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XAUUSD Strategy to analyze gold price trends todayGold prices (XAU/USD) are on a steady trend, positioned for their best year in the past three years, driven by various global economic factors and geopolitical tensions. Although spot gold fell slightly early Wednesday, it remained near a two-week high. Gold futures prices, in turn, are rising, making them likely to post strong annual gains. This performance reflects gold's enduring appeal in uncertain times. It broke above the 2067.00 minor resistance level, which could now act as new support. The next key resistance level is 2149.00. Staying above the key support level of 1987.00 reinforces this bullish sentiment.
FXOPEN:XAUUSDLong
by NicoTradingMaster
XAUUSD: Gold technical analysis todayGold, the longtime safe-haven asset, experienced a notable rally, surpassing the psychological barrier of $2,060 an ounce on Tuesday. This increase is likely due to a combination of factors, with market participants closely monitoring developments in the US economy, especially with regard to inflation and possible cuts. Federal Reserve interest rate cuts. From a technical standpoint, . The previous resistance area that limited gains at 2050-2060 has now turned into support. I recommend looking for buying opportunities on a pullback to retest the previously broken resistance level, which is also confluent with the 61.8% Fibonacci retracement and the ascending trendline acts as cross support for gold. I see resistance around 2090 as the first potential target and also a test of the all-time high
OANDA:XAUUSDLong
by NicoTradingMaster
GBPUSD Bullish Breakout: A breach of the 1.2500 support could le Pound-to-dollar exchange rate faces headwinds as US dollar strengthens on inflation data in November. Report reveals consumer price index (CPI) up 0.1% and a 0.3% increase in the core CPI, has caused the market to reassess expectations for an impending rate cut. As the Federal Reserve convenes to discuss its next policy decision, analysts anticipate an effort by Chairman Powell to calm speculation and maintain a resilient economic outlook. Despite the initial rise in the Dollar, a detailed examination of the inflation report revealed underlying weakness, leading to a nuanced view of the trajectory of interest rates. Meanwhile, technical analysis points to a key moment at the 1.2500 support level, with the potential for significant volatility in either direction. The US dollar made a comeback following the release of November inflation data, surprising markets with a monthly CPI increase of 0.1%. This increase, compared to October's steady reading and market expectations, has changed sentiment towards the greenback. Core CPI, at 0.3% m/m, further reinforces the view of rapidly increasing price pressures.
Long
by NicoTradingMaster
EURUSD :Analyze market strategies todayThe Euro continues to strengthen as Martins Kazaks, member of the Governing Council of the European Central Bank (ECB), highlighted the need to maintain current interest rates over the long term. However, he suggested that the first interest rate cut could materialize around mid-2024. This statement strengthened the Euro's position as the commitment to maintain interest rates was seen as a maintenance measure. the power of money. From the chart below, we can see that EUR/USD has moved away from the 200 Day Moving Average, which shows that the pair is currently trending very strongly, so it is best to focus on buying and not sold. Selling would be a higher risk counter-trend method. EUR/USD has a key resistance level at 1.05000. Personally, I think EUR/USD will head towards that price level before any pullback.
Long
by NicoTradingMaster
Gold will likely decrease then increase againFrom a technical standpoint, gold's recent breakout above a week-long consolidative trading range, approximately around $2,048 , signals a favorable environment for bullish traders. Notably, the occurrence of a golden cross, where the 50-day Simple Moving Average (SMA) crossed above the 200-day SMA, adds weight to the positive outlook. This technical setup positions gold for potential further gains, with the $2,090 zone emerging as the next relevant hurdle. Should the momentum persist, there is a distinct possibility of gold reclaiming the psychologically significant $2,100 mark. However, the path to glory is not without its challenges. A reversal below the aforementioned trading range resistance could lead to a retracement, with support levels at $2,026 and $2,017. A decisive break below the latter might trigger technical selling, leaving gold vulnerable to a more pronounced decline towards the psychological support at $2,000.
