or partners or they are going other way and nobody could stop them out kindness to me. in od day whenever a bucket shop was found loaded with too many bulls on certain stock it was common practice to some broker wash down the price of that particular far enough to wipe out all the customers that were long of it whenever was an unexplained sharp drop which was followed by instant recovery the newspapers 2 if my order is big my own sales would tend future to press the price when you know what not to do in order to not to lose money. you begin learn what to do in order to win . you begin to learn. if the stock doesn't act right don't touch it being unable to wrong you cannot tell which way it is going no diagnosis no prognosis no profit. i had to study what was going to happen to anticipate stock movements it was the change in my own attitude toward the game that was of supreme to me it taught me little by essential difference between betting on fluctuations and anticipating inevitable advances in declines between gambling and speculating I had to go further than an hour in my studies of the market which was something I never would have learned to do in the biggest bucket shop in the world I interested my self in trade reports and railroad earning and financial commercial statistics they call me the boy plunger . i like to study the moves, I never thought that anything was irksome if it help me to trade more intelligently. before I solve a problem I must state it my myself, when I think I have found a solution I must prove I'm right. i know how to prove it and that is with my own money. there is much to learn from partial victory as from a defeat don't be a sucker, this semi sucker he loves to buy on declines he waits he measures his bargains by the number of points sold off from the top, big bull markets the plain unadulterated sucker utterly ignorant of rules and precedence buys blindly because he hopes blindly he makes most of the money until the one of the healthy reactions takes it away from him at one fell swoop but the careful mic sucker does what I did when I through I was playing the game intelligently according to the intelligent of others big money is was not in the individual fluctuations but in the main movements that not reading the tap.but sizing up the entire market and its trend it all was my sitting got that my sitting tight its no trick at all to be right on the market you all ways earily bulls and bulls earily bears and bear markets I know many man who was buying and selling as price as very level which is how the greatest profit and their experience invariably match mine that is they made no real money out of it. men who can both be right and sit tight are uncommon I found it one o the hardest things to learn but it is only after a stock operator has firmly grasped this that he can make big money . its easy to millions will come to traders after he knows how to trade than hundreds did in the days of ignorance the reason is that a man may see straight and clearly and become impatient or doubtful when the market takes its time about doing as he figured it must do that's why who all are not all in Wallstreet not in the soccer class not even third grade never the less lose money.the market does not beat them they beat themselves because though they have brains they cannot sit tight. old turkey was dead right is doing and saying what he did and had not only the courage of his convictions but intelligent patience to sit tight. you must study of general conditions and not tips or general factors affecting individual stocks then get out of you all your stocks wait until yous see or if you prefer until you see the turn of the market the beginning of the reveal of the general conditions have to use your brains and your visions to do this. trade less unintelligently was that my initial operation seldom showed me a loss that naturally made me decide to start big it gave confidence my own judgment before I allowed it to be vitiated by the advice.of others or even by my own impatience at times without faith in his own judgment, no man can go very far in this game. that's all I earn to study general conditions to take a position and stick to it. i can wait without a twinge of impatience I can see a set mack without being shaken knowing that it is only temporary. i watch the market with to look quotation board and to read the signs is one process union process going up, price is high but the stock as acted as accumulated I watched a couple of days without trading in it the more I watched it the more convinced i became that it was being bought on balance by somebody who was no somebody who not only had big bank roll but knew what was why very clever accumulation I through. as soon as I was sure this I naturally began to buy it 160. I kept on buying it 500 share at clip the more I bought stronger it got and I was feeling very comfortable I couldn't stop that stock go up a great deal more not what I read on the tape . my tape reading simply told me someone manipulated by the insiders made the tape tell a story. I belive competed for my education as a trader .it all I need to learn was not to take tips but follow my inclination it was that I gained confidence in my self and I was shake off the old method of trading that seratoga expirance was my last haphazard hit . buying stock comfortable way know its not so much to buy as cheap as possible or go shorted at top prices buy. buying and sell the right time, when I bearish and I sell a stock each sale mut be lower level. the previous sale , when I buying reverse is true I must buying in rising scale I don't buy a long stock on scale down I buy on scale-up let example I buy 200 share at no the stock goes up ill after I by it at least temporarily right in my operation because its point hier it show me profit I'm right I go and buy 2000 shares if market is rising I buy a third lot of 2000 shares say the price goes to 114 I think enough to time being for the time I all was try to buy effectively in such a way as to help my side of the market when it comes to selling stocks its plain nobody can sell unless somebody wants those stocks if you operate large scale you will have to bear that in mind all the time a man studies conditions plans his operations carefully and proceeds to act well that man cant sell at will you cant expect the market to absorb 50,000 shares one stock easily as it does one hundred he will have to wait until he has a market there to take it there comes to time the requisite buying power there . that opportunity comes he sees it as rule he will have been waiting for it he has to sell when he can not when he wants to learn the time he has to watch and test it's no trick to tell when the market can take what you give it. starting movement its unwise to take on your full line unless you are convinced that conditions are exactly right to remember stocks are never too high for to begin buying or are too low to begin selling after the initial transaction don't make a second unless the first shows you a profit wait and watch that is where your tape reading cones in to enable you to decide as the proper time for beginning . at the exactly right time, it took me years to realize the importance of this it also cost some hundreds of thousands of dollars 500 stock don't buy all together if he is merely gambling the only advice I have to give him is don't . i realize big money must necessarily be in the big swing whatever might seem to give a big swing its initial impulse the fact is that its continuance is not the result of manipulation by pools or artifice by financiers but depends upon basic conditions and no matter who opposes it the swing inevitably run