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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
14
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
Top 6 Most Tradable Currency PairsForex traders have the luxury of more highly leveraged trading with lower margin requirements compared to traders in equity markets. But before you jump headfirst into the fast-paced world of forex, you'll want to know about the currency pairs that trade most often. Here's a look at six of the most traded currency pairs in forex: 1. EUR/USD: Trading the "Fiber" The most traded currency pair is the EUR/USD, most likely because of the global prominence of the economies of the European single market and the United States. It made up 22.7% of overall market share, as of the latest BIS survey. That's down from 24% market share in the previous 2019 survey. The high daily volume and liquidity of this pair ensure tight spreads for traders. The EUR/USD tends to have a negative correlation with the U.S. dollar and Swiss franc (USD/CHF) and a positive correlation with the British pound/U.S. dollar (GBP/USD). This is due to the positive correlation of the Euro, the British pound, and the Swiss franc. 2. USD/JPY: Trading the "Gopher" The next most actively traded pair was the USD/JPY, with high liquidity and a market share of 13.5%, slightly higher than its prior 13.2%.2 This pair has been sensitive to political sentiment between the United States and the Far East. It tends to be positively correlated to the USD/CHF and the U.S. dollar/Canadian dollar (USD/CAD) currency pairs. This relationship is due to the U.S. dollar being the base currency in all three pairs. USD/JPY also responds to changes made to interest rates by the Bank of Japan and the effect on the yen relative to the U.S. dollar. 3. GBP/USD: Trading the "Cable" Trading in the GBP/USD currency pair represented 9.5% of forex market share, a small decrease from the prior survey in 2019. Again, the popularity and volume of trading in this pair reflect the strength of the British and U.S. economies. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation with the EUR/USD. This is due to the positive correlation between the British pound sterling, the Swiss franc, and the Euro. 4. USD/CNY: Trading the Yuan The USD/CNY currency pair represents the relationship between the U.S. dollar and the Chinese renminbi, more commonly known as the yuan. Its market share grew to 6.6% from its previous 4.1% of market share in daily forex trades. The U.S.-China trade relationship has been a volatile one, providing USD/CNY traders with plenty of speculative trading opportunities. Those interested in the USD/CNY should maintain awareness of developments in that relationship, as they could affect the pricing of the pair. 5. USD/CAD: Trading the "Loonie" Market share for the USD/CAD currency pair increased to 5.5% from 4.4% in the previous survey three years ago. Interest rates in the U.S. and Canada will affect the price of this pair, reflecting the effects on the individual currencies. In addition, as oil is a major economic driver for Canada, its price will affect the price of Canadian currency. This in turn can have an impact on the currency pair. The USD/CAD tends to be negatively correlated with the AUD/USD, GBP/USD, and EUR/USD pairs due to the U.S. dollar being the quote currency in these other pairs. 6. AUD/USD: Trading the "Aussie" The AUD/USD currency pair captured 5.1% of forex market share, compared to its previous 5.4%. It tends to have a negative correlation with the USD/CAD, USD/CHF, and USD/JPY pairs due to the U.S. dollar being the base currency in these cases. The value of Australia's currency is closely tied to the role and value of its exports in its economy. Therefore, a downward movement in that value could affect the AUD/USD currency pair value, strengthening the dollar to the loonie. The relationship between the interest rates set by the respective central banks can affect the currency pair price, as well. Conclusion The list of the most actively traded currency pairs starts with the EUR/USD, which has the greatest trading volume. All six currency pairs offer the liquidity that investors who trade them need for profits. However, various factors such as trade relationships, changing interest rates, economic upheaval, and country disputes, including war, can affect individual currencies (and thus pairs). So make sure that you're up to date on such news and information before leaping into the forex market so you can choose the most viable currency pairs to trade.