TVC:GOLDLong
by carefulLion07pab
TRADING PSYCHOLOGY: HOW TO OVERCOME YOURSELF?Hello forex traders! How much money have you lost because of emotions? How many losing trades have you closed because they went negative and it annoyed you? And how many times did the currency immediately reversed after you recorded a loss? As we all know up to 80% of success in forex trading depends on psychology. Money management is of great importance and only then strategy. Not everyone realizes it, but this is the harsh reality. How to defeat yourself? How to remain calm in any situation? How to protect yourself from negative emotions that cloud your mind? The Impact Of Emotions On Analysis When you are sitting in losses, you do not pay attention to what is happening on the chart. That is, your brain rejects the signals that indicate that the price will continue to go against you. On the contrary, your brain tries to convince you that the price is about to turn around, which, of course, does not happen. If you close the position and look at the market with a clear eye, you will realize that the situation in the market is not the same as it was in your head a moment ago. This distraction in the form of a minus on the position affects your attentiveness, and you do not notice the obvious. There is such a thing as analysis paralysis. That is, when some event literally knocks you out of the rut, after which you cannot adequately perceive the situation. This can be avoided with the help of reasonable sufficiency. That is, you stop looking for the perfect solution. Instead, you make the most correct and simple decision to close a losing position. Also, traders are often afraid of losing profit. But then again, how many times have you held a losing trade, hoping for a reversal, and it still went against you? It is the same with profitable trades. There is a constant feeling that the price is about to turn around and all the profit will be lost. As an option, in this case you can use a trailing stop. Then you will in any case know that in case of price reversal, the profit will not be lost. In principle, the cure for the influence of any emotions on the analysis is correct money management. That is, you just need to simply reduce your trading lot. The goal is to place such a lot, which would not cause you strong emotions. Until you are used to being disciplined in every situation, it is better to trade at a lot that you could forget about. For example, you could open a trade on the daily chart and forget about it (accidentally or naturally). At the very initial stages this approach is justified, as no open positions will not prevent you from analyzing the situation competently. At the same time, the very fact of a negative trade will not knock you out of your game. You Are Not Perfect Remember, you are not perfect. There is no person who, like a robot, does not get nervous about trades, who performs absolutely perfect trading and never makes mistakes anywhere and ever. All of us make mistakes, it is normal, and it should be understood. Let's say you read that you need to reduce the lot, not to be emotional, and you still make mistakes. The thought that "I am smarter" does not leave your head. But, in general, if you read the biographies of successful people in other areas, you will learn that they also made mistakes. Often, a person needs to make all possible mistakes only in order not to make them later. So, to speak, we learn from our mistakes. The average person believes that he is smarter than 80% of people. At the same time, there are always excuses for the question "why are you so smart, but so poor?" - something prevents you, you are too old, too young, your wife/husband prevents you, you were born in the wrong country and so on. Almost everyone thinks they are, so you don't have to worry, you are not the smartest. The Vicious Circle Of A Beginner Trader Searching for a system: you find a strategy that appeals to you. Trading: as a rule, this period lasts 1-2 days, at best a week if. First Losses: taking your first losses. It's usually down to the first few trades. Anger: naturally, there is a feeling of being cheated as the system did not deliver the promised profits; Blame: the system does not work; forex is a scam and the author of the system is a scammer. Someone is necessarily to blame, for example, the broker that closed the position a point later, but not the trader himself. And everything starts all over again. Exit From The Circle: Finding a system. Backtesting from the beginning to the end: the strategy should be either tested manually on the history or in a tester if the strategy is automatic. Absolute confidence in the strategy: when you have fully tested the strategy, know all the statistics, know all the pros and cons, you gain confidence in the chosen strategy. Good money management: further, you add a good money management. Now it is "your" trading strategy: the strategy should be completely yours. If you are not comfortable holding positions for 3-4 days, move to a smaller timeframe. Or, on the contrary, if you are too lazy to open trades often, choose a larger TF. That is, the strategy should suit your temperament and be customized for you. In general, all these pieces of the mosaic lead to the exit from the enchanted circle. You find a system, then trade, adequately perceiving losses. Accordingly, you further work with this system, solve problems with emotions, inputs and outputs, improve, tune-up and so on. A Little Bit About Our Brain The fact is that our brain compared to a computer has a very large hard disk, but a very small amount of RAM. Do you know the feeling when the brain is so overloaded that absolutely no information, even seemingly simple ones, can be stored in it? Of course, we cannot expand this memory, but we can control the number of simultaneously opened applications/programs. That is, we need to fight the so-called white noise. Remove social networks Facebook, messengers, YouTube, checking mail, and so on. This is all white noise that clogs your brain and prevents you from working adequately. There are many opponents and many supporters of meditation. Meditation is, in fact, nothing more than to lie/sit under calm music and go into a certain semi-trance state. Humans periodically need three states: being awake, sleep and a trance state. Usually after a certain mental effort, you start to get very dumb without doing any useful work. This is the brain signaling that you are lacking the trance state. 30 minutes of trance a day is quite enough. Do Not Set Goals In Trading When you set yourself a specific goal, for example, to make 1% every day it doesn't work. You start looking for non-existent trades again, clouding your brain. Therefore, you should not set profit targets. On the other hand, it is possible and even necessary to set loss limits! Sometimes, there is a sudden unreasonable desire to open a trade. Although the system did not give a signal. As a way out of this situation, you can try to open two accounts, one for adequate trading, where you will open trades clearly according to the rules of the system. Another smaller one for aggressive trading, when you have an irresistible desire to open a trade. If it really "works", you will still get profit, though not so big. Bottom Line As you can see, strategy is often not the deciding factor in trading. Psychology is what ultimately makes you act in one way or another. It takes the right approach and practice to be unstoppable in trading. The rest comes with experience over time.