as fast and as long as the impelling forces determine. the man is not limited in his trading he could buy or sell an entire list in certain stocks a short line is dangerous after a man sells more than a certain percentage of the capital stock the amount depends upon how where and by whom the stock is but he could sell a million shares of the general list if he had the price without the danger or being squeezed. man must study general conditions to size them so as to anticipate probabilities. in the long run commodity prices are governed but by one law the economic law of demand and supply the business of the trader in commodity is simply to get facts about the demand and supply presence and perspective he does not indulge in guesses about a dozen things as he does in stocks the massage of the tape is same that will be perfectly plain to anyone who will take the trouble to think he will find if he asks himself questions and considers conditions that answer will supply them self directly the object is reading the tape is to ascertain first how next when to trade that is whether its wiser to buy than to sell it works exactly for stocks cotten weed or oats. you watch the market that course of prices as recorded by the tape with one object to determine the direction that is the price tendency price we know move up or down according to the resistance they encounter for purposes of easy explanation say like everything move along line of least resistance, therefore, they will go up is less resistance to advance than to a decline and vice versa. speculator profit from rise or fall from whtever he maybe speculating line of least reisitance at the moment of trading and what he should wait for is the moment that line defines its selfs becuse that is his singnal to get busy reading the tape see 130 has been stronger than buying and reaction in the price logically followed up to the point where the selling prevaild over the buying superficial students of the tape may conclude that the price is not going to stop short of 150 and they buy after reaction begins they hold on or sell out small loss or they go short talk bearish the public whipswed that one marvels at ther persistance not learnning there lession eventily something happens increase the power of either the upward or the downward force and the point of greatest resistance moves up or down buy for 130 will for the first time be stronger than the selling at 120 be stronger tha the buying price will break old barrier or movement limit and go on as rule is always a crowded traders who re short at 120. becuse it looks aweek or long at 130 becuse it looks so strong when the market goes against them they are forced after while either to change their minds and turn or close out more cleariy the line of least resistance thus interligent trader who has patiently waitted to detrmine this line will enlist the aid of fundamental trade conditions and also force of the trading of that part of the community that happennened to guess wrrong and must now rectifying mistakes such corrections tend to push prices along the line of least of resistance narrow market when prices not getting anywhere speak of but move with a narrow range there is no sense to trying to anticipate what the next big movement is going to be up or down thing s to do watch the market read the tape determine the limits of the get nowhere prices and make up your mind that you will not take and price breaks throught the limit either direction a speculator must concern himself with making money out of the market and not insisting that tape must agree with him never ask it reasons explanations speculative guns that is waitting for the linee of least resistance defines it self and begin buying only when the tape said up or selling only only said down . he should accumulate his line on the way up let him buy one fifth of his full line if that if that doesnot show him a profit he must not increase his holdings he has obviousely begun wrrong he is wrong tempororily and there is no profit in being wrong anytime. man can spend years at onething and not acquire a habitual attitude towards it quite unlike average beginner the diffarence distinguishedes the professional from the amature it is the man way a looks at things that makes or loses money for him in the speculative markets you have to get out you have a market that absorb your entire line failure to grasp the opertunitunity to get out maycost you millions you cannot hesitste if you do your lost nether neather runs like the price the bears by means of competitive buying for you may thereby reduce the absorbing capacity and i want to tell you that perceving your opportunity is not as easy it sounds a man must be on the look out so alertly when his chance sticks in its head at his door he must grap it. i get my pleasure out of matching my brains against the brains of othere traders men whom i never seen and never talked to and never advised to buy or sell and never expect to eet or know when i make money i make it backing my own opinions i dont sell them or capitalize them if i maid any way i would imagaine i had not earned it.your propostion does not intrest me im intrested in game only as i play it for my self and in y own way . speculator has a host of enemies maney of whom successfully bore from within i had in mind my many mistakes i have learned that a man may possess an original mind and life long habit of independent thinking and with all be vulnerable to attacks by the persuasive personality im fairly immune from the commoner speculative ailments such as greed and fear and hope but being ordinary man i find i can heir with great ease i ought to have been on my guard at this particular time bacuse not long before that i had an experience that proved how easily a man may be talked into doing something against his judgment and even against his wishes . i learn my self that i could not trust my self to remain equally unaffected by men and misfortunes . all times . man know himself thoroughly if he is going to make a good job out of trading in the speculative markets to know what i was capable of in the line of folly was a long educational step . a trader studying basic conditions remanbering market precedence and keeping in mind the psyshology of the public as well as the limitations of his brokers must also know himself and provide against his own weaknesses i have studied and reckoned on my own reactions to given impulses or to the inverable temptations of an active market quite in same mood and spirit as i have considered crop condtions anylyize reports of earnnings so day after day broke and enxiouse resume trading i sat in front of quation board in another brokers office where i couldnt buy or share one share of stock studying the market not not missing a single trasaction on the tape . watching the psychological moment to ring full speed ahead bell by reason of condition whole world. than one day entire market become quite weak and prices all stock begain to fall i had a profilt of least four point in each and evry one of the 12 stocks that i was short of i knew that i was right the tape told me it was now safe to be bearish so i promptly doubled up i had my postion i was short of stocks in a market that now was plainly bear market there wasnt any need for me to push things along the market was bound to go my way and knowing that i could afford to wait after i double up i dint make long trade for long time . when something happens on which you did not count when you maid your plans it behooves you to utilze the opertunitiey that a kindly fate offers you for one thing on a bad break like that you have big market one that you can turn arround in and that is