Education
by tradingconmike
HOW TO TRADE RECTANGLESAs we already know, a price trend does not usually reverse instantly. As a rule, upward and downward trends are separated by periods when the price is in a trading range - a sideways trend. To take a simple analogy, imagine a huge ship. It's not easy to slow it down, it takes a lot of time. Now imagine how long it takes to turn around? It's the same with prices. Hence the simple rule that the longer the trend is, the more time it takes for it to reverse. In this case, the process of reversal, aka the horizontal phase of the market is of great importance. Because it is the horizontal range that separates an upward trend from a downward trend (or vice versa). But when the sideways range comes in the shifting phase, the battle between sellers and buyers is equal. Until, for one reason or another, the price does not go down under selling pressure. It is the breakout of the sideways range, with a new low being reached, that indicates to the trader that a trend reversal is taking place. In other words, when the price falls out of the trading range, it is a sell signal. When the bearish trend ends, the reversal process begins. The Reversal Rectangle And The Psychology Behind It When the rectangle is just starting to form, some news is released on the asset and uninformed market participants, who heard about it for the first time, jump in to buy. At this stage, there are positive forecasts everywhere and to go long seems to be the right choice. We remember that absolutely every trade has two participants: the seller and the buyer. At the same time sellers have absolutely different view on the market. They diligently bought much earlier, on rumors of positive news. And now the positive news has arrived, which means what? That's right, it's time to sell. And who is the best person to sell to? Uninformed participants. This is how the well-known principle "buy the rumors, sell the facts" looks to everyone. If price patterns like a rectangle are formed at the bottom of the market, they are called accumulative, and the process itself is called accumulation. Here the psychology is exactly the opposite. Sellers see that the price of the asset is falling and decide to sell when bad news and future forecasts become known to all investors. Potential buyers previously hesitated because they did not want to enter on such bad news. Simply put, the upper reversal rectangle is just a version of the signal that the series of rising highs and lows will reverse. And exactly the opposite is true for the bottom rectangle. You also need to realize that a reversal pattern needs something to reverse. In other words, there should be a clear trend in the opposite direction from the expected reversal before such a rectangle. Accordingly, there should be a strong upward trend up to the top rectangle, and a downward trend down to the bottom rectangle. How Is The Rectangle Formed? In the picture shown above, the upper and lower boundaries of the rectangle are formed by at least 3 touches between two horizontal trend lines. However, the rectangle could actually be made on the first two touches. Don't forget, any sideways trend is just an area where buyers and sellers are fighting. If the battle results in a rectangle with more than two touches, it means that the battle between the two sides has turned intense. It also means that the bearish characteristics of the rectangle in the example above are intensifying. The more touches the rectangle has, the more significant it is As you will notice we use the phrases "touches" and "approaches" this is important because on real charts rectangles will not be so perfect and beautiful. Approaching any trend line , including the horizontal one in a rectangle, is as important as actually touching it. So, if the price reaches the boundary and then reverses, it reinforces this support or resistance zone anyway. Significance Of Any Price Pattern The principles of price patterns are universal. They can be used on any timeframe, from 1-minute candles to monthly candles. However, it is the size and depth of the pattern that influence how significant it is in a particular timeframe. 1. Timeframe The larger the timeframe, the more significant the pattern is If a pattern is drawn on a monthly chart, it means that it is significantly more important than the one seen on an intraday chart. Suppose we are looking at a daily chart and we have noticed two patterns. The first one took 10 days to form, while the second one took 4 weeks. It is understandable that the significance of a 4-week epic battle between buyers and sellers is much higher than a 10-day clash. 