Education
by Lingrid
11
TILT IN TRADINGAs it is known, a trader on the market is under constant pressure, the market is a constant process, in fact it is a river, and a trader should dive in and out of it to earn money. It is difficult to stay on the shore, when there is an endless river of money flowing nearby, hence the constant desire, well and of course stress, because the market gives unlimited opportunities at the same risk. Everyone knows that the two worst emotions for a trader are fear and greed, although it is only fear, greed is one of the types of fear (fear of losing profit). Fear breeds many related behaviors that only bring financial pain and frustration in trading. Let's look at some of the groups of emotions that fear gives rise to. TILT IN TRADING What is tilt? Tilt comes to us from poker; it means the inability to perform reasonable actions while being at the mercy of emotions. Tilt is not a one-time process. First, there must be preconditions for its occurrence. Most often, it is a series of unsuccessful trades in a short period of time (scalping), after which the trader starts to lose control and, trying to recoup losses, goes all the way, forgetting both the rules of trading strategy and money management rules. The most interesting thing is that the same thing can happen during a series of profitable trades, i.e., tilt can be earned at any time; it is only necessary to let go of some emotion for some time. The worst thing (except for the loss of money, of course) is the acquisition of bad emotional habits, from which it is very difficult to get rid. Tilt can occur even on expectations, for example, the price is about to approach the level of trade open, and suddenly it turns around. Your finger froze over the buy/sell button and then it's over! And waiting for the next approach turns into a tilt. Market factors also provoke tilt in a trader, for example, increase of volatility during news, the price flies back and forth like crazy and pushes the trader to open a trade. SO HOW DO YOU AVOID TILT? The answer to this question is always right under our noses. It is discipline, and only discipline. The rules of the trading system and the rules of money management, and as few emotions as possible. Do not trade in an agitated, tired, and painful state; wait it out; the market will not run away from you. With the emergence of the crypto market, new concepts have appeared, but they already relate to the psychological manipulation of traders, and although they are based on the same fear, we will try to describe them separately. Besides, these concepts have always been there and apply to all kinds of markets, not just the cryptocurrency market. FOMO & FUD cycle FOMO (Fear of missing out) information throwing in the bright prospects of some crypto coin or crypto market as a whole, in order to provoke the purchase, often and densely along with Pump of a particular crypto coin. FUD (fear, uncertainty, and doubt) is a negative information dump to provoke sales. All the same, only sales and DUMP (sharp sale of crypto-asset), the purpose is to reset the price of the crypto asset, again, to make it attractive to the investor. No, what a concern for potential investors! Both pump and dump are reverse actions, and the goal is the same attractiveness for investing! The only difference is the timing. The topic of psychology in trading is big; we covered only a couple of psychological aspects: one is the trader's problem, and the other is the trader's provocation by the market and information space. In general, psychology accounts for 80% of all trading. You can memorize techniques, but it is very difficult to understand and change yourself in terms of psychology. To understand how the "crowd" acts, what will be the reaction of "big money"? All this is what you should strive for in your search for profit. Therefore, the trader's "holy grail" is patience, self-discipline, and as few emotions as possible. If you feel that you are about to lose it, just leave the terminal and go to your family, to the gym, or to nature. Do not sit at the terminal on an emotional tilt. Work on your emotions and you will be profitable.
Education
by DeGRAM
1
XAUUSD Today's gold strategy I predictGold prices yesterday during the Asian session mainly fluctuated in a narrow range. At the start of the US market, gold prices quickly surged amid a weakening dollar index and after a close until 2047. However, under pressure from hawkish theory and strong economic data strong, gold prices fell slightly, eventually closing. a small white body. Gold prices are currently at the upper edge of the volatility range over the past 2 weeks, where temporary resistance has been encountered. Back to technical analysis, the daily uptrend is still clear and the weakness is that the MACD signal is at high levels; The 1-hour candle stands above the 60-day moving average, but due to the lack of a key intraday chart, it will be aligned to the 60-day moving average. The following focus is on support for 2028 and further focus on support for 2015; Today's trading range may still be called 2015-2048, you can still buy low and sell high within the range, and progressives may refer to the smaller range 2028-2040.
FXOPEN:XAUUSDShort
by NicoTradingMaster
XAUUSD D1 - Long SignalIn accordance with the aforementioned analysis of the dollar index, we are poised for an impending descent, targeting the elusive $2000 per ounce mark—a significant psychological threshold that has remained elusive for substantial trading conviction thus far. Our objective is to bridge the gap and reach the lofty heights of the $2150 per ounce level observed on December 4th. Nevertheless, it is imperative that we exercise prudence as we navigate through the holiday season. The voluminous wick that materialised on the 4th of December could resurface over the next couple of weeks, warranting a cautious approach in our trading endeavours.
