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WHAT IS THE POWER OF THREE (PO3)?Lets look at the basic model of manipulation for the purpose of accumulation and distribution within separately taken time periods the power of three. Understanding this model is a fundamental skill for working through the methodology of trading disciplines such as swing, short-term and intraday trading. ✴️ WHAT IS THE POWER OF 3? The power of three is a candlestick/bar formation stages relevant for all timeframes, especially applied within daily and weekly trading ranges, where the opening price is considered to be the beginning of the period. For intraday trading, we only need to apply the weekly and daily powers of three, but we should also pay attention to the monthly candle, as the zones of interest on the higher timeframes increase the chances of success. ✴️ WEEKLY POWER OF 3 The logic of the weekly PO3 is useful for constructing a trading bias. Bullish Bias. Expect a move below the opening price early in the week, which would be a weekly manipulation (Judos Swing). The low of the week is usually formed between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible. Bearish Bias. We expect a move above the opening price at the beginning of the week, which will be a weekly manipulation (Judos Swing). The high of the week is usually formed in the interval between Monday and Wednesday, most often on Tuesday or Wednesday. If the price moves back above the opening level after leaving it, a reversal scenario is possible. ✴️ DAILY POWER OF 3 The opening price level is used to determine a favorable opening zone to take a trade. Manipulation (Judas Swing). We wait for the completion of the liquidity grab before making a decision. Expansion is a price action that traders capitalize on. Distribution is an area in which we take profits.
Education
by DeGRAM
1
GBPUSD: Waiting For Confirmation 🇬🇧🇺🇸 Update for GBPUSD. After a breakout of multiple key daily resistances, we see a correctional movement. The price is steadily falling within a bullish flag pattern on a 4H time frame. We see a test of a significant demand zone now. I am waiting for a bullish breakout of its resistance - a 4H candle close above. It will be a strong bullish signal. A bullish continuation will be expected then. ❤️Please, support my work with like, thank you!❤️
Long
by VasilyTrader
1
Usd could get some bounce,retracementHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. USD broke lower from its recent range last week, hitting a potential demand zone at 102.50 with doji on daily. expecting some pullback before resumption of downtrend... Do check out my stream video for the week to have more explanation in place. 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
WHAT ARE FRACTALS IN FOREX TRADING?👋 Hello forex traders! It is unlikely that you will find a single beginner in the Forex market who would not know what a fractal is. And even outside the market, many people have heard about this concept. Fractals have been known for almost a century, are well studied and have numerous applications in life. Fractals have been used on financial markets for quite a long time - even classic trading strategies contain references to them. For example, the famous trading strategy of Bill Williams Profitunity uses fractals as one of the elements of the system. To begin studying this method of analysis, we need to define what a Fractal is. Here is the most complete and understandable definition: "A fractal is a set that has the property of self-similarity. An object that exactly or approximately coincides with a part of itself, i.e. the whole has the same shape as it or more parts. In our familiar markets, this concept is slightly modified, but the concept remains the same." Transferring this definition to price charts, we can get approximately the following: "A fractal is a constantly repeating pattern that is not included in any list of common patterns. In other words, if you watch the chart of a certain instrument for a very long time, you will start to notice the fact that its movements in a certain period of time are constantly repeating. This pattern was discovered by the well-known Bill Williams. This trader claimed that the whole market is chaotic and only sometimes it changes into a stable and bright trend." Why Fractal Analysis Is Necessary 📊 In fact, the trader himself determines the necessity of this kind of analysis. If you have a perfectly working and profitable strategy, then probably this post is not for you, but if you have some problems with finding a profitable trading strategy, then you can read to the end so that this post will give you an idea. I have not been able to find any clear information as to why it has been noticed only now, but I personally believe that it is due to the fact that more and more traders started to spend a long time at the monitor and notice some patterns and features of each currency pair. Translating all of the above into simple language, fractal analysis is needed to find the biggest patterns in the market and apply on. “Once is a fluke, twice is a coincidence, and three times is a pattern”. How To Apply In Trading 📈📉 Now that we have sufficiently understood the general concepts of Fractal, it is time to understand how this technique is applied in the financial markets and learn how to trade using it. Let's start with the fact that fractal structures were originally found with the help of machine running of charts and finding certain patterns. That is why it may be difficult to find fractals with your own eye. But we are glad that we live in the 21st century and all developed platforms have such indicators for a long time. Immediately after applying this indicator, the chart will look like this: Fractal Start A fractal start is a situation in which after a fractal in one direction, a fractal in the opposite direction is formed. Fractal Signal After the fractal start, on its reverse side, the appearance of the fractal signal takes place Fractal Stop The fractal stop is located behind the farthest of the two extreme fractals. Using this technique allows you to minimize the number of stop-losses. The Practical Use Of Fractals 💡 1. Method of breakouts, often indicating the continuation of the existing trend. To enter a trade, a pending stop order is set at the breakout point of the nearest fractal to the price. 