the time to turn your paper profits in to real money , even bear market a man cannot 120,000 share stock without putting price on himself he must wait for the market that will allow him to buy that much at no damage to his profit as it stands him on paper . my expirance 30 years of trader is that such accident are usally along the line of least resistance which i base my postion in the market another thing bear in mind is never try to sell at the top it isnt wise sell sell after reaction if there is no rally as i said before man doesnot have to marry one side of the market death do them part. honesty is a best practice the big money was in being square and not in welshing , i never throught it good business to play any game in any place necessary keep an eye on the dealer becuse he was likely cheat if unwatched. but against the whining welsher the decent man is powerless fair play is a fair play i could tell you a dozen instance where i been the victim own belief in the sacredness of the pladged word or of the inviobility gentlemen agreement. life it self from the cradle to the grave is gamble. expirance has taught me that a man can aways find an opportunity to make his profit real and that opportunity usually coes at the end of the move . that inst tape reading or hunch. you can transmi knowlage that is your particular card index facts. but not expirance a man may know what to do and lose money if he doesnt do quicly enough onservation expirance and mathamtics these are thr sucessful trader must depend on. he must not observe accurately but reemanber at all times he has obserb he cannot bet un reasonable or unexpected how ever personal convection maybe about mans unreasonabaleness he must bet on probabitilites try to anticipate them years of practice of the game consitance study of always remanbering enable the trader to act the instant when te unexpected happens as well as when the expected come to pass after years of the game it become habit to keep posted he acts almost automatically he acquires the invalauble professional attitude and that enables him to beat the game at times this diffrents between the professional and the amature or accasional trader cannot be overmphased . i find instance menory and mathamtics help me very much. wall street makes money on mahamtics basis it makes money facts and figures when i said trader ha to keep posted to the minute and that he must take professional attitude toward all developments im merely expirance trader act so quckly that he has all kind of reson to give advance but never the good and sufficient reasons becuse they are based on facts collected by him years of working and thinking and seeng things from the angle of the proffesional professional attitide i keep track of all commedites allways ints habit of years figures and condition yield mathamtics expirance has tought me that the way a market behaves excellent guide for an operator to follow its like a taking a patient temperature and pulse or nothing the clour of the eye balls and the coating of the tought. buying ten thousand , fifteen tousand bushels instesd taking two or 3 trasaction price went down and quarter cent on my selling now i need not waste time the way market took my weat and the desproportion decline on my selling told me there is no buying power there such being the case what is only thing to do of course sell lot more i found expirance that abto be a steady dividend pay in this game. and observation gives you best tips for all. you need to observe the stocks . vision without money means heartaches with money it means achivements that means power and that means money that means achivement the majority of cases the object of manipulation is sell stock to the public at the best possible price its not question of alone selling its distributing . i sell stock on balance if the demand is what it ought to be it will absorb more than the amount of stock i was compelled accumulate in the earily stages of manipulation when this happens i sell the stock short that is tecnically in othere words i sell more stock i actually hold it is perfafectily safe for me to do so since im really selling against my costs ofcox demnd from the public slackens stock try to be advance than i wait i see stock become advance weekday entire market maybe develope rectionary tendancy or some sharp traders may precive there no buying orders are no buying to speak my stocks and he sells it. and his fellows follow what ever resons maybe my stocks go down , i begin to buy it i give it the support that a stock i have if its good order own sponsers and more im able to to support it without accumlating it that is without increasing it the amount i shall have to sell later on observe that i do this without decreasing my finceal resources ofcox i i sold short at higher coving prices when the demand rom the public or fro the traders or from borth enabled me to do it sometimes stocks get waterlogged as were it doesnt go up that is a time to sellthe price naturally will go down on your selling rather futher thn you wish but you genarally nurse it back as long as the stock that im maipulating goes up on my buying i know im hunky and i need be i buy it with confidence use my own money without fear priceisely as i would anyothere stocks that acts the same way its line of least resistance . when the price line of least resistance is established i follow it not im manipulating that particular stocks at particular moment becuse im a stock operator at all times when my buying doesnot put stock up i stop buying and then proceed to sell it down and that also is exacitly what i would do with same stock if i did not happen to be manipulating the principal marketing of the stock as you know i done on the way down its perfactily astonishing how much stock a man can get rid of a decline i repeate at no time during the manipulation do i forget to be a stock trader my problems as manipulator after all are same that conforont me as an operator all manipulation comes to end when the manipulator cannot make a stock do what he wants it to do when the stock maanipulating doesnt act as it should quit dont argue with the tape do not seek to lure the profit back quit while the quitting is good and cheap . you dont sell and bulk on the advance you cant big selling is done on the way down from the top . i canot put your stock to 125 or 130 i like to but it cant be done so you have to begin your selling to from this level my opinion all stocks are going down and petrolume products isnt going to be the one excepttion its better for go down now on the pool selling than for it to break next month on selling by someone else it will go down anyhow . value making information kept from public while the now tacit term prominent insiders go to the market and buy all the cheap stocks they can lay their hands on as this well informed but unostentatious buying keeps on the stocks raises finacial reporters knowing that the insiders ought to know reason to the rise ask questions the unanimously anonymous insiders unanimously declare that they have no news to give out they do not know that there is any warrant for the rise continues and there comes a happy day when those who know have all the stock they want and can carry street at once begin to hear all kind of bullish rumors the tickers ell the traders on good authority that the companey has definitly turn the corner trend is know down ward just as they brought without any flourish or trumpets when the compneys business term for better they now silentily sell inside selling the stock naturally decline then the public begins to get the familier explanations a leading insider asserts that everything is ok and decline is merly the result of selling by bears who are trying to affeted the genral market