FX:XAUUSDLong
by Trade_Simple_FX
1
BROADENING PATTERNSBroadening patterns are very unstable from a technical point of view. They are usually formed after the trend has already gained strength. It looks as if the battle between buyers and sellers is out of control, as the price starts to move in a wider and wider range. The situation is exactly the opposite of triangles, where the price shrinks to an extremely balanced state before the breakout. Broadening patterns are formed when three or more price waves expand so much that their highs and lows can be connected by two expanding trend lines. Just as there are two types of triangles, there are two types of broadening patterns. They are called the conventional (classic) pattern and the rectangular pattern. The last one can also be called an expanding pattern with a flat top or flat bottom. Conventional Broadening Patterns It consists of three trends where each high is higher than the previous high. The highs are separated by two lows, where the second is lower than the first. These patterns are more likely to indicate the completion of a rising market, rather than a breakout higher. The conventional broadening top is sometimes called an inverse triangle, because that is exactly what they are. In general, some patterns are just perfect for trading, as they mark by default the places where to place stops with low risks. A rectangular triangle broken close to the top is just a good example. But conventional broadening tops, however, alas, do not have this feature. Such patterns are extremely difficult to detect before the final top is formed. Besides, there is no obvious support line, the breakdown of which would serve as a convenient tool for us. The furious, emotional reaction of price and volumes reflects chaos and complicates the work with such patterns. Of course, it is not easy to determine the breakout in such conditions, but if the pattern is more or less symmetrical, there are options. It is a decisive movement under the descending trend line, which connects both lows or even a movement below the second low, which will serve as a warning of a future decline. Targets are not easy to determine either, however, the volatile price reaction during the extension indicates that the distribution phase is almost complete. Successful completion of such a pattern is usually followed by a proportional fall in price. But the rectangular expanding patterns, which we will talk about next, are another example.   Rectangular Broadening Patterns Most simply defined broadening patterns with a flat top or bottom are the easiest to identify. This is called a rectangular broadening pattern. Since the very concept of wild price movements implies an extreme degree of emotional involvement, it is difficult to add volume here. At market tops, though, volume is usually quite significant.These patterns also resemble a head and shoulders pattern, except that the "head" in an broadening pattern is the last element of the pattern. In this case, the bearish signal is activated with a decisive downward breakdown of the pattern. A broadening pattern with a flat top is an accumulation pattern, and it is important that the volumes grow on the breakdown. They are essentially head and shoulders in a situation so bearish (or bullish) that price simply does not have time to form a right shoulder. Psychological Perspective Of The Broadening Patterns From a psychological perspective, expanding patterns can be seen as a reflection of the changing attitudes and beliefs of market participants. As the pattern widens, it suggests that there is increasing disagreement among traders about the direction of the market. This can lead to greater volatility and larger price swings as different groups of traders try to push the market in their preferred direction. At the same time, broadening patterns can also be seen as a sign of indecision and uncertainty. Traders may be hesitant to commit to a particular direction, leading to a widening range of prices as buyers and sellers struggle to gain control. This can create a sense of tension and anxiety among traders as they try to navigate an increasingly complex and unpredictable market. Target Points To determine where the price can reach, you need to take the distance from the maximum (minimum) of the pattern and its horizontal line. Then the same distance is set aside in the direction of the breakout. Rectangular expanding patterns often show pullbacks like any other patterns. Since these patterns are very emotional and unstable, these pullbacks can be sharp and volatile. Fortunately, they don't live very long. In this case, the downside price target was reached on a downside breakout. Generally, a subsequent sharp reversal is a rare thing, as the price usually goes much farther than the price target. Failed Broadening Patterns Occasionally, such patterns fail to produce the expected result. Unfortunately, there is no super-reliable way to recognize that the pattern has failed. This will only become obvious when a small bottom or price top is formed after the breakout. However, we can protect ourselves from such situations by using the 50% rule, in which we measure half of the final price reaction in a pattern for a rise or fall. Which is shown by the dotted line, once reached, the pattern is considered a failure. Of course, sometimes there are patterns that work even after breaking through the 50% zone with a subsequent pullback. However, breaking such a line with a strong trend in most cases indicates that the pattern has failed. In any case, carefully use the patterns that predict the price movement in the direction of the trend that was previously the main