2. It is not always possible to determine how accurately these levels were built. Bill Williams' fractals are a tool to effectively identify significant support and resistance levels. 3. Fractals can also be used as a useful method of identifying reference points when plotting trend lines. These anchor points can serve as important indicators of market behavior. 4. Fractals can help traders identify the prevailing trend in the market. Identifying a trend is a simple process if you take into account the definition of an uptrend as a sequence of increasing local highs and lows, while a downtrend is characterized by a series of decreasing extremes. 5. If the price does not overcome the previous fractal, it may indicate the emergence of a sideways movement. To confirm this signal, it is necessary to wait for the formation of the opposite fractal. Advantages And Disadvantages Of Fractal Analysis ↕️ Like other techniques, fractal analysis has both disadvantages and advantages. For its effective use it is necessary to be able to analyze several timeframes and synthesize the overall picture. Market entry should be determined by the trend on the higher timeframe, because the Bill Williams system is trending. In conclusion, the fractals provide numerous potential entry points on the chart, catering to different preferences and often appearing quite reliable. However, it is essential to recognize that this method of analysis is not simple or unambiguous. Consequently, it is not recommended for beginner traders to use it as the sole factor in decision-making. The Fractal indicator's effectiveness is dependent on its use in conjunction with other indicators on time intervals from an hour and above. Strategies that incorporate the Fractals indicator must analyze several timeframes. Despite these considerations, the indicator should not be dismissed, as it can provide valuable support when used in combined strategies. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
11
THE KOG REPORT - NFP 08/03/24 The KOG REPORT – NFP This is our view for NFP, please do your own research and analysis to make an informed decision on the markets. It is not recommended you try to trade the event if you have less than 6 months trading experience and have a trusted risk strategy in place. The markets are extremely volatile, and these events can cause aggressive swings in price. For today’s NFP we’re going to keep the chart and idea clean and only look for extreme levels. Our daily bias and weekly bias targets are complete, yesterday we posted a higher level for our team and that was also completed this morning. So now, we have the following levels in mind: Resistance levels: 2173-5 and above that 2180-85. These levels we feel if price attacks could give us a reaction in price if rejected and not broken. For that reason, a test on the level is potentially available but we wouldn’t really want to long up into these levels unless we get a very deep pullback! Support levels: 2150-47 unless broken can take us up into those levels before a reaction, however, with the volume that enters the markets, it can make this a difficult trade. Hence, the levels below 2140-44 can then bring us back into the order region to then start a small range. Below that have 2130, which if attacked is our ideal level for a tap and bounce, but only for the scalp. Price breaks above the higher resistance, we're not interested and will come back next week. We’re very likely not going to be trading this event, rather watching and letting the price settle before we decide on our move. It can be volatile and extreme and we need you to understand, if they break above that 2085 level they’re going to complete the structure without any pullbacks. New traders and those less experienced, please stay out of the markets, money in your account is a position in the markets! Please do support us by hitting the like button, leaving a comment, and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated. As always, trade safe. KOG
OANDA:XAUUSD
by KnightsofGold
7
COST OF BREAKING TRADING RULESJesse Livermore is one of the most famous and successful traders of the last century. During his lifetime he was nicknamed "The Great Bear" because he actively sold stock assets during the Great Depression and managed to make a multimillion-dollar fortune. Wikipedia mentions that Livermore made and lost significant sums on the stock market more than once during his lifetime. He was distinguished from his contemporaries by his aggressive manner of intraday trading. Today we want to tell you about Livermore's life and his own rules of trading on financial markets. ✴️ THE BEGINNING OF HIS CAREER The ascent of the trading legend began with the stock exchange offices in Boston. Livermore did not take part in trading, but only recorded constantly updated asset prices on a special board. It is important to realize that at the beginning of the 20th century, prices on stock exchanges were transmitted by telegraph. Having a good capacity for exact knowledge and impeccable memory for numbers, Livermore was the first to discover patterns in trend reversal models. Contemporaries note that Livermore was not sociable. All the young trader's attention was focused on price changes of liquid assets. It is noteworthy that he used only numerical sequences to make trading decisions, especially not being interested in the reasons for rising or falling prices. Having gained a little experience in exchange offices in Boston, Livermore began to keep a notebook in which he recorded all the identified patterns in the dynamics of asset pricing. Biographical literature notes that at that time he was not interested in trades with large sums. The young trader was fascinated by the patterns in the behavior of prices, confirmations of which he was constantly looking for in practice. Some time later, his friend offered to buy a share of the company "Burlington". Having checked his records and convinced that the