Education
by YODA-TRADER
Types of Gaps !!!👨‍🏫Hello👨🏻‍🏫, dear traders from all over the world🗺️. I'm Pejman🙋🏻‍♂️ & welcome🌸 to one more educational adventure🧭 in Tradingview, but we will not be traders💹 today; We want to look at our charts like a hunter🏹. We look for every clue🐾 we see so that we can hunt suitable positions💱 like valuable creatures💰 and transfer them to the cages as our accounts💳 or wallets💸. Although I'm not too fond🙍🏻‍♂️ of hunting, either legally or illegally. But I know that hunting good positions in the forests🏞️🌳 of Tradingview is not prohibited😉❗. So let's get acquainted with these clues🔎 as soon as possible because the price is skittish🙈, and we don't want to waste the hunting time⏳✅. I said that in Technical Analysis , we look for ways to trade by using the price information, which is recorded on the charts📈. (such as the prey's tracks🔎🐾) Today I want to introduce one of these clues so that you can become a professional position hunter🏹 by identifying the clues👀; But don't forget that you should practice🙌🏻, be careful⚠️, and watch your positions👀, so you don't miss them or rush 🏎️💨to the wrong❌ position🙂. Today's clue is the GAPS . First, let's see what the GAP is🤔. The gap is nothing. I mean, it is something that is nothing😶🙄. It is incredibly paradoxical💥! I'm kidding😉, but the space between candles🕯️ or bars is called a GAP. A gap is created when we see👀 a price gap between two candles🕯️ or bars when the trading volume is high⏫ or low⏬. This difference or space between two candles is called a gap🤏🏻. It is said that gaps are more valuable✅ in higher time frames among the traders, so much coin, much care👀. Gaps, or as the Japanese🎌 term "windows," are significant for hunting🏹 positions, so as hunter traders, we should learn these gaps well👌🏻. The reason🧐 for creating gaps can be factors such as important positive🆒 or negative🙈 news or an increase🔺 or decrease🔻 in supply and demand. It is interesting to know that gaps are primarily seen in Forex , Stocks , and Commodities (especially when markets close and open). The space👌🏻 between the candles means that the price has jumped like a rabbit🐰 from one number to the upper☝🏻 different number. Or, like a monkey🐒, it moved from one number to a lower👇🏻 number. I tried to make it funny😊 and straightforward👌🏻, but these gaps that move up or down have different types, like the year's seasons🌈☁️. We have 4️⃣ seasons in a year and also 4️⃣ types of gaps in the charts. According to personal taste😊, I relate the gaps to the year's seasons and, simultaneously, do not forget the case of hunting positions🏹💰. So fasten your seat belts💺 because we want to travel in time🧳⏳ to all the year's seasons with this post🚩 and learn about the different price gaps, which are one of our clues🐾 to trap positions🪤. Let's start with the autumn🍂 season because we are still in it and can understand it better😌. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The name of this type of Exhaustion 🥱 gap. They are seen at the end🔚 of a process, which means that the process may change🔄 at any moment. Just like the autumn🍁 season, it may rain☔ anytime after seeing the clouds🌥️. Another feature of this gap is the increase🆙 in trading volume, so by paying attention👀 to these points and practicing by reviewing the charts📈, you can easily recognize🔎 this gap. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The next💁🏻‍♂️ gap is the Breakaway 🏃🏻‍♂️ gap. The breakaway gap is associated with an increase⤴️ in trading volume. This gap occurs when a critical range is broken🤞🏻, representing a strong💪🏻 start🏁 trend or a sign of trend change. Like the blooming🏵️ of some trees🌳 in winter☃️ or the sprouting🌱 of plants from under the snow❄️. Also, This gap is created when the price starts moving from a limited area, like support or resistance ( I'm going to talk about them in the future😉. ) I have to say that the breakaway gap plays a critical👌🏻 role in some of the classic reversal patterns, such as the Head and Shoulders Pattern , Double Top/Bottom Patterns , etc. When The breakaway gap is combined with Classic Reversal Patterns, the breakaway gap adds to these patterns' validity✅. If you want to get acquainted with the most important Classic Reversal Patterns of Technical Analysis , I suggest you read the following post👇. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now it's time for spring🌸🍀, and I'm going to introduce a gap like spring. Spring season is a sign✌🏻 of the continuation of life💐, and this gap in technical analysis shows the continuation of a trend📈. The Continuation gap is also known as a Runaway 🏃🏻‍♂️ gap, occurring in the middle of a downward↙️ or upward↗️ trend. This type of gap creates a kind of confidence for traders to enter. It doesn't occur when the price fluctuates or corrects in a limited area but occurs during a rapid increase or decrease. So, as a result ☑️, if this gap occurs in an upward trend🔺, it indicates the continuation of the upward movement. And when it is created in a downward trend🔻, it indicates the entry of more sellers and further price decline. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now we have reached✌🏻 the last gap🥰. This gap is Common , but I should introduce it as the summer☀️ season. These gaps are very common, And considering the time frame it has, it is expected to fill quickly, which is also called "closing the gap." The filling or closing of the gap means that the price returns🔁 to the same area where the gap was created, like a criminal returning to the crime scene😄. This can be true✅ for gaps as well. Time flies in summer🏝️, and Common and Exhaustion 🥱gaps fill as soon as a blink👁️. You may have heard👂🏻 that gaps are always filled, but this is not permanent🙅🏻‍♂️ and only a strong possibility🤏🏻. For example, Continuation 🏃🏻‍♂️ & Breakaway gaps usually take a long time⌛ to fill. But what if the gap doesn't close🤷🏻‍♂️? Go to any currency pair and examine👀 the recorded data🗄️; You will find that many gaps take a year or more to close. It is interesting😃 to know that the Japanese🎌 have another interpretation of the price gap. They use gaps as continuation and reversal trading patterns (as I said, I'll explain them in future posts🔜😉). It is interesting to know that the combination of gaps can create the Island reversal pattern. The Island pattern consists of two gaps ; One up⬆️ and one down⬇️. We will definitely✅ learn more about these patterns in the following posts🔜, but today we are only focusing on the gaps🧐. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Another thing I want to add➕ is about the Heikin-Ashi charts💹 that we learned about in the previous post🔙. Gaps are filtered❌ in Heikin-Ashi charts. As I said, in this chart, the average is displayed between two✌🏻 consecutive candles; even candlestick patterns are filtered❌. So, the type of chart is also essential👌🏻 for finding gaps. Well, I gave you the basic tips to identify these gaps🤏🏻, and now you can carefully look👀 for them in your charts💹. Practice this information for a bit, as I will be back soon🔜 with an educational post👨🏻‍🏫 on how to trade💰 with these gaps. If you have any questions❓, you can ask me💬. We will get acquainted with new clues🔎 in new posts, so until that day, take care of your knowledge📊 and increase it every day📈, because according to Kofi Anan: Knowledge is power💪🏻, and information is liberating. Education📚 is the beginning of progress in every society🏙️, in every family👨‍👩‍👧‍👧. I hope you become stronger🙌🏻 daily by using your knowledge, and I will also increase your progress by teaching you the introduction. I wish🙌🏻 you happiness, health😍, and success😎.