2. Significance of price fluctuations The more price fluctuates within a pattern, the more important it is If the price stands still for a long time, traders and investors inevitably get used to buying at one price and selling at another. That is why the price moving beyond the usual prices changes the whole picture dramatically and represents an important event from the psychological point of view. 3. Significance of pattern depth The more in-depth the pattern, the greater its significance A breakout of a wide trading range is much more important than a breakout of a narrow trading range. The bigger (proportionally) the price fluctuations inside the pattern, the stronger the subsequent movement will be. If the pattern is formed by wide price movements, it means that the end of the pattern is likely to be marked by them as well. It is also important to note that if you get a very narrow rectangle, it means that the battle between buyers and sellers is very balanced. This is especially true if there is almost no trading activity. When the balance is broken for one reason or another, the price will often move faster and further than initially expected. How To Measure The Impact Of A Breakout To assess the impact of a breakout, simply measure the distance between the inner boundaries, and then project them downwards. In most cases, the price will go further than the potential target we have highlighted. In very strong movements it will go further by many percent. Moreover, these price range projections often become important support and resistance zones in themselves. Unfortunately, we cannot determine exactly where the next level will be after the price move, because technical analysis, again, does not allow us to accurately determine the duration of the price movement. However, we can well estimate the probability of whether this zone will be support or resistance. To put it plainly, this approach is a minimum expectation of the price movement. Cancellation Effect The minimum distance after a breakout can become a new zone where another accumulation or distribution begins. It usually takes a long period in the new range for the price to move back into the old range. That being said, if there was a breakout of, say, a 2-year rectangle and price reached the minimum target, even though it didn't go any further, it will usually need the same accumulation/distribution period as it did in the previous range. It is only then that price can move back up. False Breakout As we have already found out, a price breakout outside the price pattern, even if it is small, often indicates a trend reversal or its confirmation (if the price was in an accumulation/rectangle). However, it is not uncommon for price to show deceptive, movements, so we need to introduce clear rules to avoid mistakes. It is quite ironic that false breakouts actually confirm the significance of certain support or resistance zones. For example, on a daily chart, you see a confident breakout of a rectangle. But if the price does not hold above the broken line for more than one day, such a signal becomes suspicious. From a technical point of view, such a breakout can be much less significant, because if it does not hold, it means that the momentum is exhausted. If the price has uncertainly broken the level, in most cases it turns in the opposite direction to the breakout A hesitant breakout is often accompanied by further concentration of the price in the range until the price structure is technically prepared for a new breakout. When the price has confidently exited the pattern, this is an indication that the breakout has taken place. Indications of a false upside breakout: price is moving back into the range and breaking the previous lows, the rising trendline connecting the previous lows. Indications of a false downside breakout: price moves back into the range, breaks the previous high, a descending trendline connecting the previous highs. Keep Risk Management In Mind We remember that an upward breakout indicates a possible price rise. However, the same can be said about a pullback. If the price is back in the range, the probability of it reaching higher values decreases rapidly. Unfortunately, there are no quick and easy ways to determine this in any market conditions. Every market situation is different. This is the reason why you need to think everything through in advance, even before opening a trade. Otherwise, if the trade is already open, your emotions will come into play and affect the result. If you do not think over your risks in advance, if things go badly, you will be emotionally stressed and tense when you exit the trade. You will be influenced by some news, sharp price movements and in general anything except a sober, logical plan thought out in advance. Let's Summarize A rectangle is a trading range between two parallel trend lines. We measure the consequences of a breakout: the depth of the pattern is projected in the direction of the breakout. Indications of a false upward breakout: price moves back into the range and breaks the previous lows, the rising trendline connecting the previous lows. Indications of a false downside breakout: price moves back into the range, breaks the previous high, downward trend line connecting the previous highs. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
11
EURUSD: Important Key Levels to Watch Next Week 🇪🇺🇺🇸 Here are the important key levels to watch & trade on EURUSD next week. Resistance 1: 1.1017 - 1.1067 area Resistance 2: 1.1129 - 1.1150 area Support 1: 1.0825 - 1.0848 area Support 2: 1.0736 - 1.0775 area Support 3: 1.0655 - 1.0686 area Support 4: 1.0494 - 1.0535 area Support 5: 1.0447 - 1.0467 area Consider these structures for pullback/breakout trading next week. ❤️Please, support my work with like, thank you!❤️
Long
by VasilyTrader
8