price would rise in the near future, Livermore invested 5$ in the mentioned brand, earning more than 3$ in a couple of days. This was Livermore's first and highly successful trade. ✴️ WALL STREET CAREER At the age of 21, the talented trader moved to New York with the aim of conquering the stock market, having $2500 earned in small stock exchange offices in Boston. Livermore could not open an account with any of these companies because his name was on the rumor. Even then, he claimed to close a trade with a profit 7 times out of 10. No small brokerage firm wanted him among their clients, as he could easily bankrupt it. Eventually he was able to open an account on Wall Street, investing all the money he had into the trade. To everyone's surprise, it ended with a complete loss of deposit. The reason is as follows: Livermore was a hardened proponent of short-term trading, capitalizing on minor price fluctuations. Information about the actual value of assets was transmitted by liquidity providers to Wall Street with significant delays, which led to inaccurate short-term trading. While in Boston, small firms used telephone tape orders and processed customer orders almost instantaneously, this was impossible in the real market conditions of the time. The manager of a Wall Street brokerage house was kind to the young trader and saw potential in him. When Livermore lost his capital due to technical reasons, he lent him $500 to disperse his deposit in illegal brokerage houses. Livermore then heads to St. Louis, where he makes $2,800 in a matter of days. The company removes him from the number of clients, and also notifies all brokerage houses in the vicinity about the appearance of an overly successful participant of trades. Back in New York, Livermore managed to earn another $5,000 while trading at one of the illegal brokerage houses in New York, and then reopened an account on Wall Street. Livermore managed to make good money on the global growth of the US stock market in 1901. On his account was the sum of 50 000$. However, later, against the background of high volatility, Livermore lost all his money and was forced to go to his hometown to earn money. After some time, Livermore again started to ruin brokerage houses in Boston, acting through his friends. He managed to save the necessary amount for a third return to New York and open another account on Wall Street. ✴️ THE 1907 MARKET CRASH AND THE GREAT DEPRESSION In 1906 Livermore foresaw a global decline in the prices of railroad company stocks under the influence of natural disasters. In 1907, there was indeed a decline in prices, but not as rapid as the trader saw it. Then big banks managed to support the value of shares of industrial companies. Trying to sell in a growing market, Livermore again lost almost all of his fortune. He decided to stop trading and wait for a signal to enter the sell-off with all his remaining funds. Just as Livermore had anticipated, the railroad companies were going through a tough time and the stock rushed downward. The economic situation in the country was so critical that the companies were ready to sell their shares to investors in installments with the participation of banks, but the latter were not sure that investors would be able to fulfill their financial obligations in the near future. As a result, in 1907 there was a global collapse of the stock market in the U.S., and Livermore managed to earn 250,000$. In October of the same year, the panic of businesses reached its peak and banks started sending their representatives to Livermore asking him to stop selling stocks as it could lead to global economic problems in the US. Under this influence Livermore closed short positions, opening all capital to buy at the point of trend reversal. This trade brought him 3,000,000$ net profit in 9 months. During the period from 1907 to 1929, trading volumes on the U.S. stock market increased significantly. Almost every resident of the country invested in stocks. The reason for the growth of financial literacy of the population and popularity of the stock market was the large-scale advertising campaigns of private brokerage firms. Nevertheless, in 1929 there was a large-scale market crash. The reason for the downtrend, among other things, was a multimillion sell trade, which was conducted by dozens of brokers under the leadership of Livermore. This trade brought him more than 100,000,000$ of profit, which by today's standards can be compared to a billion. ✴️ JESSE LIVERMORE'S TRADING RULES Today the following Livermore's rules of capital management in financial markets may sound cliché, but at the beginning of the last century every trader was familiar with them. Let us pay attention to them too: 1. Don't average losses. It is important to realize that the principles of pricing liquid assets have changed significantly since the beginning of the last century. 2. Do not exceed risk tolerance. Livermore used to set the maximum risk per trade at about 10% of capital. 3. There is no need to quickly secure in profits if the trend is moving in your direction. The reason for closing an order can only be objective factors that indicate a correction or reversal. 4. Withdraw 50% of profits after each trade. Livermore had an unwavering rule to withdraw part of the profit. The investor himself explained it by the unpredictability of the market. 5. One should enter the market only when there are appropriate signals. ✴️ CONCLUSION Perhaps it is worth mentioning that in 1930, Livermore broke his own rule by investing all his funds in one trade, after which he became bankrupt. In those years, he no longer had the strength to start over, and he decided to write a book on stock trading with the simple title "How to Trade Stocks?" He hoped that the work would become a bestseller, which would give him recognition and wealth. However, this did not happen, and in 1940, Livermore shot himself in one of the hotels in New York. The official reason for the shooting, if Wikipedia is to be believed, was depression. Livermore was a truly great trader who, during his lifetime, had a significant impact on both the decline and growth of the U.S. economy.