one. In Summary Broadening patterns are a trading range after a trend, between two extended trend lines. At least two touches are needed. It will take imagination to draw, as the touches are not always accurate. However, this is true for many other patterns as well. The maximum depth of the pattern is put off in the direction of the breakout. Since these are very dynamic and volatile patterns, pullbacks are usually short but very fast. False breakout is difficult to detect: the signal can be a price rise above the previous low/maximum or a pullback of more than 50% against the breakout. Overall, broadening patterns can be a useful tool for traders looking to understand the psychology of the market. By analyzing these patterns and the underlying factors that are driving them, we can gain valuable insights into the attitudes and beliefs of other market participants. This can help to make more informed trading decisions and better manage their risk in a rapidly changing market environment. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
13
TIMING IS EVERYTHINGWhat is timing in simple words? Timing is the time when you SHOULD trade the market. It is very desirable to trade on the market when the market is active, i.e. there is increased volatility, which in turn is associated with any time factors affecting the activity of traders. Timing must be taken into account by almost any trading system, starting from scalping and ending with positional trading, meaning that timing is not the main period of displaying your chart, but the most effective for trading time that you spend in front of the screen. Even if you trade on a weekly chart, your timing will be Friday evening which is the closing time of the weekly candle. 🕕 TYPES OF TIMINGS So, the basic timings: • Intraday • By type of trading instrument • News • On days of the week • Periods (month / quarter / season) 📊 INTRADAY TIMINGS Intraday timings on Forex are related to the inclusion of the work of exchanges (sessions) in different parts of the world due to time zones. So-called European session, American and Asian, so in the language of traders denotes trading during the work of exchanges located in different time zones. European: from 07:00 - 16:00 (GMT). American: from 13:00 - 21:00 (GMT). Pacific: from 20:00 - 05:00(GMT). Asian: 00:00 -09:00(GMT). Although there are 4 sessions, but only 3 of them are taken into account, as the Pacific Exchange has a very small influence on the market due to small volumes. The most active are Europe and America, often going in opposition to each other, so intraday traders should take into account the time of inclusion of America, as it can confuse all the cards and turn intraday trends. Well, at night the harsh Japanese samurai come and make their own contribution and confusion. A lot of intraday systems are built precisely on turning on or off this or that stock exchange in the work, picking up the nuances of their influence. Intraday timings are also present on stock markets, the calmest time is the so-called evening session. But the mass introduction of trading bots even here can try to shake up the market and lure many traders into it. 📊 BY TYPE OF TRADING INSTRUMENT There are timings by type of trading instruments. For example, gold and oil are better to trade on the American session, and the main volatile pairs EURUSD and GBPUSD are better to trade in the European session. Of course, it is all rather conditional, but nevertheless, it is necessary to take into account. 📰 NEWS TIMINGS Everything is simple here. If it is scalping or intraday trading, then hands off the keyboard because the market shakes during the release of important news. But if you like to trade specifically on the news, then it's time, the most timing. 📅 TIMING BY DAYS OF THE WEEK It has long been noted that the market is volatile differently on different days of the week: Monday is sluggish and unclear, often markets open with gaps. Tuesday all are awake, pumped up and the market goes and runs. Wednesday and Thursday are active too, but on Thursday there are bank reports and, you can say, the banks, having made money, start to aim somewhere. Friday is the day of losing trades. Very often unpredictable in terms of the previous week's movement, on Friday short-term traders close their positions, which also brings its own turmoil. 📆 TIMING THAT OCCURS DURING A SPECIFIC PERIOD OF THE MONTH For example, this overlaps with news timing, non-farm peyrols (NFP), the economic news released every first Friday of the month. It is the second most important news after GDP. Be sure to watch the economic news release calendar. The impact of this news may well be spread out over the long term. 💼 QUARTERLY TIMINGS Directly related to the quarterly closings of futures contracts in stock markets such as the CME. Futures and currency pairs with the same name are considered to influence each other. This can also include the release of quarterly reports of various companies that have their shares on stock exchanges. 🍂 SEASONAL TIMINGS This is, for example, the New Year and Christmas. Also, the financial new year in Japan, which for some reason occurs in March, and in the U.S. in October. And futures on the same coffee, cotton and sugar should be considered taking into account the time of the year. In general, timing is one of the most important factors that must be taken into account in your trading system, starting from the stage of its development. When tracking trading statistics, be sure to look at what time your trading system is most effective and whether it is possible, for example, to increase risk at that time or not to trade at other ineffective times at all.