Editors' picks
Education
by pejman_zwin
42
Technical Analysis !!!👨‍🏫Hello, my trader friends🙋🏻. I want to tell you the story of Technical Analysis, its advantages & disadvantages. We're even gonna learn about its branches. Like any other science, Technical Analysis has come a long way, and it's still evolving. But why should we learn it and know it well?🤷🏻 When you're trading, you may be afraid or greedy. But how do professional traders control these two?🤔 Let me start with a simple example. If someone turns off the lights & challenges you in a new room, you will feel scared or lack confidence because you don't know that place. But if the challenge happens in your bedroom or home🏡, you'll feel more powerful 💪🏻 and confident because this environment is familiar & you can act better.✅ Fear is caused by the unknown. When you don't know this market, you can't get good results (or at least permanent good results). So follow this page to conquer all the peaks⛰️ of Technical Analysis together🙌🏻 and learn from A to Z of it. Also, I'm a fellow traveler on this route🛤️, not your tour guide. So, if you have any questions, ask me in the comments💬. My trader fellas, let's take one step👣 at a time because taking long and hurried steps will only hit you harder. I'm with you in all these steps🪜 & get started with the first type of market analysis. Technical Analysis is old. I mean, it's almost 300 years old📜, but it doesn't like to talk about its age, so we couldn't find the exact information about its birth date🗓️😑. Maybe it’s from Japan⛩️🎌 and was born in the 18th century, or perhaps its date of birth is in the Middle Ages. But there is some more information that I'm sure about. For example, in 1879, the Technical Analysis found a friend by the name of Chart📈, and they have not separated until today. Let's skip this story and be serious☺️. Technical analyzers believe that everything is in the Chart. In Technical Analysis, there is all the necessary information for trading, such as entry points, exit points, market volume, stock prices in the past and present, etc. (The Chart is a complete encyclopedia for Technical analyzers!!🤦🏻😶 ) There is another type of analysis that examines the available information about a stock (from the founder of a stock or company to the cost and income and even the company manager's records), called Fundamental. But the Technicalists say that even some of the Fundamental information is in the Chart! 😐 Overall, Technical and Fundamental are both complementary to each other and opposite to each other. But both are related to the Chart. (These three have a complicated relationship; I mean, there is a love triangle, so we should stay out of it !!🤫😂 ) Let's skip the joke. All these things are just like the gears⚙️ of a car, but it's not enough. You need to follow more rules in the market to pass the finish line🏁 with your trading car🏎️ . Don't worry cause I'm gonna tell you everything you need to know to win🏆 this trade racing with your strategy car. Now that we have learned a little about the history of Technical Analysis, it is better to learn about its contents. The price chart, our most important resource and tool in Technical Analysis, consist of the price-time, Charts, and Candles. But these candles🕯️ existed 100 years before bar and dot charts.📊📉 In 1700, a Japanese man named Huma realized that the price of rice depended on the emotions of traders in addition to supply and demand. Candles show these feelings with their colors. For example, the green candles🟢 show trust and good feelings among people who invested in a stock.🤑 But red candles🔴 indicate doubts or hopelessness of people about a stock, and they sell it.😞 I don't know why I remembered Moody's octopus doll🐙 :) But candles tell you the feelings of other traders just like these dolls. But only its color is not essential. Can you guess the other important factors about candles? I will tell you the rest of them soon.😉. Have you heard that history repeats itself? By looking carefully🧐 at the old charts, some creative people found that the prices behaved similarly to their past. They realized that the candles make interesting shapes next to each other, and they made these shapes repeatedly in different periods.🔁 They formed different geometric shapes and patterns & continued to make these shapes until today :) Let's accept that the Chart is creative and artistic! 🎨🖌️😊 For example, they found a shape called a Head & Shoulders Pattern. This type of pattern will cause a downward trend⤵️ in the Chart. I tried to find it & place it on someone's Head & Shoulders to remember it better. 😁 Many patterns can be found in any chart, and I have already taught the reversal patterns in my previous posts, But I want to go over all the patterns in detail again in the future, so let's dive into the other contents of Technical Analysis.👇 Using formulas, mathematical🧮 ratios, and advanced calculations, indicators were created that can generally show the market's present and past and give a relative opinion about the future (Please don't get the indicators wrong with magic 8 ball🎱 or Professor Dumbledore's wand✨. ) Let's be serious about it. Maybe you know that indicators depend on the two factors of time and place of price. In terms of time🕦, they are divided into two categories: leading and lagging. In terms of price movement💹, they are divided into three categories: trend indicators, oscillators, and volume indicators. The indicator that I made the above meme for is a leading oscillator. Now it’s time to go for the other various tools that are made by using numbers🔢 and people’s actions in the market. A person named Nelson Elliott made a useful tool, although, after his death, many people worked on this tool and improved it until today it reached us, but we are going to discuss it better in the following posts like the rest of the contents of Technical Analysis.😉 But I have to say Elliot believed that the market is not disordered and always repeats a repetitive cycle, and Eliot called these repeated movements waves. According to him, if you can perfectly identify the repeating patterns in the price, you can predict how the price will change (or not change) in the next phase. Eliot published his experiences and theories in a book called the waves principle, which I recommend if you want to get good information in this field; it's better to start from the origin of this theory. I think there is no better definition for the word "Wave" than sea waves🌊, and I tried to draw Elliot waves like sea waves reaching the shore. 🏖️ In the end, I want to say that whatever style of analysis you have or whatever type of Chart you use, in the future, this machine will not go the right way without following a series of principles. Suppose you have the best car in the world, but you neither know how to drive nor the rules. It can be guessed that you will either crash with someone or break the car💥. You should have risk management along with your trading system, and don't forget that no trading system is perfect.🙅🏻 It is better to try each method on demo accounts before making real trades. Of course, you can count on me and ask any questions you may have.🙂💭 In the following posts, I’ll talk more about the things that have been said and introduce you to good trading systems that can be obtained from any method. I'm by your side so that if you are a beginner, you can find your own way, and if you know the market, we can learn the basics of this market better & together🤝🏻. Wish you happiness, health & success guys🙋🏻.