Education
by DeGRAM
3
Forex preview: NFP, Powell’s testimony, and BoC and ECB decisionThe key events for the week are concentrated mainly between Wednesday and Friday. In the United States, the focus will be on January jobs data and speeches by Federal Reserve officials. The most important of the bunch is of course Federal Reserve Chair Powell two-day testimony in Congress on monetary policy starting Wednesday. Traders will look for cues regarding the future trajectory of monetary policy, with special attention paid to the Q&A session following Powell's opening remarks. Friday will bring the release of Non-Farm Payroll (NFP) data, with expectations of a 188,000 job increase in February. This would be a significant drop from the 353,000 jobs added in January. JOLTs job openings are anticipated to fall to 8.9 million in January after two consecutive months of increases (Wednesday). In Canada, the Bank of Canada is anticipated to maintain interest rates unchanged for the fifth consecutive time on Thursday. In Europe, the European Central Bank (ECB) is expected to keep rates unchanged on Thursday. ECB members continue to advocate for a patient stance, with the consensus being to wait for Q1 2024 wage data before considering a rate cut in June, aligning with current market expectations. In the United Kingdom, all eyes will be on Finance Minister Jeremy Hunt's pre-election budget on Wednesday, which is expected to include tax cuts, which according to the guardian “... runs the risk of getting an adverse reaction from the markets which would snuff out what is still a lukewarm and tentative economic recovery.”
by BlackBull_Markets
RUMINATION IN TRADING👋 Hello, Forex traders! Let's talk about rumination in trading. What is rumination? Rumination in trading is the process of going over previous trades and market situations in your head. Trying to understand what went wrong and to think of a better way of doing things. In "moderate doses" it is analysis. But when a person thinks about it all the time and in a negative way, analysis turns into mania and "self-beating" for mistakes made. Differences Between Rumination and Analysis ❓ Analysis is an essential part of learning to trade. It involves fixing all actions in a table editor, on paper, or uploading history from the platform. Traders analyze their best and worst moments, identify mistakes, changes in risk level, and successful trades. They also look for ways to optimize their trading system. Rumination, on the other hand, is obsessive thinking with an emphasis on the negative. It involves constant "chewing" of negative moments without searching for a solution. A stock or crypto you bought went down sharply, and all your thoughts are occupied with why it happened and how to fix it. Rumination in trading is the habit of endlessly worrying about and analyzing your trades, mistakes, losses or missed opportunities. It can lead to negative thinking, pessimism, depression, anxiety, impulsiveness and inactivity. Rumination prevents a trader from focusing on the present and the future and following his trading strategy and discipline. Rumination, instead of analyzing, improving and solving a problem, only makes the situation worse. Causes of Rumination in Trading 📋 • Lack of confidence. A trader who is insecure is constantly trying to look for mistakes in his previous trades to justify his failures. • Fear of failure. A trader who is afraid of losing money is constantly running through possible failure scenarios in his head to try to avoid them. • Striving for perfection. A trader who strives for perfection is constantly trying to find ways to improve his or her results, even if they are already quite consistent with expectations. Consequences of Rumination in Trading ⭕️ • Decreased trading efficiency. A trader who is constantly replaying past trades in his head cannot focus on the present and make the right decisions. • Loss of money. Rumination can lead to impulsive trading decisions that can lead to losses. • Mental Distress. Constantly running negative thoughts through your head can lead to stress, anxiety, and even depression. How To Avoid Rumination In Trading ✅ 1. Set limits on the time you spend analyzing past trades. 2. Focus on what you can control. 3. Develop positive thinking and self-esteem. 4. Determine your trading goals, rules, risks, and plans in advance and stick to them. 5. Keep a trading diary where you record your trades, results, mistakes, lessons learned, and emotions. 6. Limit the time spent analyzing charts, news, and forums. 7. Take time away from trading, pursue other interests, hobbies, friends, and family. 8. Find ways to relax and de-stress: meditation, sports, music, reading, etc. 9. Mentally prepare yourself for the worst-case scenario before entering a trade. 10. Every night before you go to bed, think of three good things that happened to you during the day. Example ✍️ You buy EURUSD with the expectation of growth. But there is a downside risk. Prepare yourself mentally for the fact that there are all the prerequisites for the fall of the pair, and you are ready to accept losses. If the price has reached the stop loss, take it with the thought "It is good that it is so, otherwise you could have lost even more" and go to rest. Ask yourself: what is the worst that can happen and how can I deal with it? In conclusion , rumination in trading can be detrimental to a trader's success. By understanding the differences between rumination and analysis, identifying causes, and implementing strategies to avoid rumination, we can improve our mental well-being and trading performance. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
16