LIQUIDITY TYPESThere are a huge number of trading strategies in trading, however, there are some that significantly prevail over all others. They are based on the concept of liquidity. Let's look at them in detail. ✴️ STRUCTURED LIQUIDITY Swing High and Swing Low are market highs and lows respectively, and Equal high and Equal low are equal market highs and lows respectively. BSL (Buy Side Liquidity) - liquidity at the highs SSL (Sell Side Liquidity) - liquidity at the lows Trend liquidity. Trend is the most popular trading model all over the world and has been used for decades. No matter what you read, no matter what you watch, everywhere there will be a system of trend detection and trading logic described. It is hard not to guess where market participants, who trade both along the trend and against it, will set stop-losses. ✴️ LIQUIDITY IN A BULLISH TREND Let's consider where liquidity appears behind the nearest maximum in an upward trend. Historically, the most traders set stops above/below some highs or lows. The first participants are sellers who started shorting the market and successfully caught the reversal. These traders set their stop losses behind the nearest maximum, i.e. over the top where the reversal started. Those with experience will start to partially close their orders or get rid of the whole position during the pullback. The second participants are those who trade the reversal, who do not believe in the continuation of the trend. They set their limit orders for a rebound from a significant zone (or jump on the market) and set their stop losses in the same place as the first ones - over the nearest maximum. It is understandable, if it goes higher, it means that the analysis was wrong. And here are the third participants who trade breakouts, who trend trade and enter the battle only when the price updates the maximum. There are two options to enter the trade: buy-stop or manual, where both types of orders are market orders. It's simple, if the price breaks through the resistance zone, then they jump just follow the trend. What have we found out? The first ones set stops behind the level, the second ones set their stops in the same place, the third ones work according to the market. All this crowd set tons of market orders behind the nearest maximum. All these market orders are liquidity. What do you think, if the big player has plans to mark down the price, will it go after this liquidity? ✴️ LIQUIDITY IN A BEARISH TREND Liquidity in a bearish trend is the same, but in reverse. ✴️ LIQUIDITY POOL Equal high (EQH) and Equal low (EQL) are equal market highs and lows, respectively. From technical analysis are support and resistance zones. When price approaches the previous high in a bull market, participants begin to both buy and sell. What happens if the price does not make the high in a continuation of the trend and bounces back? Those who doubted the rebound from this zone start jumping in by the market, putting their stops above this high. What do we have? The first stops were put by those who caught the reversal at the peak, the second ones are those who came in on the rebound, the third ones are those who are still waiting for the breakout and do not believe in the reversal, and the fourth ones are those who start jumping on the rebound. And there are also those who have not decided what to do. How to get them into the market? Simple is to show more rebound from this zone. The more touches of one significant zone are made, the more liquidity accumulates behind this zone. ✴️ TREND LIQUIDITY When the price rolls in one direction, clearly bouncing off the trend line visible to everyone, it does it for a reason. In addition to those who jump on the market structure, there are those who open trades from the trend line. Stops of all participants are distributed below the lows (if we consider the trend line upwards), someone puts thembelow the first, someone below the second, someone fears to put them farther away. More often than not, all this liquidity will be cleaned out in the near future, and very often it happens in one sharp move. Why? To show the effect of surprise and prevent most from jumping out of the trade. Essentially, it's liquidity both structural and trend-following. Since the market is fractal, this happens on all timeframes. You don't think that you have seen a trend and you need to urgently open a trade in the other direction. You need to realize that this liquidity can be collected once, collected by the same movement or not collected at all. It all depends on the market context of the higher timeframe. ✴️ DAILY LIQUIDITY It's simple here liquidity accumulated behind the previous day's high and low. ✴️ SESSION LIQUIDITY Similarly liquidity generated outside the minimums and maximums of the time sessions. Someone trading to collect session liquidity usually hunts for Asian session liquidity.
Education
by DeGRAM
1
GBPUSD D1 - Correction before LONGGBPUSD is elegantly responding to the strategic convergence of resistance and supply prices, seamlessly aligning with the significant milestone of 1.27. In recent trading sessions, these key whole numbers have exhibited remarkable efficacy across the pairs under our scrutiny. Our discerning gaze is now fixed on pinpointing the extent of selling pressure exhaustion, laying the groundwork for a poised transition into potential long positions. The ultimate objective is to set our sights on the forthcoming psychological price zone at 1.30, strategically gearing up for the journey ahead.
Long
by Trade_Simple_FX