Education
by DeGRAM
1
HOW TO TRADE GAPSA gap is a seemingly simple thing. It is such a period when the price minimum in a certain trading period is higher than the maximum in the previous period or vice versa - the maximum is lower than the minimum from the previous period. Gaps are not displayed on line charts or charts with closing prices, so they can only be seen on charts with bars or Japanese candlesticks. There they will look like an empty vertical space between trading periods, and this is the zone of extremely heightened emotions. They are usually formed after the trading session, during the overnight period, when the market is digesting fresh negative or positive news. On daily charts gaps are much more common than on weekly charts, because on a weekly chart a gap can appear only between Fridays. Monthly gaps are rare and such gaps on the chart can be formed only between monthly price ranges. The easiest way to find a gap on an intraday chart is to open a trading session. Gaps are an important emotional zone Where gaps form on a chart is an important, potential reversal zone because emotions are running high. As charts are a reflection of the psychological state of market participants. Consequently, when price returns to the area of the previous gap, its upper and lower points become important support and resistance zones where short-term trends can briefly reverse. Why most gaps close from a psychological perspective A gap close is filled when price reverses and rolls back to the full range of the gap, thus "closing" it. On a daily chart it sometimes takes several days, sometimes it takes weeks or even months. And in some rare cases this process may not be completed at all. "The market does not tolerate a void" In other words, gaps are filled, sooner or later, almost always. Of course, there are exceptions, but they are quite rare. The psychology of this process is quite simple. It can take months and sometimes years to fill the gap in the market. That is why you should not create a trading system only on the assumption that the gap will be filled tomorrow. In most cases, the market will try to close the gap, but it often ends up with a partial closing attempt. Why do gaps close at all? Simply, like any emotional phenomenon, they reflect the psychology of market participants: excessive fear or greed, for example, depending on the direction of the trend. The decision to buy or sell at any price by itself is not objective or rational. Consequently, when the market cools down, people will begin to retroactively reconsider their decisions. Which will lead to either closing the gap or trying to close it at least partially. Gaps should be treated with respect, but do not overestimate their importance. If a gap appeared on the formation of a price pattern, it is a general or gap zone. They close quickly and are not particularly important from the technical point of view. Therefore, we are much more interested in three other types of gaps, strong ones, which we will consider: Breakout gaps Continuation gaps Exhaustion gaps Breakout Gaps A breakout gap is created when price breaks a price pattern or any other trading range. In general, if a gap appears, it emphasizes the bearish or bullish nature of the breakout, depending on its direction. Nevertheless, it is highly desirable that an upward breakout be accompanied by higher volumes. However, if the gap breaks down, it usually does not require high volumes. Not every gap on a breakout is important, because as we know there is no such thing as a "sure thing" in technical analysis. However, a gap that is formed on a breakout is more important than one that appears by itself somewhere on the chart. There is a danger of buying on a breakout gap because you will get right into the epicenter of the market storm. The desire to buy at any price will in most cases end in disappointment when the price inevitably rolls back down after the emotions have subsided. Breakout gaps that are formed in the early stages of a major bullish trend are much more reliable than those that are formed after a long rise in price. If a breakout gap is formed at the end of a bull market, the chances of emotional burnout increase. Bulls sell out everything and do not buy back the asset on pullbacks, they are not interested in a low price anymore. Continuation gaps Continuation gaps occur when the price is falling or rising in a straight line, when the price is flying fast and emotions are running high. Sometimes such gaps are closed very quickly, literally within a day. Sometimes they are open much longer and do not close until the market shows a strong or intermediate reversal in the opposite direction from the main trend. The same trend that created such a gap. Such a gap is usually formed between the previous breakout, in the middle of the price movement that follows it. That is why such gaps are also called measuring gaps. It is not uncommon for one trend to have several such gaps at once. Continuation gaps are much more common in weak stocks or markets than in active and strong ones. The reason for this is that the window of opportunity is quite narrow and if everyone tries to get into it at the same time, only a few participants will get what they are looking for at the desired price. In the end, the demand to buy or sell will only be met by a much higher or lower price. Exhaustion Gaps If you see several continuation gaps in a trend, it means that the trend is being influenced by powerful forces. A second or third gap will also hint to a good technical analyst that the trend is stabilizing quickly. Therefore, there is a chance that the second or third continuation gap will be the last one. Accordingly, an exhaustion gap is the final stage of a rapid rise or fall in price, which will be the last of the continuation gaps. And there are cases when the exhaustion gap can develop after a long and extended trend. In the end we have a breakout gap, this is the beginning of the price movement. A continuation/measurement gap is usually in the middle of a new move. And the exhaustion gap is the final gap in a price movement. Therefore, exhaustion gaps are associated with rapid and prolonged price movement. They indicate that buyers gradually give up and stop believing in a new buying opportunity in the form of a pullback. In a downtrend, the opposite is true - sellers are losing at the top into a pullback higher for downside purchases. Intraday Gaps Generally, there are two types of opening gaps on intraday charts. The first one is formed after the price opens below the trading prices of the previous session. The second, much more widespread type of gap is formed exclusively on intraday charts, where the opening price of a new day jumps far away from the closing candle of the previous trading session. Intraday traders should avoid trades when the market opens sharply up or down. In the stock market, this happens due to extreme imbalances, where liquidity providers are forced to open down positions to meet the demand from open orders. Therefore, the ideal situation for them is when the price bounces slightly at the opening and then declines, allowing the liquidity providers to close all or part of the down positions. This process will be exactly the opposite if the price opens with a fall. Therefore, it is critical to observe what happens to the price after the opening range. As a rule, if after a gap up, the price goes further and opens a new trading range, it sets the sentiment for the whole market for at least a few hours, and sometimes even longer. Island reversals An island reversal is a small trading range that is formed at the end of a long price movement and is separated from the previous price by an exhaustion gap and a breakout gap. Remember that islands do not occur very often on charts, and when they do, they do not last long. However, they are a frequent guest at the end of an intermediate or even major trend and are formed as part of a price pattern. Such as the top/bottom of a head and shoulders (or inverse head and shoulders). In addition, islands are often a one-day phenomenon. Summary Gap on the chart that was formed due to excessive emotions in the market. Gaps are closed almost always. They also act as potential support and resistance zones. The high volume on the gap confirms its importance. A breakout gap is formed at the beginning of the price movement, continuation gaps in the middle of the movement, and exhaustion gaps at the end of the trend. An island reversal is a small price pattern on a 1-day chart, isolated from the main price by two gaps. They often indicate the end of an intermediate trend. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