Editors' picks
Education
by pejman_zwin
79
Bitcoin Historical Volatility new low Here we have the BTC historical Volatility Index in blue. Orange is the price of BTC. The teal line is the 50sma for volatility. At the bottom, I have the correlation coefficient (CC) for the volatility index with BTC. I have marked in green when the CC reaches above 0.50, and red when it crosses below -0.50. The fibonacci retracement is fairly arbitrary, but fits nicely between 0.25 and 1.00. In this article, I would like to discuss a little bit about volatility. It is often associated as going up when price goes down, but is a bit more specific in what it is telling us than simply being an inverse price indicator. Next, I’ll talk about the correlation coefficient. It is an excellent tool that every trader, and investor, should learn to use. Finally, I would like to examine some of the similarities between our recent all time low in this index, breaking the low 2018, which proceeded the infamous 2018 capitulation event. Volatility is always an interesting indicator, and is often used to indicate position risk for the asset it is being calculated for. Simply stated, it is a measure of how much the price of an asset moves in a particular period of time. However, it can be calculated a number of different ways. The most common is standard deviation, or how far price is from an average of the price over a recent period of time. The amount of time the data is taken from can also change how the volatility measure acts and how useful it is. More so, because it measures movement, and not so much direction, it can be difficult to use it in an accurate way, as correlation appears to be inconstant at face value. Historical volatility is calculated a little differently. And honestly, before reading a few papers on it for this essay, I had not realized that ‘historical’ referenced the calculation method as opposed to it being the history of the volatility. Historical, or realized, volatility is an estimation of the standard deviation of the price of returns over a particular period of time, in this case, 24 hours. It can also be calculated with a weighting for the trading volume over the calculation period. I have placed a 50ma (150 day moving average) to show a general range for average volatility, and we can see that MA tends to oscillate between 2.5 and 5.0. The correlation coefficient is an excellent indicator that allows you to see, and quantify, the correlation of your current chart with any other chart ticker. Here I have it set to the BLX all time price index for BTC. The higher it goes, the more correlated the movement of the 2 charts are, and below zero indicates an inverse correlation. When CC is near zero, the movements of the two charts are NOT correlated. One of the issues with volatility indexes is their accuracy can vary, and is sometime disputed. My goal in using the correlation coefficient with this index is to parse out when volatility is most useful to pay attention to, and in which direction. On this chart, we can see that when volatility spikes above 10, it is often correlated with big, sudden moves to the downside. However, not all of them are. By using the correlation coefficient, we can parse out the direction of volatility. When CC is in the green, and volatility increases, we see the price of bitcoin moving up, usually in an explosive manner. Likewise, inverse correlation is often showing us downwards movements. I find this a useful way to pull a little bit of the noise out of the volatility index. The previous all time low in volatility of 0.35 occurred on October 28th of 2018, and about sixteen days before the 2018 capitulation event began. About a week ago on Christmas day, we broke that low, going down to 0.34. Very low volatility tells us that price isn’t just moving sideways, but is pretty flat for the most part. And if you have been following bitcoin lately (bless your soul) you know flat and boring is kind of an understatement. The good news is that it’s likely going to get exciting soon. Volatility doesn’t seem to stay at or below 1.0 for very long, and seems to be either correlated, or inversely correlated with price within a few weeks to a month after reaching 1.0. An exception would be from August of 2019 to the pandemic crash in 2020. We can see some similarities in both volatility and the correlation coefficient between the time leading up to the 2018 capitulation event and our recent data in 2022. Price action is also fairly similar (flat and boring) with the exception that in 2018, the line chart had a small move down and back up during the flatness, while we had a small move up and then down earlier in December. Although, I doubt this really means anything. In 2018, we saw a 50% drop after price had already fallen around 70%. From top to bottom, the draw-down was just under 85%. Another 50% draw-down from where we are at the time of writing would take the price of bitcoin to just over $8,000. So what does this mean? Well, I can tell you, for sure, 100%, that I can not tell the future. I will be, however, watching my new chart very closely. But I would say it is likely we’ll be seeing something exciting, and it will probably be in January. Unfortunately, it looks like CC moves down just as fast as price, and as fast as volatility moves up during sudden, capitulation like events. However, Bitcoin always has a way of surprising everyone. If CC moves down to 0, and then puts in another local high in the next week, I would be a little spooked. If it keeps moving up to 0.50, it may be an interesting and unexpected move to the upside. Regardless of what happens, I would encourage everyone to try to understand volatility a little better than you already do, and use the correlation coefficient indicator. It is a simple, yet versatile tool that can be used to quantify data in a way that makes a trading strategy precise. Here’s to 2023, I wish you well, and thanks for reading.