7
EURUSD: Important Key Levels For Next Week 🇪🇺🇺🇸 Here is my latest structure analysis & important key levels to watch on EURUSD. Resistance 1: 1.0824 - 1.0848 area Resistance 2: 1.1016 - 1.1065 area Resistance 3: 1.1130 - 1.1150 area Support 1: 1.0729 - 1.0761 area Support 2: 1.0656 - 1.0670 area Support 3: 1.0495 - 1.0536 area Support 4: 1.0447 - 1.0468 area Consider these structures for pullback/breakout trading. ❤️Please, support my work with like, thank you!❤️
Long
by VasilyTrader
4
LIQUIDITY GRAB IN TRADINGLet's talk about liquidity grab and why the market moves against you the moment you open a trade. At Smart Money, liquidity grab is at the heart of the trading systems, because without it, there can't be a market. ✴️ Market Liquidity No matter how long you have been trading, at some point you must have questioned the depth in the market you are trading. In other words, its liquidity. Liquidity is the #1 element that makes a market work and competitive. For a market to be rich in liquidity, there must be broad participation from both buyers and sellers. That's why it makes sense for smart money or market makers to extract liquidity from the market. Liquidity hunting is a very common practice. It is nothing but the art of forcing losing players out of the market who are known to be weak long and short holders. ✴️ Liquidity Grab Often Occurs Against The Underlying Trend The bigger and brighter the liquidity zone, the more likely it is that Smart Money will target that particular zone, especially if it is located against the underlying trend. For example, in a bearish trend structure, you can often see clear liquidity picking up from below, against the trend, and reversing the price up. This is more common in very liquid markets with high trading volume (e.g. Forex, stock market). Why does it happen? Big players know that most of us use various indicators, moving averages, candlestick and chart patterns and other popular tools for our day trading, scalper trading. The big players can easily lure retail traders to enter the market at bad points and act against their positions. Many traders use significant levels to place stop losses and buy or sell stops for exits and entries respectively. It is these price levels that are used by smart money to provide their needs with the right liquidity. Institutional players cannot trade the same way as retail traders because in low liquidity price zones, they can up/down too much on large orders. So, they use high liquidity zones to place their own large orders in the market without having too much impact on the price. Liquidity grab is actively used mainly in the forex and cryptocurrency markets, as these markets are quite volatile and attract inexperienced traders. Besides, it is easy to use margin trading on them. Inexperienced (and even experienced) traders don't know, and those who do, don't believe that a market maker uses their stops to "make a market" on a regular basis. ✴️ More is Better The more liquidity that accumulates above a significant price level, the more likely that liquidity will be harvested. Where price consistently bounces off a demand (support) or resistance (supply) level several times, there is a huge concentration of stops by some players and orders in the other direction by others. It is important to focus on finding these spots, as you can find great entries after liquidity is collected. The more bounces, the better. The key factor for a major player is time. The more time passes, the more liquidity there will be. And if price cannot break through areas with multiple highs or lows, it is likely that liquidity around those price levels will increase over time. The more time that passes, the more liquidity will increase (unless major highs/lows are broken). Because of this factor, if you want to trade a liquidity seeking pattern, you should be aware of how time plays a role in consolidating orders above/below key liquidity zones. ✴️ Grabing Liquidity And Finding Stop Losses A liquidity grab is a liquidation event in which buyers' or sellers' stop losses are removed and traders who took a trade on a breakout are trapped. ✴️ Stop Loss Grab By A Major Player Stop loss finding and liquidity grab are similar concepts. Finding a stop loss is when price drops or rises behind the structural elements of the chart, or just goes to a round value. The smart money knows there aren't many stops and liquidity accordingly. These places are visible to almost all traders, everyone sees some "key" level, where the price hits the same place a hundred times. A big player realizes that half of the players will play on the rebound, putting their stops above or below the zone, while the other half will play on the breakout, jumping in after the breakout of this zone. As long as stop losses of the former and pending (buy/sell stops) or market orders of the latter are triggered, smart money will absorb all these orders. ✴️ Look For A Quick Price Reversal After A Breakdown The goal of the Smart Money trading system is very simple - retail traders, should avoid falling into the trap of the market maker and just follow the market maker. A liquidity grab should always be accompanied by a quick, strong reversal move after reaching a critical low/maximum essentially a quick turn in price back to structural support or resistance. How quickly the price will come back, we do not know, but the time of being outside the demand or supply zone will depend on the liquidity of the market itself and the volume of big players. ✴️ Monitor The Lowest Low And The Highest High Of The Structure When you do not see areas with the same lows or highs on the chart (consolidation), the main area to monitor is the lowest minimum or the highest maximum of the structure, i.e. where the highs or lows are connected by the trend line. ✴️ Maximum And Minimum Of The Market Structure Most traders' stop losses will be located exactly where the high or low of the trend is visible. When the price falls below/below the start of the move, then stops will be triggered and new orders will be opened in the hope that the trend has finally changed. Liquidity will also be under other lows, traders will also jump in there to update the nearby structure, but the very beginning of the move will be the key level. This can be attributed to the time frame or simply fractality. There is a difference between targeted and non-targeted liquidity, i.e. caused by a market maker or caused by general market action. On the left side we have targeted and on the right side we have untargeted. The difference between the two is that the targeted liquidity grab is initiated by smart money and the non-targeted one by general market action. In the former case the targeted attempt to take out stops will start from the middle of the previous move where there are not many stops and liquidity, in the latter case there is a move under general market action.