BITMEX:BVOL24HEducation
by MaliceM13
5 IMPORTANT INDICATORS FOR BEGINNERSHi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Moving Average A moving average is a technical indicator that combines price points of an instrument over a specified time frame, and divides by the number of data points, to give you a single trend line. It is popular amongst traders because it can help to determine the direction of the current trend, while lessening the impact of random price spikes. A moving average will enable you to examine the levels of support and resistance, by analysing the previous movement of an asset’s price. It is a measure of change that trails the previous price action of an asset, assessing the history of market movements to determine possible future patterns. A moving average is primarily a lagging indicator, which makes it one of the most popular tools for technical analysis. Calculating an MA requires a certain amount of data, which can be a large quantity depending on the length of the moving average. For instance, a ten-day MA will require ten days of data, while a one-year MA will require 365 days’ worth. A 200-day period is a very commonly used timeframe for MA. The indicator is described as ‘moving’ because the introduction of new figures will replace old data points and ‘move’ the line on the chart. Bollinger Bands Bollinger Bands are typically plotted as three lines: An upper band A middle line A lower band The middle line of the indicator is a simple moving average (SMA). Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands. The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average). If you’re freaking out because you’re not familiar with standard deviations. Have no fear. The concept of standard deviation (SD) is just a measure of how spread out numbers are. If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands. If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands. Relative Strength Index ( RSI ) RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80. Note: During strong trends, the RSI may remain in overbought or oversold for extended periods. RSI also often forms chart patterns that may not show on the underlying price chart, such as double tops and bottoms and trend lines. Also, look for support or resistance on the RSI. In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance. These ranges will vary depending on the RSI settings and the strength of the security’s or market’s underlying trend. If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred. MACD(Moving Average Convergence Divergence) Moving average convergence divergence, or MACD, is one of the most popular tools or momentum indicators used in technical analysis. This was developed by Gerald Appel towards the end of 1970s. This indicator is used to understand the momentum and its directional strength by calculating the difference between two time period intervals, which are a collection of historical time series. In MACD, ‘moving averages’ of two separate time intervals are used (most often done on historical closing prices of a security), and a momentum oscillator line is arrived at by taking the difference of the two moving averages, which is also denoted as ‘divergence’. The simple rule for taking the two moving average is that one should be of shorter time period and the other longer time period. Generally, exponential moving averages (EMA) are considered for this purpose. Description: The main points for an MACD indicator are: a) Time period or interval – which the user can define. Commonly used time periods are: Short-term intervals – 3, 5, 7, 9, 11, 12, 14, 15-day intervals, but 9-day and 12-day durations are more popular Long-term intervals – 21, 26, 30, 45, 50, 90, 200-day intervals; 26-day & 50-day intervals are more popular b) Momentum oscillator line or divergence or MACD line – which can be simple plotting of ‘divergence’ or difference between two interval moving averages c) Signal Line – which is exponential moving average of divergence data e.g. 9-day EMA d) Normally a combination of 12-day and 26-day EMA of prices and 9-day EMA of divergence data is used, but these values can be changed depending on the trading goal and factors e) The above data is then plotted on a chart, where the X- axis is for time and Y-axis is price, to get MACD line, signal line and histogram for the difference between the MACD and signal line, which is shown below the X-axis Volume Volume, or trading volume, is the number of units traded in a market during a given time. It is a measurement of the number of individual units of an asset that changed hands during that period. Each transaction involves a buyer and a seller. When they reach an agreement at a specific price, the transaction is recorded by the facilitating exchange. This data is then used to calculate the trading volume. Trading volume can be denominated in any trading asset, such as stocks, bonds, fiat currencies or cryptocurrencies. For example, if Alice sells Bob 5 BNB for 20 USD each, the volume of that transaction can be either 100 USD, or 5 BNB, depending on what the trading volume is denominated in. This also means that for a stock, for example, the trading volume refers to the number of individual stocks that were traded during the measured period. So if 100 shares are traded in one trading day, the daily volume of the stock is 100 shares. Traders tend to use the volume indicator as an attempt to gain a better understanding of the strength of a given trend. If volatility in price is accompanied by high trading volume, it may be said that the price move has more validity. Conversely, if a price move is accompanied by low trading volume, it may indicate weakness of the underlying trend. Price levels with historically high volume can also give traders an indication regarding where the best entry and exit points could be located for a specific trade setup. Typically, a rising market should see increasing volume, indicating continuous buyer interest to keep pushing prices higher. Increasing volume in a downtrend may indicate increasing sell pressure. Reversals, exhaustion moves, and sharp changes in price direction are often accompanied by a high volume spike, as these tend to be the times when the highest amount of buyers and sellers are active in the market. Volume indicators often also incorporate a moving average, measuring the volume of the candles in a given period and producing an average. This gives traders an additional tool to gauge the strength of the current market trend. If you like our content, please feel free to support our page with a like, comment & follow for future educational ideas and trading setups.
Education
by CRYPTOMOJO_TA
2
Golden Advice from Takashi Kotegawa🎥Takashi Kotegawa turned around $12K to $200M in just 8 years and reached a net worth of a whopping $ 1.8B from trading in his bedroom🍻 When I met Stocks Genius Takashi a few years ago, he gave me one of the best trading advice👇🏻 Trade with small size while learning Only risk 1% of your account size each trade Master one setup Find a solid mentor Journal your trades and study your data Follow your plan consistently regardless of the outcome Take Trading decisions as unemotionally as possible Focus on these points, instead of focusing on goals like: I want to make 5K or 10K a month🍻
Education
by FortuneAI
How to differentiate a fake-out from an actual break-outHappy Friday, sorcerers. Welcome on another educational post by Investroy! The trading and investing industry is a difficult one to succeed in as it has various complex details that you need to dig into both from technical and psychological perspectives. Predicting the price movement and understanding the logic behind it may be challenging at first. But as time passes and you gain experience, you understand the science behind price action and make more logical decisions. Today, we will talk about a rather puzzling issue faced by many beginning and experienced traders: the theme of differentiating fake price movements from real ones. Although, it is not always possible to separate the two to the full extent, it is feasible to build a plan around it and stick to it on a consistent basis. A fake-out is a failed attempt of the price to break above/below a key zone. Very often, it is associated with liquidity grabs and Stop Loss hunts. To demonstrate, looking at the illustration pictured on the chart, you can see how the price attempts to continue its bullish moves, but fakes out from the sideways-moving range and re-enters the borders of it instead. On the contrary, a breakout happens when price successfully penetrates a key level and continues its impulsive moves in the same direction Now, the question is: how to distinguish a real breakout from a fake one? Firstly, it has to be kept in mind that what goes up, must come down. In trading terms, after an impulsive move, a correctional one should come; after a breakout, a re-test should happen before continuing impulses. In order to identify whether a breakout is a fake or a real one, we should always look for a re-test of the penetrated zone after a break is completed. However, you have to keep in mind that it is not a 100% fact that a re-test will happen every time. Sometimes, breakouts will be so impulsive that price will not retrace back to re-test a penetrated zone. Nothing is 100% accurate in trading. Not every breakout will lead to a re-test before impulsive continuations. Not every fake breakout will seem like a fake-out at first. However, waiting for a re-test of a broken zone is a good way to evade fake breakouts and capture high risk-to-reward trades and opportunities. To conclude, if you want to make sure you don’t get faked out and liquidated, always wait for a re-test of a penetrated level before forming biases and executing positions.