Education
by DeGRAM
1
DXY H8 - Short SignalDXY H8 DXY is currently maintaining its position at the key resistance level of 104, demonstrating resilience at this significant whole number price point. Despite hitting this zone yesterday, we observe a relatively subdued level of market activity. It appears that the markets are in a wait-and-see mode, anticipating a potential surge in trading volume driven by the release of crucial economic indicators, namely NFP, AE, and UE figures scheduled for tomorrow afternoon. Investors seem poised for a potential shift in market dynamics following the upcoming data release. That being said, we are anticipating more downside.
TVC:DXYShort
by Trade_Simple_FX
[Updates] USD upcoming movesHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. On a yearly basis USD has been in a wide range as you can see highlighted in daily chart. Right now either this is a correction to head down to 101, OR push back up to 106. Slightly bias for it to head down though Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
TVC:DXYShort
by Shadowing_The_Big_Boys
HOW TO RECOGNIZE A SCAM SIGNAL PROVIDER WEBSITEForex signal providers can be a good resource for traders looking to access the markets. However, not all signal providers are created equal, and some of them act as scammers, preying on unsuspecting novice traders. In this article, we will look at how to recognize a fraudulent signal provider's website and how not to fall victim to their machinations. The provider's website can be a great indicator of professionalism or, on the contrary, a desire to deceive you. 1. Bad website design One of the easiest ways to recognize a fraudulent signal provider website is to check its design. Fraudulent sites often have poor design with low-resolution images and poor grammar. You won't find any information about the provider itself on such sites. Non-working buttons or links are also a reason to be cautious. The sites of legal signal providers are usually well designed, have professional images and clear language. 2. Lack of contact information The websites of fraudulent signal providers often lack contact information or provide fake contact information. In many cases there are icons of almost all social networks, but when you click on the link there is nothing there. If there is even an account in social networks, they are mostly completely anonymous. On the other hand, legitimate signal providers should have a physical address, phone number and e-mail address on their website. Traders should check the contact information provided and make sure it is legitimate. 3. Unverified performance Fraudulent signal providers may provide unverified results or manipulate performance metrics to appear more profitable than they actually are. It can be easy to show fake trading results on a website. You should treat such results with caution. You should always check the accuracy of the performance results before using services from any signal provider. Legitimate signal providers should provide verified performance results from third-party sources. Our team has already checked a huge number of them and found out who is working correctly and who is falsifying the trading results. 4. Lack of social proof Social media is a staple of business these days. Social buttons can lead to the homepage of a website, to an empty profile, or to nowhere at all. Social media proof is a powerful tool that can help traders identify fake signal providers. The websites of fraudulent signal providers often have no reviews or they usually have fake reviews. There are always satisfied customers on their website and social media pages with no way to read the comments. Providers using a well-known consumer review system is usually a good sign. But you still should also check third-party review websites to see what other traders are saying about the provider. If there are a lot of short positive reviews you should also be wary as they may be fake. 5. Check the domain name Domain names registered for a short period of time, say a year, can be suspicious because scammers don't invest a lot of money in their sites. They purchase domain names with short expiration dates to minimize their costs. Websites that are newly created and have a short lifespan are more likely to be fraudulent. In conclusion, recognizing scam signal provider websites is crucial for traders to avoid falling victim to scammers and achieve their trading goals. By checking for poor website design, lack of contact information, unverified performance, lack of social proof, traders can identify legitimate signal providers and avoid being scammed. Be safe.
Education
by UnknownUnicorn15614419
4
NZDCHF - Breakout TradeI see an interesting reversal play to the upside on NZDCHF. This is a pure technicals play to trade the breakout on this week's session open. Price fails to push to new highs and signal the start of a potential downtrend. The massive selloff doesn't push price to new lows so we have a support formation. Moving average crossover is an early signal that near-term momentum is picking up to the upside. Upside breakout further supports... well, upside potential.
Long
by FinancialGamblR