BITSTAMP:BTCUSDEducation
by Investroy
9
Do not get caught in this trap!Good time of the day, friends! Rushing into trades is definitely among the top #3 common mistakes done by relatively newer market participants who we would call early sellers in this context. The chart/infographic above is pretty self explanatory, but let’s still cover some aspects of it by considering a following scenario: Market was moving sideways the whole week, you almost lost hope to finish the month in profits and now you see the up-trending channel with already 2 lower trend-line touches. You instantly get excited and set a long position in the area of a third touch. Well, next thing you know it plummets right past through it. Lesson learned, but what can be done to avoid that? Well, first of all “look for multiple confluences”. Does the third touch coincide with a potential support zone? If not, that already weakens the point. Was there any signs of bottom forming and reversal? Another strike if not. Did it coincide with any Fibonacci levels, for instance? No? You’re out. Going over mistakes is easy, as there are always so many things that can go wrong, but what’s an alternative then, you may ask. On the chart above, we also indicated a point where we would consider entering the mentioned trade. Patient execution with a proper Risk-Reward is a way to do it. Hope this helps, and tune in for more content for us!
BITSTAMP:BTCUSDEducation
by Investroy
12
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
Gut feeling in trading.I hear many traders talking about gut feeling, especially when referring to very good traders. I hear them saying that you will, at some point, feel what the market will do next. Many explain it as a sixth sense or cannot it explain it at all. I say to them the explanation behind is a much simpler one. Gut feeling in trading, in most of the cases, is nothing else but subconscious pattern recognition. There is nothing magic here, it is simply related to how the human brain works in day-to-day life. The trader looks at his screen for thousands of hours. Every day, he tries to analyze the price movements, while the brain stores the information in an abstract way into neural maps . Millions of neurons fire and wire together and create complex memory banks which include associated emotional responses. Day after day after day, these memory banks are reinforced and restructured until the neural maps are hardwired. This process is all subconscious. The part which is even more interesting is the way the human brain retrieves the needed information stored in those complex neural maps . This mechanism is also done subconsciously and this is why many label it as “gut feeling”. So, when a trader instantaneously “feels”, in an apparently strange way, what he should do when he sees a particular market event, his brain has subconsciously identified a store pattern. You may ask yourself: So what? What difference does it make knowing this? I say it makes. When you understand how your brain works you should also realize that you have at your disposal an extraordinary working instrument, but this will not guarantee your success by itself. Those neural maps need quality data. Programmers are accounted with the saying “garbage in garbage out”. It’s the same with the human brain. If you don’t put the true intellectual effort in your day to day market observations, if you don’t approach what you see from multiple angles, if you don’t analyze your own emotional reactions, then your neural maps will be built on superficial data. You will only reinforce all sorts of ineffective pattern recognition processes, no matter how long you stare at the screens. By contrast, if you do it right, your “gut feeling” will evolve and become very valuable. Evolving as a trader is not only a function of how much time you spend trying. What really matters is what you are really doing and how you are doing it. This explains why so many traders cannot become profitable even after years of trying. They are caught in inefficient and superficial ways of looking at the market. So many retail traders rely exclusively on technical patterns. They don’t understand what really moves the markets and how those patterns are formed. They spend years and years switching from one technical indicator to another, without realizing they are unconsciously accumulating only superficial data. Some realize the trap … most don’t
OANDA:XAUUSDEducation
by Mihai_Iacob
17
Exit Strategies to Consider on Each Trade: a Complete GuideEnter, monitor, and exit are three vital steps to follow while trading. While most traders focus on how and when they can enter a particular setup, they pay less attention to their exit strategy. Today, we are gonna look into some popular exit strategies that we utilise in our personal trading. 1) Breakeven closure When the price is moving in our direction and is already a few key zones away from the entry zone, we make the trade risk-free by moving the Stop Loss level to the price of entry. If the Stop Loss gets hit, we exit the trade with neither a gain nor a loss. 2) Manual Closure In the process of monitoring, if the price does not play out according to our plan, we tend to make quick decision and exit the trade earlier than planned. 3) Target Profit We set a Take Profit (TP) order that closes the transaction as soon as it gets triggered. 4) Stop Loss
 We set a Stop Loss (SL) order that closes the transaction as soon as it gets triggered.
BITSTAMP:BTCUSDEducation
by Investroy
16
Elliott Wave DegreesRalph Nelson Elliott acknowledged 9 degrees of waves from the Grand Super Cycle degree which is found in weekly and monthly time frame to the Sub-minute degree which is found in the hourly time frame. He labelled them as below mentioned. 1 Grand Super Cycle 2 Super Cycle 3 Cycle 4 Primary 5 Intermediate 6 Minor 7 Minute 8 Minuette 9 Sub-Minuette It is a good understanding to start applying a wave count to a market from higher degree to all the way lower degree which you want to trade. you need to first learn about the labeling of wave degrees. Elliott Wave is a very helpful to understand the charts of any assets. the waves from the main degree are subdivided into intermediate waves which also subdivided into minor waves and the minor waves are also subdivided into minutes waves and then to sub-minutte waves, each degree of waves consists of one full cycle of motive and corrective waves. each degree of trend is labelled with a different style of label for a better understanding. If you want to trade in 4H so then you will look for and count the monthly, weekly and the daily charts is will. Hope you understand the concept of wave degrees.
Education
by TheLoserMan
How to calculate which lot size to useAs mentioned several times before, we risk 1% of our total trading capital per transaction. In simple terms, we risk 1 egg out of the 100 that we have in the basket in an attempt to get more eggs. However, even though the average price mark where we place our Stop Loss is 30-60 pips away from the entry price, SL levels set differ from one trade to another, and different currency pairs have various differences in pricing (major pairs have small differences for the most part, while minor and cross-pairs have big gaps in pricing). This article will demonstrate 3 random scenarios and illustrate which lot sizing is needed to be used based on the Stop Loss set and the percentage of the total capital risked while taking into account the size of the trading account. All numbers are imaginary in order to diversify the visualisation of the portrayed examples and give a better understanding of the case. Enjoy the idea and don't forget to drop your questions in the comment box below!
Editors' picks
BITSTAMP:BTCUSDEducation
by Investroy
43